Is my stacking method flawed?
WorldWideGold
Posts: 7
I like my gold cheap, small, and with interesting designs.
I prefer foreign (but, some U.S common circulated $2.5 & $5 gold) gold fractionals(ducats, francs, pesos, iran pahlavi fractionals, and sovereigns (retrikes and originals) from the 1830's-1950's. I also like some of the more contemporary world fractionals that are proof or special issues that state purity and quantity on the coin like singapore proofs, Isle of Man, etc.
There are several reasons why I seek these out.
1) They can be purchased at spot or +/- 0.5%-1%. (often times found in PCGS/NGC plastic with no premium attached)
2) They are just as liquid as "bullion" or "trade coins"(AGEs, Maples, Harmonics, and Rands).
3) They have limited mintages.
4) They have very small buy/sell spreads compared to modern "bullion".
I prefer foreign (but, some U.S common circulated $2.5 & $5 gold) gold fractionals(ducats, francs, pesos, iran pahlavi fractionals, and sovereigns (retrikes and originals) from the 1830's-1950's. I also like some of the more contemporary world fractionals that are proof or special issues that state purity and quantity on the coin like singapore proofs, Isle of Man, etc.
There are several reasons why I seek these out.
1) They can be purchased at spot or +/- 0.5%-1%. (often times found in PCGS/NGC plastic with no premium attached)
2) They are just as liquid as "bullion" or "trade coins"(AGEs, Maples, Harmonics, and Rands).
3) They have limited mintages.
4) They have very small buy/sell spreads compared to modern "bullion".
0
Comments
When they sell it to you so cheap over spot it usually mean they will offer you quite less than spot.
The spread is more important than the premium over spot.
Groucho Marx
I guess my point is that if you want buy numbers closer to spot you should stick with the flagship coins (Eagles, Maple Leaves, etc.). This applies to silver as well. If a few points doesn't bother you or you're a long haul holder stick with the NCLT.
If I was stacking gold for long term your method looks pretty good. As long as your gold is authentic.
Rising prices demand goes up~ gold is gold. Falling or flat gold prices makes your stack less liquid.
<< <i>"NCLT gold" what does this stand for?
If I was stacking gold for long term your method looks pretty good. As long as your gold is authentic.
Rising prices demand goes up~ gold is gold. Falling or flat gold prices makes your stack less liquid. >>
NCLT= Non circulating legal tender.
For the OP, you get exactly what you pay for. In the case of "premium" bullion vs. non-premium, or oddball, or foreign gold, you usually pay more for the former, but you get more back when selling. Its the same as a silver eagle vs. a silver x-mas round. One is a bit cheaper to buy, but also brings a bit less when selling. For this reason, I try to stick to recognizable bullion.
<< <i>
<< <i>"NCLT gold" what does this stand for?
If I was stacking gold for long term your method looks pretty good. As long as your gold is authentic.
Rising prices demand goes up~ gold is gold. Falling or flat gold prices makes your stack less liquid. >>
NCLT= Non circulating legal tender.
For the OP, you get exactly what you pay for. In the case of "premium" bullion vs. non-premium, or oddball, or foreign gold, you usually pay more for the former, but you get more back when selling. Its the same as a silver eagle vs. a silver x-mas round. One is a bit cheaper to buy, but also brings a bit less when selling. For this reason, I try to stick to recognizable bullion. >>
Also, you have a much "larger audience" for the recognized premium stuff.
<< <i>
<< <i>
<< <i>"NCLT gold" what does this stand for?
If I was stacking gold for long term your method looks pretty good. As long as your gold is authentic.
Rising prices demand goes up~ gold is gold. Falling or flat gold prices makes your stack less liquid. >>
NCLT= Non circulating legal tender.
For the OP, you get exactly what you pay for. In the case of "premium" bullion vs. non-premium, or oddball, or foreign gold, you usually pay more for the former, but you get more back when selling. Its the same as a silver eagle vs. a silver x-mas round. One is a bit cheaper to buy, but also brings a bit less when selling. For this reason, I try to stick to recognizable bullion. >>
Also, you have a much "larger audience" for the recognized premium stuff. >>
I also agree with "you get exactly what you pay for."
I am in this for the long haul (20-30-40 years...I am 26) and using it as a diversification vehicle. I guess the point regarding premiums is somewhat moot as we do not know whether or not the premiums and/or spreads will remain proportional or even exist at all in 20-30-40 years. Correct? Assuming live that long.
I see two possible scenarios in my lifetime. Scenario A is that fiat money (in some form or another) survives, and that precious metals will never experience their true potential value. In this case, premiums will always be a factor when people decide to "collect" gold and silver coins, bars, or rounds.
Scenario B is much darker (and thankfully far less likely). Fiat fails globally and a shift back to precious metals based currency is adopted by the world. In this scenario, premiums will soar immediately as people new to metals will want very recognizable forms such as eagles, or JM/Engelhard bars. As people become much more comfortable with this new medium of exchange, AND as new refiners pop up all over to produce standard metals units, premiums will plummet to non existence eventually. Premiums only exist for 2 reasons right now. First is that people trust and want quality products made by recognized leaders in the industry. And secondly, people enjoy collecting mainstream items (just a larger collector base).
I hope all this sleep deprived babble makes at least a little sense.....now its off for a 4 hour power nap!