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20K to invest in gold ....

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?

Comments

  • Is he set on the exact form he wants to obtain it in?
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  • 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.
  • ARCOARCO Posts: 4,428 ✭✭✭✭✭
    Gold bullion might be a good buy. With Bullion you are just paying for gold that is priced at spot + a slight dealer transaction premium. There are many good bullion dealers, but my favorite is Tulving.com. Prices for bullion are the best that I have seen and shipping is free. I bought 30 Mexican 50 peso gold coins there two years back. If I remember correctly, even the $15.00 to wire the money to them was reimbursed.

    Tyler
  • I've had good luck with www.apmex.com
    image
  • flaminioflaminio Posts: 5,664 ✭✭✭
  • For bullion I like California Numismatics Investments.

    Link
  • Craton, that's going to be key. If he wants it for survival/catastrophe, or capital appeciation, or to hide money, etc. the reason influences the form. The place Flaminio points out (Tulving) is a good place for many bulk orders. My general quick advice is (assuming he just wants to keep part of his portfolio in gold) that he stick with quality and buy U.S. Government issued bullion. When purchased in mint sealed bulk cases or tubes, and when considering the longer term numismatic value that is added, it's easy to justify the premium. For an unknown future, it is hard to beat the liquidty and confidence buyers have in Government issued bullion. In a catastrophe, same thing - who has an assayer handy for bars or rounds?

    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.
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  • roadrunnerroadrunner Posts: 28,313 ✭✭✭✭✭
    For the time being the leverage in MS64 to 65 saints is hard to beat. Sure, a 65 is 2X bullion, but so is a wheat cent.
    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
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • au58au58 Posts: 1,288 ✭✭✭


    << <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?
  • "Buying gold bullion is not an investment, it is speculation."

    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.
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  • roadrunnerroadrunner Posts: 28,313 ✭✭✭✭✭
    EVERY "investment" offered today (including treasuries) is a speculative venture with fairly high risk due to massive manipulation of most every market. Dollar based US stocks have barely kept their heads above water the past few years due to net dollar devaluation. Against the Euro our stock market is flat the past few years, no miracle gains here fellas.

    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
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • michaelmichael Posts: 9,524 ✭✭✭
    ms63/64 saints
  • MikeInFLMikeInFL Posts: 10,188 ✭✭✭✭
    Personally, If I were in his position and wanted to buy numismatic gold I would send the $20k to Mark Feld and have him buy the coins for a (small and fair) fee.

    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
    Collector of Large Cents, US Type, and modern pocket change.
  • roadrunnerroadrunner Posts: 28,313 ✭✭✭✭✭
    The 65's will strongly outperform the lower grades on this next move...esp so since the 65's are already underpriced by 10% during the previous move down. $ for $ the 65's should be at $1450 right now. Obviously they aren't.

    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. image

    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
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • michaelmichael Posts: 9,524 ✭✭✭
    then only buy ms65 saints pcgs only sight seen
  • jpkinlajpkinla Posts: 822 ✭✭✭
    I agree with Roadrunner that the MS65 AND MS66 Saints present the biggest bang for the buck but remember that there is quite a bit of numismatic premium in them. You are NOT getting $20k of gold....

    With $20k, I would suggest you buy as much gold as possible so stick to the bullion bars or Buffalo/American Eagle coins....
  • Your friend just missed the greatest opportunity at an instant double with the AGE Anniversary sets!
  • He needs to go to a coin show if he has that much to spend. American Eagle and Buffalo Gold Bullion coins should do plus a portion for silver coinage - Silver eagles and 90% silver bought close to melt. I think silver is eventually going to move up to the traditional 15 - 1 ratio with one forecaster projecting $2950 gold and approximately $200 silver in the next coupla years. Numismatic coins in the last year have performed poorly in my view vs bullion. Silver bullion material has had the largest gain vs gold and platinum. A large portion of the post WW2 silver has been used up and when whats left goes the price should go thru the roof.

    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?
    You can't win an arguement with a crazy.

    Parker
  • roadrunnerroadrunner Posts: 28,313 ✭✭✭✭✭
    Nice move on some of the gold stocks today (4-6%) while US dollar index tanked dramatically into the 82 range. Oil up over 62 as well.
    Boston show opened today at 4:00 pm and generic Saints were already selling for premiums.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold

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