I am buying 23 k worth of physical gold coins

Discussion in 'Metal Futures' started by bad feeling, Dec 29, 2007.

  1. Ok ET time to prove your worth, I am buying over 20 k worth of gold because I would rather be a stupid man with gold than a smart ass with paper money.

    Before I go to my bank and ask my advisor, what do you guys say

    Where should I go to buy coins.

    There is no way I am buying from some jewelry asses, they will price me up to 40% mark up

    any thoughts are appreciated
     
  2. JSSPMK

    JSSPMK

  3. dozu888

    dozu888

    if your motive is to hedge inflation, buy something that has a yield, like a rental property, timberland or something.

    gold just sits there, doing nothing.
     
  4. I don't think his motive is to hedge inflation. At least that's not the whole story here.
     
  5. Why not buy the equivalent in gold futures or perhaps if that's too much leverage an ETF ?

    Seems risky to me to have the physical precious metal. This is not the 10th century you know. hiding our capital underneath a rock is a thing of the past :D even if you store them in a bank safe,what's the purpose ?

    Anek
     
  6. I agree with Anek.

    If you really want to have gold exposure then you should buy an ETF such as GLD. This is the cheapest and simplest way to have gold exposure. Each GLD share will be worth approximately 1/10th of an ounce of gold.

    You should only buy coins if you feel that the whole financial system is coming apart. You will end up being at a loss immediately with the costs of buying and selling coins.

    Have you read Pit Bull by Buzzy Schwartz? He has gold coins in a bank vault that he moves to his home safe whenever he gets worried about bank and brokerage failures.

    Arch
     
  7. JayS

    JayS

    I use to work here, ask for Dave Meger the director of Alaron Metals. Get a quote from them, I'll doubt you'll find a better price. Tell him Jay sent you.

    http://www.alaronmetals.com/
     
  8. 11Blade

    11Blade

    If you can do without coins, you can buy bullion in varying denominations (1oz to 16oz) at most asian jewelry stores at the current price of gold.

    I buy a 1oz biscuit of gold for both my kids on their birthday as a kind of forced savings plan with something material to give them when they reach 25. I call it dollar cost averaging :)

    Anyway, I went to an Indian jewelry store in Queens and he directed me to his "brother-in-law's" store less than half a block away who sold me the biscuits. They seemed friendly enough and I definitely looked out of place for the neighborhood.

    I know gold just sits there and does nothing but its not 100% of my assets.
     
  9. zdreg

    zdreg

    why does GLD sell at a discount to bullion?
     
  10. The discount will only get bigger over time. According to the prospectus, the fund's expenses are met by asset sales. Hence, each share will represent less and less gold over time.

    http://www.streettracksgoldshares.com/pdf/streetTRACKS.pdf

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    #10     Dec 29, 2007