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 Replies: 52 / Views: 10,913 |
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Pillar of the Community
 Canada
1723 Posts |
 This is funny because I'm kind of scratching my brain here. I like to be able to play the spikes....this is how I add without breaking a 1 income family budget. Sell near the highs and buy near the lows, and for some reason I can do it with silver and makes sense to me how to move it around, but the gold just confuses me. It just bugs me how you just cant seem to do it with gold. Even with $150 moves its darn near impossible to break even but I can make it happen with a $3-$5 move with silver. Anyone else see this? Pretty much impossible to play the ups and downs with gold but can do it with silver? I'm I losing it here? Edited by samsnate
12/10/2012 01:53 am
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Pillar of the Community
United States
3670 Posts |
Quarter oz. all day, too much premium with dimes...
If you buy gold, your goal should be to add 1 oz., if not a half, if not a quarter, and save if you must....
Keep that number close to spot as possible....
If you cant afford that, go 2 and 2.5 gold peso's or something and pay a bit more premium but keep the numbers adding up....
Edited by Silverhawk74
12/10/2012 02:19 am
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Pillar of the Community
United States
3670 Posts |
What TBK said is true all day on dimes, and I have sold them for 205 or so in the past, esp in proof AGE form.....
But I am thinkin in terms of 4 buys to get to and oz. verses 10.....
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Bedrock of the Community
United States
10982 Posts |
I would go with 1/4 oz ASEs. I don't like the high premiums the 1/10 oz pieces require. TBK got his back but most people don't. Plus I like the size of the 1/4 oz pieces a whole lot more. Those 1/10 ozers are like Half Dimes! |
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Pillar of the Community
Canada
1502 Posts |
SPOT Gold = 1,709 1/10oz APMEX buy price = 183.67 (~+ 7%) APMEX sell price = 205.27 (~+20%) Difference = ~13% 1/4oz APMEX buy price = 440.07 (~+3%) APMEX sell price = 483.36 (~+13%) Difference = ~10% So, 3% difference between 1/4oz and 1/10oz gold coins. Either way, spot will have to move by ~15% before selling makes sense. But, yes, 1/4oz coins are cheaper per oz than 1/10oz. Whether 3% loss when selling makes the divisibility worth while is up to the investor. Lastly, 15% on 1700 is ~$250 15% on 30 is $4.5 So to make a fair comparison between $3-5 move on silver, gold has to move more than $250. If you look at percentages it's all very similar. |
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Valued Member
United States
456 Posts |
I personally would rather have 1/10 oz, but I also don't pay 20% over spot for them as poboxw showed for APMEX. My local shops stay right around 10% over, which is actually less premium than they charge for an ASE (spot + $4, or ~12% premium). The last 1/4 oz that I bought there had a 8% premium. |
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Pillar of the Community
United States
1119 Posts |
with the 1/10 ounce coins you take a 10.5% hit of your initial investment with no price movement
$205.27-$183.67=$21.60 $21.60/$205.27=0.10523x100%=10.523%
with the 1/4 ounce coins you take a 9% hit of your initial investment with no price movement
$483.36-$440.07=$43.29 $43.29/$483.36=0.0896x100%=8.96%
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Pillar of the Community
Canada
1723 Posts |
Thanks for the comments guys. I welcome any more additions. I'm beginning to think that maybe I'm just nervous with the amount invested in one coin or something. After reading all the comments and thoughts and taking a look at my comfortability level, prices and percentages...Ive come up with this conclusion that works for me. I'm going to stack my silver the way I have been in the past and make the plays that I feel are right the way I have been. Hasn't steered me wrong yet and have been please with what I have been able to add as well as pleased with bringing down my DCA. Because of volatility in the markets and the fact that were are 1 income family and that nothing is sure in life....DCA is #1 on my priority list so that I don't take a loss if I need to raise capitol. As for the gold....I think when I get to being able to add, It will be 1/4oz mostly with a 1/10oz thrown in here and there for versatility and giggles. This gold, IF and when I stack, Will be a hold only thing unless something dramatically changes in the markets. Otherwise I just stick with silver. Thanks again everyone for your thoughts, opinions, experiences, common sense and reasoning's. CHEERS!  Edited by samsnate
12/10/2012 11:51 am
