Question by Alex D: gold eagle coin question?
well for my birthday my uncle will be getting me a 1/4 ounce american gold eagle coin..i was wondering should i maybe sell it and get some cash or should i keep it for a while?i will be turning 22 and i dont really know what to do lol.anyone have any good opinions..thanks alot
Best answer:
Answer by What
I'd keep it...at the rate the world economies (The U.S. included) are going, gold will be over $ 2,000 an ounce before we know it.
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I would keep it too
You should keep it. Gold acts as an insurance policy. Gold is there as a store of value. Gold is something that everyone should have and hope they never have to use it. Your uncle is smart in attempting to educate you by giving you a 1/4 ounce gold eagle. Most people do not understand gold. However once people hold gold in their hands they begin the process of learning about it. Keep the gold and add to it as you can afford to on your own.
Gold is money and a store of value. It is the “Currency of last resort” as Greenspan has stated many times through the years. Gold doesn’t pay interest, dividends, doesn’t restate earnings, has no lawyers, accountants, CEOs or CFOs lying to you on television. Gold doesn’t ask for bailouts, doesn’t go BK and cannot cook its books. Gold cant be debased or printed at the will of a company or government and holds its purchasing power.
Gold sits there as a store of value, is labor intensive, and a one ounce coin will not split into a bunch of half ounce coins at the direction of the pin stripped bandits on Wall Street. Also Gold is the ONLY asset class in the last ten years to increase in value and retain every dollar of its purchasing power.
Gold is not an investment. Gold is and acts more like an insurance policy. You are insuring that something in your portfolio can never go to $ 0.00. All paper assets have the ability to go to $ 0.00. This is what you are insuring against. Te only other asset to not go to zero is real estate. But real estate is illiquid. And it is annually taxed.
Gold is not something that can be produced without effort. In addition it is more rare then other items of value. In order to understand why gold (and silver) have value you first need to understand what money is. Money has 5 properties. Easily recognizable, divisible, medium of exchange, store of value of ones labor, and it must eliminate debt.
Can gold go down? Yes. However that would mean that all essential goods and services must fall as well. This is how gold acts more like an insurance policy.