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cute fuzzy bunny · 11-23-2007, 03:27 PM

Aside from being illiquid, inconvenient, limited to local market pricing and the potential for loss or theft, I guess it'd be a great idea.

ash · 11-23-2007, 03:34 PM

Quote:

Originally Posted by cute fuzzy bunny

Aside from being illiquid, inconvenient, limited to local market pricing and the potential for loss or theft, I guess it'd be a great idea.

Whether one should invest in gold is another question, and a good one, about which you raise good points.

I was only offering an opinion that if one is going to invest in gold, why not do so anonymously and privately.

cute fuzzy bunny · 11-23-2007, 03:51 PM

My comments had to do with buying, holding and selling physical gold, not anything having to do with whether to invest in it or not.

ash · 11-23-2007, 04:04 PM

Quote:

Originally Posted by cute fuzzy bunny

My comments had to do with buying, holding and selling physical gold, not anything having to do with whether to invest in it or not.

Oh, I see, I misunderstood. Okay, my thoughts:

"illiquid, inconvenient" - While gold is highly liquid in one sense, true, you can't trade actual gold privately from your computer in your PJs.

"limited to local market pricing" - Perhaps. But If you're reasonably close to a major metropolitan center, I'd wager that there's enough competition to get a fair price.

"the potential for loss or theft" - Anything can be stolen. What's more safe, having gold locked away in a safety deposit box, or being the registered owner of some gold that someone else is holding for you? I don't know the answer to that question, but it's a valid question.

cute fuzzy bunny · 11-23-2007, 04:08 PM

Or, as in the case of my FIL as mentioned above (who lives in the heart of Gold Country), he cant sell it to anyone at all at any reasonable price. The dealers dont wish to buy any more.

Thats pretty darn illiquid and inconvenient.

Also tells me that people who are in the business are expecting a price drop.

ash · 11-23-2007, 04:22 PM

Quote:

Originally Posted by cute fuzzy bunny

Or, as in the case of my FIL as mentioned above (who lives in the heart of Gold Country), he cant sell it to anyone at all at any reasonable price.

Well, how could you expect to sell gold in gold country!? You can't swing a dead cat there without hitting a fifty pound nugget of gold.

cute fuzzy bunny · 11-23-2007, 05:12 PM

Yep, you can actually pan for the stuff after a heavy rain and with a good days work might come up with a fleck or two. We had a huge mudslide after some early and heavy rains a couple of years back and the local stores were selling out of the pans and kits. A lot of guys came up with some nice chunks.

Point was, there must be a couple of dozen coin and metal shops downtown from my FIL's house. It sure isnt NYC or LA, but these guys do a serious business just in tourist transactions. Its a pretty good volume business and theres plenty of competition. He'd like to sell the coins right now because he feels the price is good and he could use the cash to do some work on his RV. But he cant.

ash · 11-23-2007, 05:35 PM

Quote:

Originally Posted by cute fuzzy bunny

Point was, there must be a couple of dozen coin and metal shops downtown from my FIL's house. It sure isnt NYC or LA, but these guys do a serious business just in tourist transactions. Its a pretty good volume business and theres plenty of competition. He'd like to sell the coins right now because he feels the price is good and he could use the cash to do some work on his RV. But he cant.

That's surprising. When you say he can't sell it, you mean they're offering too low of a price? Kitco is buying at $819 right now, which is within a few bucks of the spot price.

When you say downtown, are you talking about Sac? Have you tried Marconi Coin in Carmichael, that's not too far from gold country (30-45 minutes?).

cute fuzzy bunny · 11-23-2007, 05:39 PM

Yep, around that area. Sac to Grass Valley.

He went into some local shops and called a bunch more. They flat out told him they have all the gold they want to have in inventory at this time, and dont expect to buy anymore any time soon. I'm sure if he was willing to drop his pants they might take it.

cashflo2u2 · 11-28-2007, 07:11 PM

I have a friend who owns his own printing business. One of the applications generates silver as a by product. He reclaims it somehow and has these large heavy silver bars in his office. They have been accumulating and kicking around his office for years and now they are worth quite a bit of money. He wants to keep them though, in case of emergency. Deep down I think he has bunker type survivalist mentality at heart.

Khan · 11-28-2007, 07:52 PM

Quote:

Originally Posted by cashflo2u2

I have a friend who owns his own printing business. One of the applications generates silver as a by product. He reclaims it somehow and has these large heavy silver bars in his office. They have been accumulating and kicking around his office for years and now they are worth quite a bit of money. He wants to keep them though, in case of emergency. Deep down I think he has bunker type survivalist mentality at heart.

A K and C survivalist?
(Kalashnikov and concertina wire)

Jeb-NY · 11-29-2007, 09:54 AM

Quote:

Originally Posted by cashflo2u2

I have a friend who owns his own printing business. One of the applications generates silver as a by product. He reclaims it somehow and has these large heavy silver bars in his office. They have been accumulating and kicking around his office for years and now they are worth quite a bit of money. He wants to keep them though, in case of emergency. Deep down I think he has bunker type survivalist mentality at heart.

Interesting turn in the reason to keep gold or silver. Just a few days ago a friend asked what I thought of the idea of keeping a bar of gold or silver in the safe for a major upheaval situation. He thought he could shave off a little at a time to buy necessities. I told him I didn't think it would work to well. I suggested a small bag of diamonds of different sizes you only expose what you are willing to trade. With more thought a well stocked gun cabinet would probably be more important.

Jeb

FinanceDude · 11-29-2007, 10:18 AM

Quote:

Originally Posted by Jeb-NY

well. I suggested a small bag of diamonds of different sizes you only expose what you are willing to trade. With more thought a well stocked gun cabinet would probably be more important.

If you have guns, you can get all the gold, silver, or diamonds you need..........

calmloki · 11-29-2007, 09:31 PM

Quote:

Originally Posted by FinanceDude

If you have guns, you can get all the gold, silver, or diamonds you need..........

Diversify: Lawyers, guns, and money.

Martha · 11-30-2007, 10:53 AM

Quote:

Originally Posted by calmloki

Diversify: Lawyers, guns, and money.

Well I am fully diversified. Though overweight in lawyer.

cute fuzzy bunny · 11-30-2007, 10:59 AM

Not gonna touch it.

ziggy29 · 11-30-2007, 11:01 AM

Gold is "financial apocalypse insurance". I think it's reasonable to have 3-5% of ones assets in it (for insurance and "diversification" purposes against the dollar) but more than that is probably a loser unless the worst case geopolitical and economic fears come to pass.