Help/advice needed from you knowlegable people, please

Petarded · July 18, 2006 11:53AM

This is an actual situation, not hypothetical....a buddy of mine has come into exactly $14,000 as the result of some family land sale in Portugal, where he was originally born and has mega family there. He was interested in gold, when he saw a Monex commercial. I strongly advised him NOT to use any firm like them, and if he wanted bullion (he mentioned Krugerands) then I can help him out and put him where he should be able to not get RIPPED. I then advised him that if he wanted to go gold, perhaps he should think of collector gold, such as Saints. His thought was perhaps I am right, where I am way more knowledgable then the average Joe Q. Citizen (dont get me wrong, I am not so vain as to think I am all knowing, I know where I stand in this hobby and have more to learn than most of you could ever forget). Now, after thinking for a few hours, perhaps I should steer him to buy key dates. Remember, he is NOT a collector...I dont think bullion is a good way to go, and now I think some key dates would be a good thing for him to 'invest' in (I also advised him that collector coins, unlike bullion, can sometimes, if played right, can yield bigger 'profits' than simple bullion). SO, in all of your vast knowledge, forum members, what should I finally try to sell him on...is it:

A) Collector grade gold (IE Saints, Libs, perhaps some better date smaller denoms...yes, slabbed by the big P)

OR

Key dates and/or coins like '55 DD lincoln, '09-S VDB

I would greatly appreciate any and all advice, as he really just wants a store of value...we all know that gold is more likely to be good, thats what he wants, but in talking about collector coins, it piqued his interest (and may be a better way to go than bullion). This guy is NOT rich, but has this money and I want to help him make the right/best choice for longterm holding. To all that post with your thoughts, I want to thank you all VERY much in advance!

bidask · July 18, 2006 11:56AM

Steer him in the direction that HE wants to buy.

clw54 · July 18, 2006 11:56AM

He should leave coins alone if he's not a collector. Speculators make it harder for collectors to find material, and it's a risky investment in the first place. Tell him to invest in a mutual fund or smoething. Everybody will be better off.

Julio · July 18, 2006 12:06PM

He should leave coins alone if he's not a collector. Speculators make it harder for collectors to find material, and it's a risky investment in the first place. Tell him to invest in a mutual fund or smoething. Everybody will be better off.

That is sage advice. I would advise him to invest in something very boring and very safe. Safe being the key word. jws

mr3holesinone · July 18, 2006 12:09PM

Here's how I'd put $14,000 to work:

100 shares of Pepsi +/- $6,400;
100 shares of Walgreens 4,700;
150 shares of Microsoft 3,500.

Reinvest all dividends.

artimus · July 18, 2006 12:11PM

i have to agree.......you should probably steer him towards 'mainstream' financial products such as mutual funds......this is apparently 'once in a lifetime' type of windfall.......i dont think coins is something to drop that much money into....especially for a newbie........if he buys coins.....and then he needs the funds....he may not have the liquidity inherent in financial products........at which point he may look at you sideways....lol...just my two cents

Petarded · July 18, 2006 12:13PM

Ok, I see your points, and they are extremely valid. Here are the 'nuts' of it, and why he is adamant about gold, and avoiding mutual funds/stocks and the like.

First thing you all should consider as you answer, is that coming from Portugal, and he's old school immigrant when it comes to not trusting banks, or basically ANYONE for that matter, to handle HIS money (very old school, and my being Italian, my grandfather was VERY much like this, to the point of shoving money in shoe boxes and stashing them in the closet, under the bed, etc...)...I think you can all understand the 'old country, old school' way of thinking. It may not be the smartest thought process, but it makes them feel SAFE about their money, which ultimately translates to 'he wants physical control over it).

Secondly, though not practicing ANY type of religion (he believes in a supreme being, but not sure what religion he considers the 'right' one-and I am not trying to stir a religious thing...this is just mentioned to let you know what has caused his wants to be gold), he quotes the bible, and though this isnt verbatim, it mentions that Jesus advised to buy gold (I dont know for fact, as I dont know the bible, but if anyone can verify this, it will reaffirm why he wants to do what he wants to do).

SO, I think I have actually gotten to the point where I have explained everything, such as WHY he wants to do what he wants to do..its pretty close to what bidask suggested, but the direction is there, I just need to pinpoint a destination. Thanx again!

relayer · July 18, 2006 12:18PM

Personally I think if I told somebody I wanted to buy some gold, and they told me to buy PCGS Saints, then decided I should buy key date rare coins instead, I'd thank them for their time and move on to the next expert.

