opinions on selling gold bullion now

Discussion in 'Bullion Investing' started by silver surfer, Sep 19, 2005.

  1. silver surfer

    silver surfer Senior Member

    In your case, I would not "blow" it on car repairs - do that with current income. You've had that money for 5 years - would be too bad to lose it on a repair that will amount to nothing once the car is gone for good.

    Just my opinion.[/QUOTE]I agree
     
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  3. ranchhand

    ranchhand Coin Hoarder

    I just buy gold in the form of foreign gold coins. they are pretty to look at.
     
  4. ranchhand

    ranchhand Coin Hoarder

    this is somewhat off-topic, but i agree. I use my vehicles untill the repair costs go to high ( two $500 repairs in one year tip me off )

    I then buy a new vehicle for the wife and kids and drive the old one untill it falls apart. keep it together with bailing wire and duct tape.

    sounds odd but i end up saving lots of money. when the vehicle gives up the ghost i donate it.

    right now my sweet ride is a 1997 dodge 1500 with 170,000+ miles on it. I actually "retired" it from mission critical use not long ago because it was not fit for driving a baby around ( no air conditioning, and i am in texas )

    the thing has been pulling twice what it should for years and has had NO major problems! its a miracle! must have gotten one of the best ones off the line. if it hits 200k i am going to send a picture of it in to dodge ;)

    replaced it with a dodge 2500 turbo diesel i get to drive on the weekends ;)

    its also fun having a huge truck and an excuse for driving it, we haul cattle with it. last i checked they don't make a hybrid that can haul 16,000+ pounds.

    sorry for the off-topic...
     
  5. JBK

    JBK Coin Collector

    I think it illustartes the point,though. You could have sold your coin collection ten times oevr to keep it in mint condition, but you did not, you made other plans, and you still have a car AND your coins.
     
  6. Andy

    Andy Coin Collector

    If you do not need the money I would say keep the gold. I always thought that gold should be kept in case of a financial collaspe of our economy and if that never happens more the better.
     
  7. BigsWick

    BigsWick Rat Powered

    I bought a few Double Eagles when they could be readily had for as little as $450 certified in VF-EF and $525 or so in MS. I've watched the asking prices of these coins rise with the corresponding increase in the value of gold. At today's trends I think I could make about $40-$60 per coin if I sold now. The problem is numbers. I couldn't afford to buy dozens of coins, so the actual profit I'd realize would be comparatively small. So, I'm going to hold them, maybe long term, and hope that the rise in gold prices continues.
     
  8. Dazman

    Dazman Junior Member

    The key idea in most of these posts is relative value be it aesthetic or real. Asthetic value is a tough call. Some people think a Van Gough is the most beautiful thing on earth and would pay millions. Others think it's crap and wouldn't pay a penny. The poster says he doesn't hold them with any real aesthetic pleasure so we must discount that for these purposes.

    Real value is more easily determined. In this case gold has a real value as set by market demand. The most immediate and reliable valuation type available. In all demand curves there is a resistance point or a price-point over which the price will not easily go higher. The current high end resistance point is at or around $500 based on demand curve analysis. So the current price is close to the resitance point. One point to consider when approaching a resistance point is that the price of the commodity (yes gold is a commodity even though it does not get consumed in the food sense but does in the market sense) can fall drastically if it fails to "puncture" the resitance point.

    All that said to get to this point in the decsion making process; Is the profit made high enough to satisfy the desired profit motive or does the seller think that he should get more? This determination should be non emotional. Say as in I can make a 30% profit by selling this car or keep from losing alot of money by not selling it and the motor blowing up rendering it virtually useless.

    The decision made could be any of the three:

    1. Hold - Not enough profit to be made and I think it will go higher (short term or long term)
    2. Sell - Profit is good enough or better than good enough and there are better investments to be made. Or I think the price is going to go down and will not have a chance to realise this particular profit factor in the short term.
    3. Hedge - Partial sell to realise some of the profit to be had and hold the remainder and decide what to do based on future market conditions.

    Only the seller can make this value based judgement based on his market expectations, level of risk he would like to assume and current liquidity requirements.

    Whew, didn't think this lesson in Market Based Economics 101 would go on this long lol.

    Daz
     
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