So, is now the time to sell my old gold and silver coins?

[Elwood P Dowd]

Spot Gold is now $1,400.00 and Spot Silver $30.00.I have some in the bank's safe deposit box, and the current value is over four times what I paid for these back in the 1990s ( AU-50 gold double eagles and uncirculated silver dollars). They wouldn't bring enough to make me rich, but they would bring enough to pay off all my credit card bills with a little left over. Does anyone have an accurate guess on where metal prices are headed?

[slackmaster]

1. Only if you really want to. I sold mine in March 2008 because I needed cash to pay income tax.

I considered holding the stuff, but didn't want to deal with the psychic load.

[Zanzobar]

2. I bought mine around the same time.

I'm holding out for 2K/oz, although admittedly, I don't know where the price is headed.

[Cleita]

3. I was in a jewelry store the other day getting

a watch band shortened to fit me. This particular store buys gold and people were lined up to sell theirs. I got the impression that the jewelers were betting that gold would go higher and that's why they were buying. However, I'm not an expert so you can ignore this.

[Statistical]

17. jewelry stores doesn't need to bet. They are merely arbitraging.

Say Gold is worth $1500 per ounce. They offer you $1200 or $1000, or $800, or maybe even $600.

There is no risk. They buy the gold, melt it, combined it with others and then sell it for $1500. License to print money.

Arbitrage.

They know some people (investors) are willing to buy gold for $1500 per ounce.
They know some people (jewelry owners) are willing to sell gold for $800 per ounce.

They keep the difference.

[REP]

25. 14K is 58.5% gold; 18K is 75% gold; 10K is 41.5% gold; dental gold varies

Platinum jewelry is usually 95% platinum.

[indepat]

4. I've been following gold and silver prices for over 30 years, but haven't a clue: I'd guess

gold will do better in the next year or two, but that's just a WAG, not a SWAG. Good luck. ;)

[Andy823]

5. Well...

All I can say is remember what happened with oil when Bush was in charge. People jumped on the oil band wagon and then lost their shirts when the bubble burst! My brother in law got into the oil bubble and lost a lot because he didn't want to get out for fear of losing money, well he lost it anyway. My other brother in law did the same thing with the dot com bubble. He invested a lot, bragged about how much he was making, but then stayed in to long and lost everything he had made, plus some!

I think gold and silver are just another bubble, and when the big money decides to dump it and take their "huge profits" it too will burst. Of course I could be wrong, but that's just what I think!

[Zanzobar]

8. Gold is being artificially held down

There's plenty of evidence. The question is, can they keep it depressed through the natural cycle when it would start to trend lower as a matter of course, or will the lid be blown off the manipulation.

The bubble is far from popping I think.

[Statistical]

6. Hedge it.

Sell half now. Save the other half in case Gold gets to $2K an ounce.

[safeinOhio]

12. Thats the ticket right there

Make the ones you have left free.

Most, if not all buyers are crooks and want to take 3% to 5% off of the spot price and that is a rip off.

Try http://bullion.nwtmint.com they are more than fair. Pay a little over spot and that will cover your postage and insurance. You'll come out way ahead. Take their "buy" price to the coin dealer or jewelry store and watch them cringe.

When you call, they lock in the spot price at that moment. Then you have a week or so to get the coins to them and they mail your check right after they get the coins. May take a couple of weeks to get the money, but $60 to $70/coin is a lot.

[KharmaTrain]

7. Be Prepared For Major Capital Gains...

I have a couple ounces hidden away...got them when gold was $300 an ounce...latest fix I saw was $1,450...but the capital gains in cashing them in would be a killer. If you have gold or silver and need the money, go for it, but be prepared for the IRS to want a cut of the action...a big one.

[Zanzobar]

10. Sell them at a coin show for cash.

[Statistical]

14. I thought capital gains are only 15% (10% for people in 15% bracket)?

Oops looks like I was wrong.

15% for people in 25%+ marginal rate.
0% for those in 10%/15% bracket.

[SheilaT]

16. Capital gains taxes are absurdly

low.

Here's a cut and paste from the internets:

Tax Rate on Long-Term Capital Gains
Capital gain income from assets held longer than one year are generally taxed at a special long-term capital gains rate. The rate that applies depends on which ordinary income tax bracket you fall under.

* Zero percent rate if your total income (including capital gain income) places you in the ten or fifteen percent tax brackets.
* 15% rate if your total income (including capital gain income) places you in the twenty-five percent tax bracket or higher.

I'm happy for you if your total income puts you in the 25% tax bracket or higher, but even at that paying 15% on the profit is hardly a "killer".

[KharmaTrain]

22. It's Still A Shocker To Those Who Aren't Prepared...

My observation is not a comment on the absurdity of the capital gains...and have felt the gains are way too low. This was intended for those who are looking at the gold ring or other valuable and rush to a "Cash For Gold" or some other rip off place and between the taxes and the other fees they will end up with less than they were hoping.

[elocs]

9. Not according to the video I just watched on Netflix streaming:

Collapse
2009 NR 82 minutes

In an avant-garde soliloquy, investigative journalist Michael Ruppert details his unnerving theories about the inexorable link between energy depletion and the collapse of the economic system that supports the entire industrial world. Helmed by filmmaker Chris Smith (American Movie), Ruppert's monologue explains how the lies and political propaganda fed to Americans by big business will eventually lead to human extinction.

