Is this 1 gram of gold worth it?
inkdiver
Posts: 55 ✭✭✭
Hi, newbie here, and fairly new to precious metals.
I am being offered at spot price this 1 gram sheet of 24k gold (it is really tiny). The seller will give me a printed paper of the Karatmeter reading (I think that is what the machine is called), which says that the gold is 23.97k. Would this be considered .999 pure gold, and is it normal for a 24k gram of gold to say it has 23.97k and has 0.1 of Copper?
Is buying this at spot price a good deal for this gram of sheet gold, and how easy would it be to sell later on? I am into gold for the long term, so, I would probably sell it in a few decades at least. I am guessing it would only be sold for melt value, or perhaps there might be independent buyers interested in this time of gold. Gold is gold, right? No matter the shape, form etc.
If buying at spot price this type of gold makes sense, I will consider buying more in this format since having fractional, small amounts of gold might be easier to sell later on.
Comments
I would pass... I need a company name and a serial number on a gold bar.
You'd likely have to sell it to an entity with a machine capable of reading out the purity such as the one in the images. Otherwise, most folks would have no interest in a tiny sliver of unknown origin. I know I would not buy it.
In honor of the memory of Cpl. Michael E. Thompson
Good luck selling that.
I would recommend 1/10 oz AGE's..
Certified if possible for authenticity.
You can usually find them near spot $.
Each 1/10 Toz contains 3.11 grams gold.
Composition: 91.67% Gold
Weight: 3.3930g
AGW: 0.1000oz Troy
Everyone knows what they are.
In a few decades, when gold is $5k oz,
everyone will still know what they are.
They will be much easier to liquidate.
JMHO - Ron
@RonB---Agree with the tenth ounce AGE suggestion but it's hard to find them "near spot" especially when certified.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
I was going to say, I'm cheap and always digging for deals. I've found ASE's, 90% junk 1oz, 1/2oz, 1/4oz AGEs, certified MS62-64 double and full eagles at near spot, spot or even below spot but never once have I seen 1/10 AGEs at or even near. I do agree in the world of gold they are extremely easy to liquidate.
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@RonB each gold eagle contains 3.11 grams of pure gold. Not 2.84.
I would choose a gold product that’s been stamped with its weight and purity either by a private company or a government mint.
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@inkdiver .... Welcome aboard. I would not buy that item.... That form of 'certification' is easily faked.... Stick with trusted gold, such as AGE's in various denominations.... Gold Maples, Krugerrand's... Those will be easy to sell at almost any time. Cheers, RickO
That 1 gram wafer is an overpriced gimmick that no gold stacker would ever be interested in.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Correct, 1 Troy oz. = 31.1035 grams. Thanks.
I've purchased raw and certified MS 68-69 1/10 AGE's at spot on the BST and MS 70 at .11 spot. Keep your eyes open, they do show up periodically, especially around tax time. I also found MS 70 1-Toz .9999 Buffalo's well below spot last Feb before the pandemic kicked in.
no
There you have it... excellent advice from the forum. That small piece will give you problems in the future when you may want to sell or trade it... the piece of paper certificate would not help you much either IMO. Though your funds may be limited.... stick to the KNOWN standards such as the recommended 1/10 ounce American Gold Eagles (Maple Leafs are good also). And stick to a trusted seller.... many fakes out there.
RonB, you’ve bought MS70 gold buffs for under spot? That’s incredible.
MY GOLD TYPE SET https://pcgs.com/setregistry/type-sets/complete-type-sets/gold-type-set-12-piece-circulation-strikes-1839-1933/publishedset/321940
Welcome! And you have a very good question.
TLDR: No, don't buy that thing.
Longer: There are 1 gram gold vehicles out there that are more "legit". The Canadian "Maplegram" is an interesting alternative to Pamp or Credit 1 gram bars, both of which are acceptable 1 gram units of gold.
However...
The problem with wanting gold as soon as you can afford to buy anything is that the "premium", or the amount you pay over the value of the gold itself, tends to become much higher the smaller the unit. And disproportionately so. So while you'll currently pay about $100 "premium" per ounce for a generic 1 ounce uncirculated gold eagle, or about 5% over the value of the gold (So about $2075 per eagle with gold valued at about $1975), you'll pay as much as 30% more than the value of the gold on a 1/10th ounce eagle (prices per Apmex 09-01-20 11:50 CST).
And it's even worse for generic 1 gram bars (currently 35% over melt at Apmex).
One gram doesn't get you very far. If it's your gateway drug and you absolutely MUST have some gold right now, I guess 1 gram isn't going to make or break you.
But the advice above about saving up and hunting for a 1/10th eagle is sound and worth considering. Or here's another idea: see if you can find a genuinely BU (brilliant uncirculated) 2 peso gold coin from Mexico. They're small, but at about 1.5 grams of pure gold (made of 90% gold, 10% copper), bigger than a 1-gram bar. They're pretty widely known and not easy to fake (and easier for gold machines to read, too). Their premiums seem to be pretty low right now, maybe 20% to 25%. They'll run you about $115 give or take. They are "legit" coins, too, though they were really created to provide an inexpensive vehicle for gold ownership. Note also that almost all of them will bear the 1945 date. That's because they were "restruck" over the years with that same date. That doesn't really matter, though it is an interesting story on its own
--Severian the Lame
I buy and sell quite a bit of gold and would not even look at something like this for many reasons! Buy gold bullion from reputable dealers! I also buy nothing on ebay!
Welcome to the forums!
I'd pass on the unmarked piece of gold, go with something else as close to spot as possible. A lot of good choices and advice given so far...
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Welcome!!!
Love, love, love my MapleGrams and glad I bought a Chinese themed 8 by 1 gram sheet when I did!
You, my new friend, just got a superb amount of free advice that is worth much more than that gram of gold you almost wasted your hard-earned money on.
I'm the same way. I search and search and search for deals and have purchased 1/10 oz ASE's for 1.91% over spot.
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