Re: Limits on Gold good for the price
TelecomFreq
9/24/2011 12:31:46 AM
I agree 100%, you can not just go buying something when you see it. and buying gold in a street market is just a bad idea in general.
not to mention the issue, if it was gold, of having to carry it around and transport it with me.
@TelecomFreq
Not buying 'gold' coins from a street market in Thailand was a smart decision. If you don't know the metal well, you better know your dealer.
Re: Limits on Gold good for the price
TelecomFreq
9/23/2011 4:31:17 PM
I have seen gold being sold in small chunks and what seemed to be home made coins at markets in Thailand, That gold did seem to be "soft" I had thought of buying some, but there was really no way to know what the true value might be. who knows what it was mixed with.
Re: Limits on Gold good for the price
Street Smart
9/23/2011 2:29:57 PM
FYI, 22 kt. gold is much too malleable to be worn as jewelry, as I found out the hard (or rather SOFT) way many years ago. I received several rings, a necklace and two bracelets as gifts from a friend who was working in Latin America where beautifully crafted gold jewelry was sold by the ounce. Unfortunately, lovely though the pieces were, absolutely none of them could be worn more than once without completely losing their shape. It was as if they were melting off of me.
I had the pieces melted down for real the last time gold was at a high water mark.
Re: Limits on Gold good for the price
Value Hiker
9/23/2011 12:56:14 PM
According to some research, the markup of jewelry, even in discount store like Target, is around 300%-1000%. When you bought a jewelry around $10,000. The material is only about $1k-3k.
An interesting observation: a sterling silver shareholder certificate from Berkshire annual meeting cost $99, while an 1/5 weight sterling silver necklace from tiffany cost you the same.
If Berkshire (or Borsheim) does not lose money from the sale. Then the mark up of Tiffany Silver is more than 400%.
Buying jewelry is not an investing, especially for the lowend one. This claim doesn't apply to jewelry over $1M.
Re: Limits on Gold good for the price
Phoenix
9/23/2011 12:38:16 PM
I agree with you that storing gold as jewellery might not work that well with Western cultures and the jewellery there is mostly 18 carat whereas in eastern cultures it is 22carat. Anything lower is considered poor quality. The value of craftsmanship and the precious stones used would also have to be considered. But I know that it had always served as an insurance to many in those countries at times if hardship. It is very common to pawn jewellery and it's always been easy to sell. I don't think gold bars can be sold that easily there.
Re: Limits on Gold good for the price
TelecomFreq
9/23/2011 11:43:25 AM
My only dig with the whole idea of buying gold in jewlery form is that there is a labor and design cost built into that, so you are not really getting the most return on your money, if you can even call it an investment.
my other dig with that idea is, he is talking about a doomsday type situation. I think he may have watched a few too many Mad Max movies.
Re: Limits on Gold good for the price
Phoenix
9/23/2011 11:28:44 AM
It sure is. If they continue to put limitations it will only make people want to buy more. Even rumour of limitations would provoke people. His thoughts about how it would be better to store gold as jewellery and coins is already done in middle Eastern and Asian markets. I suppose he is right at least gold in the form of jewellery can be used in daily life in addition to its monetary value. Having some bars stored somewhere wouldn't give you the same satisfaction.
Limits on Gold good for the price
TelecomFreq
9/23/2011 10:21:23 AM
If countries are going to start limiting gold sales then that will definatly shoot the price up. I am starting to think that the high estimates that have been floating out there might be too low. wow, what a ride gold is turning out to be.
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