What's the most liquid way to own physical gold?
RB1026
Posts: 1,469 ✭✭✭✭
I'm not active in PM's and have a client asking me for advice on how best to buy and hold gold. Would you recommend AGE's (raw or PCGS?) or ??? He wants to invest $5-10k and be able to liquidate quickly if needed.
Thanks in advance for your replies.
Thanks in advance for your replies.
0
Comments
The more pieces you have the longer it takes to liquidate them though. He should add one or two 1 oz. JMHO
1/10 AGEs can always be gotten rid of piecemail, as could 1/4s due to the relatively cheaper cost than say 3-5 1oz coins.
I'd split it up between 1/10 and 1/4s and maybe a 1/2 or 2 and not worry about it.
to add - BAH, that was my 2000th post and I wasn't paying attention.
Is there a benefit on liquidity to PCGS graded vs Raw?
<< <i>Good points, thanks very much.
Is there a benefit on liquidity to PCGS graded vs Raw? >>
Not to me on those. Some will say you could get more for a graded piece, but I don't agree with that on sub 70 grades. I wouldn't/don't pay more for a 69 example over raw, especially from a reputable dealer. And dealers generally aren't going to give you back any premium for those slabs most of the time - my local dude doesn't.
<< <i>I would suggest AGE raw, 1/10 and/or 1/4. In the US are the most liquid (and are pretty liquid outside of the US too).
The more pieces you have the longer it takes to liquidate them though. He should add one or two 1 oz. JMHO >>
Sounds good.
This person would probably need to sit down and determine, how long they want to hold, what is the maximum amount of time they are willing to take to liquidate, and how steep a discount they are willing to give to achieve that liquidity if needed.
Just my two cents.
<< <i>Good points, thanks very much.
Is there a benefit on liquidity to PCGS graded vs Raw? >>
IMO yes. certified by a major TPG includes certification of authenticity. MS69s don't cost much more than raw. The more gold goes up the more it will attract counterfeiters. I personally suggest you stick with quarter inch AGEs or Gold Maples. If going raw only, I'd stick with AGEs. Buying quantity from a wholesaler will bring the price per piece down.
"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
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>I would suggest getting a roll of 1/10 AGE or Maples. >>
The problem with the 1/10th oz coins is the premium you have to pay to get them. It has been my experience that the local guy pay spot, be it one -1oz coin or ten - 1/10th oz coin. So, in the long run, gold has to realy increase to pay for that premium the 1/10oz coins demand when purchased.
All of the previous suggestions are variations on the same theme. Your client can pick from any of these ideas and it will work out as good as you could want, subject to market conditions of course.
I knew it would happen.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>I'm surprised someone hasn't suggested storing your gold in a crucible at 1800 degrees centigrade. >>
I thought about posting that but . . . .
When I sell, I check the buying prices at Scotsman, Tulving, Silvertowne and Apmex. And maybe one or two more if I think it's necessary. If I'm only selling one or two coins, it's probably ebay.
I've been to see both local guys here, but I seldom do any business with them. Too greedy.
I knew it would happen.
<< <i>I've been to see both local guys here, but I seldom do any business with them. Too greedy. >>
YUP!!!! Same thing I have found!!
<< <i>
<< <i>Good points, thanks very much.
Is there a benefit on liquidity to PCGS graded vs Raw? >>
IMO yes. certified by a major TPG includes certification of authenticity. MS69s don't cost much more than raw. The more gold goes up the more it will attract counterfeiters. I personally suggest you stick with quarter inch AGEs or Gold Maples. If going raw only, I'd stick with AGEs. Buying quantity from a wholesaler will bring the price per piece down. >>
"Quarter inch"
AGE's in any form or fashion is my advice and every one else's it seem's
It's more a matter getting the most oz. for your dollar. My own preference would be for AGE's, Maple's, and $20 Libs/Saints.
It was only a few months ago that you could buy MS63/64 saints for a 12-15% premium to spot. Now those levels are at 23% (ie outperformed an AGE).
And while a slabbed, no spots MS64 Saint might be a little less liquid than an AGE, they are still easy to sell just by picking up the phone.
“We are only their care-takers,” he posed, “if we take good care of them, then centuries from now they may still be here … ”
Todd - BHNC #242
<< <i>Everyone has their own flavor, but I'd do the 1/4 oz AGE's ... and at an extra 10. bucks a coin (typically), based on your clients concern and probable lack of understanding in the market, I would consider slabbed (PCGS and/or NGC) MS69's for maximum ease of liquidity (bigger pool of ready, no-questions-asked buyers). >>
Where you buying 1/4 oz AGE's at $10 over? Just give us ALL a link
<< <i>
<< <i>Everyone has their own flavor, but I'd do the 1/4 oz AGE's ... and at an extra 10. bucks a coin (typically), based on your clients concern and probable lack of understanding in the market, I would consider slabbed (PCGS and/or NGC) MS69's for maximum ease of liquidity (bigger pool of ready, no-questions-asked buyers). >>
Where you buying 1/4 oz AGE's at $10 over? Just give us ALL a link
i believe he is talking about a $10 premium for MS69 vs. raw.
"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
<< <i>In the last 20 years I've never met a reputable dealer that wouldn't buy an AGE or Kuggie for 3% back of spot. >>
Doesn't exactly sound like a generous offer. You could get more on the BST here.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
that may be true but BST does not work for me very well. I like to deal with people I know. I've had a couple of people want to see the coin in advance on BST and while that doesn't bother me, they made lower offers when I consigned it to them. I also had a guy want to come to me for a $15 purchase...that creeps me out. I've heard every hard luck story around and don't need them anymore. You realize I'm 59 and have been collecting for 50 years and am a little set in my ways
and I don't advertise my business on BST. Or anywhere for that matter.
I'm extremely comfortable with certain dealers in SoCal. Those same dealers will sell to me at spot + a couple of dollars as long as premiums aren't outrageous. 4% swings I can live with. Everybody has to eat.
regards
<< <i>Perry,
that may be true but BST does not work for me very well. I like to deal with people I know. I've had a couple of people want to see the coin in advance on BST and while that doesn't bother me, they made lower offers when I consigned it to them. I also had a guy want to come to me for a $15 purchase...that creeps me out. I've heard every hard luck story around and don't need them anymore. You realize I'm 59 and have been collecting for 50 years and am a little set in my ways
and I don't advertise my business on BST. Or anywhere for that matter.
I'm extremely comfortable with certain dealers in SoCal. Those same dealers will sell to me at spot + a couple of dollars as long as premiums aren't outrageous. 4% swings I can live with. Everybody has to eat.
regards >>
Sorry to hear this. I've always had great experiences doing transactions on the BST.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>
<< <i>In the last 20 years I've never met a reputable dealer that wouldn't buy an AGE or Kuggie for 3% back of spot. >>
Doesn't exactly sound like a generous offer. You could get more on the BST here. >>
In regards to the one who is buying the gold in this discussion? This buyer would most likely want to "walk in" with gold and walk out with $$$$ in hand.