Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Most efficient way to buy/own physical gold and metals?
Old 05-31-2020, 03:00 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 18,073
Most efficient way to buy/own physical gold and metals?

I can't believe I am even seriously considering this, but I am thinking about buying a 1% physical gold (and possibly other PMs) stake. I am looking to buy what would be a store of value and a last ditch, get out of dodge grubstake I hope I never need.

What is the most efficient way to do this? Any recommended dealers? What form should I be looking for? I was thinking bullion coins like krugerrands might be the least hassle. After a career dealing with securities, the world of physical gold looks to have high spreads and high premiums to spot for retail buyers, so if I do this I would prefer to minimize the cost.
__________________

__________________
"My main skills are talking and cooking biscuits. And getting drunk on the porch.Ē


- Augustus McCrae
brewer12345 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-31-2020, 03:05 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 1,086
Get married?
__________________

jebmke is offline   Reply With Quote
Old 05-31-2020, 03:20 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 18,073
Quote:
Originally Posted by jebmke View Post
Get married?
I am already extremely married.
__________________
"My main skills are talking and cooking biscuits. And getting drunk on the porch.Ē


- Augustus McCrae
brewer12345 is offline   Reply With Quote
Old 05-31-2020, 03:22 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Location: Upstate
Posts: 1,538
I just found this thread, I was searching for the term gold as I was considering opening a thread on this very topic.

Right now, the spreads of physical coins over spot seems to be pretty high (as compared to when I was buying a bit over previous years). In the past, I mostly bought either American Eagles or Canadian Maple Leafs. These both have higher premiums over spot (usually) than other coins, but in terms of a bad scenario are well known and recognized. The newer (post 2014 I think) Maple Leafs have some better security features (in terms of counterfeiting).

Recently however I've also bought a couple Valcambi CombiBar's. They come in 50x1 gram and 100x1 gram varieties. Here's a link to the 50x1 variety at Apmex: https://www.apmex.com/product/74946/...cambi-in-assay A month ago these were just about impossible to get, now the supply seems to be normalizing. As I type this the Apmex price is 2,985.44 which works out to 1857.19/oz (and spot is 1739.00 so it is $118 over spot). What is nice about these bars is that they can be easily broken into 1 gram rectangles, which would make them more useful for barter. You can find some videos on these on Youtube. The 50x1 combi looks like it is about the size of a credit card, so could even be kept in a wallet.

While I've owned a bit of gold and silver over the years, I've been slowly upping the amounts since February.
copyright1997reloaded is offline   Reply With Quote
Old 05-31-2020, 03:31 PM   #5
Moderator
braumeister's Avatar
 
Join Date: Feb 2010
Location: Flyover country
Posts: 15,652
You could go get your own:

5 Places to go Gold Panning in Colorado without a Mining Claim

Finding Gold in Colorado
Historic Sites & Modern Prospecting Honey Holes


How to Get Started in Gold Panning
__________________
I thought growing old would take longer.
braumeister is online now   Reply With Quote
Old 05-31-2020, 03:32 PM   #6
Recycles dryer sheets
bolt's Avatar
 
Join Date: Jun 2008
Posts: 257
I believe they sell also.
https://www.midwestrefineries.com

4.5ish stars on yelp as a PM brokerage iirc.
I've no economic interest, just another satisfied customer.

Good Luck & Best wishes.....
__________________
It ainít what you donít know that gets you into trouble. Itís what you know for sure that just ainít so.
bolt is offline   Reply With Quote
Old 05-31-2020, 08:19 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 6,373
You can buy from the US Mint - bought a gold Indian there Christmas before last. We check prices through https://www.ajpm.com/

Mostly own Philharmonics that we bought back before Y2K. Represents about 0.5% of our NW, so not enough to start a new life somewhere else, but what the heck - fun to hold. Once had to show we had enough assets to avoid PMI on an apartment purchase - cornered a banker and showed him bank statements, then pulled coins and the morning gold prices from AJPM from my pocket and put them in his hand. Very satisfying to have hard heavy assets.
__________________
"Be kind whenever possible. It is always possible." Dalai Lama
calmloki is online now   Reply With Quote
Old 05-31-2020, 09:58 PM   #8
Full time employment: Posting here.
 
Join Date: May 2013
Posts: 542
I gasped when I bought gold for the first time in my life starting in Oct. 2018. Now Iíve got 11%
of net worth in gold/silver and believe the macro winds are favorable for it since increasing money supply and negative real interest rates are historic drivers of precious metals prices.

For the physical portion Iíve bought it all from the website JMBullion.com. I send a physical check to save on the spread they add for credit cards. Theyíve been quite reliable although there was a bit of delay on one order early in the lock downs. I skip coins and simply seek the least expensive ounces I can find which have been gold / silver bars.

