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 Replies: 55 / Views: 7,969 |
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Pillar of the Community
United States
2424 Posts |
So I just received my first time home buyer tax credit today and I am very excited! 8k+interest.
my wife and I have decided to pay off some bills and buy some things we need for our house. we have also decided to put some into savings.
we want to put 1500 into a cd at our credit union and 2k for GOLD!
we both think it is a good investment. I have a somewhat good crasp on the market and have been watching gold for some time. I realize we are at an all time high and some might frown upon buying gold right now, but we have the money and I can only see gold going up from here.
if you have been following, I have since been planning a 7070. this will be a great way to pick up some nice pieces for the set.
I am going to head over to the coin shop tomorrow and see what they have. I cannot decide what to get however. My goal is to buy a coin that will hold value over other coins. I know gold is gold, but I know there are certain ones that hold more intrinsic value.
With a 2k budget I know I have some options. I know I could get a few lower grade pieces, but if I am buying gold, in my opinion I want to get something that is a decent grade as well. that way, wont it hold more value long term?
i know its all personal preference, but please let me know which coins I should consider. thanks!
SD
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Pillar of the Community
United States
1659 Posts |
I don't know about you, but I don't get to spend that kind of loot on coins very often, so if it were me, I would savor the moment and buy one monster coin that I wouldn't normally be able to afford! It wouldn't even have to be gold.
But that is just me. I am more into numismatic value rather than bullion value.
A rare coin will always be rare. In fact, they only get rarer with time due to house fires, loss, damage, etc. Bullion gold and silver coins are not rare. They are only valuable because of the metal content. The metals market is extremely volatile.
Just my humble opinion...
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Valued Member
United States
112 Posts |
I purchased two UHR $20 Eagles from the mint last year. Figured to get a lot of gold, but also a super-beautiful coin to boot. Noticed the prices are kind of flat-lining, which is OK. Main point got my gold and a super coin. My other purchase (for investment only) was to buy "ONE" MS 1895o. Now I'm just sitting back and hoping the value goes up. You can either win or loose; isn't life fun!
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Pillar of the Community
 United States
5953 Posts |
I don't want to dampen your enthusiasm but the amount you wish to invest is not conducive to generating a high return. It equates to less than 2oz of Gold. You should look at this project more as a numismatic adventure than an investment platform. Personally I would be looking at small denomination lower circulation non key coins. I would also buy the best grades I could afford. This way your premium over melt will be the lowest as you are not paying the price for a key or semi key. You are however getting nice looking coins that will at least hold their bullion value and most likely rise in numismatic value over time. So if it was me I probably be looking at $2.50 and $5 coins. $1 tend to carry more of a premium over melt than these.
This is probably the reason I don't hold a lot of gold... I too much of a tight wad...
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Moderator
 United States
23507 Posts |
Richard makes some good points, I collect some gold. I have gone for fractional gold. That is gold in smaller amounts less than 1oz.
I have 1/10, 1/20, 1/4 oz coins. some of them are very beautiful.
Remember there are American, Australian, Austrian, Canadian and South African Gold coins which not only have good looks but also maintain their melt and numismatic value.
The other Richard
rggoodie
aka Richard
"catch em doing something right"
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Moderator
United States
23507 Posts |
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Bedrock of the Community
United States
11951 Posts |
SD
If I picked up on what you were saying, it sounds like you are wanting to pick up a coin of two for your 7070 gold page. If this is so, getting one of the $20 and maybe one or two of the smaller ones. I would think you could get a St. Gaudens and maybe a $5 Liberty and $2 1/2 Indian. I am thinking VF - AU. I guess you should decide what grades you are wanting your 7070 to be in.
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Pillar of the Community
United States
2049 Posts |
Quote:
I realize we are at an all time high and some might frown upon buying gold right now, but we have the money and I can only see gold going up from here. Gold is not at an all time high, as it went over $1200 last fall. Right now we're at about $1090 so it's about 10% off of it's high. I'm just saying this so that you don't get cold feet on it. Precious metal investors alot of times will dollar cost average (buy a fixed amount in terms of dollars at regular intervals regardless of the price) and buy more on the dips. Anyway, I agree with your thought that it should be going up and likely will, but one thing I see alot of first time PM investors do is to pay too much attention to the spot price after the purchase is made. I see statements like "gold went down $50, so I lost $50" and that simply is not true. You still have the same amount of gold, and you only realize the gain/loss when you go to sell. Good luck and please let us know what you buy! :) |
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Pillar of the Community
United States
1409 Posts |
First and foremost - congrats on realizing that the first thing to do is pay off some or as many bills as possible. Far more important to do that than buy more stuff.
