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What is the best way to purchase an ounce of gold?
Stupid
Posts: 558 ✭✭✭
I'm trying to find the cheapest way to get an ounce of gold.
I've read a lot here and am not sure of what is the least expensive, and best way to purchase. Should I buy a Buffalo, or American eagle? I'm assuming certified by PCGS or NGC would be preferred if I needed to sell later. Would ebay with bing cashback be the least expensive? I'm just looking to start with an ounce of bullion, no numismatic value. Looked at several online sites and they appear to be higher than I could find on ebay, if using cashback. Any help is appreciated.
Tony
I've read a lot here and am not sure of what is the least expensive, and best way to purchase. Should I buy a Buffalo, or American eagle? I'm assuming certified by PCGS or NGC would be preferred if I needed to sell later. Would ebay with bing cashback be the least expensive? I'm just looking to start with an ounce of bullion, no numismatic value. Looked at several online sites and they appear to be higher than I could find on ebay, if using cashback. Any help is appreciated.
Tony
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No matter what, buy what you like or you won't be happy with it.
edit for missing word
https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907-cac/alltimeset/268163
<< <i>I've been buying pamp suisse and credit suisse 1oz bars on ebay with cashback. If you take your time you can usually end up at or below spot.
No matter what, buy what you like or you won't be happy with it. >>
Where does the money come from for the cashback payments?
Obviously not the buyer.
If the seller, he is getting shaffted royally.
If eBay, how do they make money by giving it away? Is it just a promotional/advertising expense for them? If so, it seems like an incredibly stupid business model.
I would appreciate someone explaining it to me.
TD
<< <i>
<< <i>I've been buying pamp suisse and credit suisse 1oz bars on ebay with cashback. If you take your time you can usually end up at or below spot.
No matter what, buy what you like or you won't be happy with it. >>
Where does the money come from for the cashback payments?
Obviously not the buyer.
If the seller, he is getting shaffted royally.
If eBay, how do they make money by giving it away? Is it just a promotional/advertising expense for them? If so, it seems like an incredibly stupid business model.
I would appreciate someone explaining it to me.
TD >>
To best of my knowledge the money for cashback comes from Microsoft. They are interested in getting buyers accustomed to using Bing as a search tool when shopping on the internet.
https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907-cac/alltimeset/268163
<< <i>
If eBay, how do they make money by giving it away? Is it just a promotional/advertising expense for them? If so, it seems like an incredibly stupid business model.
I would appreciate someone explaining it to me.
TD >>
It's part of their advertising/marketing budget. As with many promotions a few items are sold as loss leaders. Usually, it is more than made up for with an increase in overall sales and market share. Take the example of big box stores that advertise a few loss leaders, to get folks into the store. Many of those folks will also load up on much higher margin products. A lot of folks get their cashback and spend more than they would have otherwise. It's the "free money" syndrome. I know I've been guilty of it with a coupon or promotion, buying stuff I would not have because there is some percentage off.
Only a small percentage of folks are buying coins or bullion. Many more are buying consumer electronics, or musical instruments, or DVDs or whatever. The increase in market share for the search engine means that Bing can charge higher click through rates.
Some more analogies are a double coupon on a consumer product, or a car dealer that advertised a stripped down car at a great advertised promotional price. A person may wonder how the product can be sold for a profit, given the promotion. Well, if everyone, everytime used the double coupon, and everyone only bought the stripped down promotional car, there probably wouldn't be much if any profit. However, only a small group is that penny-pinching. Same with the cash back, a few are getting deals, but the majority are buying other stuff, often lots of other stuff with their cashback.
Those getting the good deals often tell their friends about their great buys. The friends aren't diligent enough to get the same great deals, but instead only remember a vague story about a good place to shop, and buy other stuff at full margin. Advertising, coupons, loss leaders are all part of the game.
TD
Tony
Take bribes in gold for influence
peddling. If you get caught, serve
time, get out and open a consultant firm.
Discover God, write a book and become a
motivational speaker.
Camelot
Fred, Las Vegas, NV