Gold Nuggets - Help Me Understand please

morgantype

Hey all-

Cruising Long Beach I saw many nice gold nuggets available for sale.

What is the deal with these?

What I think I know:

Bigger nugget = rarer and thus a higher premium
Different purities I.e. Some are 24 k some 10 k
Is there an average purity used in the business?
The "yellower" gold is closer to 24k I think?!

I guess I don't know that much! HA!

My questions:

How liquid are these nuggets?
Many were selling at the 50-55 per gram range, is this a fair price?
Do you own any?

Anyhow, if there are any members that are knowledgable about said topic I would love to learn from you.

Any experiences, stories, ideas etc.

The way I figure it, if I am buying a 1/10 or 1/4 eagle, I am paying a fairly significant premium. Why not pay the same premium (or less) and get a nice gold nugget.

Thanks for your input.

PutTogether

<< <i>

The way I figure it, if I am buying a 1/10 or 1/4 eagle, I am paying a fairly significant premium. Why not pay the same premium (or less) and get a nice gold nugget.

Thanks for your input. >>



Biggest reason is liquidity. At any given moment, on any given day, you can turn on the internet and see an exact buy-sell spread for a gold eagle from a half dozen or more different companies. You know precisely what you'll get out of it if you decide to sell, with no questions, nor argument, no even having to speak to someone. All of this is an imposibility with a gold nugget. Go to sell and you'll be arguing with someone over weight, fineness, value, ALL OF IT.

If you want to buy a small nugget because you think it is neat......cool. As a way to invest of save in gold --- I can't fathom it working out well for anyone.

gecko109

<< <i>

<< <i>

The way I figure it, if I am buying a 1/10 or 1/4 eagle, I am paying a fairly significant premium. Why not pay the same premium (or less) and get a nice gold nugget.

Thanks for your input. >>



Biggest reason is liquidity. At any given moment, on any given day, you can turn on the internet and see an exact buy-sell spread for a gold eagle from a half dozen or more different companies. You know precisely what you'll get out of it if you decide to sell, with no questions, nor argument, no even having to speak to someone. All of this is an imposibility with a gold nugget. Go to sell and you'll be arguing with someone over weight, fineness, value, ALL OF IT.

If you want to buy a small nugget because you think it is neat......cool. As a way to invest of save in gold --- I can't fathom it working out well for anyone. >>






Gold star for you!

PerryHall

Agree with the above except I don't think there are any 24K nuggets---most are around 18K give or take. Every nugget is unique and people that collect mineral specimens also want a few natural gold nuggets to include in their collection. Also, they are used in the jewelry industry. It's a neat collectible but a lousy way to invest in and hoard gold bullion.

CaptHenway

Natural raw gold varies in fineness depending on which volcanic flow it came out of the earth in. A lot of early California gold rush gold was simply melted to remove the traces of rock and quartz and made into coin as is, which is why you have pieces marked .880 fine, .884 fine and .887 fine. 21 karat would be .875 fine and 22kt .916667 fine, so the California gold tended to be slightly above 21kt.

I have heard that Alaska gold tends to be a bit finer, but I have no statistics.

TD

BBQnBLUES

Go to this website, it'll answer all your questions GoldBay

Weiss

I think I mentioned it before, but when I was a kid me and a friend got good and (censored) on some (censored), then decided to play with fire.

We took one of my 10 oz silver bars (yes, I was a metals geek when I was 14 and that was almost 30 years ago), held it with pliers, then applied an over the counter butane or map gas torch to it. Only took a minute or two to heat it to the most beautiful orange and red you'll ever see, then it began to weep molten tears---into the tub of water we were holding it over.

Each drop made a beautiful .999 silver nugget. We had a huge handful by the time the night was over.

I have no doubt that experienced nugget collectors could tell a "fake" immediately. I doubt a novice could, though. And the nuggets we made were pretty enough to make into jewelry. I imagine gold would do the exact same thing. With the premiums that nuggets sell for...

morgantype

Thanks a lot for all the replies.

I appreciate all of your input.

Liquidity, that is the name of the game isn't it?! All of your reasoning around this, set market, published prices, consistent spreads and premiums is spot on. This is definitely a strong consideration when I buy, and is may have lost sight of it recently! Hah!

As far as the fineness goes, what is the best way of determining this? How is this handled in the market? Can this be a point of negotiation when buying/selling?

I still have to check out that website, and welcome more information.

I prefer fractional gold, and dont mind the premium too much when I get a little here and there. But the romance of the nugegets...

I will have to sharpen my negotiation skills at the next show, I will also ask around at my local B&M. Perhaps, I am just playing with fire though!!!!!

Thanks again!

roob47

I could not help it , I really like "gold nuggets" i buy from a few dealers that i have come to know from a friend of mine. I am by no means a huge spender but every couple of weeks i buy a few pieces of gold and a few pieces of silver. My latest was a 1988 1/20 oz gold panda and a 1gram gold istanbul bar. The previous was a 4.1 gram gold nugget form australia as well as a 1oz silver grizzly from canada.
So for me buying nuggets is great , just wanted to join in on the conversation, thanks all for a great place to be other then here @ work!!!!!

7over8

Australia - 22/23kt (.900 - .940)
California - 19/21kt (.800-.880)
Alaska - 18kt (.750)

approximates. Alaska by far the worst purity of the three.

mkman123

Got a few tiny ones for the heck of it. May want to get a
half to full oz one day but that's it. Would rather stick to bullion or numismatic

ricko

I have two nice nuggets that I found myself.... 7/11 grams.... I like them the way they are and the memories they hold. For investment, go with coin gold... Cheers, RickO

Tdec1000

<< <i>I have two nice nuggets that I found myself.... 7/11 grams.... I like them the way they are and the memories they hold. For investment, go with coin gold... Cheers, RickO >>



Unless your a miner and find them for free minus equipment costs. I found a bit of gold last weekend up here in Alaska. Hopefully more this weekend.