Should I Be Buying Gold?

[julius]

Yes, half dollars up to 1964 are worth $15.52 and quarters are worth $7.76 in today's scrap metal prices. That is 31x original face value.

The coins usually would be worth more as collectables, there is a price guide at numismedia.com. Scrap metal prices are the bottom end for junk coins with zero collectability.

See, this is where my math sucks. I knew it couldn't be 30 bucks a quarter, but 30 bucks (approx) per 4 quarters..

 

[julius]

Isn't it illegal to melt down coins?

barfo

hey, what happens between me, a blowtorch and my bag of Franklin Half dollars is none of the governments business!

 

[Draco]

Isn't it illegal to melt down coins?

barfo

It's legal to melt all silver and gold coins.

Since 2006 its been illegal to melt pennies and nickles, but the ban is expected to be temporary and lifted in a few years when the government changes production as they did in the 60's.

The coins still trade for their intrinsic (scrap metal) value. Junk copper pennies sell on ebay today for more than 2x face value. Yes you can sell $20 of 1981 pennies on ebay for over $40.

 

[ABM]

It's legal to melt all silver and gold coins.

Since 2006 its been illegal to melt pennies and nickles, but the ban is expected to be temporary and lifted in a few years when the government changes production as they did in the 60's.

The coins still trade for their intrinsic (scrap metal) value. Junk copper pennies sell on ebay today for more than 2x face value. Yes you can sell $20 of 1981 pennies on ebay for over $40.

For some reason, A draco sounds like a denomination to me.

 

[Haakzilla]

For some reason, A draco sounds like a denomination to me.

Science and technology:

• DRACO (antiviral), a group of experimental antiviral drugs
• Draco (constellation), a constellation in the northern part of the sky
• Draco (dwarf galaxy), a dwarf galaxy orbiting the Milky Way
• Draco (genus), a genus of gliding lizards.
• Draco (programming language), a shareware programming language for CP/M and the Amiga
• Draco (rocket engine), an orbital maneuvering thruster being built for the SpaceX Dragon and upper stage of the Falcon 9 spacecraft
• Draco, the database engine used by FileMaker Pro
• Draco, a partly Amiga compatible computer built by MacroSystem
• Draco GNU/Linux, a Linux distribution

History:

• Dacian Draco, a Dacian military standard composed of a wolf head and snake tail
• Draco (lawgiver) (from Greek: Δράκων), the first lawgiver of ancient Athens, Greece, from whom the term draconian is derived
• Draco (physician) (from Greek: Δράκων), the name of several physicians in the family of Hippocrates
• Draco (military standard), a Roman cavalry military standard in the shape of a dragon, adopted after the Dacian Wars Literature, film, and television
• Draco Malfoy, a character in the Harry Potter series of books and movies
• Draco, the name of the last dragon in the film Dragonheart.
• Draco, a warlord character in the television series Xena: Warrior Princess
• Antares Draco, an Imperial Knight from Star Wars: Legacy Jaq Draco, an Inquisitor who is the protagonist of Ian Watson's Inquisition War Trilogy Games
• Draco-Hedron Ovinxer, the destructive dragon form of Ovinxer and the final boss of the game Gun Nac
• Draco Centauros, a dragon-like humanoid from the Puyo Puyo video game series
• Draco, a 9/9 Artifact Dragon from the card game Magic: The Gathering
• Draco, a character in the fictional opera The Dream Oath: Maria and Draco in Final Fantasy VI
• Draco, a black dragon found in the Kasumanium Mines in Dark Ages (computer game)

Other uses:

• Draco, a supposed reptilian alien race that has been purported to exist by certain UFO conspiracy theorists
• Draco Racing, a motorsports team
• Draco Rosa, a Puerto Rican songwriter and former member of Puerto Rican boy band Menudo

 

[huevonkiller]

Gold is a terrible investment. It's already increased in price because of the expectation of instability. You'd be buying high and purchasing an asset that's incapable of producing income on its own.

I've heard this as well. Gold sounds kind of risky.

Ann Coulson, an instructor for Kansas State University's personal financial planning program says “Gold as a piece of a diversified portfolio might make sense, but if an investor invests solely in gold, that is a great risk," she said. "It is not a safe investment unless you are buying Gold bars and burying them in your backyard, and even that is not safe because the price is dictated by what buyers are willing to pay for gold."

After gold hit a high of around $850 in 1980, it took the metal 28 years to break that level. Deduct the inflation and the picture becomes more disappointing.

Thomas suggests that the only way to make gold risk free is to see it as a long term investment. “On a 100-year horizon, sure -- buy gold and leave it to your grandchildren. But in two, five or 10 years, prices could be lower than they are now. There's a lot of fluctuation. Prices have gone from $200 an ounce to $1,800. That just can't continue."

http://www.commodityonline.com/news/Gold-bubble-What-goes-up-should-come-down-41778-3-1.html

 

[barfo]

It's legal to melt all silver and gold coins.

