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 Replies: 9 / Views: 1,233 |
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Pillar of the Community
United States
880 Posts |
What are the advantages/disadvantages of buying 1/10 oz gold or plat coins?
Is it worth "trading up" when you get 5 or 10 to get a larger coin?
I know everyone has their reasons for buying different sizes and money is usually the driving factor, but if it weren't, would you buy larger coins?
For me, with the price of gold/plat I could probably get 1/10 or 1/4 oz a month, but much more than that and I'd really be stretching it.
The other option is of coursing just go and buy silver and trade up as an option there as well.
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Rest in Peace
United States
9104 Posts |
Smaller sizes are easier to use in a SHTF scenario. If you're considering accumulating smaller stuff and trading up anyway, buy whatever's cheapest. The important thing is so buy something.
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Pillar of the Community
United States
2734 Posts |
The main "disadvantage" of tenth-ouncers is, the smaller the gold bullion coin is, the higher the premium. So stick with 400-oz. gold bars, that way you always get the most gold for your money!   There's nothing wrong with buying a tenth-ounce gold coin every month, and they would be the most practical coins for use in the event of a fiat currency collapse, but in that SHTF scenario, junk silver would be the best hard money to use, by far. Heck, even (present-composition) Nickels now have the intrinsic metal value to be useful in such situations. Edited by DNA
09/07/2011 09:04 am
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Pillar of the Community
United States
667 Posts |
Just watch the premium, that you pay on them. This premium can be much larger than what you would pay for a full once thus making your gold more expensive to buy.
However if you shop you can find premiums on the 1/10 at a reasonable level. I often buy 1/10 from individuals who often let them go for the current spot price for a 1/10. Buying from a bullion company or coin shop often have much higher premiums.
I see no advantage to trading up for a larger coin. That would really boil down to what size of gold coin you personally want.
I just buy the size of coin that I can get the best price close to spot at the time of purchase.
If you can afford a 1/10 a month then I say do it. If you can afford the 1/4 that is even better.
Good luck and have fun.
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Valued Member
Ireland
131 Posts |
One advantage of tenth ounces are that they will be more easily sold/traded should prices go even higher, the main disadvantage is that they generally carry a premium when buying although such premiums can often be recovered on resale.
I would not generally trade up for higher weight coins as you will be losing a fair part of those premiums. The caveat to that is that if say there were a very desirable higher weight coin on the table that holds very good numismatic prospects then such a trade might be worth it.
Personally I think it's best to have a good mix of weights but the primary deciding factor for purchasing should always be value for money imo.
Best not to stretch one's finances in order to purchase - either buy what you can afford each month or save for a few months and buy something bigger. Nothing inherently wrong with either approach depending on your view of where the spot prices are likely to go within those timescales.
Buying silver and trading up to gold is not uncommon, for that approach one should keep an eye on the GSR (gold/silver ratio) in order to choose what looks like a good time to effect the trade. Perfectly possible to increase one's holdings by periodically trading the GSR in both directions.
Norm
Edited by Spikey Norman
09/07/2011 12:55 pm
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Pillar of the Community
United States
3670 Posts |
I like the dimes, just over 3 grams of gold....
Nice barter piece for the uncertain future as many mentioned....
It would make me sick to take a pair of cutters to a one oz. coin as others mentioned as a possible option to those with just larger gold coins....
When the ol SHTF situation ever does show up (not if but when eh), good chance gold is 2500 plus, and the 3/4 gram pure gold Liberia coins would be a great swop for say 100 bucks worth of food....
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Pillar of the Community
United States
4008 Posts |
As other's have said, "Watch those premiums, boys".  If you see a 1/10th oz. gold coin selling for $240, that is $2400 per oz. gold... pretty spendy stuff. If you can buy from individuals for near spot, that's the best way to go. On the other hand, the relatively low cost of the 1/10ths means that you can get into the game without having a large amount of money. Accumulation of gold or silver over time, even in smaller amounts, is the way to build a nice stash. Good luck with it. |
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Pillar of the Community
United States
648 Posts |
I recently purchased ten 1/10 oz gold coins (AGE) from a great coin forum member 5 days ago. I have never owned 1/10 gold coins, but after holding these little things, I like them a lot. Actually, I want like a 100 of these bad boys.
Like others have said, buy what you can afford and buy something! Good luck!
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Pillar of the Community
United States
2120 Posts |
I still say Classic gold is the way to go for fractionals.
Sovereigns and half Sovereigns, French Roosters, Swiss 20 Francs... All good ways to get into gold with low premiums and smaller buy amounts. These are just under a quarter ounce. (.22 AGW ish IIRC)
And for smaller amounts get Mexico 2 and 2.5 pesos. They are something like 0.06 AGW for the 2.5 and 0.048 for the 2... IIRC.
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Pillar of the Community
 United States
880 Posts |
Man I forgot to check back her at work since I was so busy. Lots of the same opinions, but that was my thinking. I appreciate the input.
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Replies: 9 / Views: 1,233 |
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Posted 09/07/2011 09:00 am
