Are gold coins a good investement?

[Becker]

Excellent post.

The store of value is the most important one.

Who cares if you can't use it directly to go shopping? You can just exchange it for some money to do that.

Gold is suppressed as money because of legal tender laws, capital gains laws, and the fact that the governments take fiat in form of taxes.
Its still a great store of value.

you can only exchange it with people who know what it's worth. Or are willing to give what you ask for.

 

[matt0611]

you can only exchange it with people who know what it's worth. Or are willing to give what you ask for.

Same goes for everything else, including dollars.

 

[ctiger2]

Yea, I don't understand why it's so hard to grasp that silver and gold have been chosen by the people to be money for 5,000 years and we're supposed to believe it's not money but a green piece of paper that's been in the hands of a private central bank for the last 100 years is really money and the real proper way to store wealth. Bizzare.

 

[Becker]

Same goes for everything else, including dollars.

except the US dollar is accepted in 99% of the country, and over 50% of all other countries. Try gold in the same countries.
You might not always get the fair shake for your dollar, but much higher certainty than gold, at least with dollars, and popular currencies, both sides are likely to know what the currency is worth. Value of dollars does not drop when you "buy in bulk", you don't need to worry about "melting, authentication, purity...etc", you only worry about counterfeit.

 

[Becker]

Yea, I don't understand why it's so hard to grasp that silver and gold have been chosen by the people to be money for 5,000 years and we're supposed to believe it's not money

It's hard to grasp that something becomes obsolete after 5000 years?
Do you value everything that's been around for 5000 years?

but a green piece of paper that's been in the hands of a private central bank for the last 100 years is really money and the real proper way to store wealth. Bizzare.

I never said it's the real proper way to store wealth.
Can you grasp that stocks and technological inventions in the last 20 years are worth per ounce, per unit, than what they replaced, and may store value longer?
Is a cell phone less valuable just because it's only 5 years old vs a 50 year touch tone phone?
Is homosexuality wrong just because we've not had gay rights for 5000 years?
Do you count on a 10 year old computer or a 1 year old computer to store your data and wealth?
You don't apply this logic ANYWHERE ELSE and you're surprised I don't buy your argument?

 

[silverhandorder]

except the US dollar is accepted in 99% of the country, and over 50% of all other countries. Try gold in the same countries.
You might not always get the fair shake for your dollar, but much higher certainty than gold, at least with dollars, and popular currencies, both sides are likely to know what the currency is worth. Value of dollars does not drop when you "buy in bulk", you don't need to worry about "melting, authentication, purity...etc", you only worry about counterfeit.

What are you talking about? Gold is taken everywhere. In addition to that gold can not be devalued by governments. I don't have gold because I can't afford it but I sure as hell planing to own it instead of keeping my money in the bank.

Oh and the reason you get discount for buying in bulk because of the static costs associated with the purchase.

 

[matt0611]

except the US dollar is accepted in 99% of the country, and over 50% of all other countries. Try gold in the same countries.
You might not always get the fair shake for your dollar, but much higher certainty than gold, at least with dollars, and popular currencies, both sides are likely to know what the currency is worth. Value of dollars does not drop when you "buy in bulk", you don't need to worry about "melting, authentication, purity...etc", you only worry about counterfeit.

You sell gold for +/- the world price in exchange for other currencies.
It really isn't that big of a deal as your making it out to be.
Gold is a pretty marketable commodity.

 

[Becker]

What are you talking about? Gold is taken everywhere. In addition to that gold can not be devalued by governments. I don't have gold because I can't afford it but I sure as hell planing to own it instead of keeping my money in the bank.

Oh and the reason you get discount for buying in bulk because of the static costs associated with the purchase.

everywhere?

you mean the last restaurant you ate at? your legal bills? your utility company?

you can get silver, which many here say is just as money as gold, I'm not against owning gold , but calling it money when you don't regularly spend it makes the word money mean very little. what ISN'T money (that is physically tangible)

gold can't be devalued by governments? somebody here says it already is, you can't both be right

 

[Becker]

You sell gold for +/- the world price in exchange for other currencies.
It really isn't that big of a deal as your making it out to be.
Gold is a pretty marketable commodity.

gold isn't accepted in the same 99% places of the country today, whereas the dollar still is.

 

[matt0611]

gold isn't accepted in the same 99% places of the country today, whereas the dollar still is.

Which is why you go to somewhere to exchange your gold for some dollars first. Its really not that hard.

Does every store accept CD accounts, stocks, bonds, etc in method of payment? No.
By your logic its not wise to hold anything but dollars because dollars are accepted in 99% of all places.

 

[Becker]

Which is why you go to somewhere to exchange your gold for some dollars first. Its really not that hard.

aha, so you still rely on the commonly accepted dollar, it's called convenience. time is money too.

how often do you sell gold to buy your needs?

 

[matt0611]

aha, so you still rely on the commonly accepted dollar, it's called convenience. time is money too.

how often do you sell gold to buy your needs?

No one is saying to keep all your wealth in gold or silver. That would be quite inconvenient.

Does every store accept CD accounts, stocks, bonds, etc in method of payment? No.
By your logic its not wise to hold anything but dollars because dollars are accepted in 99% of all places.

 

[Becker]

No one is saying to keep all your wealth in gold or silver. That would be quite inconvenient.

Does every store accept CD accounts, stocks, bonds, etc in method of payment? No.
By your logic its not wise to hold anything but dollars because dollars are accepted in 99% of all places.

who claims CD accounts, bonds or stocks are money? They call them investments, or assets.
No, I didn't say don't hold anything, by all means buy what makes you happy, own what you believe is worthy.
I was simply saying, if gold is money even though it's not currency, WHAT ISN'T?

 

[Krugerrand]

gold isn't accepted in the same 99% places of the country today, whereas the dollar still is.

The acceptance issue is interesting.

Is the Canadian Dollar money? What if you're anywhere but Canada (or Northern US)? The Dollar=Money but not Gold crowd, I would think, say the Canadian Dollar is money. But, if it's out of country, does it cease to become money or is it money that is not excepted or needs to be exchanged first?

Is plastic money? Are a series of numbers money? I pay with plastic all the time. I buy things online by typing in numbers. Now some might say that those numbers represent dollars - but they do not. They represent CREDIT. Is credit money? If I go shipping in Europe to stores that will refuse US Dollars, most will still take my credit card. They're going to bill my credit card company in Euros, not dollars - so in that instance, one could argue my credit card represents Euros.

The fact that money may need to be exchanged before it is accepted does not make it "not money" just like when you take the Canadian Dollar to Oklahoma, it does not become "not money."

 

[silverhandorder]

everywhere?

you mean the last restaurant you ate at? your legal bills? your utility company?

you can get silver, which many here say is just as money as gold, I'm not against owning gold , but calling it money when you don't regularly spend it makes the word money mean very little. what ISN'T money (that is physically tangoible)

gold can't be devalued by governments? somebody here says it already is, you can't both be right

Yes gold accepted more readily than dollars at exchange places around the world. Gold has more utility than dollars just not in the same areas and that is changing as we speak.