Are savings bond and corporate stocks more liquid than diamond rings and gold jewelry?
BiCUBIC asked:
I know its easy to transfer stocks and bonds but when it comes to exchange, say, at a 7-11 store and you wanna buy ice cream would gold and diamond be considered more liquid?
I know its easy to transfer stocks and bonds but when it comes to exchange, say, at a 7-11 store and you wanna buy ice cream would gold and diamond be considered more liquid?
April 29th, 2007 at 5:56 am
hmmm, there ARE places all over that buy gold and diamonds, but you still have to go to those places… i suppose a 7\11 clerk would take a diamond or a gold ring for an ice cream, but that would be so stupid to do.
with the availability of man made diamonds coming up, soon diamonds won’t be worth much. gold will always have some value, as it has many industrial uses as well as cosmetic ones.
of course, both can be faked as can bonds and stocks…the man on the street should be suspicious of any one offering them to him.
April 29th, 2007 at 10:35 am
if u live near a pawn shop, yes
May 1st, 2007 at 9:40 am
Of course not. A 7-11 is not going to accept gold or diamonds for payment. Sure, the clerk might trade you a cone for gold ingot, but I don’t think he’s going to give you any change. That would be a pretty crappy deal for you. You can turn stocks or bonds into cash via the internet in about 30 seconds. You could conceivably turn gold or diamonds into cash in 30 seconds on the street, but it would mean suffering a huge loss. The only way you would receive anywhere near the appraised value is at a jewel broker or advertising for a private individual. In that sense, it would be much more difficult to sell than stock. Stock has an agreed exact value at any time of the trading day. That is a key ingredient for liquidity.
May 2nd, 2007 at 6:56 am
Regarding liquidity of precious diamonds and minerals, be prepared to take a huge discount if you have to move them quickly. So, if liquidity is truly your concern, avoid precious metals and gems.