Nov 4, 2009

Good As Gold

Way back in 2006, the U.S.Mint made available a pure gold coin with a face value of $50 and a selling price of $800.

The good news is I pre-ordered one and received it in July of that same year.

The bad news is that I only bought one:

However, the smart news is that I no longer keep it in my safe deposit box at the bank:

California law used to say property was unclaimed if the rightful owner had had no contact with the business for 15 years. But during various state budget crises, the waiting period was reduced to seven years, and then five, and then three. Legislators even tried for one year. Why? Because the state wanted to use that free money.

"That's absolutely correct," said California State Controller John Chiang, who inherited the situation when he came into office. "What we've done here over the last two decades has been dead wrong. We've kept the property and not provided owners with the opportunities -- the best opportunities -- to get their property back."

Just never you mind where I keep it.

9 comments:

samaBlog said...

I bought GLD at 98 or so. Was up to 106 last I checked. It'll keep going up. Not that my purchasing power will have changed. It's just reflective of inflation.

Yabu said...

Close to your gun I hope...

Doux said...

heh ;~)

Velociman said...

I always try to buy in small ingot, as I'm unsure how precious metals struck in high mark up coins and medals will appreciate.
Picking up a bit of silver these days, because it's still cheap, and one day I might have to toss some metal on the counter for skullpop. I wouldn't mind doing that with a $16 ounce of silver, but if I had to pay in gold it would have to be a filling I'd harvested from somebody's mouth.

Can I sell my baby Krugerrands yet? Last I checked they were still apartheid-embargoed.

'mouse said...

I'd short gold if I cared enough to bother. Had a gold-miner friend who pointed out he and others could produce mind-boggling quantities economically around $700/ounce. The only thing holding him and others back was they (who know more than you or I) didn't believe prices would hold long enough to bother ramping up.

P.S. I've got some nice coins I paid under $400 for. Anyone wanna buy 'em?

Francis W. Porretto said...

The action today is in silver.

Gold is probably higher than its natural price, because it's the most closely watched inflation hedge. But silver has risen over 35% since the New Year, and continues to rise. More, because it's less valuable in small quantities, it's more likely to become a "hand-to-hand" money should the dollar lose all its credibility.

He who's serious about protecting himself and his family should have stocks of both gold and silver in a safe, conveniently accessible place. I recommend holding about 15% of one's net worth that way, divided about equally (by dollar cost) between them.

Doux said...

Invest in rice. Precious metals, gem stones are not edible. ;~)

Joan of Argghh! said...

Gotta buy rice before I can eat it!

Velociman said...

I'm with Francis. Silver is where its at. Easier to buy small quantities, a far more fungible asset.