I had been a buy and hold stock guy for most of my life but realized in recent years that the market is mostly dependent on the Fed chair as opposed to fundamentals so Iíve shifted much of my asset allocation away from stocks.
__________________
Saved 8 figures by my mid-40's as a professional bubble-spotter. Beware...the Fed creates bubble after bubble after bubble.
RenoJay is offline   Reply With Quote
Old 05-31-2020, 10:31 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 9,665
I think folks worried about SHTF reasons to have hard metal, should consider silver coins in addition to gold.

Gold coins are like having $500 bills , are you really going to trade one for 2 bottles of booze and a can of beans ?
Having silver coins as well allows you to buy lower priced things easily.

I don't have much gold, but I do have a lot of lead.

One big danger in buying gold is the counterfeit issue, especially with bars. Even experienced precious metal dealers have been fooled and that is with using their electronic tools to inspect the gold bar.

If I was going to buy gold, I'd buy coins from the official mint to be sure I don't get a fake.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is online now   Reply With Quote
Old 05-31-2020, 11:01 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 18,073
Quote:
Originally Posted by Sunset View Post
I think folks worried about SHTF reasons to have hard metal, should consider silver coins in addition to gold.

Gold coins are like having $500 bills , are you really going to trade one for 2 bottles of booze and a can of beans ?
Having silver coins as well allows you to buy lower priced things easily.

I don't have much gold, but I do have a lot of lead.

One big danger in buying gold is the counterfeit issue, especially with bars. Even experienced precious metal dealers have been fooled and that is with using their electronic tools to inspect the gold bar.

If I was going to buy gold, I'd buy coins from the official mint to be sure I don't get a fake.
I've got lots of lead already. Gold bullion would be for a set of tickets on a plane out of dodge and enough to land safely. Also an inflation hedge in a world where every central bank seems to be printing money wildly.

Silver might also be worth having, but it is more challenging to store a significant dollar amount of the stuff than gold.
__________________
"My main skills are talking and cooking biscuits. And getting drunk on the porch.Ē


- Augustus McCrae
brewer12345 is offline   Reply With Quote
Old 06-01-2020, 05:32 AM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 5,126
I was alarmed to even see this thread from Brewer but then I saw the part about 1% and felt better.

What are options/cost associated with holding PMs? Can/would you take possession of a significant amount of bullion, or just coins?
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Old 06-01-2020, 06:05 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 8,560
Quote:
Originally Posted by jazz4cash View Post
I was alarmed to even see this thread from Brewer but then I saw the part about 1% and felt better.
Brewer has been stock piling supplies and ammo for awhile now. Buying gold is really not all that surprising. Based on recent events......not a bad game plan.
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
Dawg52 is offline   Reply With Quote
Old 06-01-2020, 06:08 AM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 26,526
I guess that I don't get it. Any currency is only as good as the population's willingness to use it as an exchange medium. If the SHTF to the point where the US$ is worthless as an exchange medium, what makes you think that gold and silver will still be accepted as an exchange medium. None has any practical value other than people's historical willingness to exchange but in that scenario that history may be meaningless.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...target 65/35/0 AA TBD
pb4uski is online now   Reply With Quote
Old 06-01-2020, 06:11 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 18,073
Quote:
Originally Posted by pb4uski View Post
I guess that I don't get it. Any currency is only as good as the population's willingness to use it as an exchange medium. If the SHTF to the point where the US$ is worthless as an exchange medium, what makes you think that gold and silver will still be accepted as an exchange medium. None has any practical value other than people's historical willingness to exchange but in that scenario that history may be meaningless.
Central banks are printing money to beat the band, growth is nowhere on the horizon despite that fact. I am beginning to fear stagflation. You can also look at the actions of people in third world countries, which the US increasingly resembles. Hard assets are popular in those places for a reason.
__________________
"My main skills are talking and cooking biscuits. And getting drunk on the porch.Ē


- Augustus McCrae
brewer12345 is offline   Reply With Quote
Old 06-01-2020, 06:13 AM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 18,073
Quote:
Originally Posted by jazz4cash View Post
I was alarmed to even see this thread from Brewer but then I saw the part about 1% and felt better.

