Gold, investing, and the Modern Gold Commems

ecos

Hey all...

My brother calls me up and asks about investing in gold. I tell him about that I don't know much, but there are risks and updsides, etc... I also tell him a story from back in 1998 when gold was $275 or something silly like that. My boss asked me to invest $25,000 for him in gold bullion. I did a little research and decided I didn't want to get mixed up in that deal. I'm a conservative investor. I don't know what he did with it, but the point is, if he put it in gold, he would have made money today.

Gold is way up. Does it still have room to grow? I know there are dozens of sources to answer this question, so take it as rhetorical.

What gold coins can be had close to spot? I remember a discussion about 1987 Constitutions at around spot on the BAY. Is there any more info on this?

Any guidence would be helpful.

Thanks.

DaveG

Tons of gold coins can be acquired at close to spot, including modern bullion coins (American Eagles, Canadian Maple Leafs, etc.), "classic" coins (British sovereigns, French 20 Franc pieces, Mexican gold, Austrian gold, etc.) and, of course, some of the modern $5 commemoratives. It depends on what kind of coins you want.

My two cents' worth?

Only buy physical gold if you really, really want to. It's heavy and you need a place to store it.

Instead, your brother can buy Gold Mining Company stock, Gold mutual funds, Gold ETFs - no storage problem and some of these pay dividends.

ecos

DaveG, thanks for the info

That was my other question which I should have asked.

for a non-collector, is it better or safer to by physical gold or gold through paper such as stocks and such?

cladking

There are numerous ways to gauge the upside for gold. Whether you look at it from a capitalization,
inflation, psychological, or demand basis, the simple fact is that gold could be at far higher levels. Of
course there are no assurances it will get there either and even if it does there will be huge obstacles
on the way. Efficiency and productivity continue to soar at a time that the economy threatens to strenght-
en markedly with relatively little pent up demand. The best bet is that the economy will muddle through
gold will stay on its current course until inflation is ready to turn back down (this will be years).

Gold is probably safe to buy as stock or other financial forms but if you buy silver then it's best to take de-
livery. Modern gold makes an excellent form where it's available at spot based prices. World gold is also
a good form since it can be far scarcer and has potential for even more growth in numismatic demand.

RedTiger

<< <i>Hey all...

My brother calls me up and asks about investing in gold. I tell him about that I don't know much, but there are risks and updsides, etc... I also tell him a story from back in 1998 when gold was $275 or something silly like that. My boss asked me to invest $25,000 for him in gold bullion. I did a little research and decided I didn't want to get mixed up in that deal. I'm a conservative investor. I don't know what he did with it, but the point is, if he put it in gold, he would have made money today.

Gold is way up. Does it still have room to grow? I know there are dozens of sources to answer this question, so take it as rhetorical.

What gold coins can be had close to spot? I remember a discussion about 1987 Constitutions at around spot on the BAY. Is there any more info on this?

Any guidence would be helpful.

Thanks. >>



$275 to $500 in seven years isn't exactly something to get excited about. Again, no one that I know, or know of has gotten rich investing in bullion. Short term trading, options, futures are a different story. Bullion is more of a store of value, preserving capital and perhaps a good +25% year here and there. It is more of a store value, an insurance policy, than anything else. If a person has perfect timing he/she might quadruple their money in 10 years--nice but it is not going to make someone rich unless they are already rich, and no one is perfect except liars. Anyone asking for advice is best off with a small exposure to bullion (1% to 10%), as insurance, and investing the rest in diversified assets such as stocks, bonds, CDs, real estate.

As the first reply said, plenty of coins can be had for a small premium over spot. If one shops carefully, sometimes at or below spot.

Deadhorse

<< <i>As the first reply said, plenty of coins can be had for a small premium over spot. If one shops carefully, sometimes at or below spot. >>



At or below spot? Point me in that direction, please.

RedTiger

<< <i>

<< <i>As the first reply said, plenty of coins can be had for a small premium over spot. If one shops carefully, sometimes at or below spot. >>



At or below spot? Point me in that direction, please. >>



It usually takes a lot of shopping on the sites to find these and once in a while someone reports such a buy. However today is different for people that still have their holiday ebay/paypal coupons unused. With the coupons a good number of bullion coins can be had for below spot factoring in the discount.
* 10% off ($25max) coupon code: C1-Holiday2005
* $5 off $50 coupon code: C2-Holiday2005
* $15 off $100 coupon code: C3-Holiday2005
One item, one use per coupon, expires Wed 11/30 midnight! Auction or buy-it-now, must be paid by Paypal before deadline.

I've used two of mine already (though not on gold).

Freak1c

There are people on this site who are very very bright. I have learned a lot of valuable information that is priceless here. I am always learning. Do your homework, get advice from everyone you can, I have found that there are gold coins out there that are still undervalued. You just have to know what you want and where to find it. It will depend on how long you hold onto it (or willing to hold onto it) and selling at the right time to the right buyer. You may want to consult someone to act as a buyer for you. I personally do not buy bullion, but you and others may differ. I have had better luck with buying common St. Gaudens to turn a quicker buck. If you are familiar with the stocks and bonds, or funds, then there is another avenue of diversifying. But again do your homework first. There are risks in everything you do. Good luck.


Tom

michael

only buy numismatic gold pre 1933 minted by the feds

coins that are pcgs/ngc with above average eye appeal and quality for the grade as per the below

ms 63 64 saints generics and/or a little better date

threes in choice xf to choice au 1858, 1860-65 1877 under 1000 minted 1880's dates choice cameo proofs any dates

the rarest demon in proof which are proof ten liberties cameoed

any civil war dated proof gold cameoed 1861-65

and pre civil war dated proof gold cameoed

gem unc one dollar gold 1879-1889

choice unc indian tens

rarer date stand alone gold type choice xf to au mintmark obverse any classic head quarter and half eagles

a nice choice unc incuse 5 dollar indian

choice au type 2 lib twenties proof like even better centennial date 1876 a ++

any generic date cc gold choice au 2.5 5 ten 20

Deadhorse

<< <i>

<< <i>

<< <i>As the first reply said, plenty of coins can be had for a small premium over spot. If one shops carefully, sometimes at or below spot. >>



At or below spot? Point me in that direction, please. >>



It usually takes a lot of shopping on the sites to find these and once in a while someone reports such a buy. However today is different for people that still have their holiday ebay/paypal coupons unused. With the coupons a good number of bullion coins can be had for below spot factoring in the discount.
* 10% off ($25max) coupon code: C1-Holiday2005
* $5 off $50 coupon code: C2-Holiday2005
* $15 off $100 coupon code: C3-Holiday2005
One item, one use per coupon, expires Wed 11/30 midnight! Auction or buy-it-now, must be paid by Paypal before deadline.

I've used two of mine already (though not on gold). >>




OK, but that's a short term, one time deal. Also, you aren't going to buy much in the way of gold with that method either.

I don't share your outlook on what one can make doing quick flips on bullion. Granted, you need a bit of working capitol but if you can flip it even once a month at 2-3%, you're looking at around 30% annually. Gold is harder to do, but silver with it's volitility and if you can afford to sit on it as needed, can be flipped with regularity. Yes, you do need to be working with a minimum of five figures to start with, but it can be done. In fact, it's done all the time by lots of people.

Personally, I'd rather put away any profit back into metals for the hoard. It's a nice low cost way of creating some real wealth over several years.

fishcooker

Again, no one that I know, or know of has gotten rich investing in bullion.

People who got poor investing in stocks, oil, and real estate are a dime a dozen.