American Eagle Gold Coin: The way to invest in Gold?

carew4me

Hope this question is not out of place. I want to buy some Gold. Are American Eagle Gold Coins the way to go?
Thanks,
Randall

dthigpen

I'd stick with foreign bullion if you're purely in it for the gold value, it generally sells at less of a premium and will have the same spot buyback.

carew4me

Candian Maple Leafs? Clueless.

I have about $8000. Willing to do some homework. Where to start?

I am really in it for the Gold and not coins per se.

Thanks for the help.

CarlWohlforth

I like older foreign gold coins as they can be had for close to their bullion value and are interesting too.

CarlWohlforth

If you want to invest in gold but don't care about coins I suggest researching gold mining stocks.

ARCO

The lowest spreads on Bullion are found at Tulving and they are the K-rands and the Mexican 50 Peso Gold. Eagles are nice, but they carry a fat premium over spot.

Tyler

OnlyBuffalos

If you are talking strictly investment, gold stocks are less expensive to get in and out of due to lower commision rates. If you must have the gold in-hand, gold bullion which you take possession of, is less expensive than coins when the vigorish is factored in.

Jdurg

I personally like the Gold Maple Leafs. They are great looking coins and are .999 pure gold as opposed to the Gold Eagles which are .9167 pure gold.

dthigpen

<< <i>I personally like the Gold Maple Leafs. They are great looking coins and are .999 pure gold as opposed to the Gold Eagles which are .9167 pure gold. >>



Just to clarify for carew4me, they both contain the exact same amount of gold, the GAE just has more alloy mixed in with it and weighs more than one ounce total, but does have one full ounce of gold in it.

carew4me

Thanks for all of the great advice.

I think I will mix USA/Aust/Canada bullion.

mrearlygold

krands

RYK

If you are looking to specualte in the short-term, I would consider the exchange-traded fund, GLD. There are pros and cons, but is the most efficient way to do a short-term trade IMO.

carew4me

RYK,

My goal is long term (5-10 years), in-hand, gold bullion or coin.

Thanks for your input.

UncleWiggly

Kitco Pools

topstuf

American Eagles do not require a 1099 form to be filled out upon sale.

Not that there's anything wrong with that.

Also under that ruling are Austrian Philharmonics.

Not so with Krugerrand and maple leaf. They must be reported on a 1099 in amounts of 25 oz or more.

Deadhorse

While American Eagles do carry a premium, the idea that you will not get a premium back at sale is simply untrue.

Best value in small amounts are K-rands, they go for a very small premium over spot, they also sell for less than Eagles, Maple Leafs, Philharmonics, etc.

Best pure value in bullion would be in slab form, 1 and 5 ounce ingots. Credit Swisse offers those in a sealed package that sell for a very small premium over spot. Again, no premium at sales time either.

Worst value........ Pandas. They have a very stiff premium and while you will get a small premeium back at sale, the % will be less than other coins. Of course, they happen to be my favorite and it does help you if you keep them in the mint package with the fortune cookie-like slip of paper.

I've got various types of almost everything but mostly I'm in Eagles and Maple Leafs.

I would keep in mind the advice regarding 1099s. They have enough stuff on all of us already.....

I actually bought a pair of 1 ounce K-rands at UNDER spot recently at a show. It was closing time and the dealer looked like he had had a bad day. I made him a lowball offer and he said take them both and they're yours.

carew4me

DH,
Great Advice. Thanks.

Proofquarter

The most liquid to trade are GLD and CEF traded on the NYSE. Please do your research before buying.

GOLDGUY

Often times, precious metal dealers will be able to sell one type of product for a better price. For example, on any given day, a dealer might have an over-supply of Mapleleafs and will quote you a better price. My advice is to stick to the popular, highly recognizable products -- namely: Eagles, Mapleleafs, Krugerrands, Philharmonics, Kangaroos, Crsdit Swiss Bars & 50-Peso Mexican.

When you're ready to make the transaction, buy whichever of these products is available to you at the smallest premium over the current spot price. Typically, it'll be the K-Rands -- but sometimes you can get lucky.

roadrunner

For a relatively small amount of gold (under $10,000) physical possession is best imo. Who knows how the ETF will work out.
There is peace of mind knowing you have the gold in your hands come whatever. Gold stocks have the same drawback, they are just paper promises...but great leverage at the right time, especially well-picked juniors. My own preference is MS63-65 $20 Saint Gaudens (1922-1928). These coins have leverage over gold bullion and also give you a beautiful collectible, 80 year old, numismatic coin. In a long term rising market I think they work well.

roadrunner

topstuf

Best ....VALUE.... in gold is in "scrap" gold. You will be welcomed with open arms at any dealer if you are paying 96% of melt. (spot x .483 x .96)

You SHOULD be able to buy it from a ...small...dlr for 92%

Albums are hard to find though.

michael

older foreign gold coins as they can be had for close to their bullion value and are interesting too.

CarlWohlforth
Master Collector

Posts: 5967
Joined: Aug 2001
Tuesday December 14, 2004 11:54 AM (NEW!)



If you want to invest in gold but don't care about coins I suggest researching gold mining stocks.

-------------------------

For a relatively small amount of gold (under $10,000) physical possession is best imo. Who knows how the ETF will work out.
There is peace of mind knowing you have the gold in your hands come whatever. Gold stocks have the same drawback, they are just paper promises...but great leverage at the right time, especially well-picked juniors. My own preference is MS63-65 $20 Saint Gaudens (1922-1928). These coins have leverage over gold bullion and also give you a beautiful collectible, 80 year old, numismatic coin. In a long term rising market I think they work well.

roadrunner