87

Precious metals have primarily been useful as a stable store of value, not a way to make a profit The best argument in favor of precious metals has generally been that they hold their value against inflation while being hard to manipulate by governments/central banks/currency traders/etc. But that's not an investment - that's just a store of value. There's ...


31

If it were me, I would convert it to cash and keep it in a liquid account. The assumption that silver will increase in value is misguided. From 1985 to 2002, it was flat. It's gone up and been far more volatile since then, and there has been significant declines which could eat at the stability of an emergency fund. Precious metals are speculation, not ...


30

What do the coins go for on eBay compared to what the coin shop is offering? I wouldn't expect to be able to resell a non-graded, recent coin like this at the retail price the mint offers. The mint focuses on sales to collectors who get some enjoyment out of their coin collection, not investors looking to resell their collections at a profit. If the ...


15

Just because the coins are legal tender does not mean that they are "in circulation" and people are spending them at stores. Yes, the Canadian Gold Maple Leaf is legal tender, as is the American Gold Eagle. All this means is that if you owe a debt of $50 to someone, you can give them one of these coins, and they are required to accept it as payment in full....


13

If you were asking if you should buy silver for an emergency fund, I'd say no. But, you already have it... Note: I wrote most of the below under the assumption that this is silver bullion coins/bars; it didn't occur to me till the end that it could be jewelry. Both of you have good arguments for your points of view. Breaking it down: Her points 1. A ...


11

How could it be that this gold coin was created as legal tender when its gold content is much higher than its face value? There are many coins that have market value far above their face value, typically collectibles of limited production. They are often issued to create revenue for the treasury. You can't buy one of these for 50 dollars. Is it ...


11

The best opportunity to sell small amounts of collectible coins is to go to coin shows. Now the gold and silver coins from the U.S. Mint catalog-website are not bullion but are mint-marked coins.


10

Platinum use is pretty heavily overweight in industrial areas; according to the linked Wikipedia article, 239 tonnes of platinum was sold in 2006, of which 130 tonnes went to vehicles emissions control devices and another 13.3 tonnes to electronics. Gold sees substantial use as an investment as well as to hedge against economical decline and inflation, with ...


9

Coins are legal tender. They're authorized by governments and have a face value. Rounds are simply coined pieces of metal minted by private manufacturers. They do not have any face value and are not legal tender. Rounds are used to own metal, they have no value other than the value of the metal in them. Any premium you pay over the price of the metal is ...


9

People normally hold precious metals as a protection against the whole system going down: massive inflation, lawlessness, etc. If our whole government and financial system broke completely and we returned to a barter economy, then holding silver would likely turn out to be a good thing. However, precious metals are not very good hedges against individual ...


6

Gold stocks (and ETFs and mutual funds comprised of gold stocks) are a reflection of the price of gold during that period. There are years when they are the best or near best performers among all funds. There are years when they are the worst or near worst performers. There are years when they are the just blah and trade in a box. You can see this by ...


6

I came across this €1000 coin, which can actually be bought for €1000. It contains 17 grams of gold, worth about €600 today. Is there any downside to this over keeping €1000 in regular banknotes? These are bullions / medallions / collectibles / Non Circulating Tenders or whatever name one wants to call it. A coin has a value because the Central Banks says ...


5

I'm planning on buying Vienna Philharmonic bullion coins. What confuses me the most is the face value of the coins. For instance, copper coins have face value of 5 euros. You have confused bullion coins, which are valuable for the amount of precious metal they contain, with collector coins, which are valuable because collectors want to purchase them. They ...


5

You are making the assumption the Canadian dollar is at a low point and will recover. The current level could be the new normal for many years. It could also fall further. If you are looking to make a bet that the loonie will recover, how long are you willing to wait? The market can wait decades, can you?


5

If you're investing for the long haul, then focusing on Canadian ETFs is probably the best place to start. In the long run, the relative value of the Canadian dollar with respect to other currencies will not matter much, especially if you continue to earn, spend and invest in Canadian dollars. Attempting to make money off of currency fluctuations will be ...


