Bullion & Coin

[Marvin Boggs]

7 hours ago, GeoffH said:

I suspect that gold from a recognised mint would be easiest to sell in the event of some sort of global crash.  It’s available in various sizes with the originating mint and the purity stamped on it.  Or you can buy coins which can be used as currency also.  Or just as a collectible.

The fees related to buying and selling favour larger ingots over smaller ones because with small ones the fee is a larger percentage of the cost of the ingot. Sizes between a gram and a kilogram (or 50 Oz) are common (larger sizes are available but not common).

I’m not sure about the Philippines gold laws but there are gold depositories where you can store your gold after buying in various countries, however that won’t work if you want the gold with you because the gold remains in the depository (think if it as a bank just for gold or mini Fort Knox places).

Silver bullion and Platinum bullion are also available, silver is cheaper per gram but otherwise is available in similar size bars and ingots.  Platinum is also traded but I don’t know much about it.

I’ve used Perth mint in the past but there are a number of recognised mints (NB Perth don’t send to the Philippines I was just using them as an example).

It is a complicated area and I would suggest careful research before jumping in.

 

 

 

Geoff you are on target.  Some people buy precious metals to invest, others buy it as a store of value, and others as a type of hedge currency.  In the second case, and especially the third case, one needs to consider various factors, of which I will list several that come to mind:

- Governments in trouble often confiscate gold or make it illegal to own. 

- Gold has a very high value per coin, which makes it easy to carry but arguably harder to spend.

- Consumer confidence is a negative factor with jewelry and other junk precious metals.  But I would argue the layman will place high confidence in a Silver Maple or a Gold Eagle, etc.  

- Storing precious metals offshore could be a good idea as long as one has ready access to, and confidence in, the storage company.  I personally wouldn't trust a bank with my valuables for 2 seconds, given how over-leveraged they are and under the control of the various central banks, etc.  

Everyone's needs are different, making it a complicated topic.  For me in this situation, silver coins looks like an attractive prospect.  The value is relatively small per coin, and I don't plan on transporting them across borders.  I don't feel the need yet to store anything in Singapore, but would be happy with a ready stash of my own.  Given the state of craziness in the world, I like to think ahead and be prepared.  Its also worth noting that plenty of things can be used as trading commodities if the sh*t hits the fan.  Cigarettes, booze, bullets, etc.       

[Tommy T.]

3 hours ago, Dave Hounddriver said:

EDIT:  Plus, add in the fact that savvy investors know that gold will go up in value faster than dollar bills.

I don't necessarily believe this... I guess we just see what happens?

[Dave Hounddriver]

54 minutes ago, Tommy T. said:

I don't necessarily believe this... I guess we just see what happens?

Sure.  You put dollar bills in your pocket and I'll put gold in mine.  Lets check a year from now and see who's pocket is worth more.  Remind me in one year and we will do a check.  I bet 50 likes (placed randomly on your posts) that my gold will be worth more in one year than it is now.  Are we on?

[Marvin Boggs]

The thing about gold is, it historically holds its value over time.  I don't mean compared to the dollar -- no way -- I mean compared to  goods.  I've heard it said that in 1850 an ounce of gold would buy a horse, and today the same ounce would also buy a horse.  What changes is the devaluation of the dollar over time (thank you central banks).  I can't say if it is absolutely true in all cases, but in 1970 gold was $35 per ounce.  Its just that $35 bought a lot more then compared to now. 

[Mike J]

16 hours ago, Dave Hounddriver said:

Sure.  You put dollar bills in your pocket and I'll put gold in mine.  Lets check a year from now and see who's pocket is worth more.  Remind me in one year and we will do a check.  I bet 50 likes (placed randomly on your posts) that my gold will be worth more in one year than it is now.  Are we on?

Like almost any commodity the value of gold fluctuates over time.  Right now the world economy is kind of influx so gold could easily increase in value.  That could change if the USA is able to reach trade agreements with China and other countries that other countries see as being beneficial to the world economy at large.  If you buy low and sell high, gold was a good investment.  If you bought high and had to sell low, well . . . kind of like fine wine, exotic cars, art, diamonds, etc.  The chart below is adjusted for inflation.

https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

Edited October 12, 2019 by Mike J
added URL

[Tommy T.]

16 hours ago, Dave Hounddriver said:

Sure.  You put dollar bills in your pocket and I'll put gold in mine.  Lets check a year from now and see who's pocket is worth more.  Remind me in one year and we will do a check.  I bet 50 likes (placed randomly on your posts) that my gold will be worth more in one year than it is now.  Are we on?

Sure... why not? I just checked now and gold was listed on this website at $1,493.50/ounce. Fair enough? But how are you going to hold your pants up with all that weight in your pockets for the next year??? I already made a note in my cell phone calendar to check back on October 13 next year!

https://money.cnn.com/data/markets/

[Gary D]

It may be listed at that but can you actually buy it at that price. Would it take a year or two to work the commission out of your purchase.

[Tommy T.]

37 minutes ago, Gary D said:

It may be listed at that but can you actually buy it at that price. Would it take a year or two to work the commission out of your purchase.

Of course, Gary... But this is just the basis for a wager. I am not sure if Dave has included that in his calculations.

I think gold is a wonderful investment, but I also know it is not very liquid... That is the main reason for my comments. Honestly, today, I really am not sure what the "safest" investment might be. Looking at the US Dow averages, I have this feeling that there is going to be a significant crash or mini crash very soon. Over the past 20+ years that I have observed, whenever the market goes up and down in big swings, as it has lately, some sort of big crash has followed. I hope, really, that I am wrong...

I see gold currently at near historic (histeric?) highs again so don't think it will go much higher...

But then, if I were right, and understood all this stuff, maybe I could be a wealthy guy and not just a pensioner out here???

Edited October 13, 2019 by Tommy T.

[Tommy T.]

And Dave... it's not fair to close this thread before one year... hmmmm????

[Tommy T.]

18 hours ago, Mike J said:

If you buy low and sell high, gold was a good investment.  If you bought high and had to sell low, well . . . kind of like fine wine, exotic cars, art, diamonds, etc.  The chart below is adjusted for inflation.

Sure, Mike... that's the goal for everything, isn't it? I remember years ago when there was a fellow employee who would brag about how he and his mom bought a bunch of silver. Silver prices were skyrocketing (as much as a commodity might). It turns out that he bought toward the end of the boom fabricated by the Hunt brothers as they manipulated the silver market artificially. I never heard much bragging from him later... And, interestingly, I just yesterday saw an article in the news stating that China has recently been stockpiling gold as they anticipated the fallout from the trade war with USA - we're talking billions or dollars worth. I didn't save the link, sadly...

I also had a friend years ago who speculated in various commodities well before online trading became available. He told me he made a pile, lost a pile and ended up after a couple of years with just enough profit to buy himself a bottom of the line Audi car - which he hated...

Edited October 13, 2019 by Tommy T.