I sold my gold

MoneyLA · April 24, 2008 10:16AM

I sold my gold at $945 and glad I did. But if gold should drop back to just under $800 I will buy again.

BECOKA · April 24, 2008 10:18AM

It's in a lull right now but doubt it will ever go back to $800, I would guess $1100 by this time next year with movement up and down between 900-1100.

RedTiger · April 24, 2008 10:41AM

Why did you sell?

And what kind of gold was it? (coins, bullion coins, bullion bars, ETFs, mining stocks?)

Approximately how long did you own it?

Do you have any gold remaining? How about silver?

Mercury10c · April 24, 2008 10:47AM

Good move. You'll have the opportunity to buy well under $800.

MoneyLA · April 24, 2008 10:50AM

I sold American Gold Eagles, one ouncers.

I sold because I sensed the market was turning. Im sorry I didnt sell closer to 1K but needed gold to fall below 950 to confirm that the metal would not sustain itself above 1000.

I have a long term profit. Ive been buying gold for more than three years.

I still have my silver, but it is a smaller $$ amount than my gold.

I still think silver is undervalued, but I cant buy silver now until the uptrend returns... that could be in a week, or in a month, or in six months... I dont know till it happens.

If gold stabilized and then started to move higher, I could re-enter the gold market.

but right now I think a price drop to $800 or slightly less is very possible.

jessewvu · April 24, 2008 10:51AM

I'm selling most of my gold too but its because I am broke and need some money. I bought a few bullion american buffalo coins back in August of 07, I think I did OK.

percyb · April 24, 2008 10:54AM

<< Good move. You'll have the opportunity to buy well under $800. >>

I must ask...Does the Kraft family, foundation, or corporation own a franchise team?? I'm looking at your rings and if so, which one? Curiousity impels me to ask.

Scavenger · April 24, 2008 11:22AM

Robert Kraft is the owner of the New England Patriots. There is no connection between Robert Kraft and Kraft Foods Inc.

DoubleEagle59 · April 24, 2008 11:37AM

I think it may turn out to be a good move.

I'm beginning to think the price may drop to $800.

But you must buy back because I'm still convinced we will see prices north of $1500.

I haven't sold mine yet. I'm in it for the long haul.

roadrunner · April 24, 2008 11:43AM

Today had the feeling of a short term low. If we go any lower I can't see less than $850. Newmont's Q1 earnings report this week was outstanding. Others will follow shortly with similar reports. The regular financial news this week was going to stink once again. Witness the crap coming out of municipal bond insurer AMBAC.
So the PTB got an early start on pounding gold a little further while they could. The sheeple have been lead to believe that all the bad news is once again over. Safe to sell commodities and gold. When gold is heading sharply back up and sellers are still waiting for that last chance at sub-$800, it could be too late.

roadrunner

Rarity · April 24, 2008 11:50AM

Just bought my Buffalo Celebration for $1000. Oh well, I'm losing about $100 but I'll buy more Buffalo if gold were to drop to $750-800 range.

Deadhorse · April 24, 2008 1:21PM

<< Today had the feeling of a short term low. If we go any lower I can't see less than $850. Newmont's Q1 earnings report this week was outstanding. Others will follow shortly with similar reports. The regular financial news this week was going to stink once again. Witness the crap coming out of municipal bond insurer AMBAC.
So the PTB got an early start on pounding gold a little further while they could. The sheeple have been lead to believe that all the bad news is once again over. Safe to sell commodities and gold. When gold is heading sharply back up and sellers are still waiting for that last chance at sub-$800, it could be too late.

roadrunner >>

I really don't see gold going sub $800, I doubt we'll see below $850 and even then it would be a short dip.

I'm at around 85% silver, 15% gold, dollar wise, so my eggs aren't in that basket, so to speak. At least not many of them anyway.

I'm in it for the long haul regardless and this current market is so screwy that I'm just sort of siting on the sidelines and watching. I am confident that we will see new highs in both gold and silver in the fairly near future(not counting the artificial silver prices back in '80) . Even then, I'll continue to hold and act as if it isn't even there. I'm really looking at 2-3 years down the road in the bigger picture. If indeed we are seeing the leading edge of a physical shortage in silver, then in a few years or less, it is going to respond to that like a bottle rocket.

Time will tell, it always does.

CarlWohlforth · April 24, 2008 1:46PM

Sounds like a good move if you can replace it cheaper!

I just bought an ounce for $900. I'll buy another one if we go below $800. I only own a few ounces w/ average cost of about $700.

buffalonut · April 24, 2008 4:02PM

Let me get this straight. You sold your gold at 15% below the top. You will pay taxes on your profit @ 28% (its a collectable), and if you are lucky; you will be back in 15% above the bottom. Good luck with that. Doh! I forgot the fees each way. I hope it was a cash deal.

