Hey guys , if you were buying 40Gs worth of Gold ?

Bigdogg

Where do you think the best place to buy that much Gold in bullion coins.
Or do you think that Numismatic is best way togo ?
Again thanks
Bigdogg
AKA> Jim

gmarguli

Modern eagles? Probably Tulving.

Old gold, I'd try contacting some of the bigger firms. Lots of them will have "junk" gold coins that they purchased with collections.

nucklehead

Holy cow! 40 grand worth of gold! Did you hit the Lotto or something?

MrKelso

I made a recent purchase of Canadian Maple leafs From Goldline International in California They have been good to me over the years and i can't complain.
I like the Maple Leaf as it has more gold then our own eagles do.

supercoin

Depending on what you're trying to accomplish, for that amount of money you might also consider buying Gold Futures. The buy/sell spread is far smaller, and you only have to put up a fraction of the cost to control the whole $40,000 of Gold (maybe 10% of that amount).

Check out this thread in the Open Forum if that might be of interest.

My last post on the first page has my (amateur) analysis of buying a future vs. metal. I've never actually bought a metals future, if someone has I'd be interested to hear their comments.

BSqr

A few gold coins (non-bullion collectibles) wouldn't be a bad idea. Especially if you desire some appreciation of the asset over time.

Semper Fi bro

paigowjohnny

"I made a recent purchase of Canadian Maple leafs From Goldline International in California "

Goldline was the group that handled the Binion dollars sale weren't they. Great service, but boy I got raped on shipping charges. Should've waited for the secondary market.

cacheman

Kitco.com will allow you to buy coins or futures.....good place to start at least. CM

dorkkarl

i'd invest 40K in gold toning...

K S

MrKelso

I complained to them about this very thing and got a nice refund on some over shipping charges. But over the years they have been very good to me with Precious metal investments

Gold is up 16 percent in the last 12 months. Very Nice

gemseeker

Gold has done very well over the short term. However, if you stretch the period to 10 years or more, you lost money. But buying gold is usually based on timing just like stocks.

Nic

I dealt metals futures with a vengeance during the late 70's and early 80's. Although a much more volatile time for bullion, one will still need to keep track of contracts by the hour, if not minute. The leverage provided is a two edged sword and you may have sleepless nights if overextended....the dreaded margin calls. Fees are not that relevant to profits in futures. Establish a good relationship with an individual or group with a seat on the Chi. Board of Trade. I did well...not sure if I'll have the time and desire to play again. K

supercoin

Nic, but if you have the money to buy $40K of gold, and don't buy more than that, then the leverage is not an issue.

Compare these two:

1. Buy $40K of gold now.

2. Buy $40K worth of gold futures due one year from now. Deposit about $4K (?) margin to guarantee your contract, and put the other $36K in an interest bearing account (maybe with your futures broker if they have good interest).

One year from now, you can:
- Roll your future forward to maintain your position
- Sell your future and buy physical gold
- Take delivery of physical gold

Advantages of the futures:

- No storage or insurance costs
- FAR less transaction costs and MUCH tigher buy/sell spreads than physical gold
- Earn interest on approximately $36K (maybe more, maybe less, depending on fluctuation in the value of your contract)
- Favorable tax treatment if held for shorter-term time periods

Does that all sound correct?

If so, then it seems that the sole disadvantage is not having physical possession (i.e. if your intent is to buy physical gold as perceived insurance against a sudden breakdown of civilization).

TWQG

I think a Maple Leaf and an American Eagle both contain 1oz. of gold. Their purity and total mass differ.

Nic

If your interest is to hedge and possibly take advantage of price moves...this works at low...though definite costs and risks. For low/ indefinite return. If all you want to control is 40K. worth of gold I would buy bars or bullion coin outright. You talk of the interest return diff. between 40K- 36K- zeroK...nothing right now. The futures are made to take advantage/ disadvantage of small price swings on a large or variable position. Otherwise I would say take possession or buy gold stocks. Just MHO. K

Higashiyama

Supercoin -- your logic sounds correct. Of course, one could ask why buy gold given the preponderance of global deflationary pressures, but, that wasn't the question that was asked!

roadrunner

Won't commodities (like gold) be some of the few things holding their value during deflation while the value of the dollar drifts lower?
James Sinclair (www.financialsense.com) makes some good arguments for a gold comeback. When was the last time that so many key financial and economic indicators have been so negative.......it's back to the late 70's before gold last took off. Just because something has been a poor investment for 20 years doesn't automatically imply it's going to bad for another 20. Stocks doing well for 13 years didn't imply a 36,000 DOW on the horizon like many thought.

Supercoin, I'd take gold as an investment over the 15 year span of January 1965 to January 1980 over Granny's saving bonds any day. I don't think savings bonds increased over 20x in value during that period.

roadrunner

supercoin

roadrunner, gold spiked up arond 1980 due to inflation, not deflation.

Interest rates were also very high around that time, so I'm not sure that gold's return looked too good compared to other types of interest-bearing investments unless you timed it just right.

I also suspect that's about the only 15 year period in modern history that gold has turned in that kind of performance.

But, who cares about my opinion -- it's your money and it's a free market.

What I was exploring here is that it seems that gold futures are a much better way to invest in gold, even if you think you might hold long-term. It still seems that way to me despite Nic's last post.

If gold makes a nice run in the next year, you can cash out and save a bunch of money over physical gold in transaction costs and taxes (60% of the profits on futures are taxed at long-term capital gains rates regardless of holding period).

Or after a year, if you decide you want the physical gold, you can easily do that too. You've saved yourself a year's worth of storage and insurance.

And either way you've made some interest in the meantime. Which, even at today's low rates, should amount to about $1000 on that $36K over a year's time. That ain't "nothing" to me. Hey, it's 3 more ounces of gold.


By the way, for those with the opposite view... unlike physical gold you can sell gold futures just as easily as buying them. Maybe gold will make a huge run-up and become the next "bubble" investment... and you can make a killing when it pops.

jtryka

<< <i>I like the Maple Leaf as it has more gold then our own eagles do. >>



Mr. Kelso, the American eagle and Canadian Maple leaf coins have identical amounts of gold (as long as they are the same size, ie. 1 ounce compared with 1 ounce). It's just that the Maple leaf is pure gold (.9999 fine), but the Eagle is 22 carat (.9167 fine). American eagles just weigh more than their Canadian counterparts, the 1-ounce gold eagle weighs 33.931 grams, or 1.09087 ounces.

supercoin

Hmm... now that you mention it, maybe this thread was about 40 grams of gold. In which case Futures wouldn't be a good choice.

MrKelso

<< <i> It's just that the Maple leaf is pure gold (.9999 fine), but the Eagle is 22 carat (.9167 fine). American eagles just weigh more than their Canadian counterparts, the 1-ounce gold eagle weighs 33.931 grams, or 1.09087 ounces. >>



Right you are. The Purer the Better i always say. Don't get me wrong i buy plenty of American Eagles as well as Krug's and Aussie's I was just trying to point out purity. I think the bulk of my holdings are Englehard bars. Ugliest bar going.
but when Gold was @ 246.00 an oz i was very cash hevey so i dumped a bundle on that brand of bar. I wish i had the courage to gamble on gold futures.