New-Want To Invest In Gold

I would take another route and buy slab (NGC or PCGS) common dates, or semi-key dates $2.50, $5 and $10 Indians in MS-63 or 64, just to start of with, sometime there are sales with theses on AMPEX and other online reputable dealers.

You get a piece of history and numismatic value even when gold drops in prices, these are also easy to sell, and not subject to lose too much value unlike bullion. That's my humble opinion.

MacM & BB---You're right about the slabbed Indians providing some insurance/cushioning against value loss through spot deterioration
where bullion provides no such effect. I was thinking of just liquidity only and my narrow focus didn't enable me to take that into account.

True investing entails big bars like 100ozt or 1000ozt. Even one ounce coins and bars have premiums attached, so you're doing yourself a disservice by buying anything small. You'd have to wait for a spike to break even.

Huge bars is investing, imo. By taking the small route you leave yourself open to chance/luck.

BUT: I can read your situation. You want /liquidity/ Therefore don't buy silverware (this thread is gold not silverware). You live in the USA, so get an Eagle or a Krugerrand because it's the same. Go for 1/10ths, as they are a good sum of divisible money. 1/20th and 1/25th pieces have way too much premium and they're usually minted with collectors' designs instead of being plain and used as money. However, I feel that you should keep a small stack of 10 single ounces of silver with you as well for smaller purchases. A 1/10th may be too much to fill the gas tank or a cab ride.

*Don't listen to me, and don't get into the metals market. Do what you like. To me it doesn't sound like you're investing but that you're creating a safety net for insurance. I would try to remove the thought of dollars from my head and think only in ounces.

BB--One PM dealer friend of mine in TX says the 1/10oz Eaglets are by far+away the most traded+liquid of all the gold bullion he sees. A show vendor who's
always at the monthly show in my area does another show 125 miles away the day before ours. When he gets here, he never has any 1/10oz Eaglets because
he always gets cleaned out at the other show the day before us. To me, these 2 indicators speak volumes about the liquidity issue.

It's a personal thing, but I tend to focus more on liquidity than most other considerations. I may not be right about that and my outlook might be wiser if revised,
but I've revisited that thought so many times I'm tired of it and I can reinvent that wheel only just so many times...

I definitely believe that, theyre one of the few "affordable" gold coins out there that most people could buy if they wanted. Theyre actually one of the bullion coins I kind of like just because of the ease in selling them, theyre just so small.

I do agree though being liquid is a huge plus and there is a value to that. I just like the older stuff better since it has longer established values and fewer survive in good condition as time goes on. For the 1/10ths though its hard to argue against those. Its more the 1 ounce coins Id stay away from as the buying market is small and spot drops would have drastic effects there.

I know I wasn't the original poster. But I do appreciate all the insight all of you have given. Thanks.

I figured I would put in my Two Cents here...
There has been a lot of good advice and some very interesting opinions on this thread so far..
If you're new to gold or PM investing my first question for you is.. Why are you investing in gold?

In my opinion gold is used as a preservation of wealth and a hedge against a poor economy. If you don't exactly have a lot of wealth to begin with then gold isn't your best investment option.. there are others much better out there. If you believe that the economy is troubled and we're in for a rough time... then YES gold would be a good idea regardless of your financial status.

As for how much to buy... well that would depend on your financial situation... some here have talked about 1/10ths and how they're very liquid, which is true but there's also a premium associated with fractionals. 1 oz gold rounds/coins/bars carry the smallest amount of premium. Sure as someone said if you buy 100 oz bars you're eliminating the premium ... but in all honesty I don't run in those circles and never will. I prefer buying 1 and 5 oz bars or coins.

The next question often brought up is how often or frequently should one buy? That also is dependant on your finances, age and your opinion of the economy. Typical financial planners suggest that gold should have no more than 10% of your portfolio. If you're young I would definetely agree with this.. there's better places you can put your money to work for you. As you get older you may wish to diversify into more secured assets like dividend yeilding stocks, bonds, and gold. The thing I like is that .999 is exempt from capital gains.. so I like to buy it for the future so I don't have to cash out as much of my RRSP's or stocks and worry about incurring a large amount of capital gains taxes.

Personally I can only afford to buy once or twice a year.. if you can buy more frequently than that, then you will be able to take advantage of better dollar cost averaging techniques and not worry so much about any swings in the market. Personally I try to take advantage of any market dips for when I buy to add to my stack but I have a certain date marked on my calandar where I'm committed to purchase.

My best advice to you is... find a reputable dealer. There is a TONNE of fakes out there and if you don't know what you're doing you can really get burned bad!

Do a lot of reading... ask a lot of questions... then go get some shiney and tell us all about it...

Good luck!

I agree with this perspective for beginners or people looking to build their weight in silver or gold first, than worry about the cosmetic looks of the metal itself. After hitting a goal of 2,000 oz's I started to dabble in the pretty silver bullion/coins/numismatics etc. I do however like collecting bullion with name brands vs generic because it does make it easier to sell in the future, it's popular, it has a premium for collectors or ebay and I like it. Most local dealers don't care unless it's an ASE / Maple / Panda which are nice in itself. Gimme Johnson Matthey & Engelhard all day!

For gold, it is the same thing. It has to be .9999 24k (nothing less) which is why I stack the Buffalos, Maples, Pandas, Pamps, Perth, Scotia Bank & Credit Suisse..the list goes on. The common denominator is .9999 24k - that's all I care about.