From the August 3 Numismatic News E-Newsletter:
Would you advise your mother to invest her money in gold coins?
Here are some answers sent from our e-newsletter readers to Editor Dave Harper.
Investments should be made on a portfolio approach, with a mix of different equities, bonds and hard assets. Hard assets should probably be limited to 10 percent (at most 20 percent) of any investment portfolio. Timing is exceptionally important for buying gold coins. When the market is overheated, as it has been for the last decade, I would not recommend buying gold coins as an investment, unless the numismatic value far exceeds the melt value. I would recommend buying platinum coins since that market does not seem to be very hot.
Depending on her age, financial circumstances, and the current price of gold, the answer to the question is “probably some.”
Geraldine, New Zealand
I’d say no, because she has been dead since 2003.
Jeff Schwartzman Los Angeles, Calif.
Absolutely not. There is much more money to be made in real estate rentals and sales.
As the late singer, pop star Michael Jackson, used to say: “Why ... sure.”
Currently, many investors continue putting their money into stocks, bonds, 401(k) plans, etc. because the present economy remains strong. That, said, there is a future time coming when our $21 trillion+ national debt will vociferously come into play, and in my humble opinion, with hardly any advance warning.
Indeed, one should prudently salt away a quantity of common-date United States gold coins (preferably $20 gold pieces in AU grade) utilizing discretionary funds while present gold prices remain stagnant.
NO! Most older seniors lived through depression (1930s) and were mainly on a cash basis. If they had no cash they didn’t need it. The gold market is not all that stable currently, nor is the stock market, if we remember a few years back.
Many seniors have a desire to avoid risks in the latter years so they can live them comfortably.
I had my mother invest some of her money in guaranteed annunities with a guaranteed period (longer than she would probably live) of payments where we knew the amount that would be paid back. Some is in certificates of deposit of short term, which allows for the following of interest rate that could go up as stocks falter.
The old adage of seniors on a fixed income is mainly true, so a senior needs to have cash flow that comes in that is regular and can be counted on.
My mother ended up living in an assisted living facility, and the fixed income of CDs, annuities and Social Security as fixed income covered everything till the day she died.
Roger R Miller
Madison Heights, Va.
Yes, indeed. I would advise her to invest in gold coins...but she doesn’t listen, as she is currently dead, Dave, but thanks for asking.
Mother invest in gold?
No...tried that once, and I had to pull a Madoff to save face...
Max Leroy Stucky
Colorado Springs, Colo.
No, not at this time. Investors are going to make a decision on this issue because of the amount of tax issues.
No, I would not. Fred Weinberg was a coin dealer; he knew what to invest in. I am not an expert and do not know what to invest in. Also, there is an element of luck in making money on rare coins. There is no sure thing; otherwise, everyone would be getting into it. I prefer more conservative investments and would advise people I know to do the same.
One interesting note is that when Fred Weinberg’s mother passed away at the age of 96, and all of the coins were still in her estate, that means that she personally did not enjoy the benefits of their appreciation. It is her son who will enjoy the benefits of their appreciation. So it is more like he was investing in gold coins using his mother’s money, as well as getting the proceeds from selling the coins to her.
I feel that my mom would NOT have the mental savvy to do this. Even though she had passed away many years ago, I feel she’d opt out of this area.
But she has passed 18 years ago.
Like stocks, they need to be held as an investment.
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