Arrghhhh Matey! I’m a modern day pirate! ;) Though now I don’t really know what exactly to DO with this piece of gold, other than just stash it away in my safe and hope I never have to use it one day, haha… So I guess it begs the question, “Why even get it in the first place?” ;)
Well, to that I answer three-fold:
- I’ve always wanted to own real-life gold! Granted, in my dreams I owned a LOT of it and could nose-dive into ’em a la Scrooge McDuck (you know you wanna do it too!), or at least own a few golden bars I could stack up, but with everything in life you gotta start out small :) And now I’m officially an owner!
- I think it’s a safe semi-hedge against the economy imploding one day. I’m not as hardcore as my gold-obsessed investor friend I talked about the other month (THAT takes balls), but I am somewhat afraid of a possible attack on all that “fake” digital money out there that we all now have. I think it’s smart to hold some physical investments too just in case something horrible happens to this world of ours – Like all money getting wiped away and people having to fend for themselves and what not… I’m praying that never happens, of course, but you really do never know. And in which case my gold is just valued at whatever crazy price the economy sets it ;)
- I wanted to invest in something new, and experience the process. I like dipping my toes into new avenues out there, and buying gold was a first for me. And although it WAS as simple as clicking the mouse a few times at the US Mint’s website (they’ve got the process down pat!), getting your investment in the mail and opening it up and feeling it all, and then transferring it into my safe were all new experiences for me. Which is getting harder and harder for me to come by as I slowly get into more of this money stuff :)
All reasons that may not be worth it to anyone else, but for me – it’s super exciting. And of course the next thing you’re probably wondering, is how much it ended up costing me :) Which is the scary part, haha… and you know I can’t ever do anything half-assed and just pick up a quarter or a 10th of an ounce or anything like that, so I “went for the gold” sorta speak and picked up a full 1 oz worth. To the tune of $1,964.95 (the Mint marks it up to cover its packaging and engraving and profit, etc – so it’s always more expensive than any given day’s *value* of gold). It’s a lot of money to get your feet wet, but better to spend it on something like that than, let’s say, trying out a new 4-D TV ;) At least in my opinion…
NOW the trick is trying to value it every month for our Net Worth updates, as well as finding a category to stick it in. My boy told me to price it at “spot + $50,” meaning the value of an ounce of gold that day + an extra $50 for the type of coin I got (The “2011 BUFFALO 1 OZ GOLD PROOF”), and I’ll think I’ll do that unless anyone else has some better ideas. And for the Net Worth, I’m thinking I’ll just make a new section called “Stuff In My Safe” or something like that, and hope it doesn’t get too big where I can’t share it anymore ;) Haha… you won’t see that too often in a net worth break down!
What are your thoughts on all this? Anyone else own physical gold too? And before you mention it as an alternative (you know who you are), I also invest in gold through a fund too, specifically the SPDR Gold Trust. But that doesn’t help me with the “owning it in case the world tumbles” objective here ;) The fact that everything is digital these days still scares the bejesus outta me, even though there’s not much you can do to avoid it… Don’t y’all worry about that too?
UPDATE: I now have a coin collecting blog! Check it out! CoinThrill.com
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!