Gold Coins

[felizcortez]

My parents gave me two 1oz Canadian Maple Leaf gold coins.  I was shocked by the gift because I have never done anything with actual precious metals and really don't know where to start.  Just a quick google search shows they are worth in the $1200ish range if you sell them.  I'm debating on what to do with them as I typically don't just want to hold onto gold, but I'm also not sure where to sell them.  Any thoughts?

[2Birds1Stone]

You could sell them to Apmex, Provident Metals, or Locally (At a bank, and deposit the funds so you are not followed out and endangered)

However, with gold having gone through a huge slide in price over the past 3 years. I would hold on to them, they are a nice way to get a little exposure to an alternative asset class, and eventually they might get their day in the spotlight again.

[mohawkbrah]

i personally would never buy them as an investment. but i've wanted to have my own little chest full of gold and silver coins...


just sayin :P

[felizcortez]

i personally would never buy them as an investment. but i've wanted to have my own little chest full of gold and silver coins...


just sayin :P

This gave me the mental image of Scrooge McDuck swimming in his pool of coins. 

[Rubic]

At your age, probably sell the gold coins and invest the proceeds in the market.



Bonus: Piece of mind -- not worrying about your coins getting lost or stolen.

[Kaspian]

I'd like to say hang onto them as a keepsake until there's a mini-boom again--which will probably happen in the next decade or two, but...  I'd have a hard time emotionally ditching the gift after just receiving.  However, it'd also make me nervous to have a couple of gold coins just laying around the apartment.  Not because somebody would steal them, but I could always misplace them, accidentally drop one behind the water heater, down a drain, or whatever. 

[Twenty4Me]

Keep them. You don't want to be selling now with the price down at the moment.

[Mikhial]

I hope everyone who is saying to keep them has money invested in gold. Otherwise, do you truly believe gold is better to hold on to than stocks?

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[2Birds1Stone]

I hope everyone who is saying to keep them has money invested in gold. Otherwise, do you truly believe gold is better to hold on to than stocks?

Sent from my SCH-I545 using Tapatalk

variety is the spice of life. To answer your question, yes I hold physical PM's. Actually purchased a few Oz of Ag after that 7% drop today.

[klystomane]

How about...it's a gift from your parents, it's an item that could be worth more (or less) if you just hold on to it, and it's a gift from your parents...wait...I said that already.

The point is, it's not like they gave you a guaranteed depreciating asset and it's not a whole lot of money anyway...so why not just hang on to it in the meantime?

[Mississippi Mudstache]

For only $2400 worth, I'd be tempted to hang onto them for a little while. It's not going to make or break you, and if don't play with them in the bathtub, you won't drop them down the drain.

[TomTX]

You could sell them to Apmex, Provident Metals, or Locally (At a bank, and deposit the funds so you are not followed out and endangered)

However, with gold having gone through a huge slide in price over the past 3 years. I would hold on to them, they are a nice way to get a little exposure to an alternative asset class, and eventually they might get their day in the spotlight again.

Gun show. I sold off some junk silver coins at 1% over spot. Dealers will pay you under spot, then charge over spot when reselling.

[Zman]

Keep them as a souvenir/keepsake/hedge why not

[Bob W]

Keep -- you never know.   Be sure to tell your parents who much you appreciate them and what special gift it was.  Perhaps they have some more to give away.

[2Birds1Stone]

Be sure to tell your parents who much you appreciate them and what special gift it was.  Perhaps they have some more to give away.

Love it!

[Kitsunegari]

In my homecountry the grandparents give them as gift for the birth of a child, and it's the last thing you (the child) sell/barter if you really find yourself in deep troubles.
That said, you can sell it at Kitco if you're in Canada, or keep it for "red alert emergencies" - and hopefully pass it on your descendants!

[Eric]

I think the most recent MMM blog post is relevant here:

http://www.mrmoneymustache.com/2015/07/02/if-you-wouldnt-buy-it-you-should-probably-sell-it/

Sell the gold.  Invest the money according to your AA.

