Gold buying opportunity?

[cayton]

Im in wayyyy over my head here.

I am 24 years old. I have started to save money. I'd prefer to put some of it into gold. Anyone got a FAQ or anything that can help me get along on that path? I'm mostly worried about getting ripped off (gold not as pure as I am told)

[Dave Pedersen]

For small portion buyers I suggest silver Roosevelt dimes. You can count on the amount of silver you will get and silver should out perform gold in the long term. A silver Roosevelt dime (pre-1965) contains .07234 troy ounces of pure silver. So at $16.71 x .07234 each dime has a melt value of $1.21.

No need to weigh or shave or anything the amount is standard and fully trusted. They are usually sold in rolls of fifty on eBay. No need to pay to have them melted they are very useful just as they are in a variety of circumstances.

[AceNZ]

Originally Posted by cayton

Im in wayyyy over my head here.

I am 24 years old. I have started to save money. I'd prefer to put some of it into gold. Anyone got a FAQ or anything that can help me get along on that path? I'm mostly worried about getting ripped off (gold not as pure as I am told)

If you're worried about purity, and want to have personal possession, then coins are the way to go. If you're unfamiliar with the coins, try to visit a few coin shops in your area to get a feeling for what they look like. Then stick with just one or two different kinds of coins (I like the Maple Leaf). Avoid bars and any coins that have a big markup over their gold content, like commemoratives, etc. If you buy from a reputable local or online dealer, the chances of running into a problem are very small.

If personal possession isn't that important to you, then I would recommend a vaulted storage service, where gold is held in allocated ownership -- a company like BullionVault. One advantage of going that route compared to coins is that the entry and exit margins are much less, so you get more gold for your money.

A third way is a gold ETF, like GLD, which can be purchased through a regular brokerage account. I would suggest that only for something like an IRA or a self-directed 401(k), though, where the other options aren't possible. The ETFs have counterparty risk, so they aren't as safe.

[Aproz]

Why avoid bars? I just got on the Gold bandwagon and am just curious about the ups and downs of bars vs coins.

[AceNZ]

Originally Posted by Aproz

Why avoid bars? I just got on the Gold bandwagon and am just curious about the ups and downs of bars vs coins.

If you know you will only be dealing with dealers, bars from well-known sources (like Credit Suisse) are probably OK. However, if you'd like to be able to sell to individuals, the problem with bars is that their validity and the reliability of their gold content isn't as well accepted by the market as with coins. I know I personally would never buy a bar from an individual. If in doubt, ask around. Call a few dealers and ask them about their interest in buying bars, etc.

[jonahtrainer]

Originally Posted by Aproz

Why avoid bars? I just got on the Gold bandwagon and am just curious about the ups and downs of bars vs coins.

Sure is a fun bandwagon eh!?