Money/cash

[LargeOrangeFont]

Wasn't there a Problem back in '29??

Deposit insurance didn't exist.

 

[LargeOrangeFont]

People hedging inflation with gold may not realize that gold is even more inflated itself, as paper gold, the investment type of gold, is by some estimates to exceed actual physical gold in existence by several hundred times. Which is why it's price hasn't made increases that match it's actual demand in the market, especially when looking at how widely it's used in technology products.

Real gold is what you want, however it is taxed much higher than paper gold in gains.

Cash is great if you are looking to scoop up assets at the bottom, much more useful than gold. Try buying a boat or property with gold vs having cash that everyone is familiar with.

If shit hits the fan and investments start losing value so will gold as people sell and bail out.

Historically, at least over the last 40 years, gold hasn't been a great hedge against inflation. Just look at the historical prices, then look at SP 500 or Dow priced in gold instead of USD.

Damn it! I just loaded up my car with my gold bars to go buy a house. You saying I have to hump all of that back into the house and back into my vault??

 

[Enen]

Whats your coin foundry of choice and why?
Same question of ingots.

That's a great question UD. I deal with both government owned and private mints. My preference between a Perth bar or a Valcambi bar for example is determined by the wholesale premium above spot on any given day. From a consumer ownership perspective, there is little difference between the products. American Eagle gold and silver currently have the highest wholesale premiums above spot. The fractional Eagles can have wholesale pricing as high as 14% above spot. The other side of that coin ( pun intended) is that we currently pay well above spot when individuals want to cash out of Eagles.

 

[Uncle Dave]

People hedging inflation with gold may not realize that gold is even more inflated itself, as paper gold, the investment type of gold, is by some estimates to exceed actual physical gold in existence by several hundred times. Which is why it's price hasn't made increases that match it's actual demand in the market, especially when looking at how widely it's used in technology products.

Real gold is what you want, however it is taxed much higher than paper gold in gains.

Cash is great if you are looking to scoop up assets at the bottom, much more useful than gold. Try buying a boat or property with gold vs having cash that everyone is familiar with.

If shit hits the fan and investments start losing value so will gold as people sell and bail out.

Historically, at least over the last 40 years, gold hasn't been a great hedge against inflation. Just look at the historical prices, then look at SP 500 or Dow priced in gold instead of USD.

Bingo Race! "Paper gold" simply doesn't actually cover any metal 1-1.
People often are fooled thinking they are equal.

when buying gold - hold the metal in your hand.

You have to know how to leverage gold because it isnt cash, but if you do it right it preserves wealth very well.

 

[Uncle Dave]

That's a great question UD. I deal with both government owned and private mints. My preference between a Perth bar or a Valcambi bar for example is determined by the wholesale premium above spot on any given day. From a consumer ownership perspective, there is little difference between the products. American Eagle gold and silver currently have the highest wholesale premiums above spot. The fractional Eagles can have wholesale pricing as high as 14% above spot. The other side of that coin ( pun intended) is that we currently pay well above spot when individuals want to cash out of Eagles.

Good info thanks sir.

I agree on the valcambi - thats clever little ingot. I like the divisibility of it.

I always was taught that in a battle of the 4 nines always go for the one with the highest value on the face should the bottom drop out of gold for some reason your floor then becomes the base of the coin. So they all have the same ceiling, but some have a higher floor. All my coins are Philharmonics with a 200 schilling face value.

 

[Enen]

Cash is great if you are looking to scoop up assets at the bottom, much more useful than gold. Try buying a boat or property with gold vs having cash that everyone is familiar with.

Most people will come back to a broker/dealer and convert their gold back into cash in order to make a purchase. Using gold in commerce is not something I personally think will ever happen again.

 

[Enen]

Good info thanks sir.

I agree on the valcambi - thats clever little ingot. I like the divisibility of it.

I always was taught that in a battle of the 4 nines always go for the one with the highest value on the face should the bottom drop out of gold for some reason your floor then becomes the base of the coin. So they all have the same ceiling, but some have a higher floor. All my coins are Philharmonics with a 200 schilling face value.

I like the Philharmonics. They are a great value. Interesting idea about the face value of the coin becoming the cost basis in the event the bottom drops out of gold.

Funny story, there was an employer that was purchasing American Eagle gold coins a few years ago. I think the value was about $1500 per oz at the time. The face value of the Gold Eagle is $50. He paid his employees and claimed $50 for the purposes of payroll and employer taxes. The employees loved it because they sold the coins for $1500 and put the cash in their bank accounts.

It was fun for awhile, but the IRS eventually hammered that guy HARD.

 

[Waterjunky]

Not that I am currently holding much but my earlier research says that "cheap" gold chain is one of the best ways to physically hold gold. it is worth its weight, no more, no less. it is hard to track by the gov, and can be cut to any length for a sale of any volume without degrading it.

Anyone know where to buy bulk near spot price? Should be readily available....

 

[Waterjunky]

I like the Philharmonics. They are a great value. Interesting idea about the face value of the coin becoming the cost basis in the event the bottom drops out of gold.

Funny story, there was an employer that was purchasing American Eagle gold coins a few years ago. I think the value was about $1500 per oz at the time. The face value of the Gold Eagle is $50. He paid his employees and claimed $50 for the purposes of payroll and employer taxes. The employees loved it because they sold the coins for $1500 and put the cash in their bank accounts.

It was fun for awhile, but the IRS eventually hammered that guy HARD.

I believe most coins and bars are tracked and taxed like alcohol or cigarettes', I think chain is not tracked like this as it generally ends up in jewelry.

Could be wrong though.

 

[Uncle Dave]

Not that I am currently holding much but my earlier research says that "cheap" gold chain is one of the best ways to physically hold gold. it is worth its weight, no more, no less. it is hard to track by the gov, and can be cut to any length for a sale of any volume without degrading it.

Anyone know where to buy bulk near spot price? Should be readily available....

In terms of trade for cash I would say its the worst way to go,
- because there is no foundry to trace it to, and there is no easy way to test for purity or provenance like with a coin.

I can test a coin with a mic and scale or a product called a Fisch.
How do I test a necklace?

 

[Uncle Dave]

I believe most coins and bars are tracked and taxed like alcohol or cigarettes', I think chain is not tracked like this as it generally ends up in jewelry.

Could be wrong though.

Coins aren't serialized,
Its tracked if you buy and sell from the same place like Monex or Kitco through an established account, but you can always work a deal for cash on the street which " hides" the transaction.

 

[copterzach]

I have a little silver and gold. Lots of guns and ammo. Own dirt free and clear. Oil and gas minerals all over the USA. And a pile of cash.

Just keep working. Nothing else to do


Sent from my iPhone using Tapatalk

 

[Sherpa]

check out the lower left
View attachment 959139

I pickup mine up about 6 years ago....... haven't fired it yet....! I'd like it "gone over" a little since some of the action is very stiff and not super smooth in operation...... it's a pretty piece though. I'm thinking of putting Skinner sights on it.

 

[Enen]

Coins aren't serialized,
Its tracked if you buy and sell from the same place like Monex or Kitco through an established account, but you can always work a deal for cash on the street which " hides" the transaction.

Dealers have very lite records of what our clients purchase. There is no reporting to any government agency with purchases. Establishing a cost basis is a requirement when you purchase through an IRA. We are required to submit paperwork if someone brings in cash in excess of 10k. In that instance we are only required to source the cash, not what was purchased with it.