RedTiger · April 24, 2008 4:27PM

<< I sold American Gold Eagles, one ouncers.

I sold because I sensed the market was turning. Im sorry I didnt sell closer to 1K but needed gold to fall below 950 to confirm that the metal would not sustain itself above 1000.

I have a long term profit. Ive been buying gold for more than three years.

I still have my silver, but it is a smaller $$ amount than my gold.

I still think silver is undervalued, but I cant buy silver now until the uptrend returns... that could be in a week, or in a month, or in six months... I dont know till it happens.

If gold stabilized and then started to move higher, I could re-enter the gold market.

but right now I think a price drop to $800 or slightly less is very possible. >>

Sounds like a decent enough profit. Congratulations.

Thanks for answering my questions. Personally, I find it useful and interesting to hear what people are doing in terms of buying or selling, and what led them to the decision. Most especially when someone who has been bullish for a long time sells, or when someone that has been bearish turns around and buys. Predictions can be fun, but in general are not as informative.

Cheers.

lathmach · April 25, 2008 1:12AM

I sold some gold a couple weeks ago at the MSNS show.
Silvertowne paid spot-3%.
I bought this stuff years ago, and made a real decent profit on it.
The time to sell is when everybody else is buying.

Ray

Rickyroooo · April 25, 2008 3:31AM

Bought some $5 AGE's beginning of this week for $90 when gold was $932. Been dropping ever since. Always do the opposite of what I do. I have the same luck with stocks LOL Rick

KUCH · April 25, 2008 3:48AM

I am by no means a financial expert, coin expert. Portfolio consists of:
10% Coins
28%Mutual Funds
10% Stocks
40% Bonds
12% Real Estate

I'm trying to stay diversified. I will be moving things to the following this year

15% Coins
10% Mutual Funds
30% Bonds
45% Real Estate

Yep, With the real esate mess, there are great deals out there. Buy and Hold.

sonde79 · April 25, 2008 5:04AM

you acted wisely. i often find it hard to part with my gold.

MoneyLA · April 25, 2008 12:56PM

Buffalonut... you wrote about a 28% tax rate on sales.

Funny, I thought that the long term tax rate on cap gains was 15%.

Short term tax rate is 28% (or whatever your own tax rate might be).

Why did you pick the 28% tax rate??

thanks.

ricko · April 25, 2008 1:06PM

Seilling. .and buying... is up to the individual. In this case, I cannot help but think you have responded to the panic of the 'daily' market. Now, If I am wrong.. sorry... however, If I am right.. you have left a lot of money on the table. Cheers, RickO

derryb · April 25, 2008 1:14PM

<< Buffalonut... you wrote about a 28% tax rate on sales.

Funny, I thought that the long term tax rate on cap gains was 15%.

Short term tax rate is 28% (or whatever your own tax rate might be).

Why did you pick the 28% tax rate??

thanks. >>

Gold, for IRS purposes is treated just like an investment in antiques and art. No short term/long term on these. Flat 28%. This is why it is a good idea that if you are going to diddle in gold, do it with coins and as a business (or greater than $400 a year hobby). These sales go on your schedule C along with all other coin sales (it's all inventory) and all of your expenses.

MoneyLA · April 25, 2008 1:21PM

that is interesting information. can you please give me more about the specific tax code on this?

My understanding was that coins and gold are considered "investments" but unless you have "profits" then they are considered a "hobby" and as a hobby the losses are not tax deductible.

I appreciate the info.

TwoSides2aCoin · April 25, 2008 1:25PM

David Hall said to go long on gold.
Your play today considering you've been in it for three years shows profit taking. Nothing wrong with that.
However, just last month , you said this !
What changed your tune so fast ?

derryb · April 25, 2008 1:38PM

<< that is interesting information. can you please give me more about the specific tax code on this?

My understanding was that coins and gold are considered "investments" but unless you have "profits" then they are considered a "hobby" and as a hobby the losses are not tax deductible.

I appreciate the info. >>

Taxes are due on income. Tax code allows up to $400 in hobby income before you have to file additional forms. Anything over that and it is ALL reported on Schedule C. You don't have to have a business or have a set of business accounting books to do this. If you are not a business, only keep accounting records that are needed to prove what you put on schedule C. Change to the tax code this year allows a husband and wife to be a qualified sole proprietership. This is important because is allows you to mix all your money (yours and hers) rather than keeping it in a separate business account. It also mean you don't have to fool with more complicated partnership tax forms and rules.

