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Should you buy Costco gold or silver bars? No. Here’s why.

Posted by John Reed on

Costco is selling gold and silver bars at a bit of a discount. Very popular with millennials.
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Gold is overpriced even at Costco. Silver is also overpriced, although not as much. Nickel is also a durable commodity and NOT overpriced (based on it's long-term average real price).
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Because of Executive Order 6102, you need to keep gold abroad.
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That ought to convince you not to buy it. There are other disadvantages in my web article on gold disadvantages.
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If you must own gold or silver I recommend doing so with American coins because they require no assay. Also, gold does not come in convenient denominations like $20 bills. A one-ounce gold coin is worth $2,400 and it is a barter item and barter sellers do not give change. So what can you buy with it? A used car? A new desktop computer?
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In contrast, a 1964 JFK half dollar is worth about $10.
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Also, the current price of gold is based on fear of inflation. Hyperinflation always goes away and it goes away overnight. When it does, the disappearance of fear of inflation will cause gold prices to fall to less than $700 per ounce. So while it preserves value during inflation, you suffer disastrous losses if you are late getting out of it.

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