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 Replies: 41 / Views: 5,443 |
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Valued Member
United States
362 Posts |
I recently wanted to make an investment into some gold bullion coins, and I was curious on yalls opinion.
I was thinking about putting 3,000 into gold. This is something that if in 20 years or more... and I needed to liquidate, I could if needed. But for the most part something that I can pass down to my kids, and my kids kids, etc... (luckily I'm only 23 and dont have any kids yet though)
But I have a coin collection that I had when I was little (I remembered buy an american eagle 1/10 oz gold bullion coin, thought it was really cool)
But what I've seen online, it looks like its much hard to sell the 4 piece gold bullion set, then the individual coins. (once again, this is an investment that I hopefully will never have to sell)
Didnt really know where to turn, and I found this forum from something else I needed to post. Hope this is not out of line, and I would really love to hear opinions!
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Valued Member
United States
467 Posts |
I still believe silver is the undervalued PM out there. I would be buying at least 50% of Silver. 75% Silver even better. When you go to your local coin store ask for scruffy bullion (less then perfect). Usually there is less of a premium on this stuff. Ask what their buy/sell spread is. Ask how long they have been in business, Ask if they belong to any coin organizations.
Get answers to these questions, buy something small $100.00 or less total, let the dealer know you're looking to buy more if the price is right and leave with the small purchase.
Report back here what you have bought, the price it was offered, and answers to the above questions. There are some dealers that will take advantage of new investors so this iswhy I say buy a small amount and share your experince here.
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Valued Member
United States
314 Posts |
If you are stuck on buying Gold Bullion, I recommend buying the 1/2 ounce over the 1/4 and 1/10 ounce coins. The premium over spot at this level drops considerably. I'm with oober though. I believe strongly in the outlook on silver.
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Valued Member
 United States
362 Posts |
So you would recommend this over new proof sets from the US mint?
thanks for the quick responses!
*EDIT*
Also, would like to add that I dont know much about coins and what to look for... which ones are rare, and whats worth more... why this coin is worth X, and this one is worth 2x...
so running into a coin shop might not be ideal :P
Edited by ICanSeeYou7687
01/02/2011 12:45 am
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Bedrock of the Community
Australia
21786 Posts |
I'll bet that, with $3000 in the budget, and there is a great possibility of liquidation later, later may come sooner.
If you can, don't liquidate to buy a car later. Cars are the most efficient way I know of to waste money.
You could be tempted (as I was), to use it as a down payment to buy your first house. I bought my first house at age 30. You never know, in 7 years time, in owning your own home, could again be a real good thing to get into, besides not having to pay rent!
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Valued Member
United States
467 Posts |
Proof sets are not bullion for the most part. You will pay a higher premium for proofs. You may be able to get some proofs close to spot, buy a lot of gold proofs carry too much of a premium in my opinion.
1/10 gold american eagles are going for 190+, unc 1/10 gold american eagles go for 155-160. That's an extra 20% premium for proofs over unc. Now if you ask a dealer if he has any acruffy GAE's (gold american eagles) he may have some for 145-150.
The idea with bullion is to purchase as close to spot as possible while staying well recognized. If you stay with goverment bullion you will have the least amount of problems down the road when you go to sell it. When you learn more about what bullion is most recognized you can diversify more. To start I would stick with the following.
Gold 1/10 - 1/4 oz
American eagles
Canadian maple leafs
South african krugerrand
Austrian philharmonics
Australian nuggets
Silver 1 oz
American eagles
Canadian maple leafs
Austrian Philharmonics
Circulated bullion
90% US 1964 and earlier dimes quartes and halves
80% Canadian 1967 and earlier dimes quarters, halves and dollars
Stick with the above to start and you can't go wrong.
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Valued Member
United States
314 Posts |
If I were going to drop 3k in Gold, I would probably just dump it in (2) 2010 American Gold Eagles. The mint puts a hefty premium on coins and sets. I know there are sites currently selling The One ounce Eagles for 50-70 dollars over spot price of gold, which makes each coin in the $1480.00 range. You can have 2 nice, pure ounces of gold. The coins are beautiful stunning to look at. Check your local dealers' prices on the 1oz eagles. If you prefer to have more than 2 coins, such as buying some of the smaller fractions, you will not be able to get 2oz of gold for your $3000.00
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Valued Member
United States
362 Posts |
So the general consensus's is no to the USmint proof sets? Now if this is something that would get passed down in my family, Wouldnt a proof set make it much more valuable? Or would a 1oz gold coins value be more determined by the value of gold at the time?