IF he has done his research and decides he wants to invest in gold, then I'd tell him to open an account at a discount broker and buy GLD

nederveit · July 18, 2006 12:21PM

Given that information, then why steer him into 'collector' gold? It sounds like key dates are also not an option.

If he's h*llbent on gold, then I'd vote for something EXTREMELY easy to liquidate, that wouldn't require Heritage to sell it.
Something like gold bars even. Good luck.

relayer · July 18, 2006 12:23PM

<< it mentions that Jesus advised to buy gold >>

On second thought, since he's a rational investor

, tell him Jesus said he should donate his money to the poor, since he will ultimately wind up losing it all anyway.

construct · July 18, 2006 12:32PM

There might be some merit to the better quality large denomination gold, given his concerns. (BTW, I don't recall Jesus advising anyone to buy gold--quite the opposite. On the other hand, there are plenty of Bible verses condemning lending at interest.) High grade large denomination gold has the advantage of having some numismatic value in addition to the bullion value and might cushion the fall in times of spot price dips. It can't be any worse than keeping his money in a suitcase under the bed.

Petarded · July 18, 2006 12:35PM

Relayer, you are right on...the only reason I even got this involved is he is set in what he wants in the way of coin gold. My part is to only help him get what he wants, and see that he gets the most bang for his buck, that is all...I am just assisting a friend that I dont want to see get taken by these vulture firms that promise you HUGE returns from bullion, quote 'when gold was $800, blah blah...we see it surpassing....you get the picture, as we all know that picture exists in a BIG way. I am not TELLING him he has to do anything, he already knows pretty much what he really wants, but is open to collector coins..yes, its for investment purposes, and I advised him NOT to play the bullion/coin game as an investment thing..but he wants what he wants. There is no way that I can sway him away from it, though I can advise him which way to go with the few small options he has in the direction he wants to go, thats all...basically, I am merely looking out my front window, and seeing a friend getting into a fight with someone that could kick his ass, and while I cant do his work for him, as he doesnt want that, I can make sure that at least he doesnt get the sh*t kicked out of him too badly. Thats pretty much the analogy I would use in this whole thing.....he is aware it isnt a sure thing to get off unscathed, nor does he firmly believe he will just make a bunch of money on this, he knows there are risks, but thats why the old country folks didnt make any more than they stashed away as there was no bank or interest rate or dividend paid on their savings....but they felt SAFE with THEIR decision and lived and died by that.

So, in closing, you see why I am asking, as he is 'gonna do what he wants to do', but asked advice from me, as I am the only one of my friends and aquaintances that has ANY knowledge about coins and bullion and such, and again, I am NOT EVEN CLOSE to knowing HALF as much as some of you out here...thats why I am coming to you people....to assist me in picking the best option, where there really arent a whole hellua lot. Thanx again!

P.S. I dont mean to keep 'changing the rules as the game goes on' by adding these posts, just trying to impress upon you all that he pretty much knows what he wants and think's 'inside the box', so to speak. Investing it in anything other than something of intrinsic value is NOT an option with him...typical old school/old country thinking...almost narrow minded, or more aptly, has blinders on.

RedTiger · July 18, 2006 12:49PM

I vote bullion coins such as eagles, maples, buffalos. The spread is usually tighter than on Saints and a bit easier to sell. Shop for the lowest price locally or online. Your friend will have no way to easily sell stuff such as a 1909 S VDB Lincoln, so will get killed on the buy/sell spread, so this is a very bad idea for him. There is a spread on gold bullion but it is single digits when dealing with reputable firms. Bullion coins at close to melt is the no-brainer answer. Shop around, if he isn't the trusting sort, stay local, though purchases over $10k are reported. I would also suggest 10% of the amount into silver pre-1964 coins or similar at the lowest premium over melt you can find.

Bryan1315 · July 18, 2006 1:08PM

I am no expert by any means but if I were "investing" I would probably go with bullion as well

michael · July 18, 2006 1:51PM

oh my

my my my my my my my my my my my my my my

i would steer him into au58 with the look of au63 pcgs indian ten dollar gold

also ms 63 saints that have a wonderful look and are high end and are original orange golden coloration also pcgs/ngc

ElKevvo · July 18, 2006 1:52PM

If someone is going to buy gold and the goal is to provide some sort of inflation/economic meltdown protection, bullion is the only way to go as 1) You'll get more for your money, 2) It is more liquid, and 3) readily available. As an investment, something wth Numismatic value could be considered but it is risky, if buying gold only as a store of value then something with a Numismatic premium should not be considered.

