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 Replies: 12 / Views: 1,710 |
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Moderator
 United States
23543 Posts |
Some of you are avid bullion collectors. I have recently been contacted by some bullion dealers (who responded to my inquiry's) My question to you - - -
What is the best way to buy GOLD & SILVERI know I can buy American, Australian and Canadian Gold coins directly from their mints. There are also a number of gold dealers who want to sell the coins along with a number of Coin dealers who normally sell them as well. I have read all of the other thread on the forum about gold (three pages of links) so my question to the group is what is the BEST way to buy Gold and Silver.  I still just buy them one at a time and of course I had to complete my lunar set. rggoodie
aka Richard
"catch em doing something right"
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Pillar of the Community
United States
2269 Posts |
If you are buying for investment, then don't purchase from the mint. The US mint sells proof coins for more money than BU bullion.
WWW.Kitco.com sells bullion. When it comes to gold their 1oz Krugerrands sell for less money than a Maple Leaf or an American Eagle. Their prices are based on the ever changing silver and gold market. You can also purchase silver Eagles and Maple Leafs.
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Valued Member
United States
470 Posts |
It depends on what you mean by BEST. What's best for you might not be best for me. How much do you want to spend a year? How long do you plan to hold it? What is the purpose for buying gold and silver? Are you looking to turn a quick profit? There are a lot of variables to consider. THere is no one best way to do anything.
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Pillar of the Community
United States
1151 Posts |
I'll have to agree with Andrew289. There is no one best way. Are you collecting rounds, ingnots, 1 oz, 5 oz, 10 oz, 100 oz bars, or junk silver coins? I have bought from friends, dealers, silver websites, and ebay. |
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New Member
United States
9 Posts |
I stick with rounds mainly 1oz with a few 1/2 & 1/4 oz I mainly deal with https://www.APMEX.com but there are others be mindfull of shipping & mininum orders stay away from North West Tetories Mint as I have read many horror stories regarding ther shipping policies. For som other gooa advise check out https://www.GoldisMoney.info |
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New Member
United States
9 Posts |
All the previous points are very good. While new to coin collecting, I have been accumulating gold, silver and platinum bullion for several years now as an investment. IF your primary motivation is capital appreciation based upon expected increases in precious metals, then the overriding concern should be acquiring the bullion at lowest possible prices/oz. above the melt value. After spending a fair amount of time comparison shopping, I have found Wexford Capital Management ( http://www.wexfordcoin.com/BullionBar.htm) to have the best prices (about $15-20/oz less than Kitco and APMEX). 24 carat gold bars are only about 1.7% above melt right now, and large pure silver bars are about 2.7% above melt. That is about the most cost-effective way that I have found to invest in gold and silver. If aethestics are an issue, bullion coins are not much more expensive than bars. The least expensive 22 karat coin is the Krugerrand at 1.9% above melt, while the Maple Leaf (my personal favorite) is the least expensive .9999% pure gold coin at 2.9% above melt. While I am new to collecting, it would seem that obtaining common MS Double Eagles are also a nice way to get exposure to gold at a premium that is not THAT far above melt. Furthermore there is SOME chance (especially if obtaining grades in the MS-64 range) of having the coin appreciate on its own merits apart from gold. Just some thoughts :) Cheers, Mark Edited by mwhitmoe
01/19/2007 1:50 pm
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Pillar of the Community
United States
560 Posts |
I personally like Bulliondirect.com. Sorry, but I don't know how to create a link to their site. Most places such as Kitco.com have minimum buy and sell requirements, whereas bulliondirect.com does not. Their prices are also very good, compared to others I've looked at.
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Pillar of the Community
United States
1703 Posts |
www.bulliondirect.com  |
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Valued Member
United States
143 Posts |
A LOT depends on how much you want to spend each time. If t is $2000.00 or more, there are some deals where you can lock on spot-plus.
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New Member
United States
9 Posts |
More good points above. The minimum investment with Wexford is $5000, which I know is steep. But with volume comes discount, as their prices are about 2% below even bulliondirect.com. The other nice thing is that you can with any purchase at that amount lock in the price, so even if gold goes up x% after you submit the order, but before the money is received, your cost will not change.
Cheers,
Mark
Edited by mwhitmoe
01/21/2007 1:37 pm
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Valued Member
United States
143 Posts |
You can purchase and lock at CNI. They only have a $2000 minimum for free shipping.
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Bedrock of the Community
United States
20753 Posts |
Telling you about the best way is like telling you my car is better than someone elses car. Remember beauty is in the eyes of the beholder. Old saying. My suggestion is before you invest in Gold, Silver, Platinum or any raw metal, check the liquidity of such items. In other words if you needed money tomorrow, could you dump the stuff somewhere easily. And don't forget if the Gold or Siver markets drop, as Silver once drastically did, your investment is zapped. As to a Gold or Silver coin, the prices are based on the coins value, not the material it is made from. If a Gold coin is worth $100 and you want to sell it fast you can always find a coin show, dealer, coin store, etc where you can sell it for way more than the metal by weight. Although too you must remember if you buy a Gold coin today for $100 and want to sell it next week, you would take somewhat of a loss there also. I wouldn't buy the precious metals as an investment but if you just want to have something that may someday be worth a little more than you paid, then just go to a coin show and pick up some Silver Bars. Won't cost much and then you too can say I've got Silver. Of course wasn't that the Lone Ranger Horse's name?  I may be wrong but I really fear that someday soon our scientific community will announce they've done the old Alchemy thing of changing Lead into Gold and this time it will be for real.  |
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New Member
United States
9 Posts |
I would respectfully take slight issue with the comment above. The point about the precious metals markets being volatile, with the potential to drop is certainly true. But assuming your interest in gold/silver is not PURELY either aesthetic and/or collectible in nature, then considering cost should be a big concern. Just like if purchasing a car, you want to buy in a manner so that you are paying as little over the real "invoice" price (or in the case of bullion, above melt) as possible. And as for silver/gold coins, there are many instances in which their value is mostly, or even entirely, based upon the material from which they are made. Maple Leaf and American Eagle coins are two for which there is virtually no "collectible" premium above their metal content. But even the retail price of a fairly rare (158,000 produced, with most having been melted) EF St. Gaudins 1908 (with motto) coin is based 85% upon its gold content. Similarly, more than half of a comparably graded 1879-O Morgan dollar's price is based upon its silver content. And even if rare coins and gold were both to have similar investment returns in future years (I am not saying they will, but for purposes of illustrating a point, am assuming so), you would actually be able to achieve a higher return on investment as a retail purchaser opting for bullion. Why? Because you can find gold brokers that will buy bullion for only about 2% less than they are selling it for at retail. I doubt if there are many/any coin dealers that would purchase a lot of rare coins at 2% less than what they would sell it. So I would argue that the "fair value" liquidity is actually much higher with bullion. So paying attention to issue of cost over melt value for bullion is very important in terms of being able to obtain the highest investment returns possible in future years as an investor in precious metals. And, call me a cynic, but given the fact that gold and silver have been storehouses of value for millennia, I am doubtful that cheap, synthetic and indistinguishable substitutes will ever be come to pass. Cheers, Mark AKA Resident Gold Bug Edited by mwhitmoe
01/24/2007 01:48 am
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Replies: 12 / Views: 1,710 |
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Posted 01/17/2007 6:16 pm