I guess if thats the case, the uncirculated to Very good quality would be almost just as perferable and much cheaper now?
Also, as far as silver goes, what are things to look at when buying silver coins? (Sorry I know thats a very general question, and I do apologize, but thanks for all the help!)
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Valued Member
United States
467 Posts |
Proof sets and bullion are 2 different things IMO. I like proof sets and have many silver proof sets, and I will continue to buy them when I can get them close to spot. I have not found any gold proofs close to spot so I own none.
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Valued Member
United States
314 Posts |
oober's list defines it pretty well. You're original post was referring to bullion, which is always going to revolve around current spot price, unless theres a low mintage that year. Proof sets, and things with Numismatic value is an entirely different animal. I have been deep in Silver for several years now, and will continue to be for several more. Different stroke for different folks. I would start with oobers list of gold and silver bullion list. You can go to APMEX's website and get a good look at each of those on the list for reference. There is a TON of research one could do about Gold/Silver price speculation, it is up to the individual to decide what they believe will happen in the future. |
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Pillar of the Community
United States
958 Posts |
A correction in silver/gold happened in 1980 virtually over night
Silver and gold could loose 30-50% value its very realistic it has happened before ( several times in the last 300 years )
No one knows the future. People will make money and always loose that is a fact , its usally the people at the end of the chain holding the silver and gold that could not sell it fast enough.
If a guy has $10,000 in silver bullion a actual stash of coinage , Then silver went from $30 down to $4-10 a ounce in a few days time . A panic could happen and he might not find a buyer as the marketfalls people stop buying.
So be sure with your 2 ounces of gold ($3000 ), how will you liquidate when the time comes ?
Often times the ones making money off silver/gold ether own the gold/silver mines or can mainpulate the market and never own or touch one ounce of silver or gold
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Valued Member
United States
467 Posts |
It is very possible that the PM market could tank, but it is highly unlikely IMO, we all have to do our own research to determine whether PM are a sound investment or not.
It is my opinion that we are in a bull market that has a solid 7-10 yrs conservatively left. By that time I probably will have moved a large % of my PM into property, maybe sooner. I'm looking for a low in propety values in the near future.
I will never get rid of all my PM, but I am always trying to increase my net worth so moving from overvalued tangable asset to under valued tangable asset will be in my plans in the future.
Right now though Metals and Metal equities are where it's at so here I am and will stay till the market begins to turn. We haven't even reached the mania phase yet.
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Pillar of the Community
United States
3592 Posts |
I agree with oober's assessment unless you want to go with the "sky is falling" poster, in which case you wouldn't be here anyway.
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Pillar of the Community
United States
759 Posts |
Stated requirements: $3000 budget, gold, liquidity, "investment" potential, but most likely passed to kids, grandkids, great grandkids, etc.
This just screams to me a couple of common Liberty or St. Gaudens double eagles and the acknowledgment that capital gains are no sure thing and a bid/ask spread loss is always in the mix.
Then you have gold in a form with purity easily determined, can split easily between 2 kids, have American history in hand, and have numerous established sales channels. Substitute half eagles or Gold Eagles, or Maple Leafs, etc. as desired.
Really, who's going to complain about owning an 1800s double eagle or St. Gaudens 50-75 years from now? Maybe they're worth more than $3000, maybe not, but they'd still be cool family items. Just refrain from comparing their value to $3000 invested in the next Google.
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Valued Member
United States
362 Posts |
oh, I forgot about the, St. Gaudens double eagles!
I think I might get one. I have also done some googling and did find a coin place in my town! Although its a bit of a drive, not too bad.
Is there anything that one should look for in these? Maybe one made in 1933? ;-)
Thanks for all the great replies! And as someone mentioned above might wanna buy some of that ETF stock in silver, which might be more "liquidable" (i believe I just made up a word) for me
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Pillar of the Community
United States
4989 Posts |
Never pay more than 2% over melt for bullion if not you are just getting ripped off
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Replies: 41 / Views: 5,443 |
Posted 01/01/2011 10:41 pm
