Gold as an investment

[Sunset]

+1

And no matter what, DO NOT buy gold if you are not going to have it in your own bare hands. The only reason I hold a small amount of gold is as a hedge to a total collapse of the financial markets and the economy as we know it. Gold (and some other metal objects) is the only thing you can "have" with you. Repeat after me: Gold is NOT an investment.

If there is a total collapse, I'd rather have all the stuff prepper's talk about having, like food and booze and other things.. All very valuable to trade or can use it if not trading.

I remember reading some big embezzlement happening where people bought gold that was stored by the investment company, but over time a lot of the gold disappeared and wasn't in the vaults.. So I'd want it in my hands (which invites theft).

 

[yakers]

Is COSTCO a reasonable source for gold?

 

[Jerry1]

Is COSTCO a reasonable source for gold?

They sell it only occasionally and I’ve only seen 1oz bars. I’d say that it’s a good price, but not a great source.

The price is good. I compare it to APMEX. It’s as good as their higher volume price and includes shipping. It also goes toward your rewards points. Accordingly, you can get at to your house for right around spot - so they’re basically discounting it by the premium and shipping - when they have it.

They have some silver American Eagles for sale right now. The price is fair. Not sure how much more into precious metals they’re going to get.

 

[erkevin]

Is COSTCO a reasonable source for gold?

I purchased two Canadian Maple Leafs from Costco in the past month. The price was basically spot, no tax, free shipping plus the 2% Costco rebate. Now, however, the price has crept up and it is not due to the spot price of gold increasing.

 

[Jerry1]

I purchased two Canadian Maple Leafs from Costco in the past month. The price was basically spot, no tax, free shipping plus the 2% Costco rebate. Now, however, the price has crept up and it is not due to the spot price of gold increasing.

I didn’t see the maple leafs. Were they online or in the store. I’d grab them in a minute.

 

[erkevin]

They have been online periodically. I believe that they had them yesterday. There are a number of Reddits that have been tracking the gold and silver when it goes live. https://www.reddit.com/r/CostcoPM/

 

[Jerry1]

They have been online periodically. I believe that they had them yesterday. There are a number of Reddits that have been tracking the gold and silver when it goes live. https://www.reddit.com/r/CostcoPM/

Thanks.

 

[copyright1997reloaded]

There are mostly negative opinions about gold, silver, other PM's here on er.org. I keep some as a hedge with the understanding that there is a spread between purchase price and what I can get for it, and that it pays no interest.

To each their own in terms of investing, and I'm at a place where even if gold does nothing or goes down, it won't be the end of the world for me.

In terms of net worth, I value gold and silver at spot (on my spreadsheet). I figure that is close enough, and makes it fairly easy to update the values (I do so weekly by getting the Friday evening spot (bid) prices.

They are but one part of my multl-legged retirement/survival/wealth transfer stool. I also keep a decent supply of food, water, etc. for which I hope I never need to use.

 

[indiajust]

I have always considered gold ETF's as insurance. It drags returns down slightly.

But having insurance is a nice expense to pay when you need it. As always, more is not better. Choose the risk you wish to insure, determine the value and find the least expensive way to cover the risk.

I don't see any mention of gold streaming companies. Miners and streamers earn the difference between cost structure and price. If diesel and oil go up, profits drop.

 

[PatrickW]

I replaced that portion of my AA that previously was allocated to bonds with a gold ETF.

I would not invest in physical gold, though.

 

[JBTX]

I’ve had over the years between 0-5% of portfolio in gold/silver etfs. I’m not back at zero and rolled any remaining stake into a TIPS ladder.

I’ve never wanted to be burdened with actual physical gold and worrying about storage.

 

[engineernerd]

How does gold work as an investment. I like other types of investments because at the end of year I can go to the web sites and know how much I have.
How does that work with gold.
I asked one company and they said that if you call them they will tell you how much THEY would give you.

If your question is what are the mechanics of available gold “investments” such as ETFs, there is no single answer. You have to read the fine print that goes with whatever you are considering buying.

If your question is more generally about the returns from holding gold as an asset class, I’d say it’s more in the nature of price speculation than true investing. Over the long term, gold has done quite poorly. This is because it is a mostly-useless metal which promises no interest (as bonds do) and claims no productivity (as publicly-traded companies do). But occasionally it spikes in value, usually when there is some level of panic about the trustworthiness of currency.

[FONT=&quot]If there ever is a collapse in confidence in government currency, then small-denomination physical gold would probably be accepted in trade for essential items like food, where currency would not. But in such a barter economy gold would be less desirable than useful items and useful skills.[/FONT]

 

[pc95]

Own a bit of gold, both in a fund (GLD) and some physical buffalo coins. Nothing but a small diversifier....how small? currently under ~ 0.75% of portfolio. Bought it about 8 or 10 years ago....Its done decent as an investment, not stellar. I would not put a heavy % into it. We own 3x as much in mining stocks which I like better as a diviserifier.

 

[meleana]

I hold physical gold and silver. Not for an investment, but as a hobby and as a store of wealth (basically, an emergency fund). I don't even calculate it in my net worth.

Me, too. I have had mine for a zillion years and have no idea what it's worth. Intend to just leave it to our son.

 

[Raygun99]

Gold Coins are pretty to look at, but very illiquid. Coin Grading is a mystery science and the NGC and PCGS Grading levels are subject to change over the years. Coin Dealers work out of two sets of books Red and Blue. Red Book pricing is what the Dealer will charge you to buy his coin. The Blue Book is what he will pay you to buy the same coin back from you -- guess which book has the higher prices.

