...but yesterday, I purchased ten 1/10th ounce gold coins from SD Bullion. Besides the already super high price of an ounce of gold, they add a premium, and the premium for coins smaller than an ounce if substantially higher than it would have been if I had purchased a one ounce coin, by about $180 more. The only advantage to buying smaller coins that I can see is if our economy tanks and bullion is then used as currency. Having coins of lessor weight and thus value helps assure that you do not need to cut down larger coins and helps assure that if you are ripped off, you may lose less in value because you only carried what you needed. For instance if someone was was charging the value of 1.4 ounces of gold for a product, you do not need to bring two one ounce coins to the bargaining table and then need to try to cut one precisely; instead, you can bring the exact amount in smaller coins, like a one ounce coin and four 1/10 ounce coins. Then if ripped off, your other bullion is hopefully still stashed away safely.
Anyway, unless gold goes up substantially, I will lose out on this purchase but then I am not buying while hoping to make a killing on a price increase. I am buying to have something to fall back on should the dollar's value collapse and a loaves of bread start being sold at hundreds of millions of dollars apiece. Think that could never happen, think again! It already did happen in pre-WW II Germany.
"A loaf of bread
in 1922, Germany cost 163 marks. In September 1923, it cost 1,500,000
marks and at the peak of German hyperinflation, a loaf of bread cost
200,000,000,000 Marks." More at the source: https://www.historydefined.net/german-hyperinflation/. No one expected it then and very few think or expect that it could happen now; yet, the truth is, as some say, shit happens.
All the best,
Glenn B
4 comments:
Consider Silver for the same reasons. And at $50/ oz it's a lot more convenient than Gold for small value exchanges/purchases.
For smaller units go with silver.
Right now, I have all the silver I need. I need to catch up some on gold. The thin g about having lots of silver is its weight. It sucks trying to lug it around; yet I have about 325 one ounce coins right now. Will get more silver when, what I think are the artificially inflated prices go down. According to an article I read on SD Bullion the large silver trading companies are not buying silver right now and not selling it either. This seems to me to be a great way for them to drive its price even higher because it is causing a shortage of available silver in the market as per SD Bullion if I understood correctly.
Consider constitutional silver (also called junk silver), US dimes, quarters, halves, and silver dollars minted before 1964. A roll of fifty dimes contains about three and a half ounces of silver and is pre-divided into very small units of silver currency. Of course, it's possible that during an economic crash, 0.07 ounces of silver won't buy very much either.
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