Just a couple of thoughts.

K

Coxe · July 18, 2006 1:55PM

Are gold-plated state quarters a good idea?

but someone HAS TO MENTION......BUY GOLD BUFFALOS.....to validate this thread.

pharmer · July 18, 2006 2:16PM

You are advising him. And you are here seeking advice. This guy's in trouble.

19Lyds · July 18, 2006 2:18PM

Yowsa!

relayer · July 18, 2006 2:24PM

You are advising him. And you are here seeking advice. This guy's in trouble.

If you want to help him out, you should go to your local Legal Aid society and have the court appoint this guy a conservator.

lkenefic · July 18, 2006 2:27PM

If someone dropped $14K in my lap and I had to invest it, I'd only put about 20% of it into PMs...the majority would go into a decent mutual fund. I'd try to convince your friend that it's generally unwise to put all of his eggs into one basket...diversify!!!

construct · July 18, 2006 3:15PM

<< If someone dropped $14K in my lap and I had to invest it, I'd only put about 20% of it into PMs...the majority would go into a decent mutual fund. I'd try to convince your friend that it's generally unwise to put all of his eggs into one basket...diversify!!! >>

Well, yes. I agree. My argument for high grade, large denomination gold was an attempt to diversify within a single item. Mutual funds (which is where my money is) are out of the question here.

Petarded · July 18, 2006 5:52PM

I would like to add something, as I have read the many responses to this thread thusfar....I want to thank everyone that gave SERIOUS thought and replied to this thread. For the likes of you that have graciously taken the time to come here and insult my friend and I (and you do it to others, whenever you feel like being a$$holes, which apparently, is every one of your waking hours) when I came here seeking knowledge that I DONT have, from you here that DO, those that toss insults really are just pieces of shyte who:

1) have their own agenda and could give a crap about anyone other than themselves
2) think their shyte smells like roses
3) are the type of people that I could give a crap about and am glad arent at arms length
4) think they know everything, and I guess you do, huh guys??? FU!

So, to those of you that took the time to make a mockery out of this (IE pharmer and relayer) you can go f**k yourselves.

To those of you that have taken this matter seriously, thank you again!

edited to add: relayer, I would think that someone of YOUR great and all knowing wisdom, would just go out and buy raw, wouldnt you..yes, you would as you are at the head of the class...you nitwit, he gets the satisfaction of knowing what he has is authentic and can be sold whenver he wants.

relayer · July 18, 2006 6:36PM

<< I would like to add something, as I have read the many responses to this thread thusfar....I want to thank everyone that gave SERIOUS thought and replied to this thread. For the likes of you that have graciously taken the time to come here and insult my friend and I (and you do it to others, whenever you feel like being a$$holes, which apparently, is every one of your waking hours) when I came here seeking knowledge that I DONT have, from you here that DO, those that toss insults really are just pieces of shyte who:

1) have their own agenda and could give a crap about anyone other than themselves
2) think their shyte smells like roses
3) are the type of people that I could give a crap about and am glad arent at arms length
4) think they know everything, and I guess you do, huh guys??? FU!

So, to those of you that took the time to make a mockery out of this (IE pharmer and relayer) you can go f**k yourselves.

To those of you that have taken this matter seriously, thank you again!

edited to add: relayer, I would think that someone of YOUR great and all knowing wisdom, would just go out and buy raw, wouldnt you..yes, you would as you are at the head of the class...you nitwit, he gets the satisfaction of knowing what he has is authentic and can be sold whenver he wants. >>

You're welcome

relayer · July 18, 2006 8:13PM

Actually I gave you the best advice of all and if you were his friend, instead of helping him "invest" his money in gold or rare coins, you would have him put the money in the bank. Remember I said...

IF he has done his research and decides he wants to invest in gold, then I'd tell him to open an account at a discount broker and buy GLD

Obvisiously that is not the case. So

If you want to help him out, you should go to your local Legal Aid society and have the court appoint this guy a conservator.

Perhaps it is my sharp insight, or perhaps it is just common sense, but I see nothing here but a disaster in the making.

