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 Replies: 19 / Views: 2,706 |
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Valued Member
United States
239 Posts |
Whats up guys? With the recent downward spike, I have been looking into picking up some fractional gold rounds, 1 - 5 gram bars, or some mexican peso's. Im only 24 so in order for me to venture out and accumulate some gold, I need to keep it small. I cannot afford any 1oz rounds. My problem is the premiums.. I am not sure if this is normal, or they jacked up the premiums because of the price drop in gold. $10 premium for a 1 gram PAMP suisse bar seems alittle high.. Ive been looking on ebay surprisingly.. I was outbid on a IGR (Istanbul Gold Refinery) 1 gram bar by $1, I am trying to score one for ~$50.00 shipping inc. Is now the time the time to dip into gold? To be honest, I think that with the economy slowly moving upwards the PM market wont have a significant rebound for awhile. To wait, or not to wait? I think I may just try and buy consistently along with silver. 1 a month or so. |
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Pillar of the Community
United States
1080 Posts |
Premiums on the small denomination gold is usually high because of production costs and because more people can afford it. You may have better luck looking for things like sovereigns or 2-peso gold or things that are "odd weight." The best you can probably do is about 5% over spot. Which, in my opinion, is great at these prices!
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Pillar of the Community
United States
2661 Posts |
Go with gold coins that have a numismatic value. Their worth will hold up better than bullion if prices keep falling, plus you will have a piece of history to boot.
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Valued Member
 United States
239 Posts |
I mainly buy from provident and the bay. Provident has limited supply selling only Chinese panda's for $84 (1.555g) then they got pamp suisse 1 gram gold bars for $51.66 (of course +$6 for shipping)
I can get these IGR bars for fairly cheap according to those prices (still trying to get them for under $50, that would be my goal.. sundays are bad for that tho) free shipping too so it really works out, I just never heard of IGR before.
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Bedrock of the Community
United States
36415 Posts |
Depends on you goal. If it is purely to make quick money and flip in and out, there probably is more downside coming. If you are in for the long term, just add a little at any price as it will cost average out in the end.
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Valued Member
United States
239 Posts |
I am not too sure what my goal would even be at this point, I just would like to purchase some while its cheap enough for me. Wouldn't want to miss a good opportunity, I always hear old guys saying they bought gold super cheap back in the 80s and they made a very decent return holding it for 20 years. So I am sure it would be long term unless something were to happen.
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Pillar of the Community
United States
1200 Posts |
I'm also about to take the jump and go for some fractional gold. I've been thinking about this for some time and present prices look awfully like a big "green light"
to me. Everybody who has a voice is loudly proclaiming how Au and Ag spots aren't done their down-slide yet, but I don't think present prices look all that bad.
If I do buy in it'll only be for a couple 1/10oz or 1/4 pieces, so even if prices continue to go down I won't end up all that badly underwater.
If/when I do make the big move, it'll be into 1/10oz or 1/4oz Eagles or Maples and they'll most likely come from my LCS or Provident.
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Pillar of the Community
United Kingdom
2868 Posts |
Funny, for the first time in years I'm "watching" a few small gold coins on ebay - just to see what they are going for. If I think it's reasonable I might just get a couple. |
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Bedrock of the Community
13014 Posts |
Quote:
I am not too sure what my goal would even be at this point, I just would like to purchase some while its cheap enough for me. Before you buy anything you need to figure out why you want to buy it and what your goal is. This will impact what and how you should buy. As of now theres nothing that indicates the price isn't going to keep sliding like it has been for quite some time. Quote:
Wouldn't want to miss a good opportunity, I always hear old guys saying they bought gold super cheap back in the 80s and they made a very decent return holding it for 20 years. Not wanting to miss out on something is the number one reason people make really bad investment decisions. You cant force things to be a good buy, its better to miss out then buy not wanting to miss out and watch its value dwindle. The return they got is unique, its really not even a very good return considering they had to hold for almost 30 years before they made money. They were also a out a lot of money that entire time in-between. Theres a reason why the Buffets of the world dont consistently buy metals as an investment. 1300 dollar gold also isn't super cheap gold. You can count the number of spikes where it had significantly more value than that in the last 100 years on one hand. This entry point is already significantly limiting any potential upside. This is also why you need to figure out why you want to buy. If you just want some gold then I would agree with the above to get some numismatic gold whose value is tied more to the value of the coin instead of its metal content. If youre thinking you can buy and flip and make money I would advise to stay away from it. Just remember if it was that easy everyone would do it. |
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Valued Member
United States
239 Posts |
Im not looking to buy & flip short term. Like I said in my op, I don't expect the market to move up for a long while. I have been collecting silver coins for about 2yrs now, never gave gold much of a thought because at nearly 2k an oz it was way too expensive for me. I've watched it drop for the last few months and am wanting to pull the trigger.
