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 Replies: 55 / Views: 7,980 |
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Bedrock of the Community
United States
10982 Posts |
Quote:
...I dont want to buy a bar or bullion coins because I think they are more volatile, and my dealer disagrees. huh... I believe your dealer feels with $2K you cannot afford "date" gold. You can still buy "common date" gold however. Most people consider these "bullion" coins. I've bought several Half Eagles and Eagles that are generic date "bullion" coins. Raw, circulated pieces are available for little more cost than their gold content. P.S. I've never bought a gold bar. |
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Valued Member
United States
323 Posts |
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Bedrock of the Community
United States
19969 Posts |
As Conder said, it is a better "investment" to lower your loan balance. However, by owning some gold you have a liquid investment that you can sell any time. You really can't do that with your house unless you take an "equity" loan in times of need. I'd stick with gold since it's liquid and especially if you're planning on holding it a long time. All you have to do is look at the gold 20 or 30 year chart to see just how well it has performed over the long haul.  Edited by BadThad
03/28/2010 10:00 pm
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Pillar of the Community
 United States
2424 Posts |
ok, well I am going to take a slightly different direction in this post: SILVER
i wanted to diversify the investment. I was thinking about going with american silver eagles. this dealer also told us that going with silver would be a good spread as well. he then showed us these crappy looking silver rounds. you know, all sorts of junk looking .999 troy oz rounds. he said he would get them to us for around $18, which is a few over spot, not bad I thought, but then I got to thinking about the american eagles. wow beautiful. I have a 91 when I was a kid and I put it in my 7070. so I want to be prepared because I have not asked him yet about investing in the eagles. I am figuring that he will tell me NO and go with just the junk rounds, more silver for my buck. I dont want to do that. I want to get those eagles. I know there is probably more like +$4 premium on them, but they hold their value nicely I would think. so I am asking you guys to give me some verbal ammo just in case he tries to discourage me from those. THANKS
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Pillar of the Community
United States
3098 Posts |
Silver is volatile. But, volatility works in both ways. During the recession, silver was $9 or a bit less per ounce, and now it's nearing $20... again! With silver, you have to make sure to enter at the right time. Enter too late, you could have missed a big run, but enter too early, you might be stuck with the prospect of a down market. As for ASEs and bullion COINS (not rounds! Coins as in issued by a government) raw UNC ones can be bought with about $1.50-$2.00 over spot. For Canadian maples (.9999 instead of .999 finess if that interests you) the premium is about $1.50, while for Austrian philharmonics, the premium is around $1-1.50 a coin. Start at APMEX for price. Theirs are around market. You might find some cheaper, some more expensive, etc... How, to throw in another monkey wrench: PALLADIUM (or Platinum too!) Those two are industrial metals mainly used in cars. During the recession I bought a few Pd bars for $250, and now they're at $450! These two metals are less tied with gold than silver because their respective prices are based on demand. If the economy is going to recover soon, I would invest in Pd or Pt (maybe more Pt at the moment since the huge jump in Pd) than silver... and lastly gold. **As for "holding its value" I think that only applies to mint-sold coins (proofs and burnished.) Otherwise, the 8% premium has been around for some time like how AGEs have $50 or 5% premiums etc etc Edited by wd1040
03/29/2010 02:22 am
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Pillar of the Community
United States
2424 Posts |
UPDATE
we finally came to an agreement to spend $1500
finaly tally is 1 Krugerrand $1175
and 17 oz of silver to round out the $1500
got a 10oz bar, a few 1oz bars, and the rest are various rounds.
next update will be in 50 years or so
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Pillar of the Community
United States
3098 Posts |
Wow... that is one expensive Krugerrand? I thought they were only supposed to be ~$20 (2%) or so over spot. and er... not to butt in, but I also have a Maple leaf at $40 over spot.
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Pillar of the Community
United States
1285 Posts |
WD1040, That's a good point about Pd and Pt and that's why I have been picking up the pamp 1oz bars. Based on historical averages - Pt should be 2X the price of Au and Pd should be 50% of Pt. Wait there's more - there is a massive supply / demand fundamental shift taking place along with extracting costs going up and ore reserves going down, which will play out over the next 3 to 5 years. Also the Russians are supposed to have gotten rid of their excess Pd inventory, which now is in the hands of the US and Swiss banks. Then there is the uncertainty of South Africa (power outages) and you have a ready made volatile mix.
Why not we start a topic about Pd & Pt some place on this board. I am not sure where it would reside. I spent over 4 months researching this topic. Thanks
Others pardon me for ranting about Pd and Pt.
Peace
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Pillar of the Community
United States
1055 Posts |
WD- I wish I would have jumped on board with platinum and palladium a few months ago when platinum was down around $1000. I remember sometime in the last couple years when platinum was over $2250 an ounce!
Since that time platinum has gained over $700 an ounce. and palladium has gained considerably as well. To me these are two overlooked metals in the market.
(i didn't look at a market price sheet for this post, my prices are approximate.)
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Rest in Peace
United States
4849 Posts |
I never really thought the premium on the Saints and $10 Indians were all that bad considering the supply is limited. The problem with bullion is that even though you get "slightly" more gold for your dollar; bullion will continue to be minted and never be looked at as anything more than metal content. With a Saint or an Indian, the supply is limited and that will never change.
BUT, it is ultimately your decision, and I'm sure your wife had some influence and it is more important to keep her happy(I know from experience).....
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Replies: 55 / Views: 7,980 |
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Posted 03/28/2010 1:52 pm