A person holding Gold Coins or Bullion Bars has to worry about storage. Put them in a Safe Deposit Box and never look at them again ? Or build a secret safe in you home ?

A Gold Eagle may be useful if you have to buy passage on the Last Tramp Steamer out of your Harbor. Beyond that....you can just admire the design work of sculptor Augustus Saint-Gaudens. I have a few in the sealed plastic PCGS holders. A beautiful coin.

Best way to 'invest' in gold is to buy one of the ETF's that specialize in that. Easy to trade, highly liquid, current value widely published, not much of a buy/sell spread.

I'm not sure where NerdWallet is getting their 1 Year Return figures of 13% in the above link. Most ETF's I see are around 5% or thereabouts.

You can't eat gold. So from a emergency "survival" fund strategy I would hedge wanting to own stored food and bullets. As an investment ETFs that deliver upside gains ..

 

[Fermion]

It is not really a concern for me, but gold was the only reason my wife's grand parents were able to get out of Latvia after WWII. It is great for bribes in times of war and the messy aftermath.

They probably would not have taken a I-bond lol.

 

[FLJim]

I hear you but you buy gold for a specific purpose. For me, gold is not an investment nor inflation hedge; but gold is an insurance.

If there would be a total collapse of the economy, it can be argued that even gold would not insure your survival. My insurance is in canned goods and ammunition.

 

[Fermion]

If there would be a total collapse of the economy, it can be argued that even gold would not insure your survival. My insurance is in canned goods and ammunition.

I read a lot of teotwawki books just because I read a lot of sci-fi on kindle unlimited and there are not that many authors who can actually write, so I delve into that part of the genre. They all have food and ammo as the top priority but I think in the real world, as my above experience, gold is likely better.

Aside from showing up to some border crossing or check point with a lot of ammo, which may be deemed as a threat, gold is more compact, easy to hide, and more universally accepted. If my gun uses 7.62 and you have 6.5, we have a problem with trade. Also, do you really want to walk up to those 10 guards armed with full autos while you are carrying that ammunition?

Hopefully this is far fetched stuff, but it isn't sci-fi, as it did happen to my wife's grandparents.

 

[FLJim]

I read a lot of teotwawki books just because I read a lot of sci-fi on kindle unlimited and there are not that many authors who can actually write, so I delve into that part of the genre. They all have food and ammo as the top priority but I think in the real world, as my above experience, gold is likely better.

Aside from showing up to some border crossing or check point with a lot of ammo, which may be deemed as a threat, gold is more compact, easy to hide, and more universally accepted. If my gun uses 7.62 and you have 6.5, we have a problem with trade. Also, do you really want to walk up to those 10 guards armed with full autos while you are carrying that ammunition?

Hopefully this is far fetched stuff, but it isn't sci-fi, as it did happen to my wife's grandparents.

The ammunition is to protect my canned goods and to hunt wild animals for protein.

 

[digger1959]

I have about .7% of my overall portfolio in SPDR GOLD invested since 2019/2020 timeframe and it has had a total gain of about 38%. I can't take any credit for this or claim any knowledge, because this investment was made back when I had a financial advisor before I moved everything from Merrill Lynch to Fidelity. I just kept the same investments where I could.
Not as good as stock market though.

 

[copyright1997reloaded]

The ammunition is to protect my canned goods and to hunt wild animals for protein.

Since most of the big game would be decimated quickly, it is also wise to have a bb gun. BB's are extremely cheap and good enough for squirrel and rabbit.

 

[copyright1997reloaded]

I read a lot of teotwawki books just because I read a lot of sci-fi on kindle unlimited and there are not that many authors who can actually write, so I delve into that part of the genre. They all have food and ammo as the top priority but I think in the real world, as my above experience, gold is likely better.

Aside from showing up to some border crossing or check point with a lot of ammo, which may be deemed as a threat, gold is more compact, easy to hide, and more universally accepted. If my gun uses 7.62 and you have 6.5, we have a problem with trade. Also, do you really want to walk up to those 10 guards armed with full autos while you are carrying that ammunition?

Hopefully this is far fetched stuff, but it isn't sci-fi, as it did happen to my wife's grandparents.

People also don't realize how HEAVY ammo is in bulk. In an teotwawki situation, having 20 rounds won't cut it. For example, I'd guestimate that 1000 rounds of 62 grain 5.56 is close to 30# (without the weight of the container), and a quick search suggests 1K of 7.62x51 Port, 146 grain in 200rd BP's w/no other packaging weighs 58lbs. That's a lot of weight to be carrying on a person.

 

[Closet_Gamer]

Setting the complete collapse of the financial system to the side, a good way to hedge a long term decline/devaluation of dollars is to hold international equities or other currencies.

As the dollar declines your international holdings become more valuable on a dollar basis. If its down to trading gold coins to make it into Montana, then this doesn't help. But if the dollar starts taking on water in a more traditional way, it should help.

 

[rmcelwee]

Real world example:
I bought 500 ounces of silver bars back in 1982 @ $8.86 per ounce. It is $23 per ounce today. That is a 150% gain in 42 years. One of the worst investments I have ever made.

Could I trade the silver bars for food if SHTF? Probably not!

FWIW, I have purchased guns and ammo by the truck load. Fantastic investment.

 

[Fermion]

Real world example:
I bought 500 ounces of silver bars back in 1982 @ $8.86 per ounce. It is $23 per ounce today. That is a 150% gain in 42 years. One of the worst investments I have ever made.

Could I trade the silver bars for food if SHTF? Probably not!

FWIW, I have purchased guns and ammo by the truck load. Fantastic investment.

You could have done worse though. You could have bought Kodak in 1982.