[Mississippi Mudstache]

I think the most recent MMM blog post is relevant here:

http://www.mrmoneymustache.com/2015/07/02/if-you-wouldnt-buy-it-you-should-probably-sell-it/

Sell the gold.  Invest the money according to your AA.

Apropos, I bought two 1 oz. Gold Maple Leafs about two weeks ago. However, I bought them each for about $100 below value, with the intent to immediately liquidate. I'm still mulling over whether to sell or hang on. Gold will have to fall a long way before I take a loss.

[arebelspy]

I think the most recent MMM blog post is relevant here:

http://www.mrmoneymustache.com/2015/07/02/if-you-wouldnt-buy-it-you-should-probably-sell-it/

Sell the gold.  Invest the money according to your AA.

Apropos, I bought two 1 oz. Gold Maple Leafs about two weeks ago. However, I bought them each for about $100 below value, with the intent to immediately liquidate. I'm still mulling over whether to sell or hang on. Gold will have to fall a long way before I take a loss.

Gold is ~1150.  If you bought for 1050 ($100 below value), it only has to fall $101 (~8.7%) for you to take a loss (assuming no transaction costs).

If it falls 10%, in other words, you'll take a loss. I don't see that as it having to "fall a long way."

[Tyler]

How about...it's a gift from your parents, it's an item that could be worth more (or less) if you just hold on to it, and it's a gift from your parents...wait...I said that already.

+1.  If they wanted to give you cash they could have done so.  I imagine they gave you the gold coins for a reason.  I would talk to them about that before simply selling them. 

[Roland of Gilead]

Put the chart of gold vs Argentine Peso and it will give you a different outlook on gold.

[arebelspy]

Put the chart of gold vs Argentine Peso and it will give you a different outlook on gold.

All that does is tell me not to invest in the Argentine Peso.  It doesn't tell me to invest in gold.   It also makes gold look pretty unstable, confirming the speculative nature.

[Mississippi Mudstache]

I think the most recent MMM blog post is relevant here:

http://www.mrmoneymustache.com/2015/07/02/if-you-wouldnt-buy-it-you-should-probably-sell-it/

Sell the gold.  Invest the money according to your AA.

Apropos, I bought two 1 oz. Gold Maple Leafs about two weeks ago. However, I bought them each for about $100 below value, with the intent to immediately liquidate. I'm still mulling over whether to sell or hang on. Gold will have to fall a long way before I take a loss.

Gold is ~1150.  If you bought for 1050 ($100 below value), it only has to fall $101 (~8.7%) for you to take a loss (assuming no transaction costs).

If it falls 10%, in other words, you'll take a loss. I don't see that as it having to "fall a long way."

Meh. I see 10% as a pretty big fall. But nonetheless, I sold one of the coins last week for $1168 net ($1229 - $61 in transaction costs). Coins are worth more than bullion, so you can't just look at the spot price for value. I paid $1070 apiece, so that's a $98 profit. Imma just hang onto other one and see what happens. Gold is volatile. It'll be back up at some point, and it's not like I need the money now. I think it's okay to have some fun with speculative investments with a small percentage of your portfolio, as long as you're aware of what you're doing. YMMV.

[Sparafusile]

At your age, probably sell the gold coins and invest the proceeds in the market.



Bonus: Piece of mind -- not worrying about your coins getting lost or stolen.

That chart is a little bit missleading since the US was on the gold standard until 1971 which means the price of gold was controlled by the government. You'll notice that, after 1971, the price of gold has a similar slope to the stock market - though much more volatile.

[Left]

That chart is a little bit missleading since the US was on the gold standard until 1971 which means the price of gold was controlled by the government. You'll notice that, after 1971, the price of gold has a similar slope to the stock market - though much more volatile.

gold might be "similar" but the slope of the line is less steep, meaning less growth...

Aside from those 10 years where it made a big jump, gold hasn't jumped again... too bad data end at 2001

[Kriegsspiel]

That chart is a little bit missleading since the US was on the gold standard until 1971 which means the price of gold was controlled by the government. You'll notice that, after 1971, the price of gold has a similar slope to the stock market - though much more volatile.

gold might be "similar" but the slope of the line is less steep, meaning less growth...

