@coinpalice said:
what he is saying is buy something like a 1891 CC $10 liberty gold which sell for about 2,200 dollars, the numismatic value of this coin exceeds the gold value by over 100 percent
@coinpalice said:
what he is saying is buy something like a 1891 CC $10 liberty gold which sell for about 2,200 dollars, the numismatic value of this coin exceeds the gold value by over 100 percent
That wouldn’t be investing in gold as much as it would in a numismatic coin.
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
yeah i know, the numismatic heavy gold coins i have are doing really well now, it's just part of collecting the same things over a 30 year time span, you learn which key dates are the best to collect and jump on the good deals when they come up
Warren has his formula, he is not going to tell you what it is but if a company looks good in his formula analysis then probably like any investor he will pull the trigger.
I'm sure physical gold played a part in his decision. Also he has access to information just because of who he is that he will utilize, like all the major investors.
@coinpalice said:
what he is saying is buy something like a 1891 CC $10 liberty gold which sell for about 2,200 dollars, the numismatic value of this coin exceeds the gold value by over 100 percent
Yeah, do that. If the price of gold gets high enough (it probably will eventually)....even 1891 CC $10 Libs will be selling within 10% of melt. This trend since around 2006 has been inexorable.
@fathom said:
Warren has his formula, he is not going to tell you what it is but if a company looks good in his formula analysis then probably like any investor he will pull the trigger.
I'm sure physical gold played a part in his decision. Also he has access to information just because of who he is that he will utilize, like all the major investors.
His formula has been published in countless books. It can also be found in his annual letters.
To the OP.... historically, PM's have been used as a hedge against inflation... but these times are "unique". I think a lot of investors will park their money in PMs to see what the markets look like at Christmas... just a hunch...
Collecting: Dansco 7070; Middle Date Large Cents (VF-AU); Box of 20;
@coinpalice said:
what he is saying is buy something like a 1891 CC $10 liberty gold which sell for about 2,200 dollars, the numismatic value of this coin exceeds the gold value by over 100 percent
Yeah, do that. If the price of gold gets high enough (it probably will eventually)....even 1891 CC $10 Libs will be selling within 10% of melt. This trend since around 2006 has been inexorable.
yep, that's what usually happens, i only have one coin that's numismatic heavy and i bought it a long time ago, appreciated about 150 percent as of now, been buying key and semi-dates for just above melt for years, those are doing real well now, impossible to buy key and semi key dates just above melt now
@YQQ said:
Only buy gold or silver when the numismatic value exceeds the metal value by at least 100%
That's about where I am on average.
50% intrinsic & 50% numismatic = total value of coin.
I guess it could be considered hedging.
They are all doing quite well except the keys & semi-keys have not moved yet. (1912, 1913-D, 1920, 1909-S & Fab-5)
Thought there might be some lemming action today with gold after the Buffet announcement, not seeing much.
@derryb said:
The bigger story is he dumped banks.
That's not too surprising. With the exception of credit card debt, I don't know how banks make money any more. (mine even took away the coffee urn and cookie platter).
Heck, would you loan me 275,000 for 30 years at 2.8% ?
wells fargo charges a service fee if you don't have at least 2,000 in your checking account, seems like they don't even care about their long term customers anymore
@Along said:
Yes & then sell the loan on the secondary market and keep the 0.50% servicing fee. No credit or interest rate risk taken.
This is true from the bank perspective...but would you buy the loan on the secondary market? It is really strange to me that anyone wants to hold these securities that will be lucky to have a positive real yield over ridiculously long time frames.
@coinpalice said:
wells fargo charges a service fee if you don't have at least 2,000 in your checking account, seems like they don't even care about their long term customers anymore
@Along said:
Yes & then sell the loan on the secondary market and keep the 0.50% servicing fee. No credit or interest rate risk taken.
This is true from the bank perspective...but would you buy the loan on the secondary market? It is really strange to me that anyone wants to hold these securities that will be lucky to have a positive real yield over ridiculously long time frames.
Yes, I would buy a basket of mortgages and then sell short a like amount of 10-year Treasury bonds. Reduce the credit and interest rate risk and collect the spread.
@Along said:
Yes & then sell the loan on the secondary market and keep the 0.50% servicing fee. No credit or interest rate risk taken.
This is true from the bank perspective...but would you buy the loan on the secondary market? It is really strange to me that anyone wants to hold these securities that will be lucky to have a positive real yield over ridiculously long time frames.
Yes, I would buy a basket of mortgages and then sell short a like amount of 10-year Treasury bonds. Reduce the credit and interest rate risk and collect the spread.
I know that's what they do. It just seems like a lot of effort for a pretty small spread.
i wouldn't want the risk of mortgage paper in this environment.
