How to buy Gold with least premium over the spot

black5wan

black5wan

Well-Known Member
Silver Stacker
Hi,

Please suggest what is the best way to buy gold at least premium over the spot.

I am considering following options. any idea welcome.

1) Australian /US coins
pro: widely recognised in market, good looking,
con: while buying at least 8-10% premium over the spot.

2) Gold bars from ABC etc.
pro: while buying at least 1-1.5% premium over the spot.
con: not as much pretty as coins.

3) buying broken or old design gold jewellery (meant for melting) from pawn dealers
pro: no premium over the spot, easy to carry overseas if needed, no confiscation fear when SHTF
con : need to be careful when buying, less liquid .
 
Sovs, $200 coins, lump of fat gold/gold ingots.

Sovs are most liquid and everyone knows what they are.
 
4) Unloved world gold coins

5) From other members on Silver Stackers

Generally 1oz bars will have the lowest premiums (not 1% though - expect 2.5% or so), but there's a lot of fractional gold that pops up that can be had at similar low premiums if you don't mind buying unusual foreign gold coins that no-one else wants.

Avoid scrap for stacking unless you're a pro. You shouldn't be paying spot for it either, there's an assay & fabrication overhead to get it into an investment form.
 
fishball said:
Sovs, $200 coins, lump of fat gold/gold ingots.

Sovs are most liquid and everyone knows what they are.
Click to expand...

Hi Fishball, what is the premium on Sovs? sorry if its a newbie question?
 
goldpelican said:
4) Unloved world gold coins

5) From other members on Silver Stackers

Generally 1oz bars will have the lowest premiums (not 1% though - expect 2.5% or so), but there's a lot of fractional gold that pops up that can be had at similar low premiums if you don't mind buying unusual foreign gold coins that no-one else wants.

Avoid scrap for stacking unless you're a pro. You shouldn't be paying spot for it either, there's an assay & fabrication overhead to get it into an investment form.
Click to expand...

Hi goldpelican,
I don't mind unloved coins unless its not 2%+ over the spot. Can you please share name of these unloved coins.
 
FED: Fed Chairman Ben Bernanke is unlikely to use his speech Friday at ...
25. August 2011 14:20:53

FED: Fed Chairman Ben Bernanke is unlikely to use his speech Friday at
the Federal Reserve's annual Jackson Hole, Wyo., conclave to unveil new
efforts to bolster the U.S. economy - despite financial markets'
lingering hopes that he will, the WSJ says.
 
Take one step back and ask yourself why you want to pay as close to spot as possible.

Is it just to get more metal for your fiat? Would you pay more to make it easier and quicker on-selling the metal later on? Who do you intend selling it to? Would they only care about the quantity or would they be prepared to pay a premium for a coin with numismatic appeal? Does potential growth in numismatic premiums outweigh the higher initial cost? Does your bank balance allow for the purchase of whole ounces or are you looking at fractional units?
 
Big A.D. said:
Take one step back and ask yourself why you want to pay as close to spot as possible.

Is it just to get more metal for your fiat? Would you pay more to make it easier and quicker on-selling the metal later on? Who do you intend selling it to? Would they only care about the quantity or would they be prepared to pay a premium for a coin with numismatic appeal? Does potential growth in numismatic premiums outweigh the higher initial cost? Does your bank balance allow for the purchase of whole ounces or are you looking at fractional units?
Click to expand...


Hi Big A.D.

I just want to get more gold your my fiat. I am buying gold as a insurance for SHTF scenario. In case of SHTF I don't think the numismatic premium for any coin be much greater to any fat ugly gold bar.

I personally experienced that in case of stress sale the least you get is spot, so I am not in favour of paying higher initial cost of any numismatic premiums. Yes my bank balance allows for whole ounces or 100g bars.
 
black5wan said:
Hi,

Please suggest what is the best way to buy gold at least premium over the spot.

I am considering following options. any idea welcome.

1) Australian /US coins
pro: widely recognised in market, good looking,
con: while buying at least 8-10% premium over the spot.

2) Gold bars from ABC etc.
pro: while buying at least 1-1.5% premium over the spot.
con: not as much pretty as coins.

3) buying broken or old design gold jewellery (meant for melting) from pawn dealers
pro: no premium over the spot, easy to carry overseas if needed, no confiscation fear when SHTF
con : need to be careful when buying, less liquid .
Click to expand...

I love the supposedly ugly low premium gold blobs from ABC or Perth mint. I dont think they are ugly at all though. They feel like Gold!! I feel like i am holding gold in my hand when im holding a few blobs rather than a few coins. call me crazy??
 
I know this may not be what you're looking for, but Aurora et Luna mentioned the other day he was considering getting some Valcambi Combibars - these divide nicely into units as small as 1g - that makes them quite affordable, but I don't know exactly what the premium will be (obviously), and whether this helps you in your quest.

Check Steve's subforum here for the thread.
 
I'll be buying some before Fridays announcement, and probably after.

It'll go up if it's not announced, and it'll go up longer term once stocks start to flat line after qe3
 
MacAg said:
Redback said:
Balaclava,deep voice,sawn off
The old fashioned way

REDBACK
Click to expand...

mental note to self: don't sell in Melbourne ;)
Click to expand...

ROFLMAO

Were just all getting carried away with the Razor series down here and lamenting the old days when you could legally smack a drug addict on the back of the head and the cops would just laugh.
 
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