Friday, February 15, 2013

My experience in owning gold coin

When I had a one-man company, I tried every way to save taxes (not a good move). I invested in annuity that is > four times better (the compounded rate of return may not be that great) for 20 or so years.

I invested in gold coins at about $400. After 15 or so years, it did not appreciate. A few years ago, suddenly it shot up to 800, I sold some and then some at 1000.

The lesson of the story: The human nature or investment timing does not allow us to keep the investment to the max. value which is about 1800.

Most gold coin shops charge a lot of commission esp. for small qty. When you sell a larger qty (I forgot the # now), the gold coin shop would report it to IRS. There are tax invasion tricks like treating them as antique or sth like that. I paid full taxes. Call me stupid but honest.

1 comment:

  1. India could be #1 importer of gold, so it matters to the gold price. The government or any government would stop this kind of import as it would damage its own currency.

    Owning gold reflects that the citizens do not trust their own country. It was similar to the Vietnamese refugees when they escaped with gold bars and gold teeth. :) Most of them worked for the government and/or of Chinese decent

    ReplyDelete