Production cost of gold is ~$1300/oz. When it was at 1500 it was a bargain. Still not so bad at $2k considering the current situation. I fully expected it to be $3000+ by now.
Gold is currently close to the all time high price, trading near $1800 an ounce. It has not reached $5000 an ounce ever in the last 100 years. The peak price was about $2200 in 1980. Accounting for inflation, that is about $6600 in today’s dollars. If you had done this in 1980 and sold it the gold today, you would not have even matched inflation and lost value.
Point is, I seriously doubt gold will shoot up to $5k an ounce in your lifetime. It is more likely to decrease in value or just keep up with inflation. And you have given up your two watches to do it. Looks like a loss to be all around.
You repurchase yr watches and thereby repay the loan you took to buy the gold.
This is a very inefficient way to fund your watch purchase.
There doesn't appear to be any clear evidence which way valuations will go in the next 10 years or so.
The governments have been borrowing and printed more money like crazy, so one school of thought is this will lead to a high level of artificial inflation (printed money will be worth less). This will artificially raise the price of things like gold and watches, but you might not get more "buying power" for them.
The other completely-opposite thought is we are on the verge of an economic collapse and we'll all be in soup lines soon. If that is the case, then "cash is king" and things like watches will go way down in price.
No telling what the future holds, so, like always, live life to the fullest and enjoy things like watches along the way.
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5 k is conservative.
It did it sort of by accident. I had sold two watches in February to finance the purchase of a new watch. But then the pandemic started and markets crashed. So instead I invested the money and already have profits of approximately 35%
Vintage watches are selling well now, so if you think of them as investments, it's probably not a bad time to take some profits. I guess we all have our own thoughts about where we would put the profits.
Silly statement.
Man fears time but time fears the Pyramids
Gold hit it's all time high around $2069 early Aug this year. Weirdly it's almost gone from a way to retain purchasing power to a speculation. 5 k is conservative.
Short term predictions range from 2k +(just by year's end) through 5 k in 2021 and on up to 10k, 20k, even 100k per ounce depending on if & how many countries adopt a gold backed digital currency and the gold percentage required, some say 40 pct.
So as you can see now the 5 k prediction is conservative.
The members of this forum aren't idiots, so citing some "predictions" based on absurd assumptions only makes you appear to be either a fringe conspiracy theorist or a troll.
But be my guest. Sell your watches and buy gold if it makes you happy. More power to you.
Man fears time but time fears the Pyramids
Gold hit it's all time high around $2069 early Aug this year. Weirdly it's almost gone from a way to retain purchasing power to a speculation. 5 k is conservative.....
Yea take that! Hummmph! 🙄
Drunk-posting again, Fred?
Cos Cob? Was that the town? 😁
