Cash or Coins ?

Bankerbob56 · January 16, 2012 12:50AM

I am certain that this type of thread is not new, but as we've turned the corner on another new year, which would many of your prefer to be holding now? Gold coin or cash? ......and why?

The inflation fears have not yet ignited but with the Middle Eastern/OPEC countries needing higher and higher prices for crude to balance their budgets, higher energy prices must mean inflation cannot be far away.

291fifth · January 16, 2012 1:01AM

Cash is still king.

Gold still has a considerable "fear" premium built into its price.

mariner67 · January 16, 2012 1:02AM

No expert here but with unemployment so high, wages don't go up....prices don't go up either.
Inflationary factors are tamed by high unemployment.....less folks can afford things.
Deflation actually can be an issue raising its ugly head!

fishcooker · January 16, 2012 1:44AM

If people spend more on crude, and less on other items, why would inflation exist?

If it is OK for people to spend more on computers, 4G Iphones, cigarettes, and beer... it is OK to spend more on crude.

derryb · January 16, 2012 1:50AM

You have to consider the value of your dollar at the end of the year vs. the value of your gold coin at the end of the year. I'll take the gold coin.

ricko · January 16, 2012 2:33AM

Gold. It is readily convertible to either cash or product. Cheers, RickO

RedTiger · January 16, 2012 2:36AM

I prefer a measure of diversification. These "all in" or "all out" kind of moves might be fine for a 28 year old with a high income and few responsibilities, but many are on the downside of over the hill, and can't earn back the kind of losses that can occur with a badly timed "all in" move to gold, or any other asset class such as stocks, or bonds.

Sure if a person is mostly right on these "all in" moves, it is exciting and profitable. Those asking for advice wouldn't be asking if they were mostly right all the time. The other catch is, that even if one really smart or lucky person replies to this kind of thread, the typical question asker won't be able to see that, and will more likely choose the most popular response, or even the stupidest advice, sometimes even joke advice.

Mesquite · January 16, 2012 2:38AM

I'm with the gold crowd for the reasons stated. Plus, they're not making any more of the stuff.

WestySteve · January 16, 2012 3:01AM

Agree that diversification is best. But where you buy coins, be a contrarian. The trick is to buy low and sell high. Because of the economy, there are some down and out "collector coins" right now. Find fire sale prices on some of those.

Bankerbob56 · January 16, 2012 3:03AM

<< <i>If people spend more on crude, and less on other items, why would inflation exist?

If it is OK for people to spend more on computers, 4G Iphones, cigarettes, and beer... it is OK to spend more on crude. >>

Because just about everything you buy has an energy factor in its cost. Be it in production or distribution......

BillJones · January 16, 2012 3:06AM

If you are looking to buy coins, cash still king. Trying to trade one coin for another with a dealer leaves you on the short end most of time. I did a trade at the FUN show and when in using 10% in back of Gray Sheet bid as a guide, and it worked. Selling some 19th century Mint State type coins proved to be a disappointing experience. I got some farily low prices.

Billet7 · January 16, 2012 3:24AM

<< <i>I'm with the gold crowd for the reasons stated. Plus, they're not making any more of the stuff. >>

They're discovering gold all the time, it's not really a rare metal honestly. You want to get in the money, get a hold of some rare earth minerals like Europium or Lanthanum.

Type2 · January 16, 2012 3:44AM

You need the right amount of both Cash and Gold,Silver I once tryed to hoard Gold once but when I went to sell it 6 mo's ago no one had the cash for it one of them was a 10 oz. bar. That is when i started to think I need one oz and smaller and Silver and Cash we can't go to the store and pay with a 1/10 oz Gold pice they look at you funny but it is E.Zer for a dealer to pay you out with a small amount of gold. At that time Gold was 1800+ a oz and cash was and still is KING he offered me $1500 or $1600 that was the only way that dealer was going to part with his cash if he got a very good deal. I did not sell it to him i sent it off to Monex and they payed the going price that was very close to spot and sent me a Ck but it was more then a dealer was going to give me. So I would say YES cash is "KING"

NewParadigm · January 16, 2012 4:28AM

Gold.

johnny9434 · January 16, 2012 5:02AM

Gold. It has way more bargining power

. Cash isint so bad either

BBN · January 16, 2012 5:14AM

A lot of it depends on what the purpose of that money is. If it's an emergency fund it should always be cash. If you have your emergency fund fully funded and other investments are well funded then it doesn't hurt to hold some gold.

A transmission job that costs $2500 now will likely be $2500 in September. 1.5 ounces of gold would pay for that now but may possibly only pay for most of that job leaving you $500-600 short in September. Emergency money is cash. Fluff money can be what you want it to be.

comma · January 16, 2012 5:31AM

If anyone pays attention to the government we're under and where are economy is headed they would definitely not be holding on to a lot of cash. (no intent of starting a political debate...just seeing trillions of dollars go away every month doesn't give me a lot of faith for the dollar).
I think the best approach is to have enough cash to pay for what you need to, then have the rest in something more substantial and somewhat liquid (gold, silver, etc)

nibanny · January 16, 2012 6:11AM

More gold than cash for me but I like them both. (Better than the numbers my bank shows me on my screen!)
Lately, I have started adding some foreign currency in addition to the two currency I normally use (eur and usd). You never know! MM

Cash or Coins ?

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