Re: [OT] why was private gold ownership made illegal in the US?
Tim May <tcmay@got.net> wrote :
On Wednesday, July 3, 2002, at 08:50 AM, Michael Motyka wrote:
IIRC many of the wealthy were quick enough to ship huge amounts of gold to Europe. That is one reason I have heard given that the St Gauden's $20 gold pices of that era are possibly poor investments - there is a reservoir of them overseas.
But St. Gaudens coins were readily available during the time when gold ownership was banned.
(Let me be overly careful: They were purchasable from coin stores and mail order places in the mid-1960s. I know because I used to see them listed at a price I clearly remember: $49.50.)
I assume they did not just suddenly become available at the time I happened to be paying attention, and that they were purchasable in 1960, 1950, 1940, etc. The exemption for numismatic value, of course.
The opinion I am repeating ( not mine, but seems plausible ) is that the supply of numismatic quality St. Gauden's may be such that the current premiums are not justified.
Owning coins for collector, or numismatic, value, is of course a different kettle of fish than owning gold as bullion.
The premium over the bullion value is a very large component of the price. I've tried to learn a bit about coin collecting but I find myself hesitant to plunge right into it. It's just like any other "investment", subject to bubbles, busts and shady operators. I don't know enough to feel comfortable with it. Having watched bullion prices for a while it appears to have two major factors : a bet on fear ( peaked during the India/Pakistan prick wagging contest ) and against a strong dollar. Yet another trading option.
--Tim May
Mike
On Wednesday, July 3, 2002, at 10:42 AM, Michael Motyka wrote:
Tim May <tcmay@got.net> wrote :
On Wednesday, July 3, 2002, at 08:50 AM, Michael Motyka wrote:
IIRC many of the wealthy were quick enough to ship huge amounts of gold to Europe. That is one reason I have heard given that the St Gauden's $20 gold pices of that era are possibly poor investments - there is a reservoir of them overseas.
But St. Gaudens coins were readily available during the time when gold ownership was banned.
(Let me be overly careful: They were purchasable from coin stores and mail order places in the mid-1960s. I know because I used to see them listed at a price I clearly remember: $49.50.)
I assume they did not just suddenly become available at the time I happened to be paying attention, and that they were purchasable in 1960, 1950, 1940, etc. The exemption for numismatic value, of course.
The opinion I am repeating ( not mine, but seems plausible ) is that the supply of numismatic quality St. Gauden's may be such that the current premiums are not justified.
A different issue. I have no idea if the current premiums are too low, too high, or about right. My point was to cite the ready availability of St. Gaudens (and also the less artistic Liberty) gold pieces in the 1960s, and presumably earlier, as strong evidence that such coins did not have to be smuggled away to Europe or hidden. They were, all indications point out, exempted by the numismatic exemption.
Owning coins for collector, or numismatic, value, is of course a different kettle of fish than owning gold as bullion.
The premium over the bullion value is a very large component of the price.
Yeah, so? That's precisely why owning such coins is a numismatic issue.
I've tried to learn a bit about coin collecting but I find myself hesitant to plunge right into it. It's just like any other "investment", subject to bubbles, busts and shady operators. I don't know enough to feel comfortable with it.
Sounds like you shouldn't do it, then. Which would be wise on your part, in my opinion. --Tim May -- Timothy C. May tcmay@got.net Corralitos, California Political: Co-founder Cypherpunks/crypto anarchy/Cyphernomicon Technical: physics/soft errors/Smalltalk/Squeak/ML/agents/games/Go Personal: b.1951/UCSB/Intel '74-'86/retired/investor/motorcycles/guns Recent interests: category theory, toposes, algebraic topology
On Thu, Jul 04, 2002 at 04:42:46PM -0700, Tim May wrote:
I've tried to learn a bit about coin collecting but I find myself hesitant to plunge right into it. It's just like any other "investment", subject to bubbles, busts and shady operators. I don't know enough to feel comfortable with it.
Sounds like you shouldn't do it, then. Which would be wise on your part, in my opinion.
Investing in anything with a non-intrinsic value, i.e., art, coins, antiques, stocks, etc., is possibly worthwhile in good times, money can be made. The collection can become almost worthless overnight, however, and even life-threatening, say, should the situation become so dangerous that flight is the best chance, but one can't bear to leave the fortune in antique furniture. A collection of rare antique Colts might be quite pleasurable (and profitable) to own, but cases of AK-47s hidden away in a remote bunker a better investment. If whatever you invest in depends upon a goodly supply of well-to-do buyers to maintain it's worth, you could become destitute overnight. Or, as the Fabulous Furry Freak Brothers always said, "Dope will get you thru times of no money better than money will get you thru times of no dope." -- Harmon Seaver CyberShamanix http://www.cybershamanix.com
participants (3)
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Harmon Seaver -
Michael Motyka -
Tim May