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deleted
478 Posts |
 Posted - 01/19/2008 : 17:37:51
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A way to stick it to the man would be to take your $800 tax rebate and buy an ounce of gold. I like the new Buffalo/Indian head pure US gold ounce coin and I'm thinking of buying one of those with my rebate. They print money, we turn it into Gold while the dollar collapses. Just a suggestion.
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n/a
deleted
478 Posts |
Posted - 01/19/2008 : 17:49:59
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| Or should I buy silver with it? Opinions? |
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Hirbonzig
Penny Collector Member
USA
451 Posts |
Posted - 01/19/2008 : 18:20:49
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| I would buy silver. I believe silver is still way undervalued. Also I would buy it in the form of 90% US coins. If the gold/silver price ratio would go back to the longtime ratio of 15:1, silver now at $16 would be an extreamly cheap buy. |
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starwarsgeek171
Penny Hoarding Member
USA
651 Posts |
Posted - 01/20/2008 : 02:31:15
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| I prefer .999 Silver American Eagles because I don't trust the average Joe to understand the math involved in figuring out the silver content of pre-1965 coinage. If I were you, I'd buy only 1/10 ounce gold or platinum coins (if you must augment your silver purchases). You can get that Buffalo during the upcoming recession. I've read many of Hirbonzig's posts, and I'm glad to see that he's also bullish on silver. |
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Hirbonzig
Penny Collector Member
USA
451 Posts |
Posted - 01/20/2008 : 11:05:17
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I'd buy the 90% US because as a coin collector I also would like to look thru them and possibly make a set or partial set of Franklin halves, Washington quarters and Rooselvelt dimes. As a set they could bring a little over just the silver value to a collector. The .999 Eagles are fine also, but I prefer the hands on feel of owning silver. A couple years ago my poker group had an "old west" theme and I brought 100 old Morgan silver dollars to play cards with. We had a blast using the real thing.
If I would buy gold, I'd throw in a couple hundred fiat dollars and get the full ounce. The buying premium is less on the ounce coin compared to the 1/10 ounce coin. |
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starwarsgeek171
Penny Hoarding Member
USA
651 Posts |
Posted - 01/20/2008 : 11:19:44
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Hirbonzig, do you know the usual premium on a 1/10 ounce coin?  |
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HoardCopperByTheTon
Administrator
USA
6807 Posts |
Posted - 01/20/2008 : 12:19:32
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| The buying premium on 1/10th ounce gold coins is usually at least $5 up to $10 per coin. That is $50 to $100 per ounce. You often recapture some of that premium when selling, but not always. Usually the smaller the coin the bigger the per ounce premium, so you get more gold for less money buying 1 ouncers or at least half ouncers. |
If your percentages are low.. just sort more. If your percentages are high.. just sort more.
Now selling Copper pennies. 1.6x plus shipping. Limited amounts available. |
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starwarsgeek171
Penny Hoarding Member
USA
651 Posts |
Posted - 01/20/2008 : 13:14:30
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| Thank you. I think I was taken at $110 last week (it was a 1999)? However, I tend to buy partially for WTSHTF situations anyway, so wouldn't it be prudent to own at least a handful of smaller denomination gold pieces? In the long run, if I keep saving my pennies, I'll take your advice and buy full ounces. |
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Hirbonzig
Penny Collector Member
USA
451 Posts |
Posted - 01/20/2008 : 15:10:27
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quote:
Originally posted by starwarsgeek171
Hirbonzig, do you know the usual premium on a 1/10 ounce coin?
You must be logged in to see this link. Shows apx. premiums |
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NotABigDeal
1000+ Penny Miser Member
USA
3890 Posts |
Posted - 01/20/2008 : 18:26:30
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If you want gold, and someone (govt.) wants to give you up to $800, then I say go the full ounce. Less premium. If you want some for a "touch" factor, don't go with the Buffalo. They are not handleable. GAE or Krugs are good hands on coins. Buffaloes are awesome to look at though. One of my favourite.
As also mentioned, silver would not be a bad idea. Any way you go, turning trash to stash is always a good idea....
