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Why I think old gold coins are a decent investment.
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<p>[QUOTE="KSorbo, post: 1998872, member: 56370"]Okay, so if I would have invested in gold at $1800 and now the price is $1200, are my assets still protected? That's almost as big of a drop as we saw in the stock market during the last recession. In all actuality both gold and silver are very volatile commodities, and that is why I am afraid to tie up a large percentage of assets in either one of them. </p><p><br /></p><p>People like to tout precious metals as the ultimate safe investment because "they will never be worth nothing". I agree that their value will never fall to zero, but like any investment, if you don't time the market right they can be worth a whole lot less than what you paid for them. They seem cheap now but I am still afraid to invest because by historical standards they still have a long ways to fall.</p><p><br /></p><p>I agree that even common pre-1933 gold coins are somewhat less volatile because of their numismatic premium, but their value still tracks with the spot price. I'd rather stick with a good mutual fund and buy coins as a hobby.[/QUOTE]</p><p><br /></p>
[QUOTE="KSorbo, post: 1998872, member: 56370"]Okay, so if I would have invested in gold at $1800 and now the price is $1200, are my assets still protected? That's almost as big of a drop as we saw in the stock market during the last recession. In all actuality both gold and silver are very volatile commodities, and that is why I am afraid to tie up a large percentage of assets in either one of them. People like to tout precious metals as the ultimate safe investment because "they will never be worth nothing". I agree that their value will never fall to zero, but like any investment, if you don't time the market right they can be worth a whole lot less than what you paid for them. They seem cheap now but I am still afraid to invest because by historical standards they still have a long ways to fall. I agree that even common pre-1933 gold coins are somewhat less volatile because of their numismatic premium, but their value still tracks with the spot price. I'd rather stick with a good mutual fund and buy coins as a hobby.[/QUOTE]
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