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20K to invest in gold ....
Craton
Posts: 2,670
I have a friend who has 20K to invest and he wants to invest in gold. Not gold stock but gold bullion. Are there any members here who can help my pal out or is there anyone here who has dealt with a firm personally and can give recomendations?
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Tyler
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Hard to say more without more info. Maybe diversifying by region turns him on and in that case, I believe Canadian Maples are the purest available.
Until the economy really hits a bad recession (and it will), the better grade saints will far outperform bullion imo.
If you want bullion and collectibility the 62's offer a nice package too. I just can't get excited over pure bullion
gold coins.
roadrunner
<< <i>no he isn't. While I have yet to really hear if he wants coin (bullion) or bar or what, I am going to steer him away from collectible coins and stick with bullion. >>
Buying gold bullion is not an investment, it is speculation.
Why is he asking you for investment advice?
I don't think it's fair to call a 3K year store of value a speculation. I understand why it is called that but in reality, as part of a long-term portfolio, whether it is as an inflation hedge, a diversifier, a tangible asset, a balance to dollar-based assets, or a catastrophe protection ... it's more than just a speculation, like some penny stock, in one's mix.
To consider gold, one of the few items you can buy that has nearly full intrinsic value (unlike an FRN that is worth about a cent or less in paper) speculative, is almost laughable in today's topsy-turvy financial world.
roadrunner
However, if I would probably just buy Krugerrands for as close to spot as I could instead. I use Apmex for these transactions and have been very happy...Mike
Also remember that if you buy saints in 64 and lower grades they fall under Patriot Act 2 recording regs. Should a gold buyer pick up $25K in those, and then sell them in the same year, that's $50K in transactional costs that are recordable under PA2. Failure to comply and maintain records plus an "approved written plan," can subject the person to fines, imprisonment, etc. It's a great act I might add. Really keeps the scum bag saint buyers on their toes. Everyone knows most of them are drug dealers, arms runners and money launderers.
Gold bullion of course falls under PA2 recording. Note that if MS65 saints fall much farther down the road or if gold increases dramatically and the premiums shrink, they too could fall under PA2.
roadrunner
With $20k, I would suggest you buy as much gold as possible so stick to the bullion bars or Buffalo/American Eagle coins....
$20 Saint Gaudens Registry Set
Your friend should stay away from expensive numismatic coins (unless he can grade) as many of these have been maxed out as far as the slab grade and many I have seen on the bourse (or in big gun dealer internet sites) having been resubmitted who knows how many times and grossly overgraded / overpriced in my view. These crackout artists are simply waiting for the end user to show up so they can collect on their big payday. Poor guys, the supply of nice coins to crackout to resubmit is dwindling and potential buyers who know how to grade are passing on them. Liberalize grading standards further anyone?
Parker
Boston show opened today at 4:00 pm and generic Saints were already selling for premiums.
roadrunner