Deal |
Live free or die.
Plain and simple.
"If you love wealth more than liberty, the tranquility of servitude better than the animating contest of freedom, depart from us in peace. We ask not your council or your arms. Crouch down and lick the hand that feeds you. May your chains rest lightly upon you and may posterity forget that you were our countrymen."
- Samuel Adams |
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starwarsgeek171
Penny Hoarding Member
USA
651 Posts |
Posted - 01/20/2008 : 21:34:17
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| Wow! 11-15% premiums on 1/10 ounce gold pieces! You were quite right! |
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 01/21/2008 : 07:40:35
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There is an old economics parable that sounds just like the planned Tax Rebate. I don't remember the source, but I think that I remember it well enough to give you the general idea...
Imagine the world with 10 people in it and each person having $100 in total wealth. So the total cash in the world is $1000 and everybody is equally rich. The people compete for a pool of goods on equal footing.
Now imagine that I "magically" made another $100 and randomly gave it one of the 10 people. Obviously, that person becomes richer. He is able to outbid the other people and buy more goods. Maybe not so obvious is that the other 9 people become poorer. They still have their $100, but that $100 buys slightly fewer goods because prices have risen a small amount because of the extra buying pressure from the rich guy.
Now imagine that we go back to the original world with everybody on equal footing. This time I "magically" create $1000, but instead of giving it to one person, I divide it equally amongst all 10 people. Who becomes richer? Who becomes poorer? Well most people in the world will feel richer, because they just doubled their money (maybe they will even run out and spend some of the "extra" money). But in reality everybody is still on equal footing when competing for the pool of goods and nobody has gained or lost anything. The goods just double in price as the people use their new found "wealth" to compete against each other in the market.
So what is the best way to invest $800 or $1600 per couple of "magic" money? How about this? Get yourself a $800 or $1600 interest free 6 month loan on a credit card. Use the loan to buy a hard asset. Pay off the loan when the inflationary event happens. That way you get your hard asset at today's prices and pay it off with tomorrows deflated dollars. 
Disclaimer: don't blame me if hard assets crash. I can't predict the future. 
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Edited by - horgad on 01/21/2008 07:43:38 |
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starwarsgeek171
Penny Hoarding Member
USA
651 Posts |
Posted - 01/23/2008 : 15:48:58
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| From a link on this site...The second large benefit to owning fractional coins, and the one more interesting to me, is an investment case of supply and demand. It is much harder to find fractional coins. As the price of gold continues to rise, I expect demand to quickly outpace supply of the fractional coins. The average investor will not want to buy a one ounce coin worth thousands of dollars. They will want to purchase smaller coins. Since there is not enough supply, these fractional coins will make a great investment and their markup over spot gold will continue to rise...Now I feel a little better! |
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NotABigDeal
1000+ Penny Miser Member
USA
3890 Posts |
Posted - 01/23/2008 : 17:47:50
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quote:
Originally posted by starwarsgeek171
From a link on this site...The second large benefit to owning fractional coins, and the one more interesting to me, is an investment case of supply and demand. It is much harder to find fractional coins. As the price of gold continues to rise, I expect demand to quickly outpace supply of the fractional coins. The average investor will not want to buy a one ounce coin worth thousands of dollars. They will want to purchase smaller coins. Since there is not enough supply, these fractional coins will make a great investment and their markup over spot gold will continue to rise...Now I feel a little better!
I do not have a problem where I live getting the fractionals if I want them. If gold is worth thousands per ounce or whatever, then silver should be a pretty good "lower" amount to work with. If worse comes to worse, you could cut ounces into pieces....still same amount of gold....
Deal |
Live free or die.
Plain and simple.
"If you love wealth more than liberty, the tranquility of servitude better than the animating contest of freedom, depart from us in peace. We ask not your council or your arms. Crouch down and lick the hand that feeds you. May your chains rest lightly upon you and may posterity forget that you were our countrymen."