If you came here explaining your projected ROI for different investments that would be one thing. If he wants to invest in gold because he thinks that what Jesus says he should do, and his buddy says "No - let's invest your money in rare coins instead" , well there is a problem here.

If you are his friend then you should be looking out for his best interests. Take him down to the bank and sit down with him and an investment advisor at the bank. Put it in the highest yield short term CD there is and roll it into new higher rate CD's when the become available.
Or better yet, ask the banker about I-Bonds.

If you do anything else, you'll be the guy he thought was his friend, but instead wind up being the guy who helped him lose thousands of dollars of his money.

AND I was serious about seeking a court appointed conservator for his money, because I get the impression that this guy needs help - or more importantly, protection, in order for him to keep his money.

Edit-
If you want to know how I did today investing in gold, yesterday I sold 33 ozs @ $651.30 and 33 ozs @ $630.80.
This afternoon I covered my short sales and bought 66 ozs @ $633.75 and 30 minutes later I sold 66 ozs @ $630.30
The point is I made $1642 SELLING gold and LOST $686 BUYING it.

You see, the price goes DOWN just as easily as it goes UP (actually it goes DOWN a lot easier)

(Actually it just droped below $620 now)

kranky · July 18, 2006 8:48PM

I think the appropriate thing to do is buy gold bullion coins and not collector coins. He wants gold as a store of value, and bullion is the most straightforward way. He won't have to worry about proper storage of rare coins, or getting ripped whenever he goes to sell. In general I don't think it's wise to have non-collectors buy rare coins because even if they get a fair deal going in, they can get ripped too easily cashing out.

And nowhere in the Bible does Jesus say to buy gold, BTW.

Petarded · July 19, 2006 2:31AM

relayer....just to get it straight, I NEVER claimed to have said "No - let's invest your money in rare coins instead" . I merely gave him OPTIONS of what he COULD do after HE asked ME about buying gold. He then told me WHY he wants to do this, and after suggesting that, perhaps it isnt the best idea, as gold rises and ebbs like the tide, there is no guarantee....I am not making the final decision here, HE will. I am merely trying to supply him with the best option of the three stated.

"IF he has done his research and decides he wants to invest in gold, then I'd tell him to open an account at a discount broker and buy GLD". I have already made it clear, relayer, that he wants to have PHYSICAL control over it....do you understand what that actually means?

"If you are his friend then you should be looking out for his best interests" I DO have his best interests in mind here. You cant MAKE someone do what they DONT want to do, and clearly, what he WANTS is to have it ('it', being whatever he turns his cash into) in his PHYSICAL CUSTODY.

"If he wants to invest in gold because he thinks that what Jesus says he should do..." I NEVER stated he claimed 'Jesus told me to buy gold", not in the context to make him out to be a whacko, which he isnt. I merely stated he said its brought up in the Bible....in other words, he is of the mind that whereas its been around that long, then gold is what we on these forums know it to be...gold has been a medium of trade, IE money, longer than any other 'method of payment'. Gold has always been a harbor of trust and faith. Even as recently as the Great Depression, people that owned the metals were safer than their counterparts with cash...banks went belly up, investors went out the windows to the streets below. I know you know this, relayer.

"Take him down to the bank and sit down with him and an investment advisor at the bank. Put it in the highest yield short term CD there is and roll it into new higher rate CD's when the become available.Or better yet, ask the banker about I-Bonds." Simple reason I can't/won't bother to attempt this, is because he has made it CLEAR that he DOESN'T TRUST BANKS...and I have stated that plainly and concisely in my previous post...I THOUGHT I did, anyway...maybe it went over your head or was too hard to decipher for you.

"AND I was serious about seeking a court appointed conservator for his money, because I get the impression that this guy needs help - or more importantly, protection, in order for him to keep his money." relayer, he isnt any less sane (perhaps more sane than SOME on these boards) than the average guy. All he wants is to TRY to reach a bit outside the box, as it's clear to me, he thinks inside it. He's taking a risk with his money, and as far as I can see, knowing his 'old country' mentality, he may just be unconsciously breaking that habit with this. Apparently (judging by how you did selling and buying it yesterday), you cant see this because of the rosy glasses you have on, or perhaps, its because you arent the best at forecasting what the metal will do, when it comes to gambling on it (which is all that speculating on what gold will do and waiting it outis) either. Or more plainly, so you get it, perhaps you really dont know what YOU are doing, with respect to the gold subject. HMMM, neither does my friend...you two may have something in common.

