I was hoping to trade some advice on buying gold for rep.
My main concerns are:
How to make sure it is the real thing in the right amount?
How much over spot should you spend?
Is there any certain preference on who mints and on any amounts that are more preferable than others?
Thanks in advance.
Gainesville Coins is cheap and you know you are getting the real stuff. If you want to purchase at a coin shop. I would use it to gauge how much over spot you will spend at a coin shop. It will probably be about the same to a little bit more. For gold, don't mess with anything over $100 over spot. And watch out for 1/10th oz coins being "only" $15 over spot. Remember, if you multiply it by 10 to get to a full ounce, its $150 over spot.
Thanks!
+rep
I do all of that local @ or slightly above spot.Cheaper for me that way.
Just make sure to buy from a reputable dealer. I've botten from apmex.com, gainesvillecoin, and provident metals.
I usually just buy american gold eagles or american silver eagles. They pretty much come straight from the US mint uncirculated.
Is "slightly above" considered 5% above spot, or something like 10%?Originally Posted by oyarde
+rep
Once you get them. Do you weigh or test them at all?
+rep
With silver my guy pays 50 cents under spot for non collectible grade 90 % silver coins and Eagles , sells , 50 cents over.With gold usually pays "bid" and sells @ "ask" , ask for non collectible $5 gold usually around spot .I bought a 2012 Silver eagle @ Christmas on a whim for one of my Grand Daughters for $36 , this tells me, he had around 35 - $35.50 in it.
Last edited by oyarde; 01-12-2013 at 09:22 AM.
Buying local eliminates shipping charges , which can easily eat up the savings you got by buying on line. Pay cash, no record of purchase.
True, if you only want to buy a small amount then its probably better to go local if there's a decent coin shop around.
He uses the current price on Kitco.Unless you order something he has to get , then it is the price when you order it, not pickup.
I am fortunate that I have a great one close , been using the hell out of it for the past 16 years or so .
Last edited by oyarde; 01-12-2013 at 11:24 AM.
Unforuntately for me, I don't, I'd have to go into Boston to find a decent one, the prices are usually higher than online and the gas it would take to get there and back is about the same as the shipping costs if I ordered online anyway.
I can see the gasoline thing, couple gallons here, back to $6.70 , was $6.20 couple of days ago . If they prices they have are that high I am suprised they can turn it though ...Unforuntately for me, I don't, I'd have to go into Boston to find a decent one, the prices are usually higher than online and the gas it would take to get there and back is about the same as the shipping costs if I ordered online anyway.
In relation to buying gold, do not buy anything under 1/4 ounce. It becomes most efficient to buy at 1/2 and full ounces.
Anything less than 1/4 ounce, the premium you pay will vastly outstrip the utility of having smaller denominations. 1/4 ounce is NOT all that efficient but it's OK and my cut off point for gold.
If 1) you want smaller denominations 2) it's hard for you to fork over 800$ + for one coin....THEN BUY SILVER.
If you want UBER divisible gold, you will need to find a retailer who sells GRAIN/POWDER gold in vials for a good price. GOOD LUCK WITH THAT.
Stick to half ounces and larger for gold, and smaller denominations of value should be stored in silver.
Good luck!
"Like an army falling, one by one by one" - Linkin Park
Thanks for the advice.
+rep
If you are buying gold now, larger denomination/wt , dollar amount will help you get a better deal.I personally like smaller pc.'s much better .In case I ever found myself where I needed to use it /barter I am not going to need anything more than a 1/2 gram, gram etc
You also have to watch buying locally in certain states. I am not sure everyones state laws so that's up to you but here in Ohio they tax gold and silver sales. I know that 3 of the surronding states don't tax the sale of gold and silver. This is a great way to throw away alot of money that could of been put into the gold and silver. If I am buying gifts like a couple silver eagles I buy locally because it's not worth the drive, but if I am buying big amounts I go out of state. Because of the tax and most people are now aware of the out of state buys it is really hurting the local shops. There is a group that goes to Columbus every year to try to talk to the reps about getting this removed but it hasn't worked in 5 years of them doing this.
Yes , an important factor, I pay no tax on my purchases, my guy pays tax though on what he sells, 7 percent.Some states, sales tax is 10%.
I have found getting to know a local jewelry store that buys gold and such will sometimes make me a deal on what they bring in. I have asked that any 1/10 ounce gold that comes in I will buy at spot. I don't get a call often but have picked up 12 coins so far.
Shipping is not a big cost with gold. Your gold is not going to be very heavy. Shipping is a cost with silver, not with gold.
From whom to make your purchase? Any reputable online company with a good price will do. Perhaps consider Camino Coin, run by libertarians (not the only one -- many gold sellers are libertarian).
You should never pay tax on gold. Tax is stupid. It will totally wipe you out, adding a crazy percentage to your purchase. So unless you have a jeweler friend or pawn shop friend who will sell to you under the table and not charge tax, or you live in a state which doesn't charge tax, buy from out-of-state.
How to make sure it is the real thing in the right amount?
Pawn shops will usually have a gold tester. It measures the resistance to tell whether it's 22 carat gold, 24 carat gold, not gold at all, or whatever. They may have to risk scratching the face of the coin a tiny bit to get a good contact for an accurate result, especially if the coin is old and dirty, with a little bit of build-up of some kind (oils, dirt) on the surface. Without good contact, it will scare you with a false negative. That's happened to me.
But really, the best way to make sure it's real gold of the right quantity is just to buy it in coins. If it looks like a genuine Krugerrand, it almost certainly is. Counterfeit small coins are very rare. Counterfeiting them is expensive.
How much over spot should you spend?
As little as possible. Look around online. As everyone else has told you, less than 6% over spot ($100 would be about 6%) is a deal very possible to get. It's about 3% here, as you can see:
http://www.ajpm.com/gold-bullion.html
Is there any certain preference on who mints and on any amounts that are more preferable than others?
I prefer one ounce. It's standard. It's nice. I happen to like having a few 1/10th ounce coins also, if you can get a good deal on them. Just wait until you find a good deal, there's no hurry. On who mints, I would go with South Africa -- the Krugerrand. That's because it's the lowest premium over spot. If you just want the maximum amount of gold for the minimum price, then you will also probably want Krugerrands, or perhaps U.S. Eagles, or Candian Maple Leaves. If you get Maple Leaves, they should be encapsulated in plastic, because they're very soft.
Hope that helps!
I have had the most success buying 90% silver off of craigs list. I have found quite a few cases where someone grandpa has passed and they are just trying to unload old coins that I can usually get under spot.
In addition the local coin shop route is the one I have found preferable. No shipping, better prices, personal relationships, and NO SALES RECORD. Pay in cash.
Good idea , I picked up a little yesterday , but had to scrounge harder than that .
With a small investment in some ocket sized testing equipment and a little patience you can buy precious metals at public auction for well under melt value. Not just coins either but a wide variety of items in a variety of conditions. You can use www.auctionzip.com to help you find some auctions in your area.
"Governor, if I had foreseen the use those people
designed to make of their victory,
there would have been no surrender at
Appomattox Courthouse; no sir, not by me.
Had I foreseen these results of subjugation,
I would have preferred to die at Appomattox
with my brave men, my sword in my right hand." - Robert E. Lee to Governor Fletcher S. Stockdale (D-Texas), 1870
Thanks and +rep to all for the advice.
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