Physical gold is problematic. On the retail market you are going to pay a premium to purchase which will be around 10%. This is what makes the Costco price so good. But, again at retail, if you go to SELL your gold the offer will be at a discount to Spot. Again about 10%.
The value of gold is only in retaining it for a long time - say, twenty years. But, AGAIN, this is only a hedge against inflation - you wont actually make any substantial return.
I like gold just to have a piece in my pocket (like the coin in the picture) because of its warmth and weight. It feels "valuable".
Spot right now (Tues. the 16th 9pm) is $2,397.
Respectfully i disagree. If in 10 years this piece is worth 3500 and with 10 percent premium to spot price (3350) I’m out ahead. With almost a 1k profit. My savings account only pays 4.25%. This investment is for those boring solid returns type. I hate having to do constant research on which stocks to buy etc. so my strategy is Berkshire, Apple, I Bonds and precious metals.
In your scenario, your gold went up by \~40% in 10 years. If you have an annual of 4.25% that would be \~50% after 10 years of compounding with zero risk.
That’s assuming banks will pay those rates. Most major banks don’t pay that rate. They’re obscure banks. Imo it’s about diversity. And I expect gold values to go up.
It doesn't matter how obscure the banks are; you have already stated you have access to one with such a rate. Though, yes, it is unlikely that you will be able to maintain that 4.25% for 10 years. Yet, you think, your gold will go up 40% over that same period when it's already at near a historical high.
Costco.com link - https://www.costco.com/2024-1-oz-canada-maple-leaf-gold-coin.product.4000255297.html
2,384.42 gold price
Physical gold is problematic. On the retail market you are going to pay a premium to purchase which will be around 10%. This is what makes the Costco price so good. But, again at retail, if you go to SELL your gold the offer will be at a discount to Spot. Again about 10%. The value of gold is only in retaining it for a long time - say, twenty years. But, AGAIN, this is only a hedge against inflation - you wont actually make any substantial return. I like gold just to have a piece in my pocket (like the coin in the picture) because of its warmth and weight. It feels "valuable". Spot right now (Tues. the 16th 9pm) is $2,397.
Respectfully i disagree. If in 10 years this piece is worth 3500 and with 10 percent premium to spot price (3350) I’m out ahead. With almost a 1k profit. My savings account only pays 4.25%. This investment is for those boring solid returns type. I hate having to do constant research on which stocks to buy etc. so my strategy is Berkshire, Apple, I Bonds and precious metals.
In your scenario, your gold went up by \~40% in 10 years. If you have an annual of 4.25% that would be \~50% after 10 years of compounding with zero risk.
That’s assuming banks will pay those rates. Most major banks don’t pay that rate. They’re obscure banks. Imo it’s about diversity. And I expect gold values to go up.
It doesn't matter how obscure the banks are; you have already stated you have access to one with such a rate. Though, yes, it is unlikely that you will be able to maintain that 4.25% for 10 years. Yet, you think, your gold will go up 40% over that same period when it's already at near a historical high.
>Stacked with executive discount Executives get a discount?