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Pillar of the Community
United States
3670 Posts |
The biggest reason for me Sam that I go silver verses gold, is I think I could either have 25 solid oz. of silver ( RCM maple roll for example) or a 10 dollar gold Indian at close to a half oz. gold content.... The 25 oz. always beats out the half oz. in my mind, as much as I do realize the power and potential of gold. Its light, easy to ship at low price, takes up little space and has the same value as the 25 oz., but for some reason the silver angel on my left shoulder always convinces me in the end to avoid the gold devil on my right shoulder.... |
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Valued Member
United States
151 Posts |
My LCS is *ALWAYS* wanting to buy the smaller gold coins, platinum too for that matter. "We sell those as soon as we put them out". I don't sell my PMs, but they offer to buy it EVERY time I go there, premium included, I go about once every fortnight. There are only 2 shops in my area, and it's the same story at both. I've only managed to buy a handful of 1/10 or smaller coins/bars from them for the past several years, because they can't keep them in stock. Last week when I stopped in they had a 1 gram PAMP swiss bar that they were selling for $10 more than they sell at APMEX, and a 5 gram Credit Suisse Platinum bar for $20 more, so it just reinforced to me that I wouldn't have any issues selling my tiny gold pieces, if I ever had the need to, but YMMV. On a related note, I LOVE the tiny gold coins, and it's really hard for me to buy silver in small amounts, especially the 'pretties' (Kook, Panda, etc.) because I keep thinking "I could be grabbing a gold maple leaf or kangaroo with this!". |
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Pillar of the Community
United States
3789 Posts |
From what I seen on ebay, as an example, proof 1/10th coins over time get a nice premium built in... its surprising but true. So all I can tell from prices is depending on their size, 1/4... 1/10 etc... sit on them and they accrue so I don't think you can go wrong at all in whatever size you get. |
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Pillar of the Community
Canada
1528 Posts |
Sorry for digging out this old thread. I've just recently dive into Gold. It is all depend on your strategy and what you wants to do it. As a newbie, I personally like the 1/10. Yes I pay the premium for it but it is easier to sell if I need the cash. I would think it is easier to find buyers that can afford the 1/10 then it would be for 1/4, 1/2 or 1oz. The 1/10 also attract a different type of collectors (newbie). It is also for those that like to collect various series such as 1/10th panda, ASA, maple etc where as it is harder to do the same for the other sizes. Just like silver, when I started, I only buy singular coins (paying higher premium) and as I am getting more comfortable and know a bit more, I start to buy tubes because it is cheaper (save with the price and shipping cost).
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Bedrock of the Community
United States
36826 Posts |
Each one has it's merits. If you like the ability to buy gold with a smaller amount of money then the 1/10 oz is the way to go. If you want more gold with a smaller premium, then the larger sizes are the way to go. I have never had a problem finding a buyer for a 1 oz coin at any time.
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Valued Member
United States
148 Posts |
I was just thinking how it's kindof funny that we sit around here contemplating how to affordably collect more coins and agonize over the price.
Example: I have a friend who is offering a Gold Maple at spot and I don't know if now is the right time with everything else I have going on to spend that kindof momey on it so I might have to let the deal go down the road.
Few people are collecting the clad currency that circulates today. We're talking about coins made of Precious Metals... and how to do it affordably. Precious and affordable rarely go together.
It takes a lot of money to play the game, which I never seem to have enough of, lol.
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Valued Member
United States
200 Posts |
I also struggled with the same question, buy something close to spot and then selling without losing too much premium. IMHO, PAMP bars can be a good option. I can get a 1 oz bar for around spot+30 and it comes with assay certificate and I don't think I will have much problem selling it for spot. Then again, as I go to fractional bars, the premiums begin to rise and are crazy for 1 gram bars. I am sticking to bars and any other gold I can get for below spot.
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Replies: 52 / Views: 10,913 |
First Page
Posted 12/10/2012 02:18 am
