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Help for the little guy

PlanchetPlanchet Posts: 294
in Precious Metals
I woul be a very small investor compared to most.
Thinking about whether to put my money in tenth or quarter
ounce age's which seem to have very high premiums
bs k-rand tenth or quarters. Local b&m said 20 franc or
sovereigns are better deals as they sell for $10 over
spot. I would be buying one or two coins at a time
based on what I wish to spend. Any thoughts or
ideas.

Comments

  • mhammermanmhammerman Posts: 3,769 ✭✭✭
    Buy US coinage at what ever level you can handle. There ya' go. When you talk about the buy price with a dealer, don't forget to ask about the sell price too, maybe even check the sell price with a different dealer...hummmmmmm...then you will see why the francs and sovereigns are better deals on the buy side. Don't get into something that you don't know how or what you're going to get out of it.
  • rickoricko Posts: 98,724 ✭✭✭✭✭
    I agree.. stick with U.S. gold.... study some more.. lots of information available. Cheers, RickO
  • OPAOPA Posts: 17,119 ✭✭✭✭✭
    US Gold does carry a premium when buying and selling, but so do PAMP & Credit Suisse bars which are recognized all over the world as the premier Gold bullion to have, but with a slightly smaller spread than the AGE.
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • guitarwesguitarwes Posts: 9,266 ✭✭✭

    In general, stuff that you can buy from a dealer at a low premium will bring a low premium when it sells.

    The stuff that brings a good premium when you buy will usually bring about the same premium when it sells.


    Study up on average premiums for different bullion coins ( I recommend U.S. also). Then when a better deal comes along you can snatch it up.

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  • jmski52jmski52 Posts: 22,822 ✭✭✭✭✭
    I subscribe to cohodk's way of thinking in that accumulating cash in this environment (while you are saving to buy gold) will not hurt you much, if at all.

    I think we are in for a long bout of increasing costs (including healthcare), increasing taxes, rising commodity prices, lower home values, and tougher job markets.

    To me, this says "avoid debt accumulation". Gold should fare reasonably well on relative terms, but I would try to keep some cash reserves so that you don't have to turn right around and sell gold if you need the money for something else, thereby forfeiting the transaction costs involved.

    The premiums on 1/10 oz and 1/4 oz AGEs will always be steep when gold is in demand, so you stand a chance of losing that premium when you buy in a strong gold market. However, buying foreign gold has the same problems in a slightly different way - if the gold market is strong, premiums are less than for AGEs, but if the gold market is weak some foreign gold may be hard to sell without discounting it.

    It all comes out in the wash, if you educate yourself on the current premiums from various sources. I also prefer US coinage, but buy whatever most appeals to you. If you feel the need to buy on a more regular basis so as to average your costs, buy silver.

    Also, take mhammerman's advice about getting the dealer's buy/sell quote for WHATEVER you are buying. Figure the spread and shop it around a bit in order to keep them somewhat honest.
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  • ttownttown Posts: 4,472 ✭✭✭
    Don't overlook the $5 and $10 modern gold comm's.
  • derrybderryb Posts: 36,793 ✭✭✭✭✭
    You have to consider difficulty of resell. Most buyers (especially new one) have been advised to stick with US gold coins. Any extra premium you pay now you should easily recover later.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • 57loaded57loaded Posts: 4,967 ✭✭✭
    i like jmiski52/cohodk's views.

    maybe start with some 90% Ag now (JMO)
  • PlanchetPlanchet Posts: 294


    << <i>I agree.. stick with U.S. gold.... study some more.. lots of information available. Cheers, RickO >>



    Rick, by us gold I assume you mean AGE's and not Classic older US Gold coins. Is that correct?
  • TheBigBTheBigB Posts: 942 ✭
    I think that 20 franc pieces and sovereigns are a good play when the premiums are low.

    In my area the premiums on gold eagles have fallen versus other bullion coins.
  • morgantypemorgantype Posts: 456
    Go for it!

    US fractional eagles all the way.

    The premiums hold up pretty well, and if you ever need to sell, you can sell in smaller increments. Versus having to sell a whole ounce if all you have is one ounce eagles and you only need 300-500 bucks.

    Also, I like being able to pick up some every now and then, and it's really nice when you get a whole tube filled up.

    Good luck!

    Also, comb the pawn shops, jewelry shops, and you are sometimes able to find some fractional AGEs at melt.
    Many buy and sell transactions. Let's talk!
  • pmcollectourpmcollectour Posts: 1,211 ✭
    Do an extensive ebay search to see which kind of gold sells on there and at what prices. If you're not comfortable with ebay,
    then take the advice of your local dealer.
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