For my mistake of purchasing gold coins today I have learned a harsh lesson so beware.

submitted by thomastheglassexpert from self.AskSaidIt

All day as I bang away on my computer I keep 2 news stations running on alternately depending on fool commercials and 20-30 and more x a day I keep hearing the constant drone of "buy gold as a hedge" and some months ago I did so. Bought 5 gold coins to stave off cash crises in my bank account and yet today I've learned a harsh lesson = a few weeks ago I went with a few coins in person to a reputable gold coin dealer here in my home town and very surprised when they offered to buy for about 200 bucks LESS than what I paid for them. I didn't buy the coins to lose money so nope. Now today I called the firm who sold them to me and they sent me a quote to buy them back for about 200 bucks LESS than what I paid so the lesson here is upon buying gold it is therefore a cash loss of about 25% less real value than the green dollars it took to buy them. I have now told myself that life lessons can be harsh so STFU and take my own lashing.

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[–]MobiusRacetrack 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

That's why you check spot price before buying and selling. You're the first person I've heard that actually lost money- some Haitian dude I know dropped about 50k, bought low, waited for a spike and made a tidy tax free profit.

[–]TemporarilyDeceased 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

There are gold coins that are appropriate for investing in the value of gold and gold coins that are appropriate for investing in the collectable value of the coin. The value of the latter is much more subjective. If you want to invest in gold, buy as close to gold spot value as possible.

[–]Alienhunter 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

Yeah buying gold is pretty profitable for the companies that sell gold. Why do you think they do all the commercials.

I've always told people you should never trust the people trying to sell you gold on the TV or elsewhere as a hedge against inflation. If they actually believed that they wouldn't be selling their soon to be valuable gold for soon to worthless dollars.

Buy stocks bonds and other shit to hedge against inflation. Of the economy really goes bottom out everyone is fucked anyway and it's not like you can eat the gold you bought. If you're going that route booze and cigarettes are probably going to be worth way more than gold.

[–]thomastheglassexpert[S] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

A smart answer thanks. My lesson learned.