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 Replies: 14 / Views: 4,014 |
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New Member
United States
2 Posts |
Hello everyone, I've been a coin collector for a while now but have always stuck to silver coins. When I was young (10-11yrs old) my great grandfather gave me some old silver coins and silver certificate dollar bills. Once I started working at 17 or so I started collecting quarters. Anyway, I am now 24yrs old and the though crossed my mind of collecting gold coins - specifically 1oz American Eagle coins. The problem is that gold is a bit pricy and these coins range from $1400-2000 a piece on ebay. Also buying on ebay seems 00risky because even if the coin is encapsulated in a PCGS holder it could be a fake. That said, my plan is to start with 2016 and buy a coin each year from the US Mint. And then, when I'm retirement age 55-60 I will have roughly 30oz worth of gold or $35,000+ My question is... would buying from the US Mint be best or should I buy from somewhere like ebay if the seller is established (coin dealer). I checked prices on ebay and some 2016 coins are listed buy it now for $1400-$1500 (graded) where the US Mint is charging $1650. *** Moved by Staff to a more appropriate forum. *** |
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Pillar of the Community
United States
1119 Posts |
check with your local coin shop and see what their prices are. Be careful buying expensive coins on ebay. modern gold eagles don't have much if any numismatic value pretty much all the value is in the gold content and the price will fluctuate with the spot price of gold |
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Pillar of the Community
United States
711 Posts |
I'd avoid paying the mint premiums on gold eagles or fractional eagles.
I'd look into buying the classic US Gold.
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Valued Member
United States
123 Posts |
I know it is not the same, but have you ever considered either a gold IRA or a ROTH IRA invested in GLD? Just something to think about to save you on a lot of taxes.
I think your most common advice will be to start fostering a relationship at a coin shop, find a dealer that treats you fairly, and purchase through them (especially at first).
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Valued Member
United States
408 Posts |
Quote: Also buying on ebay seems 00risky because even if the coin is encapsulated in a PCGS holder it could be a fake. There are tons of fake slabs and NGC and PCGS labels coming out of China. I would not buy gold encapsulated in slabs. If someone is going to risk defrauding people, he is going to sell gold and not silver. There is not enough money in the silver to justify getting caught. I would never buy gold eagle bullion coins. Just get 24k gold directly from a mint and you will be just fine. That would be the safest way to invest. |
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Bedrock of the Community
United States
10982 Posts |
Just buy a raw, random year bullion piece from a big dealer like APMEX every year. The premium to melt is low and big dealers won't sell you a counterfeit eagle. Also, the density/softness of gold makes it difficult to fake a gold coin without using real gold and if you're buying it as bullion then gold content is all you need be worried about. |
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Bedrock of the Community
United States
11951 Posts |
As others have said, find a good local dealer or use APMEX or similar large bullion dealers. Also, if you buy an ounce of gold every year for 30 years, what you will have is 30 ounces of gold. What it will be worth or what you might pay for those 30 ounces would be just a guess. I am not suggesting to not buy gold. I like gold .. and silver. My thoughts are to buy it consistently over long periods of time. When there are drops in price buy more ... bigger amounts. |
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Pillar of the Community
United States
4901 Posts |
Quote:Just buy a raw, random year bullion piece from a big dealer like APMEX every year. The premium to melt is low and big dealers won't sell you a counterfeit eagle Totally agree. What I would rather buy though is the gold buffalo which is just about the same price...both the eagle and buffalo have 1 oz of gold but the eagle is around 92% pure and the buffalo 99.9% pure. Gold coins bought from the Mint have significant premiums attached ($1690 vs $1379) and are more collector coins than a pure bullion product APMEX, Provident, JM Bullion a few few reputable dealers that I have done business with...always pay by check and save $50-60 bucks/coin ...and, as with any type of investment, a stable purchase every year (say...one buffalo) regardless of price is the best play. To say "buy more when the price is low" makes the assumption that the price will not go lower...just stick to the plan |
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Pillar of the Community
United States
4867 Posts |
Are there significant taxes to be paid when selling a large quantity of gold or silver?
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Bedrock of the Community
United States
10982 Posts |
Quote:
Are there significant taxes to be paid when selling a large quantity of gold or silver? That depends. Was there a gain or loss to report? Any gain is considered taxable and any loss is deductible. |
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Pillar of the Community
United States
4901 Posts |
Quote:
Are there significant taxes to be paid when selling a large quantity of gold or silver? This should be addressed to a tax expert but, in most cases, the sale of ANY asset is reportable to the IRS. Whether you are taxed as a capital gain or as regular income depends on your situation. Dealers have different rules than collectors than do investors. |
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Pillar of the Community
United States
3789 Posts |
Funny, this is exactly what I was doing lol. so you are on the right path. Ok so what suggest and I mentioned this in another thread- 1- As someone else said, the Mint has higher premiums if you buy direct from them either buy a proof eagle or uncirculated gold eagle. That said, you will have peace of mind that you bought directly from the mint. For many years, I bought directly from the mint, US proof gold eagles, I did buy a few gold bullion eagles as well but I liked the presentation. You know, I did fine and didnt lose any value buying from them. However, when I was buying gold was in an uptrend so the higher Mint Premiums were not an issue. So since we are in a gold up trend now, you could buy from the Mint and those premiums will work in your favor. I would suggest tho, if you go with say a MS 69 or PF69 gold eagle, and get it an auction from a good dealer like MCM on ebay, you can get it BELOW their Buy It Now prices which is a good deal. So again- 1- get peace of mind buying from the US Mint,so long as gold is in an uptrend, the premium will be absorbed. 2- you could buy a slabbed MS 69 or PF69 from an ebay auction from a reputable dealer like say MCM and there are others on ebay for a little bit BELOW the Mints price, and also have peace of mind. |
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Pillar of the Community
United States
4867 Posts |
For me personally, bullion is just that, bullion. Having said that I think slabbing bullion coins is pointless. Gold and silver keeps its value regardless of the numismatic grade.
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Pillar of the Community
United States
1027 Posts |
Bullion coins only have increased value if they are judged as perfect (MS70) by PCGS or NGC, and that is only because there are people willing to pay a significant premium for such coins. Most MS69 slabbed coins can be purchased at or very near the same price as raw bullion.
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New Member
 United States
2 Posts |
Thanks for all the thoughtful advice and suggestions everyone. I'm still debating about whether to buy each year 2016 onward or buying a random dated coin each year. The later route seems better since I won't be attached to the coins as much vs. it becoming a collection of sorts having purchased a coin each year 2016, 2017, 2018.... Less attachment = easier to part with when the time comes.
Slabbing gold does seem pointless, but that route makes storage easier I think. Slabs are more compact than Mint packaging.
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Replies: 14 / Views: 4,014 |
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Posted 09/19/2016 9:50 pm
