Why would anyone buy an AGE?

Discussion in 'Gold' started by Sonic, Feb 24, 2015.

  1. Sonic

    Sonic New Member

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    Or any other 22K gold coin that is sold for the same price as 24K? I've never been all that great at math and I apologize if I make any mistakes but I think I should be able to handle this (I'll be rounding). 22K=92% purity. A troy ounce is 31 grams, so for every ounce of 22K that you buy, you're throwing away roughly 2 1/2 grams of gold. One gram of gold (using current spot price $1200) is $39-at spot. So when you buy an American Gold Eagle or other 22K gold coin at these prices, you're throwing away about $100 worth of gold, and that number is not factoring in any premiums.

    Here's where it gets absurd: You can currently buy a Maple (and all the purity that comes with it) on APMEX for $16 CHEAPER than the Eagle! For perspective if you were to buy 12 AGEs you just threw a full ounce of gold, $1200 worth today, right in the trash. You'd have to have 13 AGEs to equal the gold content of 12 Maples. Am I missing something or does this just really not make any sense?
     
    Sonic, Feb 24, 2015
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  2. goldpelican

    goldpelican Administrator Staff Member

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    What BB said - it still contains an ounce of pure gold, albeit alloyed with copper to make it 22K. You're not being ripped off gold.
     
    goldpelican, Feb 24, 2015
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  3. Sonic

    Sonic New Member

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    Ok good, sorry for the pointless post then. Turns out I WAS missing something lol
     
    Sonic, Feb 25, 2015
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  4. Jislizard

    Jislizard Well-Known Member Silver Stacker

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    I think there are still tax implications at buying 22K instead of 24K and I am not sure if refiners would pay less for 22K because of the extra work involved in refining it, but probably not.
     
    Jislizard, Feb 25, 2015
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  5. GoldenEye

    GoldenEye Well-Known Member Silver Stacker

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    I prefer the HERALD SUN to the AGE. :)
     
    GoldenEye, Feb 25, 2015
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  6. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    Tradition :p
     
    Clawhammer, Feb 25, 2015
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  7. Tacrezod

    Tacrezod Member

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    Don't apologise. I've learnt something from the post so it wasn't pointless.
     
    Tacrezod, Feb 25, 2015
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  8. silverprepper999

    silverprepper999 New Member

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    I agree, why buy unpure gold for higher price, comparing to pure! I can get 1/4 999 for 15 eur cheaper than 1/4 AGE. I know there is same amount of gold, but I prefer only pure ones. Dont want to pay 15 eur for aditional few grams of copper! :D
     
    silverprepper999, Feb 25, 2015
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  9. dccpa

    dccpa Active Member

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    Fiddler on the Roof reference?

    Assuming someone is not in the US, reasons to buy an AGE:

    1. Worldwide acceptance.
    2. Free copper and silver.

    If you are in the US:

    1. & 2 above
    3. Non reporting of purchase/sales by dealers.
     
    dccpa, Feb 25, 2015
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  10. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    No, Bennanke! Remember his response to Ron Paul's question that if gold isn't money then why do banks hold it then? Bennanke's much maligned Answer; Tradition.
     
    Clawhammer, Feb 25, 2015
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  11. HateFiat

    HateFiat New Member

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    It's not a pointless post. You had a legitimate question which has been resolved by the more knowledgeable members of the forum. So all is good!
     
    HateFiat, Feb 27, 2015
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  12. Cellbine

    Cellbine New Member

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    Thanks for asking this question. I learned something too.
     
    Cellbine, Mar 12, 2015
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