Basically I am asking if buying right now is too risky or should I no longer wait?
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Bedrock of the Community
13014 Posts |
The only things I would consider right now are numismatic gold. I wont even consider bullion gold until I see a three digit price tag and really I'm waiting until under 700
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Pillar of the Community
United States
3789 Posts |
@Jenger
I would highly suggest to hold off for much lower prices. These lower prices wont be instant, this is a slow grind lower, train wreck motion. There is absolutely no rush nor any reason to be buying gold at these levels.
I would not touch ANYTHING that is bullion, PERIOD. If you must buy and cannot be patient, then start buying proof gold coins, something that has numismatic value because you are going to need it as the price continues to go lower.
Please understand that trends run farther than anyone expects or has the cash for. In this we are in a very strong classic downtrend, the path of least resistance is down and there's very little to stop it from running lower at this stage.
Everyone wants the best possible price on everything they purchase and gold is no different, there will be much better prices than here.
I suspect one scenario that has high probabilities in happening is one where gold travels close back to its historical lows and stays dormant for a long time. If that happens you don't want be buying at 400 points higher and being underwater 400 points. Therefore, the best thing, again, if you must buy, is stick to gold that is proof or carries numismatic value.
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Pillar of the Community
Canada
3692 Posts |
The first thing you need to ask yourself is why do you want gold? After you answer that question you can move on to reason out premiums for different "forms" of gold (bars, coins, jewellery, alloys, art).
You're young, so does price really factor into your decision? You can get a gold ring, for example, because they are relatively inexpensive and there are thousands upon thousands of styles from which to choose. And they don't weigh an ounce.
If you're looking for coin, do you want .999, .9999, .99999, 22K, .900, and why?
Don't get sucked into a metal bubble. First know why you want the stuff. Seems to me that people want it because it is perceived as being cheaper than it was 2 years ago.
It doesn't look like you're looking for an investment and being that you're on a coin forum you may want a coin that is worth "coin prices" and not metal prices. Old American gold in high grades may be something for you. Would you want a coin that is slabbed or not slabbed? Proof? Rare? Semi-key? Search out a resource that gives you track records of coin prices over the decades. In fact, if you're looking for numismatic rare coins, why even go with gold at all? Plenty of rare coins are made of copper.
Again, research and come to a reason for your venture. Driving without a map or a goal can be very costly.
And remember that different people will give you their own PERSONAL answer to the question depending on their OWN situation. So the better you can get to answer the "why" on your own the better your vision will be and you can filter out what you don't want.
Edited by Libertad
06/23/2013 4:33 pm
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Valued Member
United States
239 Posts |
I won an auction for a 1g bar. $50 even, shipped. I wanted to keep it below $50 but its all good.
So I get what you guys are saying. I suppose I collect silver bullions & coins along with paper currency as a way to save some money and preserve a type of savings acct. With extra cash in my bank acct, its fairly easy for me to tap into that when I am out with my friends or at a bar or whatever. I figure this way, I buy something that SHOULD hold some sort of value. PM's never really had a downward trend for years on end so I still feel like this is a decent buy. I will sit on the side lines for a few more months though until I start consistently buying.
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Bedrock of the Community
Australia
21786 Posts |
I would run with sovereigns and half eagles.
Buy in gloom, and sell in doom!
Edited by sel_69l
06/24/2013 11:03 am
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Valued Member
United States
410 Posts |
Quote:
With extra cash in my bank acct, its fairly easy for me to tap into that when I am out with my friends or at a bar or whatever. I figure this way, I buy something that SHOULD hold some sort of value If you are worried about blowing through extra cash I would automate your savings into a Roth IRA. Something like VFFVS (Vanguard Target Retirement 2055 mutual fund). It is an index fund with a very low expense ratio (fees). You will need $1000 to open an account but after the account is opened you can set up an automated deposit for smaller amounts. (I personally have $85 per week automatically deposited into my vanguard IRA.) If you are having trouble with impulse buying I would go with cash only spending. That is what my wife and I did when we were in our 20's. Retirement savings came out automatically off the top and monthly expenses like utilities stayed in the checking account. Money for day to day expenses was set aside in cash and placed in different envelopes (Gas, groceries, out to eat, entertainment, etc). When the money was gone, it was gone. Seeing money physically disappear and your wallet get thinner is a great tool to cut back on impulse spending. To answer your question, no I don't think right now it a good time to buy gold. I personally don't think any time is a good time to buy gold if one has any debt and isn't maxing out tax advantaged retirement accounts. Gold is a commodity and commodity investing has lots of volatility. |
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Replies: 19 / Views: 2,706 |
Posted 06/23/2013 10:24 am
