Buying advice please needed

V

vacalo

New Member
Hi All
I am looking into buying physical gold and I have done quite a bit of reading (not being lazy, its my money that I am investing!) and I would DEEPLY appreciate if you can give me some quick advice on:

- When to buy?
Some say buy: NOW,others wait post aug 2 to buy low as US wont default
- What type of gold to buy?
Size: Some say 1/4 or 1/10 coins(easier to sell), others say 1oz(less premium and also sell easily?)
Type: I live in the US, so maybe Eagles as they have no buy/sales tax, correct? Do the other coins have tax? What do you recommend?
Price: Ideally i want to pay spot price or less; where do I get the cheapest prices with reliable service? look here? www.goldshark.com or goldprice.org/gold-prices/

Tried to keep it as short as possible.

Thank you in advance for your help!
Chris
 
Hi Chris
coins a are good however they carry a premium, one ounce ingots are great buy get some that are from a recognised maker like PAMP bars or some other well recognised US maker. if your looking at timing to get a better deal with 2 August coming its anyones guess , but looking long term with the FED printing $$$ gold will go up reguardless , my advice buy what you can comfortably purchase and dont go into debt to buy gold.

yours in Bullion
Lee Chapman Owner SA Gold Traders
 
Hi SA Gold Traders
Thanks for your reply - I will investigate on ingots.
one final question: Source of funds: I got 20% USD and 80% of the funds in GBP. Gold YTD is up 34% vs the USD and 29% vs the GBP. Should I convert all my cash into USD (assuming I get a good exchange rate between the too)?
Thanks
 
Hi Vacalo,

Gold its self is a currency, would you convert your USD into GDP to buy AUD? The answer is No buy the gold in whatever currency you gold. As far as what type of gold stick to bars forget coins you pay a premium and when the shit hits the fan people will not pay premium prices. People also prefer bars as they are easy to authenticate.

Also when you buy never hand over your details or register you details will be passed onto a government list and your gold will be subject to confiscation law.

Cheers
 
peterrogers said:
when the shit hits the fan people will not pay premium prices.
Click to expand...

Is that right? Any experts care to comment? Personally I don't see any reason why premiums shouldn't be at least maintained. But then I'm not talking end-of-the-world type stuff.
 
I like fractional gold, prefer coins myself, but bars are good too! I figure in a SHTF (end of world) scenario premiums probably won't matter much ..... and in financial SHTF, people will pay what needs to be paid to try and store wealth/value.
 
peterrogers said:
Hi Vacalo,

Gold its self is a currency, would you convert your USD into GDP to buy AUD? The answer is No buy the gold in whatever currency you gold. As far as what type of gold stick to bars forget coins you pay a premium and when the shit hits the fan people will not pay premium prices. People also prefer bars as they are easy to authenticate.

Also when you buy never hand over your details or register you details will be passed onto a government list and your gold will be subject to confiscation law.

Cheers
Click to expand...

I'd like to address a couple of points in this response.

when the shit hits the fan people will not pay premium prices

Anecdotal evidence from forum members with experience in Greece during the last year is that gold sovereigns were selling for DOUBLE spot as people tried to dump euroes. Premiums increased massively in response to demand.

People also prefer bars as they are easy to authenticate.

Subjective. Plenty of people prefer coins.

you details will be passed onto a government list and your gold will be subject to confiscation law

Speculation.
 
peterrogers said:
Also when you buy never hand over your details or register you details will be passed onto a government list and your gold will be subject to confiscation law.
Click to expand...

Sure is better to play it safe, speculation or not. :cool:
 
goldpelican said:
Anecdotal evidence from forum members with experience in Greece during the last year is that gold sovereigns were selling for DOUBLE spot as people tried to dump euroes. Premiums increased massively in response to demand.
Click to expand...
Question if I may? Was it the fact that is was a Sovereign, or was it the fact that it was gold that caused the high price?

In other words, do the accounts you know of mention (for example), "A sovereign sold for $2000, whilst another coin/bar of equal gold amount sold for $1000"?

I could well imagine in a situation like Greece's then, that people would pay a high "premium" over spot to secure physical gold (or silver) - I have no doubt of that at all. I wonder, though, in such a situation, whether the normal "premium" in normal times (eg. Panda etc) has any effect on pricing? Personally, I would think not - when you look at this type of situation, it's one with plenty of fiat and little physical metal to buy, thus, the simple fact that it's gold is enough to demand a high "premium" at that point in time (irrespective of the format of the gold, other than the fact that it would have to be readily identifiable, and accepted as gold).

(am I making sense here?)
 
Agree Midnight Man

I brought this topic of premiums up in a previous thread saying that when and if panic hits and high prices, people will just want gold/silver, original premiums (eg maple / panda / buffalo, pamp) may become irrelevant as there may just be the same high premium on any gold/silver as long as it is well recognised and of the same purity.

The only problem may be that coins/bars more commonly counterfeited may be harder to sell on places like Ebay as people become more wary of fakes at the higher prices.
There could be a sudden surge in fakes on Ebay so a good reputation and feedback record would no doubt be a good asset.

