You've got $30k to invest in gold. What would you buy and why?
Weiss
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Assume you have no debt and are fine in equities, real estate, cash, etc.
The main focus is protection of portfolio vs. instability.
I appreciate it if you'd buy a farm, or open a business, or invest in a natural resources fund or gold ETF, or whatever. That's not what I'm asking. I'm just looking for opinions on physical gold.
You've got $30k to invest in gold for portfolio protection, and a hedge against uncertainty, inflation, or whatever else you want to name.
Me:
I am fond of classic gold, so ideally it would be AU/BU classic gold at very near melt. But that's a hard order to fill and could take years. They offer numismatic gains but aren't as well-known globally. And it can be messy: different slabs, different generations of slabs, unslabbed raw.
My favorite bullion are 1970s-era krugerrands. Understood globally, very durable, and very low premium. Cons are full ounce size limits flexibility when you sell, and the same thing that keeps premiums low could mean less desirability when it's time to sell.
I have also extolled the virtues of fractional American Gold Eagles, specifically the 1/4 ounce. They offer flexibility when you liquidate, they're well recognized, difficult to counterfeit, and can be found with low premiums with some searching.
What would you do in this scenario, and why?
--Severian the Lame
Comments
I'd go with a mix of PCGS-69 graded/authenticated gold American eagles. Pay a slight premium up front but you get a premium on selling plus you don't have to worry about fakes...
I'd try to find a 1795 or 1820 half eagle, or 1797 eagle that spoke to me. Actually, in that price range, I'd also like her to sing and dance. My answer is based on already having most of a US type set in gold, and duplicates of types as well as AGEs and foreign. If this was my first gold, I like both of your answers very much.
Liberty: Parent of Science & Industry
Weiss, in thinking about this more, your repeated mention of "globally" and "flexibility" implies you foresee the "scenario" of selling the gold abroad, a little at a time, and perhaps anonymously. In which case, you've already answered your own question.
Liberty: Parent of Science & Industry
I like the Gold Buffalos more than the AGE's. In Asia and other venues pure gold is more desired than less than pure gold.
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I'd buy gold spoons. The silver spoons that fed me are boring , by now. Bwahahaha. Let's assume we are all rich and _ _ _ _ .
1/4 oz and 1/2 oz AGEs with some Gold Buffs thrown in.
I knew it would happen.
I like the buffalo idea. But they aren't as widely known as the eagles. The main online dealers don't show much of a premium difference between Eagles, Buffaloes, and Krands. As I type they are: Eagles $1238, Buffalos $1252, and Krands $1234. That's $5 to $15 each.
What about roughly 10 buffaloes, 10 Krands, and the balance in 1/4 eagles?
--Severian the Lame
Wait for a sign that the bottom is in. Raw gold eagles and gold buffalos as close to spot as possible. Ebay bonus buck offerings (when they appear) will be your best bargains by looking for sellers not listing in the bullion category. MS69's are sometimes offered without extra premium.
"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 know this is boring but I wouldn't think twice about buying one ounce AGE's with the 30k.
That's what I buy
mark
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
https://coins.ha.com/itm/saint-gaudens-double-eagles/double-eagles/1929-20-ms63-pcgs/p/1251-3165.s?ic4=GalleryView-Thumbnail-071515
You may have to chip in a couple thou or so but I know that your "bag of cash" can absorb it.
I would average in as well, rather than an all or none sort of buy
I would get 1 oz gold eagles with half a dozen D & C southern gold thrown in for variety.
Got quoins?
I would buy all AGE's, I see those as most liquid.... one ounce coins, bullion. Cheers, RickO
Untouched Mint tube of AGE's.
I keep the cash and wait for an opportunity more promising than pm's to come along.
I'd do American eagles (gold and silver)
JM and Engelhard silver bars, (10 & 100oz)
and junk silver. A few sovereigns and gold maples wouldn't hurt either.
It would be a fun shopping trip!
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A 30k gold 1965 vette convertible driver, best I could find.
A speculative buy with considerable downside protection:
Twenty 2016-W uncirculated one-ounce American Gold Eagles from the Mint, for a total cost of $29,500.
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Using your guidelines and my preferences, I would choose a mix of one ounce Buffs, some K-rands and a mixture of one-half and one-quarter ounce AGEs. I like the Buffs because they are a more fine form of gold and many in Asia prefer this purity level. I also simply like the design of the Buffs, as well. The K-rands are known everywhere and for folks of my generation (likely the generation of many of us posting to this thread) they are universally recognized. I also like the K-rand design, as well. The AGEs I would go with the fractional pieces in the event that you want or need to liquidate smaller units at any one time. Overall, I might split it up as 10 x Buffs; 10 x K-rands and the balance fractional AGEs.
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_I like the buffalo idea. But they aren't as widely known as the eagles. The main online dealers don't show much of a premium difference between Eagles, Buffaloes, and Krands. As I type they are: Eagles $1238, Buffalos $1252, and Krands $1234. That's $5 to $15 each.
What about roughly 10 buffaloes, 10 Krands, and the balance in 1/4 eagles?_
I would check the buy-sell spreads on Apmex and Scotsman Coins. A large Calif. dealer in LA (I forget their name) also publishes a live buy-sell quote sheet as well.
Liquidity is always important and 1 oz. AGEs will probably be the most liquid which means that they ought to have the smallest spreads. I know that you like K-rands, but I can't vouch for their liquidity these days - they might be just fine. The gold Buffs and fractional AGEs - I would expect slightly higher premiums and slightly wider spreads.
If the purchase is intended to be for the long term, keep in mind that fewer the line items the easier they are to manage as you start to divest. Each line item will have it's own cost structure, so the fewer the better unless you enjoy accounting.
I knew it would happen.
common date Sovereigns , and 20 francs Swiss or French
I've always liked the PAMP 1 ounce bars and they're going for marginal spot prices. Some lower than spot. The Eagles might be a safer bet, with a 3 metal makeup. A wilder gamble would be, historical gold. Added extra premiums, if you're willing to save for a number of years. It's interesting to see everyone elses opinions.
I like the Platinum play first but since you said gold I would buy as many Saint Gaudens at PCGS MS64 grade as possible. They are only slightly more expensive than the US mint Gold buffs and AGE's and offer some collectability value just in case bullion crashes again.
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I'd go all quarter oz eagles or nearly all quarter oz eagles and a few half ozers
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Slightly more expensive and they contain less gold (.9675 oz vs. 1 oz) than the modern US gold bullion.
"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