How to Lose $473.44 in a single day with Krugerrands

Well I do freely admit I was an idiot by trying to churn with coins like Brad Wilson. As of today gold has dropped to $1,129.30 as the FOMC announced plans to increase interest rates an estimated 4 times over the next year.

This must be an indication that America is indeed Great Again and markets are on their way up. So those holding on to gold have been dumping it in favor of buying up equities. The market is looking so good that TSP Allocation has changed their recommendation to 100% C fund (S&P 500). I was wrong and now I am stuck holding on to 4 gold coins for awhile longer.

Right now BGASC.com is buying the Kruggerands at $1,128.45. Just to recap, I bought 4 Krugerrands on 09 Dec 2016 for $1245.56 when spot was at $1156.95. The price of $1245.56 included the premium of $88.61 for using a credit card. Gold dropped to $1129.30 for a $29.75 loss on top of the $88.61 premium. I had lost $118.36 on each coin! So this is not a good way to make that minimu spend as the whole point of this was to get the 100k points only worth $2,000 in flights. Now that premiums have eaten up almost a 25% loss of profit, it may be better just to pay the 2% to charge your taxes on to a credit card.

What is interesting though is that APMEX.com buys Krugerrands by Date. I compiled a chart of dates and their buy price for unusually rare years:

Year Price Price over spot
2016 $1,131.80 $2.50
2015 $1,151.80 $22.50
2014 $1,141.80 $12.50
2013 $1,136.80 $7.50
2012 $1,136.80 $7.50
2011 $0.00 $0.00
2010 $0.00 $0.00
2009 $0.00 $0.00
2008 $1,146.80 $17.50
2007 $1,216.80 $87.50
2006 $1,166.80 $37.50
2005 $1,221.80 $92.50
2004 $1,226.80 $97.50
2003 $1,171.80 $42.50
2002 $1,176.80 $47.50
2001 $1,251.80 $122.50
2000 $0.00 $0.00
1999 $1,176.80 $47.50
1998 $1,206.80 $77.50
1997 $1,216.80 $87.50
1996 $1,221.80 $92.50
1995 $1,216.80 $87.50
1994 $1,221.80 $92.50
1993 $1,186.80 $57.50
1992 $1,191.80 $62.50
1991 $1,151.80 $22.50
1990 $1,166.80 $37.50
1989 $1,216.80 $87.50
1988 $0.00 $0.00
1987 $1,216.80 $87.50
1986 $1,166.80 $37.50
1985 $1,156.80 $27.50
1984 $1,134.80 $5.50
1983 $0.00 $0.00
1982 $0.00 $0.00
1981 $0.00 $0.00
1980 $0.00 $0.00
1979 $0.00 $0.00
1978 $1,157.80 $28.50
1977 $0.00 $0.00
1976 $1,142.80 $13.50
1975 $0.00 $0.00
1974 $0.00 $0.00
1973 $0.00 $0.00
1972 $1,172.80 $43.50
1971 $1,167.80 $38.50
1970 $1,192.80 $63.50
1969 $1,227.80 $98.50
1968 $1,227.80 $98.50
1967 $1,377.80 $248.50

Might be worth looking into since I am hoping for the long term rise in gold on these coins now.

-Derp

One Response to How to Lose $473.44 in a single day with Krugerrands

  1. Aside from this being a classic case of a trade becoming an investment, if you think rising rates are going to be good for gold in USD terms you’re going to end up wiping out the entire value of your MR points.

    I simply do not understand MSing with precious metals.

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