No. of Recommendations: 1
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.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.