One final thing, relayer.....seeing how WELL you did with gold yesterday, and seeing where its gone today, as of 12:38pm ET, YOU are actually a poster child supporting the 'collector gold coin' or 'key dates' options...think about it!

UncleJoe · July 19, 2006 2:45AM

I merely gave him OPTIONS of what he COULD do after HE asked ME about buying gold. He then told me WHY he wants to do this, and after suggesting that, perhaps it isnt the best idea, as gold rises and ebbs like the tide, there is no guarantee....I am not making the final decision here, HE will. I am merely trying to supply him with the best option of the three stated.

And at the risk of having you go off on me, the above is your mistake. You are not qualified to give this guy investment advice, even after you receive replies from posting to a coin message board.

And as relayer already pointed out: "Perhaps it is my sharp insight, or perhaps it is just common sense, but I see nothing here but a disaster in the making."

Joe.

Petarded · July 19, 2006 2:49AM

Unclejoe...so what you and relayer and pharmer are saying, in a nutshell, is this:

"Let him call Monex (or one of the like vultures) and give them the money". Basically, step back and watch him throw more money away than he has to. One question to all three of you...would YOU let a friend do that??????

And though $14,000 may seem like alot of money to alot of people (myslef included) it really isnt in the realm of things being discussed, is it (considering we are in the days of single coin lots going for over $1 MIL regularly)? We ALL remember a short 4 years ago when gold was hovering around $250 an OZ, dont we?

coinguy1 · July 19, 2006 2:55AM

Petarded, if your buddy wants to invest in gold, he should buy bullion gold coins, such as 1oz. American Eagles. They typically trade at a smaller buy/sell spread than "rare" gold coins do. Additionally, bullion gold coins will move up or down in tandem with the price of gold, whereas non-bullion gold coins don't always do so.

UncleJoe · July 19, 2006 3:03AM

would YOU let a friend do that??????

Tell him to call Monex, yes, tell him to give Monex his money, no.

This is something he has to research and then do what is comfortable to him that meets his criteria and objectives.

If he was my friend I would tell him of things I am aware that he could look into and things I am aware of to be careful about but in no way would I suggest one way or another what he should do. I am not qualified to do that and that DOES have disaster written all over it.

I hope this clarifies the position. This is meant as honest to goodness life experience advice and not as a cut to you.

Joe.

1798CentCollector · July 19, 2006 3:07AM

If he's bent on coins at the start, why not put him in touch with Dave Bowers or John K. at ANR and let them work with him. He'll get the reputable expertise and and established program coin investment approach? Call and talk with ANR first and explain your friend's situation. If you have explained the pros and cons and downside let these guys take over from there.

messydesk · July 19, 2006 3:39AM

You failed to mention what portion of his investments is represented by the $14,000. If it represents a small portion, then it would be easier to throw caution to the wind and point him toward something "fun" like collector gold, rare dates, etc., where it will be easier for him to lose money on the sell side. If it is a significant portion, I'd diversify among more traditional investment instruments (mutual funds, I-bonds, some precious metals). If he wants gold, find the form of bullion that is marked with its weight and has the smallest buy/sell spread so that you don't have to hold his hand come time to sell. If you have him buy common AU58 $20 Libs, when he goes to sell, how is he to know just how much gold he's selling and thus whether he's being ripped off unless you are there to help?

vaq45 · July 19, 2006 3:46AM

if he wants to keep his fortune under his mattress then you need to explain to him that people have been robbed and killed for a lot less

AlixTCat · July 19, 2006 4:48AM

Is Monex bad?

I've had good luck with www.bulliondirect.com in buying some gold. YMMV. I don't think they are liars and cheats. You'll pay more just about anywhere if you want to actually hold the gold in your possession which it sounds like your friend wants to do. Otherwise invest in GLD shares.
Does he want to make money or just feel gold between his fingers?

Jonathan

relayer · July 19, 2006 5:17AM

<< Unclejoe...so what you and relayer and pharmer are saying, in a nutshell, is this:

"Let him call Monex (or one of the like vultures) and give them the money". Basically, step back and watch him throw more money away than he has to. One question to all three of you...would YOU let a friend do that??????

