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|Subject: Re: Precious Metals Investing||Date: 11/16/2010 7:07 PM|
|Author: gdett2||Number: 67726 of 81362|
If you decide to jump in on precious metals, you must fully understand the downside risk.
In 1999 or 2000, I was in a coin shop buying some 1 oz gold American Eagles. While I was waiting, a lady came in with her son and daughter-in-law. She was a widow and wanted to sell her husbands Krugerands. He had paid about $780 each for them. (That would have had to be 1979 or 1980) I believe I was paying $275 for the am eagles.
Needless to say she was devastated and started crying. The clerk that was getting my coins came out and as we were completing the deal, the son came over to watch. I showed him the check, slip and coins. He went back to his mother and they were talking as I left.
It looked like they had brought in about 40 or 50 coins thinking that 20 years of appreciation would make them worth many thousands of dollars.
At $1,400/oz, gold is just over 63% of what it was worth in 1980, adjusted for inflation.
It is like any other investment, it must be managed.
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