Confiscation may be speculation but it is a risk . Easy for any government to make something illegal (holding gold bullion) and introduce a buy back law (they did it with guns remember!) - probably a lot of buried guns all over Australia! ;) I can't see it so much with silver though!
 
goldpanner said:
Agree Midnight Man

Confiscation may be speculation but it is a risk . Easy for any government to make something illegal (holding gold bullion) and introduce a buy back law (they did it with guns remember!) - probably a lot of buried guns all over Australia! ;) I can't see it so much with silver though!
Click to expand...


But if Government did pass confiscation laws (and FDR did it in Executive order 6102 in 1933), what would you do with your buried gold? Couldn't sell it on the market for fiat. Couldn't export it (unless you had a really good overcoat :). Barter? Blackmarket? Have a relative in the jewellery business?
 
Guys sorry to mention this but I think this post has lost its original theme which I would appreciate if you can share you wisdom on these questions
Many Thanks!:)


- Question: When to buy?
Some say buy: NOW,others wait post aug 2 to buy low as US wont default
- Question: What type of gold to buy?
Size: Some say 1/4 or 1/10 coins(easier to sell), others say 1oz(less premium and also sell easily?)
Type: I live in the US, so maybe Eagles as they have no buy/sales tax. Do the other coins have tax? What do you recommend?
Price: Ideally i want to pay spot price or less; where do I get the cheapest prices with reliable service? look here? www.goldshark.com or goldprice.org/gold-prices/
 
Midnight Man said:
goldpelican said:
Anecdotal evidence from forum members with experience in Greece during the last year is that gold sovereigns were selling for DOUBLE spot as people tried to dump euroes. Premiums increased massively in response to demand.
Click to expand...
Question if I may? Was it the fact that is was a Sovereign, or was it the fact that it was gold that caused the high price?
Click to expand...

It was the fact that they were sovereigns. Greece has historically done a lot of trade with countries in north Africa and the middle east and north Africa and the middle east are awash with old British gold.

Sovereigns are well recognised in Greece and people go for what they know when things get tough.

So in answer to that part of the question: buy something that will be recognised in the market you're likely to sell it into.
 
SA Gold Traders said:
Hi Chris
coins a are good however they carry a premium, one ounce ingots are great buy get some that are from a recognised maker like PAMP bars or some other well recognised US maker. if your looking at timing to get a better deal with 2 August coming its anyones guess , but looking long term with the FED printing $$$ gold will go up reguardless , my advice buy what you can comfortably purchase and dont go into debt to buy gold.

yours in Bullion
Lee Chapman Owner SA Gold Traders
Click to expand...
Thanks SA Gold Traders, I like your advice about 'buy what you can comfortably purchase and don't go into debt to buy gold'.

As I'm like many others who is also in the picnicking mode about the current situation with US! I've only started into buying silver few months ago, my initial plan going forward was to allocate a portion of my monthly saving to gradually buy more silver, I have not thought about gold at all! However, as every where and many people seem to be focusing more on the increasing price of gold, hence buying more gold and not so much mentioning about silver, I'm starting to concern should I have bought gold from the start instead, with the money I spent buying silver so far, by now, I would have owned 5 oz of gold (although this may not be a lot to many people, but to me it is already a lot), start buying every oz of gold will required longer time of saving up for me, should I put silver aside for the moment and focus a bit on gold in the coming months?

I have been reading Mike Malony's book 'How to invest in Gold and Silver', and watched quite a number of Robert Kyoysaki and Mike Malony video about buying silver, but these videos were recorded think in 2008/2009 period, but can't find any from 2011, is it because I've already missed the boat and I'm one of those who is buying at the time when all the winners are selling? I'm not sure how to go forward! I need to get my approach and attitude right, any advice?
 
Maybe from now on think about spending about half your money on gold and half on silver. Silver has potential to make bigger gains percentage wise, however gold is a lot more solid of an investment and less volatile. I started only buying silver but when the price crashed in may I realized I needed to hold gold as well for extra security.
I don't think you've missed the boat ( at least I hope nor as I'm still spending every spare dollar I get on gold and silver) if you look in the "today I bought" thread in this forum you'll find that there are a lot of people on here buying. I try to buy little bits here and there on the price dips and that way your cost per oz. Average seems to be a little less.
 
With anything trust is important, so IMO it is worth buying common gold coinage (sovereings, krugerands, nuggets, etc.). for silver I like the old 50c rounds, basically 3 coins is an ounce, and one kilo is roughly 75 coins/25 ounces. Ingots/bars are fine but may not be as easy to offload if you need to in a hurry.

Buy a little on a regular basis and don't try to pick the dips. Always have cash savings as well because if you have a medical emergency, car repairs, etc. you don't really want to be selling PMs to cover such costs.
 
1966 50c are 80% silver - they are commonly sold by the kilo (gross weight), so ~75 coins for about 25.6oz of silver.
 
Guys again sorry to be repeating my self but can you please add some clarity on these 2 main questions that I have?
**Size: Some say 1/4 or 1/10 coins(easier to sell), others say 1oz(less premium and also sell easily?)
**Type: I live in the US, so maybe Eagles as they have no buy/sales tax. Do the other coins have tax? What do you recommend?
Thanks a lot!
 
If you have money to buy a 1 ounce gold coin then buy one as the premiums are lower, I'd like to buy one too but everytime I get half way there with funds the price drops and I end up buying a 1/4 oz. And some silver instead.
 
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