Thanks, that's interesting.

barfo

 

[donkiez]

Im a bit of a gold bug but the problem I have with buying gold now is that people like you are starting to consider buying it. Nothing personal intended, but as a rule when the general public starts to buy into something then its time to consider selling. In the short term Im a little concerned that gold might be going a little parabolic and Ive read of more margin hikes that could also cause the price to drop in the near term, in the long term however I am still bullish on gold and silver and I will continue to be bullish untll the Euro and American debt crisis is undercontrol. At the moment buying gold isnt a bet that gold will go up so much as its a bet that the dollar will go down, in fact If you compare the price of gold to currencies like the swiss franc then it has actually been loosing some ground.

With that said my advice would be to own some gold and silver but at this point dont go overboard. Only invest what you can afford to loose and consider it a long term investment. Good places to buy physical gold/silver are www.apmex.com and intown these guys are good www.ajpm.com. You can also invest in the gold etf, GLD or SLV. I day trade those along with some mineing companies GOLD, SLW, PAAS, GG, AEM, KGC and SIL, all of which are on my watch list. At the moment I dropped all gold stock to profit take and Im looking at getting back into silver as it has been stagnant during golds recent rise and could be ready for a catch up phase, but I haven't made a decision yet.

 

[SlyPokerDog]

Grand jury indicts U.S. Gold & Silver Investments owner Larry Heim on $1.7 million fraud scheme

A federal grand jury has indicted a longtime Portland gold and silver coin peddler, alleging he and others schemed to steal $1.7 million from investors in eight states.

The Portland jury indicted Lawrence H. Heim of Tigard with 12 counts of mail fraud and one count of wire fraud, U.S. Attorney Dwight C. Holton said Wednesday in U.S. District Court. Heim had owned U.S. Gold & Silver Investments, Inc., in Portland since 1972. He also operated a website www.noirs.com/invest and at one point hosted a radio show, according to the indictment.

As recently as February, the indictment says, Heim's website told readers: "Buy gold and silver NOW! The sell-off may be over. Remember, my calculations say that gold is going to $11,500 per ounce. That is about 8 times where it is right now."

But between June 2010 and November 2010, Heim received $1.7 million in from 12 investors trying to purchase 1,100 gold coins and 3,500 silver coins, the indictment said. The investors sent money from Portland, Lake Oswego, Vancouver, California, Minnesota, Pennsylvania, Florida and Idaho.

Heim never delivered the coins, the indictment says. He also falsely promised to send customers refunds and made up explanations as to why their purchases were delayed, according to the indictment.

Investors have sued and won judgments against Heim or his company in federal and state courts, attorneys say. Heim has failed to contest the claims, they say.

The $1.7 million amount "seems low based on what I have heard from other victims and the allegations in the four civil lawsuits," said Carter Mann, an attorney with Lane Powell in Portland. Mann's client, the estate of Portland high-tech pioneer Tom Holce, won a $200,000 judgment in Washington County.

The pioneering Oregon entrepreneur, who founded or backed several prominent companies, first invested with Heim in 1996. Holce was unable to get his coins or money from Heim before his death last year, the lawsuit says.

After investors began complaining to authorities about Heim, FBI agents, armed with a search warrant, seized records from Heim's home in March.

Heim's wife, Patricia, told the FBI that Heim moved the business into their home after it struggled even to pay rent. She moved out of the home in 2002 and has lived on her own since. The Heims filed for divorce in February, Washington County Circuit Court records show.

The price of silver traded today for $41.05 an ounce, up $1.89. Gold futures traded at $1,763 an ounce today, up $5.90, after trading for more than $1,900 an ounce on Monday.

http://www.oregonlive.com/business/index.ssf/2011/08/grand_jury_indicts_us_gold_sil.html

 

[huevonkiller]

If the US dollar stops being the world's reserve currency.... Well maybe then you should consider gold.

Our dollar has devalued greatly just this year. All this talk about printing more money is scary.

 

[SlyPokerDog]

If the US dollar stops being the world's reserve currency.... Well maybe then you should consider gold.

Our dollar has devalued greatly just this year. All this talk about printing more money is scary.

9 out of 10 international drug lords still prefer to be paid in dollars.

 

[huevonkiller]

9 out of 10 international drug lords still prefer to be paid in dollars.

The US dollar and Euro are fucked.

 

[Mediocre Man]

Gold is a shitty investment right now. In fact I sold about all of my gold to buy some properties. At $1800 an ounce you would be foolish to buy it now, Tim. You needed to buy it maybe two years ago when it was hovering around $1000. I was able to buy about 48 oz. of gold at the time, and luckily for me it paid off.

 

[ABM]

Gold is a shitty investment right now. In fact I sold about all of my gold to buy some properties. At $1800 an ounce you would be foolish to buy it now, Tim. You needed to buy it maybe two years ago when it was hovering around $1000. I was able to buy about 48 oz. of gold at the time, and luckily for me it paid off.

All you rich types make me sick to my stomach.

 

[Mediocre Man]

All you rich types make me sick to my stomach.

LOL at rich type. I'm just trying to get by like everyone else. One restructuring of my company and things look bleak

 

[ABM]

LOL at rich type. I'm just trying to get by like everyone else. One restructuring of my company and things look bleak

Of course you know I was just messin'. It's incredibly tough being a business owner in these economic times.