My senario. I buy and sell coins (hopefully for a profit) on the internet. Since there are no sales taxes for coins in my state of Florida I don't need a tax ID number, business license or file state sales tax forms. Since the IRS wants me to report sales (if they exceed $400 for the year) on Schedule C, I only have to keep records to prove what I put on Schedule C. I don't deduct for home office (a sure way to invite an audit) and I don't depreciate anything. I have inventory, purchases, sales, fees and office expenses. The money i make doesn't have to go in a special business account, it just gets mixed with my personal accounts. At anytime i can just shut down doing business and file one last schedule C with my current records.

DISCLOSURE: I am heavily invested in the IRS, they get most of my money. I am not an accountant. I am a do-it-yourselfer who researched the tax code. (I'm not a lawyer either, but after internet research, I helped my son take his wife to the cleaners in a divorce - and she did have a lawyer!)

fcloud · April 25, 2008 1:42PM

Good move. It will be back!

aficionado · April 25, 2008 2:12PM

Sold my extra's on ebay the Sunday before the last Fed meeting. Perfect timing, gold was over $1000.

Sometimes I make the right move, which is good because it balances all the stupid things I do...

adamlaneus · April 25, 2008 2:15PM

Don't you hate it when you leave a thread window open...leave...come back...answer a question...and discover that enough time has passed that you should have just shut up?

jmski52 · April 25, 2008 2:19PM

I just bought some silver. I was going to liquidate some platinum in order to raise capital to buy some new Plats, but I've decided not to sell right now. I'll buy with new money instead. I like being "in" alot more than being "out" right now.

buffalonut · April 25, 2008 3:15PM

you are correct; long term cap gains are 15%. Gold is a "collectable" in the eyes of Uncle Sam. You pay 28% on that gain no matter how long you hold it. This is true even if you trade the ETF - GLD. Yea it sucks!

COINB0Y · April 25, 2008 3:32PM

pssst....be like me, don't tell them and the rate goes down to 0%

jdimmick · April 25, 2008 5:06PM

Dont be afraid to take a profit on PM's. whats the point of investment, if you never cash in on some profits.

Just today , I had three folks wishing the had sold last month !!, now they are sweating !!!!

two of these guys were die hard 1500 men , and now they are very squemish

seatedcoins · April 25, 2008 5:54PM

<< pssst....be like me, don't tell them and the rate goes down to 0% >>

ARCO · April 25, 2008 6:31PM

Not too bad. Now you have dollars that are yielding 3.0% in a money market fund while inflation is raging at 11%. Of course, gold as an "inflation hedge" was declining in price while oil rose and the dollar fell. It is a mad mad mad world.

I don't know. I am starting to think that wheat, water and guns are the best hedges against everything and that gold is good if you need a cap for your teeth and nothing else.

Tyler

roadrunner · April 25, 2008 11:31PM

My understanding was that coins and gold are considered "investments" but unless you have "profits" then they are considered a "hobby" and as a hobby the losses are not tax deductible

They can be "hobby" investments but are taxed at 28% rates unless you declare yourself in a business.

Since many people around here are investing in their hobbies, you can balance legitimate coin losses against profits. Also, some of the expeneses incurred in that investment are tax deductable (such as grading fees for example). An investor can also carry forward losses if they exceed a specified amount.

LAMoney's news thread didn't specifically hype gold but merely stated how it had tripled to get to $1000. To those who were interested in buying gold, he offered up some suggestions. A 10-15% swing in gold is not going to shake me out.... and there are tax consequences as well. If you applied the same logic to those investing long term in stocks to sell out on every shorter term 10-15% gyration you'd probably get nowhere fast. Ironically, too many think the gold market should not be played similar to the stock market. After all, it's just a barbarous relic with no bearing on today's high-tech financial world. Whatever the Central Banks keep in storage is just for "fun" and trading amongst themeselves.

Gold may not have been much of an inflation hedge over the past 30 days but year over year since 2001 (+30% over the past year) it has done its job and a lot more. I don't think anyone can argue that with average gains of roughly 20% per year, gold is indeed fighting inflation. Yeah, it's a race alright...but not a sprint.

roadrunner

TwoSides2aCoin · April 25, 2008 11:42PM

Thanks RR... I didn't mean to imply that Alan was "hyping" it.
I like to think of this place as a COIN forum, though.
Many more times it turns into a platform for a lot of guys to play investment guru.

I prefer seeing the gold coin sold, not to read about the profit taken.
Numismatically speaking, of course

Joe

jmski52 · April 26, 2008 1:24AM

I like to think of this place as a COIN forum, though.
Many more times it turns into a platform for a lot of guys to play investment guru.