Aside from those 10 years where it made a big jump, gold hasn't jumped again... too bad data end at 2001

[Forticus]

since this is my first post ... Hello, my name is Forticus and I got a problem. I am selfemployed and can not retire.

 - - -

partly I hold my physical gold, because I can collect it in pieces, it is small and mobile as opposed to "real estate" ( = in German: "Immobilie"). Also, to me  independence and retirement imply freedom of time, locus and interaction with humans ;-) I do not plan to sell the gold and hope to give all of it to my son (16) some day. He recently got a starter kit of one 130 year old Prussian gold coin, after I recognized his juvenile first mustache. That coin was passed from my father, so the kit also serves as a generation link.

back to t.o. question: you called it a gift. Did your parents name some reason or intention? Did they want to give money to fuel your car but were short of papermoney? Did they mean to establish a link? Did they want to acknowledge your way to life?

[Johnez]

Put the chart of gold vs Argentine Peso and it will give you a different outlook on gold.

All that does is tell me not to invest in the Argentine Peso.  It doesn't tell me to invest in gold.   It also makes gold look pretty unstable, confirming the speculative nature.

I think his point was that printed money has the potential to be worthless through hyperinflation. There are tons of examples to choose from in history, the Weimar republic's reichmark being most cited. Gold has retained value through millenia and is recognized across all borders. It isn't the paragon of stability that many supporters will claim, but there are many reasons to hold a small amount.

[Spork]

That chart is a little bit missleading since the US was on the gold standard until 1971 which means the price of gold was controlled by the government. You'll notice that, after 1971, the price of gold has a similar slope to the stock market - though much more volatile.

Isn't that a little backwards?  What I mean is: the price of gold wasn't really controlled by the government.  The price of a dollar was controlled by the market price of gold.

[MidWestLove]

I am surprised no one asked you how old you are, how much you already have invested, and whether you need the money this $1200 may represent (be it for debt or for some other goal critical to your happeness).

if you are staring at being homeless with nothing to pay rent for and skipping meals due to lack of food - go sell those coins and use it to sustain yourself.

if you are sitting on the top of multi million portfolio where $1200 is 1/10 of normal daily variance of the value of the holdings, who cares? it is a gift , keep it.

if you are normal human being with somewhere in between, have no immediate need for money, and this is a small fraction of your net worth - I would probably keep it. but then I am Russian and biased towards gifts (selling a gift in an insult to the gifting party in culture I grew up )

[Sparafusile]

That chart is a little bit missleading since the US was on the gold standard until 1971 which means the price of gold was controlled by the government. You'll notice that, after 1971, the price of gold has a similar slope to the stock market - though much more volatile.

Isn't that a little backwards?  What I mean is: the price of gold wasn't really controlled by the government.  The price of a dollar was controlled by the market price of gold.

Not really. We are using US dollars to compare gold to stocks. If gold was locked to the dollar, then you wont ever see any change (horizontal line) in the price of gold. If you invested in gold it was the same as investing in the dollar. On the other hand, stocks were free to fluctuate in price with regard to the dollar. Once the dollar was no longer pegged to the value of gold you start seeing the same fluctuation in its price with respect to the dollar.

Comparing gold to stocks only becomes useful in the past 30 years or so. At least recently, the two usually fluctuate in the opposite direction of each other. That is to say, when the economy is doing well and the stock market is at an all time high, the price of gold is relatively low. During a recession, when the stock market is crashing, the price of gold goes up quite a bit. Unfortunately, what you see people doing is selling their stocks when the price is at a low and buying gold when it is at a high due to fear and misinformation.

My opinion is that it's safe to treat gold as if it were cash. It's good to have a lot when the markets hit rock bottom so you can buy stocks when they are on sale and ride the wave back up. But in the long run, holding gold in any large quantity will probably lose you money just like holding cash would. On average, I would not have more than 1-2% of total assets in gold.