Gold coins...

[Merlin]

Hi all,

I recently assisted someone with a payment. I am due to be reimbursed in a few months time, but now another option has presented itself...

I have the choice to take a Kruger Rand, set like a pendant on a gold chain. At the current price, this works out to a little more than what is owed to me.

There is also a vintage gold R1 and R2, both of which are worth a few thousand Rand.

I can take them and pay in the difference or they will all be sold and I will get my cash back later on.

My view is that the gold is an investment and *should* go up in value, more than the cash equivalent.

I'm prepared to take the financial hit in scraping together the 'gap' money, but is the gold a good way to go? I've read some views that see the gold price as being largely inflated in terms of value currently.

Thank you.

 

[Keeper]

I'm no expert but when someone says "invest in gold" I don't think this is what they had in mind.

I would personally not do this.

 

[Merlin]

I have had a few gold mining shares for a while now, Keeper. I've lost on them.

To the best of my knowledge, this is the only way for someone to actually buy a chunk of gold.

 

[HavocXphere]

10% hit on selling them @ fees.

 

[FNfal]

I would take the kruger rand if you dont need the money .
Gold is cold hard cash and a long term investment but also a liability , it can also easily stolen from you if you keep it at home.
A few disadvantages but also some advantages .
Long term the rand is going south not gold.

 

[Chevron]

If the rand goes the way of the zim dollar at least you'll have something for retirement.

 

[Merlin]

Thanks, chaps.

The theft potential does worry me, so perhaps I need to look at improving my setup there. Do we use safety-deposit boxes in this country?

 

[mercurial]

Thanks, chaps.

The theft potential does worry me, so perhaps I need to look at improving my setup there. Do we use safety-deposit boxes in this country?

Some places where you buy them from keep them in their safes (offsite).

 

[AlmightyBender]

Gold by definition can never be an investment because it has almost no actual fundamental value and does not generate an income. It is pure speculation aka gambling. People only make money off gold because of the greater fool theory: finding someone dumber than you who will buy it at a higher price than you did.

Also need to factor into account costs of keeping it secure and selling it.

I'd take the cash and invest it productively.

 

[Merlin]

Hmmm, lots of things to think about...

The opinion is more divisive than I expected, interestingly enough.

I get your point, AB, but to be fair, money works off on the same principle, ultimately. It has value because we declare it so.

Fortunately I do not need to make this decision in haste.

 

[Chevron]

Hmmm, lots of things to think about...

The opinion is more divisive than I expected, interestingly enough.

I get your point, AB, but to be fair, money works off on the same principle, ultimately. It has value because we declare it so.

Fortunately I do not need to make this decision in haste.

It would help if you have other investments in place?

 

[Merlin]

It would help if you have other investments in place?

I do have some other investments on the go.

 

[Markd]

I do have some other investments on the go.

this is a great way to diversify your investments. Unless you really need the money I would take the gold coins, also making the assumption that you're not going to have to pay the same fee as you would at a coin merchant on the purchase. Gold has a $ price associated with it so if the rand tanks, you dont have to worry about the value of your gold coins in the same way that you would about the balance of your bank savings account.

 

[Merlin]

Thanks Mark.

 

[Keegan]

Also, if you do decide to take the coins,
Make sure they are evaluated and are proper and have documentation...

 

[Merlin]

We had a jeweller take a look at all three this week and give us a rough valuation. They are legitimate.

I'd have to spend some dosh getting them valued and thus documented though.

 

[Arthur]

I'm buying Krugers again.
Anyone got some to sell?

 

[ice_cubes]

I'm hanging on to my Mandela coins for now. Paid R6 500 for them in 2011, they are now worth R15 000 each

 

[Aghori]

Take the gold, melt it down and do this





View attachment 136364

 

[Arthur]

Gosh, Shaun108 - didn't know you had gold teeth!