What are options/cost associated with holding PMs? Can/would you take possession of a significant amount of bullion, or just coins?
I would take possession of a 1 percent stake. If I wanted more than that I would buy gld or similar.
__________________
"My main skills are talking and cooking biscuits. And getting drunk on the porch.Ē


- Augustus McCrae
brewer12345 is offline   Reply With Quote
Old 06-01-2020, 06:30 AM   #16
Moderator
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 6,762
Kitco is a probably a reasonable choice. You can see the spread, and it's not small, but there's nothing for it. I certainly would buy highly recognized coins over something easier to counterfeit. Bad guys were apparently making them out of some other metal and gold plating them, but they were slightly thicker. The "we buy gold" places are usually not worth it because the uninformed client is what they're looking for, to make an overly large profit.
sengsational is online now   Reply With Quote
Old 06-01-2020, 06:42 AM   #17
Thinks s/he gets paid by the post
 
Join Date: Jun 2016
Posts: 3,973
Based on the reactions of consumers during the recent shut down, the one hard asset I would look at buying is liquor.
COcheesehead is offline   Reply With Quote
Old 06-01-2020, 06:50 AM   #18
Recycles dryer sheets
prototype's Avatar
 
Join Date: Mar 2011
Location: North Carolina
Posts: 205
3% of my nest egg is physical gold and silver. Most of it (~95%) gold. Bought in early 2000's when gold was in the low $300's/oz. Bought in several "buys" that were all less than $5K. Wish I had liquidated it in 2012 (or whenever it was when gold hit ~$1800 or so).

If/when I do liquidate it, the local places I checked with treat the new uncirculated American Eagles (some exceptions) or any other's country Gold Coins, no differently than a gold bar even though most/all PM/Numismatic type places will place a premium on a "new" coin over a gold (or silver) bar. The place I bought from however will buy back at a better price (premium included, minus what looks like the standard 2 or 3 percent...so basically the buyback price is about equal to the COMEX gold price.

Storage cost - $35/year for SD (joint with DD) which I would need anyway for other legal and asset stuff. (Silver is just at home, too much to fit in SD).

Taxes when liquidating? I'll avoid discussion of that. Perhaps I can use each 1oz gold coin to buy another week at a 3 star eldercare place when needed.

Summary: No real regrets buying since I got in on a low. Regret not liquidating 7 or so years ago and moving money to stocks or just some more easy to manage form of PM.
prototype is offline   Reply With Quote
Old 06-01-2020, 06:56 AM   #19
Moderator
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 6,762
For selling, you can usually find someone locally that will give you a reasonable deal, if you shop around. With a big enough sale, you can play them off each other. You can always mail them to Kitco or another large, reputable company, but then you have shipping and insurance costs on to of the spread.
sengsational is online now   Reply With Quote
Old 06-01-2020, 08:24 AM   #20
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Location: Upstate
Posts: 1,538
Quote:
Originally Posted by calmloki View Post
You can buy from the US Mint - bought a gold Indian there Christmas before last. We check prices through https://www.ajpm.com/

Mostly own Philharmonics that we bought back before Y2K. Represents about 0.5% of our NW, so not enough to start a new life somewhere else, but what the heck - fun to hold. Once had to show we had enough assets to avoid PMI on an apartment purchase - cornered a banker and showed him bank statements, then pulled coins and the morning gold prices from AJPM from my pocket and put them in his hand. Very satisfying to have hard heavy assets.
I thought the US Mint only sold "proof" coins, which are higher priced than the bullion (uncirculated) varieties.

From their site: https://catalog.usmint.gov/coins/coi...n-eagle-coins/
Quote:
American Eagle Bullion Coins provide investors with a convenient and cost effective way to add gold to their investment portfolio. Pricing for bullion coins typically depends on the market price of the metal. Visit the Bullion Dealer Locator to locate a dealer - bullion coins are not sold directly by the U.S. Mint.
So for example a 2020 Buffalo is $2415 on the US Mint site: https://catalog.usmint.gov/american-...-coins#start=1, $1890 for the bullion variety at JM Bullion: https://www.jmbullion.com/2020-1-oz-...-buffalo-coin/

I'm not saying that proof sets aren't nice, but if we are discussing buying gold coins for the gold content, then stick with bullion.
__________________

copyright1997reloaded is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Good time to buy gold/gold ETF now - Nov., 2017? robnplunder Stock Picking and Market Strategy 38 12-01-2017 12:38 PM
Is purchasing physical metals (Gold, Platinum, Silver) ever a good idea? EvrClrx311 FIRE and Money 66 02-26-2016 10:01 AM
And gold, gold!, GOLD!!!!!!!!!!!! yakers FIRE and Money 1 05-17-2006 10:03 AM
Buying physical Gold GTM FIRE and Money 10 01-14-2005 09:26 AM
Recommendation on gold/metals index fund? soupcxan FIRE and Money 19 10-19-2004 04:37 PM

» Quick Links

 
All times are GMT -6. The time now is 08:54 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
×