And though $14,000 may seem like alot of money to alot of people (myslef included) it really isnt in the realm of things being discussed, is it (considering we are in the days of single coin lots going for over $1 MIL regularly)? We ALL remember a short 4 years ago when gold was hovering around $250 an OZ, dont we? >>

No, I think what people are trying to explain to you is if two chuckleheads can't figure out how to buy gold bullion at a reasonable markup over spot to keep stored outside a bank vault, then there is little chance for success in making any wise investment decision.

I think I'll take some advice from the Matthew 15:14:

Let them alone: they be blind leaders of the blind. And if the blind lead the blind, both shall fall into the ditch.

However in this case it's the guy who is going to lose his money led by the Petarded.

ajia · July 19, 2006 5:40AM

WOW!

The question was this, either:

A) Collector grade gold (IE Saints, Libs, perhaps some better date smaller denoms...yes, slabbed by the big P)
OR
Key dates and/or coins like '55 DD lincoln, '09-S VDB

But I think bullion gold should still be considered in the equation.

Personally, seeing that he is aware of the gold market I would choose gold bullion, probably not GAE, but Krugerands or other lower mark-up type coin. Plus, if I remeber correctly, GAE are 90% Gold, while others are 99%.
That way if gold goes up or down he can easily track it & not be asking why, if gold went up his Saints didn't (more likely vise-versa, but it's possible).
He also gets to 'play' with more coins......tough to spend $14K on a couple of coins (if you buy on an auction there's a buyers fee, then have to take them to auction when you sell, sellers fee).

In the end, the friend will undoubtedly gather all the information & make up his own mind.

JMO, from the uninformed.

Nysoto · July 19, 2006 6:00AM

<< as he really just wants a store of value >>

With this statement, he should not put all of the 14K into gold. Put 4K into a Roth IRA this year, another 4K Roth in Jan 2007 (one year CD's, as interest rates will likely continue to rise). The remaining 6K buy MS 62 $10 or $20 libs from a reasonable dealer like Duvall Gold.

Boring, but it will meet his objective of retaining value.

LanLord · July 19, 2006 6:31AM

<< You are advising him. And you are here seeking advice. This guy's in trouble. >>

Yeah, I can't think of a better way to rid myself of a friend. As soon as his investment drops, he will think that he has bought a pig in a poke and you are the one that pointed the way. Run away as fast as you can!

Stork · July 19, 2006 7:38AM

I can understand the psychological need for gold in someone like him. To answer the question your friend has asked (and not what I think he should be asking), I think the best for him would be bullion coins like the dreaded GOLD BUFFALO (had to get that in the thread somehow), the Canadian Maple leaf, Gold Eagles etc...valued purely by gold content. Very liquid, no collector concerns etc. This is a link to a site of a reputable company that has some fairly un-biased investing advice regarding bullion/collectible gold (they sell bullion and 'gold widgets'). This company generally has nearly the best prices and does not charge for shipping. Linkage . There are several other good companies as well: Tulving.com for higher volume purchases, ajpm.com, apmex.com are ones I have used and recommend. Well, except Tulving, I can't afford them

.

JMHO

Cathy

Petarded · July 19, 2006 7:52AM

In the end, the friend will undoubtedly gather all the information & make up his own mind.

augie...thank you for mentioning this! This is the point I am trying to make as to my involvement in this...once he is faced with my opinion of what might be the best thing to do (notice I DIDNT say 'faced with my opinion of what he should do'), he is the type that WILL do his homework on something that he is vested in.

I want to thank all that have given serious replies to this. I am simply going to take the consensus, give him ALL opinions, and he goes from there. We all know that even if it's going to be bullion, he can do better than with a company that buys TV ad time and has a rented personality (I belive she's a Redgrave).

I will say this for the final time, as its starting to beat a dead horse...my word is NOT gospel...bottom line is he's a big boy, and makes his own decisions. Regardless of what a few here think, he IS smart and not a dolt. He's a hard working, blue collar guy that owns his own carpet insatllation business. Yet, when it comes to HIS own money, he has the 'inside the box', 'old country, old school' thought process..does that make him an idiot, or, someone that, and I quote (owed to a certain forum member), "...needs me to go to my local Legal Aid society and have the court appoint this guy a conservator."? NO, it only means he is stubborn...can't teach an old dog new tricks, as the saying goes.

