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cash vs buying gold

KUCHKUCH Posts: 1,186
in Precious Metals
it's commen knowledge that one should have approximately 6 mos. cash in reserve. If you have that socked away.... and still have $20K in cash should one invest that in gold?

Comments

  • derrybderryb Posts: 36,978 ✭✭✭✭✭
    Only if one is looking to preserve or increase the value of the original $20K.

    The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong

  • MilesWaitsMilesWaits Posts: 5,374 ✭✭✭✭✭
    Do you recall the diamond advertisers suggesting that you put 6 months of your salary into a wedding ring?

    How good of an investment has that been?

    Miles
    Now riding the swell in PM's and surf.
  • guitarwesguitarwes Posts: 9,266 ✭✭✭

    only if you have no other debt that you're paying interest on.

    Silver is a good bet right now.

    @ Elite CNC Routing & Woodworks on Facebook. Check out my work.
    Too many positive BST transactions with too many members to list.
  • BaleyBaley Posts: 22,661 ✭✭✭✭✭
    What's the inquirer's asset allocation? income stream? level of commitments to dependents? there is not one right answer.

    Liberty: Parent of Science & Industry

  • KUCHKUCH Posts: 1,186
    follow up... if you think hyperinflation is coming how would you diversify 20K?
  • gsa1fangsa1fan Posts: 5,566 ✭✭✭
    Au - all in! JMOimage
    Avid collector of GSA's.
  • guitarwesguitarwes Posts: 9,266 ✭✭✭


    << <i>follow up... if you think hyperinflation is coming how would you diversify 20K? >>




    A monster box of Silver Eagles and the rest in 1 oz. gold.


    @ Elite CNC Routing & Woodworks on Facebook. Check out my work.
    Too many positive BST transactions with too many members to list.
  • TWQGTWQG Posts: 3,145 ✭✭


    << <i>Do you recall the diamond advertisers suggesting that you put 6 months of your salary into a wedding ring? >>





    << <i>How good of an investment has that been? >>



    I put three month’s salary into my wife’s ring and the return has been priceless.
    My eBay store
  • halfhunterhalfhunter Posts: 2,770 ✭✭✭


    << <i>Do you recall the diamond advertisers suggesting that you put 6 months of your salary into a wedding ring?

    How good of an investment has that been?

    Miles >>



    NOT TOO GOOD!

    Since all 4 took it with them ! ! ! ! image

    HH
    Need the following OBW rolls to complete my 46-64 Roosevelt roll set:
    1947-P & D; 1948-D; 1949-P & S; 1950-D & S; and 1952-S.
    Any help locating any of these OBW rolls would be gratefully appreciated!
  • BearBear Posts: 18,953 ✭✭✭
    If you bought a perfect 3 carat diamond in 1810, you would be breaking even today

    taking into account inflation.

    Try to sell precious gems on the second hnd market and you will be shocked at how

    small a % of purchase price you are offered.
    There once was a place called
    Camelotimage
  • jsfjsf Posts: 1,889
    You see? It's posts like this that get me a bit concerned. I've got a mess of gold and silver jewelry I need to get rid of. It was inherited, y'all may remember I don't wear the stuff. Hence that gold ring giveaway I had for my 1000th post.

    Anyway, several pieces have diamonds in them too. I dread the hassle of selling the rocks here and there to get the best $ I can. One or two pieces I guess I'll need to sell intact.

    I'd sure rather put the proceeds into a few gold coins and/or some bullion. What am I saying?! I'd drop it all on just the right Walker or two. image
  • jmski52jmski52 Posts: 22,927 ✭✭✭✭✭
    If I had $20,000 that I wanted to deploy, I'd do it in 2 parts a month apart and let the chips fall where they will. Right now, silver does look a bit more enticing, so I'd probably do silver first. A green monster box comes to mind.image

    As for the remaining $10,000 I'd be looking at (5) or (10) each of the next Liberty Gold Spouses, split between unc & proof. If I only bought (5) each of the uncs and proofs, I'd have something around $5,000 in cash left to deploy, and in this environment I wouldn't be in much of a hurry, because you can still look around and be picky without losing sleep by holding more cash. After all, there's virtually no interest rate penalty for holding it.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • gecko109gecko109 Posts: 8,231 ✭


    << <i>it's commen knowledge that one should have approximately 6 mos. cash in reserve. If you have that socked away.... and still have $20K in cash should one invest that in gold? >>





    6 months of cash? Based on your income or based on your expenses for those 6 months? I almost never keep more than $5,000 in cash. That covers just about any type of emergency I can think of....plus I have a very large credit limit if things ever got THAT desperate.
  • edmundfitzgeraldedmundfitzgerald Posts: 4,306 ✭✭


    << <i>

    << <i>it's commen knowledge that one should have approximately 6 mos. cash in reserve. If you have that socked away.... and still have $20K in cash should one invest that in gold? >>





    6 months of cash? Based on your income or based on your expenses for those 6 months? I almost never keep more than $5,000 in cash. That covers just about any type of emergency I can think of....plus I have a very large credit limit if things ever got THAT desperate. >>



    I have no debt, and I have a 150,000 credit line on my home that I don't have any balance on.
    For some reason I keep $15,000 in the bank at all times. I think I should reduce that to around $5,000 as Gecko has said, but
    I always like having that extra cash on hand.
  • mrearlygoldmrearlygold Posts: 17,858 ✭✭✭
    It's good to have a little of this, a little of that

    Coin's for sale/trade.


