Buying physical Gold

[GTM]

Gold is being recommend by some who feel the US dollar will decline even more. Most recommend gold stocks or gold ETF's.

I have been thinking about buying physical gold, most likely 1oz coins such as the US Eagle or those from other countries.

Anyone have any experience with purchasing gold from dealers or have any opinions about investing in any form of gold?

 

[wabmester]

Yeah, I've got a big stack of Maples under my bed.

I went with these guys, but only because they're local to me:

http://www.nwtmintbullion.com/

 

[Craig]

Buy bullion coins, not bullion per se, and consider some junk silver (90% silver, old quarters ... not the newer, clad quarters) as well.

Eagles, Krugerrands, Maple Leafs, Pandas ... they're a known quantity and quality of gold, whereas bullion quality can be an issue. Coins are generally seen as more liquid.

If you choose. hold a small amount of physical gold and silver, likewise currency, for the ultimate rainy day. Or, roll your eyes at those who do ... I have friends on both sides of that fence.

Generally better returns holding precious metals stocks / mutual funds, rather than physical possession.

Gold has already had a run up.

Craig

 

[dex]

no need to buy phycial gold - there is an ETF that trades like the bullion.

 

[Berkshire_Bull]

For most people there is no point in buying gold in an ETF.  You don't have it, it can't be bartered in a dire situation. The whole point of gold for most people is a safety net so you'll be protected WTSHTF (when the S*** hits the fan).  These guys will tell you more than you ever wanted to know about the subject:  http://www.goldismoney.info/forums/index.php?s=a26080a7c2888784b776249b0323dda3&

Enjoy!

 

[unclemick]

Yikes - I still have a couple of St. Gaudens gold, silver bullion coins and a 10% ownership in a Colorado gold mine(non-working) left from the 70's and 80's. The last platinum coin(Aussie), I had mounted on a pendant for the SO - she likes Koala's. At least I didn't stock freeze dried food or get into collectible guns. I also overdid Vanguard Trustee's co-mingled International.

Watch out for gold coins - you could morph into a coin collector - a fascinating hobby.

Nowadays - I figure if gold mining stocks(and other inflation/currency type stocks) do well - they will rise within my Total Stock Market holding as % market cap.

Slice and Dice cats might want to read Raddr's Early Retirement Forum - some interesting new financial instruments out there now.

Me - I'm a Boglehead - mostly. Still have some side money. But not ready to restablish my old(70's/80's) position in Southern Peru Copper('copper has a Phd on inflation").

 

[brewer12345]

If we get to WTSHTF, I am going to have an easier time trading homebrew for what I need than useless gold coins.

 

[Martha]

Don't forget the high tax rate on collectibles and coins.

 

[BigMoneyJim]

I'm not a survivalist, but wouldn't hoarding arms and ammunition be more profitable for WTSHTF?

I just hope they'll still need computer support after SHTF. I don't think I'd make a good farmer.

 

[Berkshire_Bull]

You guys are quite humerous. I think the guys on Goldismoney.com have had an effect on me... That and my survivalist father. Yes, to quote my old man, "guns and ammunition may be worth more than gold someday, but I hope I never see it." Gold is a survivalist asset, however most of the very very wealthy families hold part of their money in it. hmmmmmmmm.....

 

[IDunno]

Anyone have any experience with purchasing gold from dealers or have any opinions about investing in any form of gold?

If you're going to purchase physical gold (or silver/platinum) online, there are two websites to know: www.ajpm.com and www.tulving.com. Both have been around for a number of years, are trustworthy, and have the lowest prices (Tulving typically slightly lower than AJPM). Their web specials are occasionally extremely good deals.

For 1oz gold coins, you shouldn't pay more than about 5% over spot; for smaller ones, you shouldn't pay more than about 10%-15% above spot (but can occasionally get ~5% above spot if you're lucky).

Storage is, of course, a concern, if you're dealing with more than a trivial amount. A safe deposit box is usually best (but costs money, isn't insured (although very safe), and can be opened for legal reasons).
-Scott