Currency debasement and market turbulence add credence to Buffett's gold mine hedge investment.
Bank stocks will be weak for the foreseeable future, we could be entering a period of poor liquidity and the age of hard assets, good for precious metals and rare coins.
Comments
That wouldn’t be investing in gold as much as it would in a numismatic coin.
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
yeah i know, the numismatic heavy gold coins i have are doing really well now, it's just part of collecting the same things over a 30 year time span, you learn which key dates are the best to collect and jump on the good deals when they come up
Warren has his formula, he is not going to tell you what it is but if a company looks good in his formula analysis then probably like any investor he will pull the trigger.
I'm sure physical gold played a part in his decision. Also he has access to information just because of who he is that he will utilize, like all the major investors.
I wish I had his money problems🤪
Yeah, do that. If the price of gold gets high enough (it probably will eventually)....even 1891 CC $10 Libs will be selling within 10% of melt. This trend since around 2006 has been inexorable.
His formula has been published in countless books. It can also be found in his annual letters.
To the OP.... historically, PM's have been used as a hedge against inflation... but these times are "unique". I think a lot of investors will park their money in PMs to see what the markets look like at Christmas... just a hunch...
Successful BST transactions with: SilverEagles92; Ahrensdad; Smitty; GregHansen; Lablade; Mercury10c; copperflopper; whatsup; KISHU1; scrapman1077, crispy, canadanz, smallchange, robkool, Mission16, ranshdow, ibzman350, Fallguy, Collectorcoins, SurfinxHI, jwitten, Walkerguy21D, dsessom.
yep, that's what usually happens, i only have one coin that's numismatic heavy and i bought it a long time ago, appreciated about 150 percent as of now, been buying key and semi-dates for just above melt for years, those are doing real well now, impossible to buy key and semi key dates just above melt now
That's about where I am on average.
50% intrinsic & 50% numismatic = total value of coin.
I guess it could be considered hedging.
They are all doing quite well except the keys & semi-keys have not moved yet. (1912, 1913-D, 1920, 1909-S & Fab-5)
Thought there might be some lemming action today with gold after the Buffet announcement, not seeing much.
My Saint Set
Buffett bought GOLD. The stock is up about 11% today.
that's usually how it goes, the rich get richer
Buffet is doing what Buffet does, profiting off the speculators who will drive up the price of his shares. He's not buying gold, he's buying profit.
Exit bunker, enter Matrix. LOL
I realize Berkshire investing in a gold miner is exciting news, but the position is only 0.21% of the portfolio.
Barrick announced it was raising its dividend.
His investment managers could have convinced him to buy.
Either way its 21 Million shares of a gold miner, a significant stake. Buffet had a disdain for gold, now he doesn't as much, that is relevant.
Both managers have full discretion and each manage $10 billion portfolios. They are independent of Buffett.
Bridgewater bought $400 million in gold in 2Q. Used two different ETFs.
The bigger story is he dumped banks.
Exit bunker, enter Matrix. LOL
That's not too surprising. With the exception of credit card debt, I don't know how banks make money any more. (mine even took away the coffee urn and cookie platter).
Heck, would you loan me 275,000 for 30 years at 2.8% ?
Yes & then sell the loan on the secondary market and keep the 0.50% servicing fee. No credit or interest rate risk taken.
wells fargo charges a service fee if you don't have at least 2,000 in your checking account, seems like they don't even care about their long term customers anymore
This is true from the bank perspective...but would you buy the loan on the secondary market? It is really strange to me that anyone wants to hold these securities that will be lucky to have a positive real yield over ridiculously long time frames.
Invest like Warren Buffet. Live like Jimmy Buffet. Sleep well. GLTA
100% Positive BST transactions
Chase does that log time ago so I closed it.
So much for that Buffett bounce...$1925.76
I hope him buying gold miners is NOT a signal to SELL!
Uh oh ....
I give away money. I collect money.
I don’t love money . I do love the Lord God.
Yes, I would buy a basket of mortgages and then sell short a like amount of 10-year Treasury bonds. Reduce the credit and interest rate risk and collect the spread.
don't worry about these sell offs people, like Aaron Rodgers said about 3 years ago, R-E-L-A-X
I know that's what they do. It just seems like a lot of effort for a pretty small spread.
He only bought one half billion dollars in GOLD stock. Just a small dollar insurance policy.
He did sell $13 billion in stocks, mostly financials. This where one finds his signal: "time to get out."
Exit bunker, enter Matrix. LOL
i wouldn't want the risk of mortgage paper in this environment.
Currency debasement and market turbulence add credence to Buffett's gold mine hedge investment.
Bank stocks will be weak for the foreseeable future, we could be entering a period of poor liquidity and the age of hard assets, good for precious metals and rare coins.