I'd lean towards some of the recommendations above that say to go after a couple of the nice fractional coins. I've bought a couple of 1/10 and 1/4 oz gold coins recently and am VERY happy with them. Filling some non-gold holes in the 7070 with rare, hard to find coins is probably a good move too, as you may not have the $400 later for a hard to find coin.
Congrats on the home, paying off some bills and the future purchases.
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Pillar of the Community
 United States
2424 Posts |
wow, great input!
i like the point that was brought out about buying a coin that has low mintage, more on the rarer side, that will more than likely increase over time, which is what I am after. trying to kill two birds with one stone so to speak. get a great looking, rare coin, that will hold its value and potentiall show gains down the road. and since it is gold, I will have the bullion value as well, and more than likely go up.
ilike the idea of geting the 2.5$, $1, and $5. I figur with 2k I can fill a few holes. and I'm hoping I can get a few close to AU. I'm trying to build the 7070 XF-AU.
one other point I had not thought of was buying a purely trare coin that is not gold at all. I spen the entire time explaining to my wife about gold, and not the facts about rare coins. Now, I might be able to pick up that 1916-D merc, or the 1916 T1 SLQ!~~
hmm.. I wonder id that would be a better investment... wow. lots to think about
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Bedrock of the Community
United States
17884 Posts |
You want a real investment for it go to your lender and have them apply it to the principal (to the PRINCIPAL not just make advance mortgage payments). I don't know what terms you got buying the house, but if you did 30 years and got a 5% rate that $2K pay down on the principal translates into $6,200 worth of interest that you don't have to pay over the life of the loan. (It may be possible but I find it doubtful that $2k worth of gold would be worth $8,200 in 30 years.)
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Pillar of the Community
United States
3098 Posts |
I would think a numismatic coin would hold its value better than a bullion coin because the price is made up of collectors' demand AND intrinsic value. With that kind of money, I'd buy a high-grade St. Gaudens or Liberty head double eagle than 2 or 1 and 1/2 bullions. Also, I think gold is at a limbo point right now. It's near its high, but economic numbers and news don't really support its high price. It is off 10% or so from $1200, but does that mean a correction or the start of the path down? I don't know, and I'd buy you lunch if you did. With that being said, I do have an 1oz Maple leaf that I've held onto for quite a while... would like to get a St Gaudens in my collection!  |
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Pillar of the Community
United States
1551 Posts |
Conder101 has stated the best of all of the advice as of yet.  The interest savings is well over any up side you may find on a coin. As your mortgage is new the amount of principle you will be paying monthly will be very small for the 1st 5 + years. By adding a big chunk down early will cut the number of years remaining as well as interest that come with it. You will save enough to but a 1916 D Merc. "in MS" in your collection later in life with the true savings. |
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Pillar of the Community
Canada
3692 Posts |
This is just my opinion, but maybe if you're looking into INVESTING in gold, then you should look into buying bars. It may have a lower premium than a $50 gold coin, so you may get close to 2 ounces for your 2K. If you're looking for a mid-term return, look into palladium. That metal is going to shoot like a weed. I'm no expert, though, so do your own research on that field. But palladium and platinum are going to shine. If you're looking for a long-term investment, though, gold is in your horizon. Go into gold bars. If you're skeptical, only buy one ounce (it's falling sliiightly) and spread the rest on some mint-states.
If what condor says is true, do that instead. That can save you thousands!
Edited by Libertad
03/24/2010 8:27 pm
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Pillar of the Community
Canada
3692 Posts |
@rggoodie: not to knock what you collect, but I'm curious to know why buy fractional pieces of gold if they carry such a heavy premium? They may look pretty, sure. So... why? curious is all..
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Pillar of the Community
United States
3098 Posts |
Fractional pieces carry higher premiums because they're more liquid than a thousand dollar hunk. Also, I would also guess the mintage would be a bit less and the overhead cost to make them (although small) would also factor into the premiums.
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Replies: 55 / Views: 7,969 |
Posted 03/24/2010 05:36 am