Cast:
Michael Ruppert
Director:
Chris Smith
Genres:
Documentary, Political Documentaries, Social & Cultural Documentaries
This movie is:
Dark
Format:
DVD and streaming (HD available)

[ileus]

11. If it was Bullion it's a good time....from a collectors POV

it may not be your best time....the coins have more value as collectors pieces than scrap prices you'd get if you sold them at a gold store.

My BIL sold 120 1oz rounds a few weeks ago, but he held on to almost 200 morgans/peace dollars he's bought up over the past few years.

He also kept 20 or 30 1oz gold eagles he has bought up over the past several years.

He buys probably 15-25k worth of scrap gold a month and he's making a killing right now, but he's not letting go of any real coins yet.

[Ruby the Liberal]

13. Well, that depends on your interest rate.

If you are paying usury rates on your credit cards, it wouldn't be a bad idea.

I wouldn't sell more than I needed to pay the card off though. Thats just me.

Take into account a 15% Capital Gains tax when you do your calculations.

[pitohui]

15. no one can give you "an accurate guess"

i knew a guy who was in the business of buying and selling gold, he got out (and is now a multi millionaire, he literally had a warehouse from his chain of pawn shops) when gold hit $1K

he is now a little bit upset because he could have held back the gold and made even more $ but "who would have thought it would keep going so high?"

no one knows, even people who have been in this industry all their lives don't know where the price is heading, it's gambling

if you cash out now, you've locked up a guaranteed win and as someone else points out, the capital gains tax is only 15 percent, who knows where it will be in the future?

[cbdo2007]

18. Nah, hold on for about 10 more years until we get back to $600.

More importantly though...is if you are really looking for serious investment advice/discussion you are in the WRONG PLACE!! The DU community knows less about economics/finance/investing as a whole than most other web sites out there.

No offense to my friends here. You all know politics, but asking for investment/financial advice here is like trying to buy a new car on tmz.com. Wrong place.

[Motown_Johnny]

24. +1

[MilesColtrane]

19. My guess is that inflation heats up as the economy improves.

I bet most big investors hedge with other commodities, but metals will continue to rise slightly for awhile.

I say gold tops at $1,800.00.

Trying to time the peak is not a good idea IMO. I'd sell some now if I was holding.

[Elwood P Dowd]

20. About the capital gains tax so many posters mentioned...

I live on a small Social Security check and a few hundred bucks a month other income. Don't think I will have to pay any taxes on these.

[Statistical]

21. Then spread it out.

Upthread I said half now half later but maybe look into 1/3rd now (or soon or some $xxx per ounce) then another 1/3 if it hits $yyy per ounce, then last 1/3 if it hits $zzz per ounce.

That way you lock in some games while still having a chance to gain on any move upward.

[Elwood P Dowd]

30. I was thinking about something similar to that.

Did sell some silver last year to help pay some bills. Shocking that the spot price has gone from 18 to over 30 since then.

[Motown_Johnny]

23. I have heard speculation that metals are peaking

but it is all speculation





Consider the interest you are going to pay on those credit card bills. Do you think your coins will increase in value faster than the interest on your balances?

If not, then sell the coins and pay down your debt. Save yourself the interest payments.

[OhioChick]

26. Gold’s Best Forecaster Says Prices to Reach $1,630

From Bloomberg yesterday:

http://www.bloomberg.com/news/2010-12-28/gold-s-best-forecaster-says-prices-to-reach-1-630-chart-of-the-day.html

Also (As seen on the Today Show)....Beware of "Cash4Gold" as they only offer 18% of the value.
Worse yet is "BrokenGold" who state they'll give you 10% more than the competition. They only give people 13% of the value.

The best I've heard of is "SellYourGold" which give 90% of the value.

[Elwood P Dowd]

27. My gold is numismatic & the silver is uncirculated in US Govt Mint tubes.

I know what they should sell for and have actually sold a few on eBay last year to help pay some bills.

[OhioChick]

29. Oh, I figured you knew....

However, I posted that for those that may be considering using Cash4Gold or any of the others that are known for screwing people.

:hi:

[Elwood P Dowd]

31. Good idea OC. (nm)

[Xolodno]

28. As my old econ professors told me...

...commodities trading is like going to Las Vegas, yeah, you may double, triple...even quadruple your money....but then you put everything on black on the roulette table and bam...it comes up red...and its all gone.

What you should be doing is taking a professional gamblers perspective, they laugh at people who say "I want to double my money" when nothing in sound bonds or blue chip stocks could get you that. They approach it from an investors perspective (go figure), they decide what return on investment they want, such as 10%....and then cash in and get out. Who cares if the dealer busts the next three hands. You didn't know that was going to happen and neither did anyone else! But you still came out ahead and met your profit. The guy that gets greedy is the one that ends up crying in the end.

And as someone mentioned earlier, if you bought low...why sell it all? Sell what you need and forget about the rest until the market falls and then slowly corrects itself.

[cbdo2007]

32. Good post....

I've just been trading as a hobby and have a few very simple rules which have made me very successful at it. One of those is that I always sell at 10% gain. My goal is always a 10% gain and that's when I sell. No questions asked. Have I lost money because of this plan? No, that's impossible. I've always gained 10% by sticking to my plan to sell once I am up by 10%. Some stocks have gone on to go up 80% after that, some have gone down 80% after that. By sticking to my rule, I always win.

disclaimer - I'm not saying I always win, just that in cases where my stocks have gone up I always sell at 10% so I always have won on those. Seriously though, the only times I have lost money are times when I have traded with my emotions and not followed my rules.

[greytdemocrat]

33. Don't ask TwixVoy, n/t

[xchrom]

34. A bird in the hand: sell it mow make money. Nt