I prefer seeing the gold coin sold, not to read about the profit taken.
Numismatically speaking, of course

Discussing gold coin profits is no more irrelevant than this:

Republican presidential candidate John McCain and former rival Mike Huckabee teamed up on the campaign trail for the first time on Friday, with Huckabee joking that they were so civil when they were opponents they don't have to "unsay" any bad things.

Touche'

TwoSides2aCoin · April 26, 2008 1:30AM

Jr. Associate in Ziggy's thread-killing consortium.

First degree , even ?

Touche'

I bought it ... still am

MoneyLA · April 26, 2008 6:59PM

Twosidestoacoin.... Many thanks for your post and for reading my web site. I appreciate that. You asked-- what made me change my position on gold?

Well, as you accurately point out, I was bullish on gold for the past three years.

Now, I think the market has reached resistance, and the sell off below 1,000 made it clear to me that the resistance mark had been reached.

If you follow my articles you will know that I believe in technical analysis. the charts told me to sell.

I sold at about 945 an ounce, and gold closed the week at about 886.

I think gold could drop to 800 where the charts tell me there is support. A violation of that support line might make me a buyer again.

But if gold doesnt hold at the 800 support level, the next support level is at 650.

Many thanks.

MoneyLA · April 26, 2008 7:01PM

derryb thanks for the information. I was able to search the tax code and found the information myself. indeed you are correct about the 28% tax rate.

roadrunner · April 26, 2008 11:34PM

Well, as you accurately point out, I was bullish on gold for the past three years. Now, I think the market has reached resistance, and the sell off below 1,000 made it clear to me that the resistance mark had been reached. If you follow my articles you will know that I believe in technical analysis, the charts told me to sell. I sold at about 945 an ounce, and gold closed the week at about 886. I think gold could drop to 800 where the charts tell me there is support. A violation of that support line might make me a buyer again.

It would seem that you are using the May 2006 peak as the basis for your current decision. In May 2006 gold retreated 22% from $730 to $570. A 22% retreat from the recent $1033 peak would take us back to $807. Given that the May 2006 retrace only lasted 4-6 weeks, and was later retested to the same number after 4 months, wouldn't that tend to place the current $872-880 bottoms as the new base? Looking for further bottoms after a 4-6 week period would seem to violate recent TA as well as the same trends in the 1978-1980 market (ie 4 week corrections after swift upward swings). We are now at the 6 week point from the March 17, 2008 peak. Further moves downward from here would seem to contradict those trends. There is support every $20 down to $800. How it plays out depends on things not yet known to us.

roadrunner

Rarity · April 29, 2008 3:03AM

Gold is currently at $877

MoneyLA · April 30, 2008 4:03AM

roadrunner, your technical analysis is MORE advanced than mine. I simply look at the chart patterns. there is a support line or consolidation around 800 and below that the next area of support or consolidation is at 650.

Griv · April 30, 2008 4:08AM

All my gold coins seem to be being replaced by golden coins.

TwoSides2aCoin · April 30, 2008 4:16AM

Alan, your analysis and actions work out and I think it is terrific. Since I collect coins, it's difficult for me to put a finger on the pulse of the market and how it goes up and down. (I'm not much of an investor, per se.)
On a side note : a friend called me today and wants to dump fifteen thousand dollars worth of Gold Eagles . His dealer offered him $825 each for the ouncers, and he feels insulted. He asked me what I would charge to list them on eBay.

Coinfused in Omaha

MoneyLA · April 30, 2008 4:42PM

twosides... I cant give you any advice except to shop around for the best price. It surprises me that a dealer would offer under spot for AGEs... and your friend should never do business with that dealer again.

Every dealer I talked to (when I was selling) offered at least spot or spot plus a few dollars for my one ounce gold eagles.

Dabigkahuna · April 30, 2008 5:03PM

ARH! Just leaves gold more for me, Har har.

EagleEye · April 30, 2008 11:09PM

When gold shot up last month I noted that saints below MS63 were selling like bullion coins (I'm talking wholesale, there was virtually no premium given) as gold retreated, they got a bigger premium. Perhaps there is a way to chart the premium factor for MS63 Saints as an indication if gold is priced more than the numismatic market is willing to pay.

MoneyLA · May 1, 2008 2:20AM

eagleeye you are talking about a simple chart of the "premium" over generic or spot gold. easily done.

but I am not sure what the purpose is? please explain. thanks.

57loaded · May 1, 2008 3:12AM

in retro it would have been nice to have sold gold $100 up-ago @ $950. i did not think the 'cartel' would be as strong as they are to keep the price down.

it's an odd market and maybe the oddity is the new reality for it's supply/demand and pricing.

I sold my gold

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