Again, thank you all for your input, it IS greatly appreciated, whether it's positive or negative..it's just the personal affronts that p*ss me off. As my nana said, if you having got anything nice to say (or in this situation, something constructive to add, good or bad), don't say anything at all. I hope those that just like to diss, dig, insult, etc, DON'T reply to this, as you only show your selfishness and 'upturned noses' to someone that is apparently inferior to you (knowledge wise, I am, THAT'S why I sought out your help, which you SHOULD have given when asked, but I am no less of a human being than YOU are...perhaps I am a BETTER human being than those I am talking about, as I am trying to HELP someone, which YOU should be trying to do by imparting your wisdom here, and not your uppity friggin' attitudes)

JapanJohn · July 19, 2006 7:57AM

Safe Investments right now. Israel and Hezzbollah are at war. Syria, Iraq, Lebanon and the United States are perched on the brink. I'd say the stock market could be volatile right now. Of course you could invest in defense contractors.

I'm a risk taker and I just moved EVERYTHING into safe stuff.

John

roadrunner · July 19, 2006 8:55AM

This guy is looking for safety, he's from the older school, doesn't trust corporations cooking the books, or crooked politicians, etc.
Welcome to the club.

The only option is as he wishes it: bullion gold in the palm of his hand. Eagles, Krugs, Maples, etc. Forget the ETF gold funds. You want the stuff in your hand when things hit the fan and the gold and silver in those funds cannot all be found. Same reasoning for gold stocks. While the leveraged upside in straight gold is not as good as in gold stocks, futures, shorts, longs, etc. it is far safer and 100% liquid and transportable at any time. If you don't trust banks and corporations for this $14K, that's what to do with it. Forget US "rare" coins or ANY coin dealer to handle the $14K.

Personally I think the US $20 Saint in MS63 or better yet MS64 grade offers some leverage to regular bullion. But this would also mean that you should sell 1/3 of the position on upmoves, and buy it back after corrections. The Saints will move much more than bullion...in both directions. The simplest approach is just to sit on bullion until 2010-2012 and see what happens. Forget better date gold and smaller denominations that get you away from bullion.
You don't want or need ANR's help or any other formidable dealer.
$10's in AU/BU can offer some potential as Michael said. But you should not get further away from bullion than say a 30-50% premium to melt. Again, bullion 1 ounce coins are easier. If you find a wholesaler to work with, you can buy those at no more than 2-3%
over wholesale buy.

Sounds like this guy doesn't need the $14K since it dropped into his lap. Every portfolio should consist of 5-15% gold, silver, bullion, tangibles in this current economic climate. To have 0% on this side is risky as well.

roadrunner

relayer · July 19, 2006 9:07AM

I was under the impression that he was elderly with all the Biblical references and talk of the Great Depression.

Since that is not the case, he can go buy GAE's and if he loses his windfall it just means he has to work harder for a longer period.

Petarded · July 19, 2006 10:01AM

relayer....its nice to see you taking a softer approach...thank you! No, he's not elderly at ALL! He is only 36. As I stated in my PM to you, I do see your advice, however underlying it is...thanx for turning out to be the type of forumite I thought/hoped/expected you to be!

More into his situation...Reader's Digest version...single, child support (getting croaked with that), rents as opposed to owning, not a mountainous stash of savings....personally, I believe he could use the money in other ways, such as ones that others replying to this have suggested, but he wants no part of it. It's just something that's in his head to buy gold, as its roots go back to the earliest form of specie. He doesn't expect that he may have to use it at the store, as in the unfounded, but believed Y2K scare. It's just his way of thinking and if he is comfy with the decision he makes, thats all that matters to him, as it would with any of us...just like the advice others here give when it comes to buying a certain coin...if you like it today, you will like it tomorrow...if you DON'T like it today, you AREN'T going to like it tomorrow. In other words, he knows he wants THIS, he can't be convinced to buy THAT. It may not be the smartest thing the way he is going about it, but all I attempting to do here is to assist him to get the most out of what he does with it, no matter if it's right or wrong. I am doing this for him to help him avoid going into it flat out blind, thats all.

Roadrunner, you understand the simplest concept of this whole situation, the underlying root to his decision making, and that is:

This guy is looking for safety, he's from the older school, doesn't trust corporations cooking the books, or crooked politicians, etc.

It was a conditioning from his folks and grandparents, all from the old country....

Thanx all, once again!!!!!! You guys really are a great help!

Help/advice needed from you knowlegable people, please

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