Some advice/? on buying Gold

[Drdogface]

Really late to the party for sure but better to get it now than later I suspect. I have never bought any gold except a few old US coins. I'd like to start buying buillion coins and stash them away...like half the universe is doing now it seems.

My local gold exchange (yes we have one in this small town..mostly in the past for the local miners and panners) is about $50 per coin higher than the larger internet companies. I like to buy stuff locally but if one is gonna but 25 grand over time that adds up. I guess I just feel nervous about sending a wire transfer to some guy on the phone for a promise that he'll send me a stack of coins in the next day or so...maybe I've been reading too many Nigerian letters

Do you guys who are saavy on this buy from one company in particular or buy in person or just what. I did a Google search and it seemed to me that MONEX had the best price and availability of the 24 carat stuff. My local guy can't even get Bufflaos anymore. Yes, Maple Leafs are less pricey but I'd like a few Buffys just cuz they're cool.

Should one dollar cost average like in stocks?

Is there any sense in buying smaller denominations in addition to the one ounce coins? What ever else in the way of advice you have will be most welcome.

[Shadetree930]

Advice ... Don't

[RWebb]

don't

[Drdogface]

Hmmmm....not the replies I expected...but OK...

[Burnin' oil]

You can buy bullion, stock in a gold mining company, or invest in a pool. Kitco.com has information.

[RWebb]

or just use $$ as fire starter

Taking advantage of the recession/depression

[HardDrive]

I don't think gold is going to continue up. Just my humble opinion. Lots of money has flooded into commoditys lately. I doubt it will stay there.

[Rot 911]

I bought some gold and silver just to hold in case the SHTF. You lose money on the buying and selling, but like cash it is readily solvent.

[oilonly]

http://www.silvertrading.net/

This is a good place. I see you live in California, maybe this place is closer.

http://www.golddealer.com/bullionpage.html


Monex is good also but do NOT get talked into the leverage account. Buy the coins themselves and hide them.

Best 1 troy ounce bullion coins to buy.

American Eagles
Canadian Mapleleafs
Austrian Philharmonics
Kruggerands

[RWebb]

just send the money to me and I will burn it for you - that will save me having to cut firewood

[on2wheels52]

I can see I'm not as negative on gold as some. From 1960 to 1995 gold didn't beat inflation but it wasn't a negative return. The current 'volativility' in metal has to have room for some profit. When you say the locals are getting $50 more than mail order, how much over spot price is that? There's been times I've been happy to sell an ounce for $25 over but gold isn't a major part of my business. I've never ordered any, I just buy what comes through the door.
You'll get more gold for your money buying the 1 oz (10 1/10oz coins cost more). Pay less for Krands, I wouldn't advise starting with numastic gold (old St. Gaudens and Liberty's eg) even though they can be bought close to gold price.
I wish I had the 25oz to sell you, I've only sold that quantity once.
Jim

[MRM]

I never understand why anyone wants to do this. How long are you going to hold your gold? Until the price goes down? Are you going to hold on to it and hope it goes up and you'll guess the top of the market and get out? That's called speculating. If you win with that strategy you're lucky, nothing else. You might as well put is all on red six in Vegas. More than likely you'll do what everyone else does and hold it as it goes up and down, mentaly counting your paper profits as the price fluxuates until the trend is irreversibly downward (which it someday will be) at which time you'll hold the declining asset until it spirals to the ground because you can't stand to sell at a loss. Your investment is only valuable if you sell it at a profit. Do you know how to value gold and know when it is the right time to sell that ensures you a profit? Don't guess if you don't know.

If you insist on going into gold, why don't you just cal up a broker and buy some paper. Gold contracts, futures, shorts, mining stocks, whatever. At least then you don't lose so much in transaction expense.

[Drdogface]

I DON'T want to speculate on gold.... I just want some in case everything falls apart, my investments become trash, the dollar becomes worthless, etc....like '29. Just would make me sleep better to have it....Maybe $10K worth. It that as nutz as everyone above seems to think?

[on2wheels52]

Not at all. I keep a few ounces for myself. I figure it's been worth something for 5 thousand years, perhaps it will still be worth something in the future.
Jim

[oilonly]

Drdogface, everything isn't going to fall apart. What is going to happen is growing inflation because the fed and treasury are diluting the currency. Just higher inflation, no "end times". So buy and hide some Gold bullion. Don't play with futures and options or any leverage or you lose.

[MRM]

My point was that if you think the dollar might become worthless and gold might be a good asset to own, you can buy it through your broker cheaper than holding ingots in your safe deposit box. Just call your broker and ask to buy some. You can buy the gold on paper and the bank or broker or whoever will hold it for you. You get a certificate. It's not as evocotive as holding a gold ingot, but it is cheaper.

[daepp]

I think it is a good strategy to own some gold.

I grew up around a lot of Depression era folks, and besides spooky conversations about a losing confidence, the other lesson they always spoke of was buying and holding gold.

[daepp]

With respect to the intrinsic value of gold, I was told a story about our Air Force pilots (that I cannot verify but have nonetheless repeated several times)

I was told that no US Air Force pilot flies into harm's way without several gold British Sovereigns in their survival kits. These coins were minted on multiple continents are apparently valued the world over. I guess the theory is that they are widely accepted the world over.

That's why I own gold - it has wide acceptance the world over. And as the commercial says, it's never been worthless.

[Drdogface]

David,

I was going to post also that I grew up around a lot of those same folks. It just would make ME feel better/sleep better to have some in my safe...not on paper at some brokerage... The intent of my original post, and perhaps I was not clear enough, was to ask where is the best place to buy. I think 3% (of my liquid worth) would be plenty. I have NO plans to buy/sell for profits.

[daepp]

Try California Numismatics