5

I am sure that it is true that the cost of a 1oz gold coin (or whatever the size is) is different in different countries. However the difference is going to be tiny (apart from differences in duty) - less than the cost of transportation. If you are being invited to invest money in a scheme which involves buying coins from the US and selling them in ...


4

The SPDR ETF GLD? The fund intends one share to match 0.10 ounce of gold, and the wikipedia article states it's one of the top 10 holders of bullion in the world.


3

This kind of coin is issued because: It's a known weight and purity which makes it easy to buy and sell. The fiat value of them creates a bottom for their value. That is, they will always be worth C$50 no matter what the value of gold is. The second point is hard to understand given how low the fiat value is compared to the commodity value of gold. And ...


3

Metals and Mining is an interesting special case for stocks. It's relationship to U.S. equity (SPX) is particularly weak (~0.3 correlation) compared to most stocks so it doesn't behave like equity. However, it is still stock and not a commodities index so it's relation to major metals (Gold for instance) is not that strong either (-0.6 correlation). ...


2

For what it's worth, here is a Granger causality test on 10 years of daily gold and silver data downloaded from Nasdaq. Here is the data plotted:- and here are the Granger test results:- This shows in the 16th lag a significantly low probability of the null hypothesis that the price of gold does not affect the price of silver. That is to say, the price ...


2

"Limited Price" is probably equivalent to the current par value of a "limit order". Markets move fast, and if the commodity is seeing some volatility in the buy and sell prices, if you place an ordinary buy order you may not get the price you were quoted. A "limit order" tells your broker or whomever or whatever is making the order on your behalf that you ...


2

There are various exchanges around the world that handle spot precious metal trading; for the most part these are also the primary spot foreign exchange markets, like EBS, Thomson Reuters, Currenex (website seems to be down), etc. You can trade on these markets through brokers just like you can trade on stock markets. However, the vast majority of traders ...


2

Not specifically a "stream", but there are royalty companies that operate based on a similar concept. With a royalty, a party will pay upfront to a another party, usually a product manufacturer, oil & gas producer, or miner, and in return they will receive a percentage of the proceeds from the sale of the goods. For example, Company A owns 100 sections ...


2

A bronze coin is not bullion. Copper could be bullion but it would have to be very large. In fact I only see the Philharmonic coins in gold, silver, and platinum. There are many collectible coins that are not precious metal.


2

As of Dec 2017, there are 4 major spot markets: Rotterdam, USA (New York), India and China. Argus covers all of them, Platts covers New York. Currently, there are no futures based on any of the indices. There are no ETFs tracking any of the indices. There are no ETCs. There was a company, Kingsgate Molybdenum/Bismuth Mine Ltd., later Auzex Res Ltd., ...


2

I have some gold investments. I simply bought a couple of small bars of gold and put them in my house. That's pretty cheap in terms of storage costs. Why don't you want to do it this way? You won't find cheaper storage. Anyway, looking at the numbers presented; 0.01% holding fee per month. So after a year, you'd be down around 0.10% So if you had 100 ...


1

The fundamental problem with investing in precious metals is that the price is entirely driven by supply and demand. By the definition of "precious," none of the product is permanently consumed. In the case of gold, most of the "consumption" is jewellery manufacture, and as the far eastern countries' economies develop and gold jewellery ceases to be the main ...


1

First, you are confusing a few different types of coins. Vienna Philharmonic coins are bullion coins available in gold, platinum, or silver. The copper coins you linked to in the comments are collectible coins in copper. These are not Philharmonics. Both of these types of coins are produced by the Austrian mint and are legal tender in Austria, but not in ...


1

The cheapest way to store physical metals is to take delivery, and keep them yourself. The "goldbugs" have a saying - "if you don't hold it, you don't own it". Or, to put it another way, just because somebody says that there are a pile of gold bars in a vault with your name on them, doesn't mean that there actually are any gold bars in that vault.


Only top voted, non community-wiki answers of a minimum length are eligible