- Samuel Adams |
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starwarsgeek171
Penny Hoarding Member
USA
651 Posts |
Posted - 01/23/2008 : 17:51:28
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| I hope that you're right about the silver! |
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Tourney64
1000+ Penny Miser Member
USA
1035 Posts |
Posted - 01/24/2008 : 20:42:16
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| I agree..use the money to buy gold or silver. |
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aloneibreak
Penny Hoarding Member
USA
672 Posts |
Posted - 01/24/2008 : 22:35:48
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| whatever you do dont spend it on HD tv's or new furniture or clothes or crap like that. thats exactly what they want you to do. stick it to 'em and buy silver. i like horgad's idea. |
My reading of history convinces me that most bad government results from too much government.
Thomas Jefferson
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aloneibreak
Penny Hoarding Member
USA
672 Posts |
Posted - 01/25/2008 : 00:06:30
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| ya know on second thought, if you really want to spend it on something, buy a new handgun and a couple boxes of shells. see how they like that. |
My reading of history convinces me that most bad government results from too much government.
Thomas Jefferson
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NotABigDeal
1000+ Penny Miser Member
USA
3890 Posts |
Posted - 01/25/2008 : 06:27:06
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$800 wouldn't buy me a new gun....I'm too picky. BUT, it could go towards ammo....or partial payment on a gun....The check wont arrive until summer, a while to decide what to get. Hopefully a dip in PM prices.
Deal |
Live free or die.
Plain and simple.
"If you love wealth more than liberty, the tranquility of servitude better than the animating contest of freedom, depart from us in peace. We ask not your council or your arms. Crouch down and lick the hand that feeds you. May your chains rest lightly upon you and may posterity forget that you were our countrymen."
- Samuel Adams |
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Tourney64
1000+ Penny Miser Member
USA
1035 Posts |
Posted - 01/25/2008 : 10:27:27
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| What will happen is the price of Gold & Silver will go up if the US goes $150 billion more in a deficit. Gold may reach the $1,000 mark by the time any of us receives a dime. |
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 01/25/2008 : 16:04:57
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Sadly it looks like our dream of getting a full $800 to buy most of a gold coin has been deraileed since the new rebate amount is going to be $600.
$600 is still a nice bit of money, enough for a 1/2 ounce gold coin, a $10 gold coin (numismatic gold coin) or quite a few silver coins. |
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starwarsgeek171
Penny Hoarding Member
USA
651 Posts |
Posted - 01/25/2008 : 16:29:09
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| I like the "quite a few silver coins" comment! You've got to love silver all the way to at least $25! There will probably be a better opportunity to buy gold again in a year or two once the recession kicks in. |
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fiatboy
Administrator
912 Posts |
Posted - 01/25/2008 : 18:41:21
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| Use the money to pay off debts if you have any. |
"Bart, it's not about how many stocks you have, it's about how much copper wire you can get out of the building." --- Homer Simpson |
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starwarsgeek171
Penny Hoarding Member
USA
651 Posts |
Posted - 01/25/2008 : 18:43:25
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| Very smart comment, fiatboy. |
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HoardCopperByTheTon
Administrator
USA
6807 Posts |
Posted - 01/25/2008 : 20:44:46
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| fiatboy has the best advice. Pay off any debt you have with that rebate. Use zinc pennies to buy that new big screen HD TV. Of course if you have no debts, have a big enough TV and have all the PM you want to hoard you could always use the rebate to buy a new Ryedale! |
If your percentages are low.. just sort more. If your percentages are high.. just sort more.
Now selling Copper pennies. 1.6x plus shipping. Limited amounts available. |
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Art Tatum
Penny Collector Member
USA
400 Posts |
Posted - 01/26/2008 : 14:14:25
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quote:
Originally posted by HoardCopperByTheTon
The buying premium on 1/10th ounce gold coins is usually at least $5 up to $10 per coin. That is $50 to $100 per ounce. You often recapture some of that premium when selling, but not always. Usually the smaller the coin the bigger the per ounce premium, so you get more gold for less money buying 1 ouncers or at least half ouncers.
no wonder you don't get your work done within normal business hours
your mind is on copper and gold!  |
my machine is running! |
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Topic |
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$800 Tax Rebate = One Gold Ounce (almost)
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