If gold is safer than cash.

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Forevertj
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If gold is safer than cash.

Post by Forevertj »

The why do gold brokers accept cash for their gold?

What do you they do with their cash?


LOL
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Bruce
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Re: If gold is safer than cash.

Post by Bruce »

Gold remains an invaluable long-run inflation hedge that provides a strong foundation for any risk-intolerant portfolio. In general, gold is seen as a diversifying investment.
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Re: If gold is safer than cash.

Post by Forevertj »

Forevertj wrote: Wed May 12, 2021 5:22 pm Then why do gold brokers accept cash for their gold?

What do you they do with their cash?


LOL
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Forevertj
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Re: If gold is safer than cash.

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I don't understand why it double posts when I try to edit. Sorry.
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Re: If gold is safer than cash.

Post by Homer Simpson »

Forevertj wrote: Wed May 12, 2021 5:22 pm The why do gold brokers accept cash for their gold?

What do you they do with their cash?


LOL
I see the "LOL" but please just assure me there's not even a trace of a serious point behind that comment.
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Forevertj
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Re: If gold is safer than cash.

Post by Forevertj »

Homer Simpson wrote: Mon Jun 21, 2021 6:59 am
Forevertj wrote: Wed May 12, 2021 5:22 pm The why do gold brokers accept cash for their gold?

What do you they do with their cash?


LOL
I see the "LOL" but please just assure me there's not even a trace of a serious point behind that comment.


If gold is safer to own than cash, why do people sell gold for cash?
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Re: If gold is safer than cash.

Post by Homer Simpson »

Forevertj wrote: Mon Jun 21, 2021 7:22 am
Homer Simpson wrote: Mon Jun 21, 2021 6:59 am
Forevertj wrote: Wed May 12, 2021 5:22 pm The why do gold brokers accept cash for their gold?

What do you they do with their cash?


LOL
I see the "LOL" but please just assure me there's not even a trace of a serious point behind that comment.


If gold is safer to own than cash, why do people sell gold for cash?
It depends on what you mean as "safer". It's an investment. It's also not a one way street. People sell gold for cash, but people also buy gold for cash.

Further, dealers that buy and sell gold, aren't breaking even. Gold is selling for $1782 an ounce. However, dealers are selling it about $1841 an ounce. Likewise, when a dealer buys gold, they're only going to give you 75% to 90% of the current price (depending on the type, condition, purity, etc.). Just like any other investment, people try to anticipate the market when buying/selling.

Like Bruce pointed out, gold is a way to diversify one's portfolio and has proven to be fairly stable over time. There are pros and cons to any investment; gold included. Now dumping all of one's money into gold because they think it's "safer" is misguided, but the same could be said of anything. It's not wise to allocate all your resources to one asset class, including cash. Do you realize how many forms of currency are worthless now? As far as I know, gold has never been rendered to having no value.

And that's just from an investing point of view. People also sell gold when they need more liquid assets. That's because it's safe enough to be seen as something there will always be a market for.
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Re: If gold is safer than cash.

Post by peopleselbow »

My question is always if gold is more valuable than cash, why are they taking cash payments for gold ?

Think about it, what the fuck can you buy with gold ?
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Re: If gold is safer than cash.

Post by Homer Simpson »

peopleselbow wrote: Mon Jun 21, 2021 8:46 am My question is always if gold is more valuable than cash, why are they taking cash payments for gold ?
Why do people take gold for cash? It's not one being "more valuable". It's about an investment strategy.

peopleselbow wrote: Mon Jun 21, 2021 8:46 amThink about it, what the fuck can you buy with gold ?
What the fuck can you buy with a Babe Ruth baseball card, 1000 shares of stock in Tesla bought in 2010, or original Andy Worhol artwork? It's not about what you buy with those items....it's about the price you paid for it originally and the value over time.
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Re: If gold is safer than cash.

Post by Bruce »

Gold has been getting much notice, of late ...

Gold May Shine With 2021’s Inflation Risks

Global reflation and economic recovery are sparking concerns about higher inflation, with more subtle inflation risks emanating from rising debt, deficits and a weaker US dollar.
Gold may exhibit lower price inflation sensitivity compared to other real assets, but potentially offers more efficient diversification benefits under the emerging inflation scenario.

https://www.ssga.com/us/en/institutiona ... tion-risks