Buying Gold

[Ries]

The transaction costs in Argentina for gold are going to be high enough that it makes zero sense for anybody who can buy and sell in dollars or euros in north america or europe.
If you are an argentine citizen, hoping to shelter wealth against inflation, taxes, and economic uncertainty, it might make sense- and it might not, because, historically, the US dollar has been steadier, without the huge rises and falls of gold.
Sure, if you have ESP, and know EXACTLY when to buy and sell, you can make money speculating on gold.
But, in the last 30 years or so, it has proven to be a lousy long term investment, or inflation hedge.
And, here in Argentina, its not very liquid, or easy to convert to cash without paying pretty steep discounts.
There is a reason why people here are buying departmentos in Recoleta or Miami, or just stashing Benjamins in the Banco de Colchon- because these things have, over time, proven to be better investments, and easier to liquidate.
Governments can, and do, regulate gold sales with a passion, and selling gold is ALWAYS harder and more expensive in transaction costs than just using US $100 bills.

But hey, follow that dream.
Just dont look to carefully at the actual numbers, because you wont like em.

 

[franksredhots]

If you are an argentine citizen, hoping to shelter wealth against inflation, taxes, and economic uncertainty, it might make sense- and it might not, because, historically, the US dollar has been steadier, without the huge rises and falls of gold.
Sure, if you have ESP, and know EXACTLY when to buy and sell, you can make money speculating on gold.
But, in the last 30 years or so, it has proven to be a lousy long term investment, or inflation hedge.

Just dont look to carefully at the actual numbers, because you wont like em.

just one question, what was the price of gold 30 years ago and what is the price of gold today? And if you can tell me how much buying power the dollar has los since the late 70's due to inflation, that would be great also. graphs and charts would be helpful. Just the facts ma'am. No blanket statememts, please.

 

[franksredhots]

just as a disclaimer. I am not advocating anyone buy gold. On the contrary, its to my benefit people continue ignoring it and save in toilet paper, i mean dollars. But I just cant let your false stereotypes stand.
ill make it easy for you, you have no idea what you are talking about. none. whatsoever. im sure youre a swell good intentioned person, but you have no business giving financial advice. none. whatsoever.

 

[Aussie abroad]

I come from a mining town in Western Australia and know that right now is a very good time to buy gold as the price has dropped significantly. And knowing the history it will bounce back one day. Therefore hoping to make it a good investment.
I just need more information and to get the ins and outs of buying gold in Buenos Aires, fees ect. I will obviously be a tourist walking into the bank is it even possible for me to purchase or would it be better if my partner to buy as she is a Argentine citizen?
I'm looking at purchasing around 10oz in peso.
Thanks for your reply i tried walking into the bank in Florida to find out more information and the room was full of people i would of been waiting there all day, so i turned around and walked out.
Thanks in advance..

 

[French jurist]

At the same time, keeping USD bills for 13 years under the mattress is indeed stupid.
Graph above stops in early 2012, Gold prices have lowered to reach the level of early 2010.

Now, if you had invested 10K USD in january 2000 in a safe investment for a return like 6% & if the graph above was reaching today, then it would be a different story.

Gold is way too volatile to be considered a real investment.
If you own 1 million USD, then it's wise to invest 5/7% in Gold as a safety net if there's a war, a revolution, whatever.

 

[franksredhots]

At the same time, keeping USD bills for 13 years under the mattress is indeed stupid.
Graph above stops in early 2012, Gold prices have lowered to reach the level of early 2010.

Now, if you had invested 10K USD in january 2000 in a safe investment for a return like 6% & if the graph above was reaching today, then it would be a different story.

Gold is way too volatile to be considered a real investment.
If you own 1 million USD, then it's wise to invest 5/7% in Gold as a safety net if there's a war, a revolution, whatever.

lol. pot heads

 

[Ries]

my only response is- if you are so smart, how come you are not rich?

And no, I dont believe that any seriously rich person is wasting their time posting here.
They are flying to a nicer place, right now, on their private jet.

I have known a lot of gold bugs over the years.
And I have done a lot better than almost all of them with simple dumb investments like real estate, index funds, and buying tools that allow me to make money.

I am NOT giving financial advice, merely stating that transactional costs in Argentina are higher than elsewhere, and liquidity is based on local laws- which, surprise surprise, change all the time.
In Buenos Aires, a hundred dollar bill has been fungible and tradable within fifteen minutes, at one of the best exchange rates in the world, for quite a while.

 

[nicoenarg]

just as a disclaimer. I am not advocating anyone buy gold. On the contrary, its to my benefit people continue ignoring it and save in toilet paper, i mean dollars. But I just cant let your false stereotypes stand.
ill make it easy for you, you have no idea what you are talking about. none. whatsoever. im sure youre a swell good intentioned person, but you have no business giving financial advice. none. whatsoever.

This post reminds me of all those...oh what are those called...meh, can't remember it anymore.

....

....


OH YEAH THAT'S RIGHT.....BITCOINS!!!!!!!!!!!!!!!!!!!!!!

"The Dollar is crashing...the world is ending..............LOOK AT THE PRICE OF BITCOINS!!!!"

Yawn x the price of gold

 

[sleazemerchant]

Gold is down over 30% from it's all-time high of over $1900/ USD per troy ounce that it hit in September 2011 (today's spot price $1234 USD/ troy ounce). In the next 18-24 months as the US Federal Reserve eases off the printing press and the US economy expands gold is expected to fall further to somewhere in the $1000-$1100 USD range per troy ounce. The buy/sell spread on physical gold is typically astronomical. As with most investments, when your neighbor, your grandma, the waiter at your favorite restaurant and commercials on TV are discussing and hyping it, you have already missed the boat.