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 Replies: 52 / Views: 10,899 |
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Pillar of the Community
Canada
1723 Posts |
Just looking to get an opinion here. I'm torn. I've been thinking about getting back into the gold market and after having difficulty selling my 1/2oz gold last time while the markets were moving up, I figured that I need to stick with something smaller like 1/4oz and 1/10oz. Now the 1/10 oz coins which are VERY popular are at the perfect price point to keep adding to the stack, So I was thinking I might stick to that. BUT, then I was thinking that when I really want to sell, da bay is where I usually need to go. The problem is, and many of you know, is that with such a small denomination, Even if prices were to rise very fast that almost all of your profits (buying power) is collected up by fees. I realize that the premiums would carry on as spot increases and that most average people would be inclined to buy the 1/10oz but I'm curious if its really worth it? I'm starting to think that 1/4 oz is where to hang out. But that is still a good chunk of money to have to put out at once at say $450 per 1/4oz.
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Pillar of the Community
United States
830 Posts |
Are you stacking or flipping? If you are stacking buy what you can afford and hold it. I think the premium on physical gold is too high to be flipping, especially with small sizes.
Edited by GoThunder
12/09/2012 11:22 am
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Bedrock of the Community
United States
36745 Posts |
Premium is higher when you buy the small sizes and you lose that when you sell them. You want the most gold for the lowest price over spot.
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Pillar of the Community
 Canada
1723 Posts |
I mostly stack for long term but always try and maintain what I feel is liquid. That way I can play the spikes. I do flip if I feel that prices have raised too fast for the price to be maintained and that a correction is likely to happen. But like you say, I think premiums are too high with the 1/10 to even be able to do that. Its more limiting. But is there really a differance in 3 1/10oz and 1 1/4oz when sold?
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Pillar of the Community
United States
1200 Posts |
The premiums on those little puppies are more than I'm willing to pay. If I can't afford to buy an ounce, I wait until I can or else buy silver. The fractionals are definitely far more affordable and more liquid, but the premiums are nasty.
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Pillar of the Community
United States
759 Posts |
What were you asking relative to melt at the time for the 1/2oz.? What form was it in, AGE? What did you finally sell it for? How long did it take to sell? And what were your expectations, both price and timeline, when you first offered it for sale? Personally, I'd need to know those answers to provide some well informed input. IMO, the 1/4 or 1/2 probably give you the best combination of market breadth and bid/ask spread.
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Pillar of the Community
Canada
1723 Posts |
When I was selling, I was asking about $10 more than kitco or anywhere else but they didnt need to worry about shipping. Thats total. I was looking for $945 and kitco had on for $935. Even at 1 point brought it down to $915...no takers. Eventually made a trade. I maybe made $40 in the end but traded it for minimum market value. Needed the money at the time so trade was for cash plus some silver. We were both happy with the transaction. Sold it to a great guy. It was a 2012 gold maple.
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Pillar of the Community
1283 Posts |
1/10 are easy to sell and make the premium back. I sold a bunch for $195 each when gold was in the $1,600's.
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Pillar of the Community
United States
648 Posts |
I agree with TBK. Back when Gold was in the mid 1600's folks were selling their 1/10th American Gold Eagles for $170 at coin shows. APMEX is currently buying them for $187.43 each. I just don't like how "long" it takes to get to 1 ounce if I went down the 1/10th route (10 coins = 1 oz)...but I certainly have a ton I've bought thanks to folks on this forum, shows & LCS. I like all sizes in coins and bars. It all adds up very quickly. Edited by tripncoins
12/09/2012 12:48 pm
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Pillar of the Community
United States
3184 Posts |
get both but I like quarter ozs, just the right heft
Edited by mkman123
12/09/2012 2:55 pm
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Valued Member
Canada
53 Posts |
1/4oz is a nice size and also decent premiums. 1/2oz and up has a different buying audience, more buyers with the 1/4 or even 1/10 coins. Nothing wrong with 1/10's you pay the premium buy more buyers will pay it back, not dealers though from my experiences.
I am now looking to just add more silver and swap some to gold at the 40-45 GSR ratio.
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Pillar of the Community
Japan
666 Posts |
I prefer 1/10th and frequently instead of 1 oz time to time ... this way I'm able to buy all the time no matter what spot is - 1600 or 1750 ...
Premiums? Yeah! But when I sell I get those premiums back, because the market for fractionals is larger
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Bedrock of the Community
13014 Posts |
In terms of being liquid the market is better for fractional gold with the current prices. A lot more people are willing/able to pay 200-400 for a coin than are willing to pay 1800
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Pillar of the Community
United States
4008 Posts |
Quote:
You want the most gold for the lowest price over spot. Agreed, IGE. GoldMart is selling 1.2057 oz. Mexican 50 peso gold coins right now for $12 over melt. That's pretty darn good... better, in fact, than one can do with rounds and bars now. Quote:
1/10 are easy to sell and make the premium back. I sold a bunch for $195 each when gold was in the $1,600's. Lol, Trip. If you sold 1/10th oz. gold for $195 each, those buyers were paying $1950 an oz. Yikes! Good that you could snag the premium back, though. From what I have seen, sometimes that works and sometimes it doesn't. Good job with your sale.  |
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Pillar of the Community
Canada
1502 Posts |
Quote:
Premium is higher when you buy the small sizes and you lose that when you sell them People buying 1/10oz gold are obviously paying a premium. They must be buying from, well, a seller, so there's really no reason for the selling to not to be making that premium back. |
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Bedrock of the Community
13014 Posts |
I think what he meant was you lose the premium selling to a dealer which is true, but with ebay theres no reason not to sell it yourself though you do lose some of it with the fees |
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Replies: 52 / Views: 10,899 |
Posted 12/09/2012 11:28 am
