A 1/10th ounce 24 karat gold coin is about the size of a dime.
2007-04-23 05:50:25 · 11 answers · asked by Think Richly™ 5 in Business & Finance ➔ Investing
By the way, you can buy the 1/10th ounce gold coin for about $70.
The goal is to pick one with the best value, and to invest it. There is no wrong answer or right answer, but there are better answers.
2007-04-23 09:33:00 · update #1
I like Redd Headd's answer!!! But, if I had to chose, I'd choose the gold.
Here's why. The dollar has been losing purchasing power forever. People say that can buy a lot more with the $100 than they could gold. They're forgetting something very important - INFLATION!!!
For example, what would cost $100 today, you could have bought for $14.97back in 1960. Conversely, what you bought for $100 in 1960 would cost you almost $700 today.
Gold on the other hand has retained it's purchasing power. For example, in the 1960's (when gold was fixed at $35/oz. until Nixon closed the gold window) the average car was about $3000 and the average house was about $20,000 (my automobile/housing data only goes back to about 1963). So at at $35/oz for gold, it would have taken 86 oz. of gold to buy a car and 572 oz. of gold to buy a home. Today, gold is trading around $690/oz. The average car in the US is $29,000 and the average home is about $250,000. So, at $690/oz for gold, it would take 43 oz. of gold to buy a car and 363 oz. of gold to buy a home.
So, as you can see, the dollar has been losing purchasing power and gold has retained it.
The people who are saying they'll take the $100 are only seeing things short term. For example, from 2000 to today, the dollar has lost 15% of it's purchasing power, yet from 2000 to today, gold has increased in value from $280/oz. to $690/oz.
I'd take the gold any day because the dollar is going to keep losing purchasing power.
2007-04-23 06:48:34 · answer #1 · answered by 4XTrader 5 · 2⤊ 0⤋
I think that with $100 I could BUY more than 1/10th oz of gold and get change back.
Take the $100.
2007-04-23 12:58:35 · answer #2 · answered by teran_realtor 7 · 1⤊ 0⤋
$100
2007-04-23 12:53:10 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I would go with the cash.... 1/10 of an ounce would be roughly $69 at todays rate with no guarantees that it's value will increase anytime soon to surpass the $100.
2007-04-23 12:57:36 · answer #4 · answered by WallyWombat 6 · 0⤊ 0⤋
The gold because the value might go up depending on the markets. The $100 will always buy $100 worth of stuff, but it may not be the same amount of stuff.
2007-04-23 12:54:07 · answer #5 · answered by zippythejessi 7 · 1⤊ 0⤋
Because I'd probably spend the money, and save the gold, I'd say Go for the Gold.
In the event of a global crisis, Land Titles or Metal Bars are better commodities than cash in the bank.
2007-04-23 13:00:38 · answer #6 · answered by RaynorShine 3 · 1⤊ 0⤋
You could take The $100.00 and buy a 1/10th ounce coin for $50-$60 and keep the rest of the money.
2007-04-23 13:22:13 · answer #7 · answered by redd headd 7 · 1⤊ 1⤋
What is gold going for these days? I'm guessing $300 an ounce. 1/10th would be $30 worth. I'll take the hundred.
2007-04-23 12:53:53 · answer #8 · answered by my_alias_id 6 · 0⤊ 2⤋
I'd take the $100 because I can use it right away. I wouldn't know where to go trade in my gold. So even if the gold was worth more, I'd take the $100.
2007-04-23 13:20:35 · answer #9 · answered by sobay310 3 · 0⤊ 1⤋
Personally, I would take the gold. Whether I invested it or not, it is small, easily hidden and easily transported. A commodity in places where the US dollar won't buy you a thing. Yes, definitely the gold.
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2007-04-23 18:10:30 · answer #10 · answered by Anonymous · 2⤊ 0⤋