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Should I sell my Krugerrand?
Improvolone
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Registered User regular
My grandfather bought one for me when I was born. It was recently given to me from storage to do with it as I see fit. Selling it is a temping thought, now would be a great time to have nearly an extra grand (estimate based on price of gold, haven't contacted a coin dealer yet). However, this is a generally interesting thing to own.
I feel like unless I land on incredibly hard times in the future and need extra money, if I don't sell this now I never will.
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Practical side: Do you need the extra money now? What would you do with the extra money?
My opinion: Regardless of the answers to the above, I'd hold on to it. As a hedge against inflation, as your ace-in-the-hole if you get laid off, or if you have another sudden, pressing need for money right now.
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If you mean "so I can pay my rent", then yeah... you might want to consider it... but I would still pursue other options. I don't think gold prices are going to double again like some people claim, but it's still a pretty solid investment.
You might look into places where you might be able to reinvest its value and earn a better return. The stock market is a pretty good option right now if you're looking at long-term investment (not if you're looking at a quick turnaround).
It seems like they sell for a slightly higher percentage than the amount of gold they contain (1 oz of 22k gold).
Go here, under multi year gold, check 1975-2009.
Over the next 5 years, I'd expect your downside risk would be much greater then your upside potential on the commodity price of gold. Barring the poles swithing or something.
I'm set when it comes to stocks right now. If I had this three months ago, I probably would have sold it. But now I'm working full time for salary and am starting to rebuild my finances. Well, that of my personal non-savings finances. I had been living off of my investments for nearly a year looking for work, so I guess I'm still a bit stuck in the "well, theres anther dollar I'm taking out of the market" mode.
I would hold on to it. It's a nice safety net if you come down to dire straits.
While a grand seems like a good chunk of change, unless you absolutely owe someone that much money right now, you're better off holding it.
For example, if you have a credit card with a $1000 balance on it, weigh the pros and cons of paying that balance off or paying something like twice the minimum payment (which should well cover the interest) over time. You still have that $1000 if things go to shit and you're not harming yourself having that credit card balance (well, at least you're not doing major damage and you're not facing life on the streets). Yeah, it looks better to have low credit balances, but it's not the type of thing you need to start selling off investments and assets in order to obtain.
Agreed? I'm not sure if you misunderstood what I was saying or if I'm misunderstanding what you're saying.
I wasn't suggesting he open a new credit card, I'm saying it's not worth it to use the sale of the gold to pay off a credit card.
I suppose the question becomes, is it worth it to keep $1000 in gold or $1000 in the market? My portfolio manager has been doing a great job, so I'm leaning towards selling it.
(This loan is my only debt)
That being said: historically, over the long term, the market outpaces gold.
Thats a fairly important piece of information. Given that, I would sell the gold in favor of hanging onto the investments.
I guess I'm just viewing that as being similar to selling off your car or a family heirloom in order to pay down a debt you don't need to pay immediately. Like there are much more sane ways of dealing with the situation.
Like, if you have a $1000 balance and an 18% interest rate, if you just pay double the minimum payment (assuming it's, say, $20, so you're paying $40), you're only paying about $260 over a little over two and a half years in interest. $8 a month is worth it to me to keep a $1000 asset that I can pretty much sell at-whim in the case of an emergency.
Well yeah... there's that.
Gold is up 24% over a year and is still gaining(7% last month), unless your stocks guy is a genious or lucky it's unlikely to be doing as well. I would hold on to the gold and see where it goes over the next few months, although I think it's near the peak I wouldn't be surprised to get another 20% out of it.
I don't have any real sentimental attachment to this thing outside of "fuck, this is an awesome thing."
Personally, I wouldn't sell it. You could give it to your firstborn some day, and maybe he will to his someday...etc etc.
If you don't absolutely need the money at this moment, then don't do it.
That said, if you think it makes a neat heirloom, hold onto it on 'cool thing' grounds even if there aren't any 'make money' grounds to keep it.
What? No. The gold value of a krugerrand completely overwhelms the numismatic value. The rate does not always go up, it follows the price of gold, with an added premium. That premium isn't getting any larger any time soon. The value of collectable coins doesn't even always go up.