    Tom Pilitowski
    US Rare Coin Investments
    800-624-1870

  • jmski52jmski52 Posts: 22,927 ✭✭✭✭✭
    I think that there are good reasons to hold more than $5,000 or 6 months expenses in cash. cohodk or storm888 could probably do a better job of explaining it, but my take is that cash is not all that plentiful. I want to be sure that I am not liquidating my pms at a time when there is a hiccup in the market at the same time that I happen to need cash. It's a buffer, and after hitting a target plateau, I'd still keep it somewhat proportional to the net value of your pm holdings.

    Edited: Or perhaps to state it more succinctly, "It's good to have a little of this, a little of that."image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • cone10cone10 Posts: 1,021
    I like the idea of 5,000 to 10,000 cash but I want it in hand not in the bank just like my precious metals.
    A nickel ain't worth a dime anymore.
    Yogi Berra

  • mhammermanmhammerman Posts: 3,769 ✭✭✭
    "It's good to have a little of this, a little of that."

    Occams Razor lives.

    How much cash...may mean different things to different people. I see cash in a couple of different scenarios...cash as in physical cash that you keep near your hand if you need it (banking holiday, need cash immediately type situation, atm's down because of hurricane or something) probably needs to be on the order of $2000-$3000, I accumulate cash like accumulating metal where I just get some when I've got it and just put it away. It's like an emergency fund to take care of the family if we need to get out of here right now or who knows what.

    Cash in checking or savings is something else entirely. It's good to have cash savings in an account, I think that's what people are talking about when they say 6 months of expenses...probably not gonna happen for me. Then there's cash in checking or an operating account, might be $50, might be $5000 depending on what's going on at the moment. Problem with cash in an account is that there could be a problem...like your account gets frozen, stolen, God knows what but cash in an account is vulnerable. Just because a piece of paper tells you it's there, it might not be there such that you can put your greasy fingers on it.

    Metal is for accumulation. I really don't think someone should go out and plunk down 20k on some metal thinking stability and protection. I am a preacher of steady accumulation, steady savings, steady stacking both physical dollars and physical metal. But, don't feel married to it, if the situation demands, I'd free it back into the great continuum in a breath...you can always get more later, it's not like it's gonna suddenly be all gone.

    Edited to add: I should have put every dime I had into 1795 $5's a few years ago. Those baby eagles are way out of my reach now...damn.

    JMHO

  • mrearlygoldmrearlygold Posts: 17,858 ✭✭✭


    << <i>"It's good to have a little of this, a little of that."

    Occams Razor lives.

    Edited to add: I should have put every dime I had into 1795 $5's a few years ago. Those baby eagles are way out of my reach now...damn.

    JMHO >>




    I bought a 1799 Eagle for a customer who reneged on the deal about 12 years ago. Really choice AU 58, cost me $5500 bucks. So I kept it. I also bought almost a dozen more. I figured they would be good for my retirement fund and that 'someday" they might even be worth 25K


    image

    Coin's for sale/trade.


    Tom Pilitowski
    US Rare Coin Investments
    800-624-1870

  • mhammermanmhammerman Posts: 3,769 ✭✭✭
    "'someday" they might even be worth 25K"

    They're getting there, it won't be too long now. Excellent choice.
  • guitarwesguitarwes Posts: 9,266 ✭✭✭



    << <i>How much cash...may mean different things to different people. I see cash in a couple of different scenarios...cash as in physical cash that you keep near your hand if you need it (banking holiday, need cash immediately type situation, atm's down because of hurricane or something) probably needs to be on the order of $2000-$3000, I accumulate cash like accumulating metal where I just get some when I've got it and just put it away. It's like an emergency fund to take care of the family if we need to get out of here right now or who knows what.

    Cash in checking or savings is something else entirely. It's good to have cash savings in an account, I think that's what people are talking about when they say 6 months of expenses...probably not gonna happen for me. Then there's cash in checking or an operating account, might be $50, might be $5000 depending on what's going on at the moment. Problem with cash in an account is that there could be a problem...like your account gets frozen, stolen, God knows what but cash in an account is vulnerable. Just because a piece of paper tells you it's there, it might not be there such that you can put your greasy fingers on it.

    Metal is for accumulation. I really don't think someone should go out and plunk down 20k on some metal thinking stability and protection. I am a preacher of steady accumulation, steady savings, steady stacking both physical dollars and physical metal. But, don't feel married to it, if the situation demands, I'd free it back into the great continuum in a breath...you can always get more later, it's not like it's gonna suddenly be all gone. >>





    Great advice and well put.

    @ Elite CNC Routing & Woodworks on Facebook. Check out my work.
    Too many positive BST transactions with too many members to list.
  • pmcollectourpmcollectour Posts: 1,211 ✭
    Always good to have cash, and always good to have gold.
  • jmski52jmski52 Posts: 22,927 ✭✭✭✭✭
    Always good to have cash, and always good to have gold.

    Welcome, pmcollectour!image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • derrybderryb Posts: 36,978 ✭✭✭✭✭
    My gold and my silver are my cash. Able to convert them into paper money at any time with no hassle. Unlike paper money they normally appreciate in value.

    The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong

  • ChrisRxChrisRx Posts: 5,619 ✭✭✭✭
    Remember to "buy low, sell high"


    Isn't gold currently at an all time high? I would not buy too much of it now. Honestly I would put it into equities since there are so many great buys. When the equities finally recover (and they will) then the price of gold will drop at which point I would pick some up

    I will get plenty of opposition but hey that's what I would do image
    image
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