New Member - Need Advice on Gold Coin Investing

imiinc · September 11, 2006 7:15AM

Hi,

I just joined this forum and I'm a total newbie to Gold coin investing.

I'm going to buy Gold to build a solid base for my investment portfolio.

I want it physically in my safe... NOT PAPER INVESTMENTS like E-Gold or a Gold Stock.

So, I naturally thought of Gold and Silver bullion.

Lear Financial is trying to sell me gold investment coins (NOT GOLD BULLION).

I completely understand WHY you'd want to buy gold coins.

BUT I DON'T KNOW ANYTHING ABOUT INVESTMENT COINS. (I have a book form Amazon.com on the way!) ;-)
Do they advocate and sell good gold coins that are of the quality/grade they say?
I don't want to be taken advantage of my some slick salesman who just watched "Boiler Room".

They want to sell me the following...

$10 Liberty Head MS 63 at $1470 each
$5 Liberty Head MS 63 at $1293 each
Silver Peace Dollars MS 64 at $70 each

Good deal? Yes? No?

Thanks in advance...

Russ · September 11, 2006 7:18AM

Russ, NCNE

Russ · September 11, 2006 7:19AM

PS: That's a screw job. Run the other direction as fast as you can.

Russ, NCNE

ttown · September 11, 2006 7:22AM

I perfer the lower grade $20 saints and libs in MS61 to MS63 graded by PCGS, NCG, or ANACS.
They don't cost that much over bullion items.

ABC123 · September 11, 2006 7:22AM

I don't believe PCGS Coin Forum is an investor's website Forum, it would create problems with the SEC. And with the Management of Collectors Universe ! Contact your friendly Coin Dealer !

SilverEagles92 · September 11, 2006 7:22AM

Definitely run away.

by the way.

imiinc · September 11, 2006 7:23AM

<< PS: That's a screw job. Run the other direction as fast as you can.

Russ, NCNE >>

That's exactly what I thought too.

Even though I'm a newbie, my instincts wouldn't let me do it.

So, I won't be buying gold from Lear.

Thanks Russ.

ttown · September 11, 2006 7:24AM

It's good to have a balanced investments these same folks have been saying this since gold hit $360. Just keep in mind buy on the dips and average......not all at once, maybe a coin a month.

coinmickey · September 11, 2006 7:25AM

What Russ said....and if they aren't going to give you a date for the coins they are selling you then you can generally start to run away...fast.

ttown · September 11, 2006 7:27AM

Try Ebay that's the low cost choice but look at the buyers feedback rating.....DuvalGold is a good guy for this type of material.

imiinc · September 11, 2006 7:28AM

<< What Russ said....and if they aren't going to give you a date for the coins they are selling you then you can generally start to run away...fast.

>>

Yeah, the no date thing was my first indicator of a possible rip off.

Catch22 · September 11, 2006 7:29AM

Gold coins do offer an advantage in that you get the increase in bullion prices along with the increase in collector demand. Of course, that works the other direction as well.

Personally, strictly from an investor stand point, precious metal mining stocks can be a smart way to invest in bullion trends, though I enjoy the physical ownership aspects of gold as well.

Once you get a good handle on collector grade, gold coins, that is by far the most interesting way to play.

Russ · September 11, 2006 7:29AM

imiinc,

To put it in perspective, you can pick up generic 20's in MS63 for half or less than what they are quoting for 10's.

Russ, NCNE

123cents · September 11, 2006 7:29AM

Imiinc.

ttown · September 11, 2006 7:29AM

<< 

<< What Russ said....and if they aren't going to give you a date for the coins they are selling you then you can generally start to run away...fast.

>>

Yeah, the no date thing was my first indicator of a possible rip off. >>

Not a rip off, just way to high of margins.

notwilight · September 11, 2006 7:31AM

Don't take investment advice from random people on the internet. You'll end up taking advice from the guy who sounds the best rather than the guy who knows what he's talking about.

That said, my advice is that coins are collectable and bullion is investable. To buy bullion or generic graded cons I would buy from apmex or kitco.

As for timing and investment decisions, you have to take responsibilty for those.

--Jerry

mrearlygold · September 11, 2006 7:32AM

Run Forest Run!

lkrarecoins · September 11, 2006 7:34AM

IMHO, if you're looking to invest in bullion, invest in silver......Why you say??? Silver up 61% this year, compared to gold @ 31%

you'll just need a bigger storage facilitly.....pick up one of those PODS from Home depot

Russ · September 11, 2006 7:34AM

<< Don't take investment advice from random people on the internet. >>

Yeah, feel free to ignore my advice to run, and proceed to load up at the prices they're asking.

Russ, NCNE

ttown · September 11, 2006 7:39AM

There's several good thread on this forum on this subject that go back several years. You can tell real quick who's right and who's wrong. The big question is has anything changed in our ecomony or global affairs in the last 3 or 4 years, if no then you have your answer. Do your homework and do a search of this site.

500Bay · September 11, 2006 7:41AM

If you are looking for gold or silver - invest directly in bullion coins. CNI would be my pick.

BillJones · September 11, 2006 7:46AM

My advice is if INVESTMENT is all you want from buying gold, collectors' coins are NOT for you.

First, raw gold is a real crap shoot. Most people will not pay the best prices for the coins UNLESS they are certifed by PCGS or NGC. And even if they are certified by those two companies, people might not agree with the grades that the certification services have assigned.

It's also harder to sell your collector coins because, unlike the stock market, there is no organized exchange for collector coins. Your options are sell it yourself or use an auction service.

If you want to invest in gold bullion, the American gold eagle is a good bet. You will pay a very minor premium over melt, and the wholesale (buy back) prices are little over melt. At any rate your investment in gold should be only a small part of your overall portfolio. I'd talk to a certified financial planner about that.

I hope this helps.

BUT whatever you don't DON'T buy raw (uncertified) gold coins. The chances of getting an overgraded coin are great, and counterfeits are a problem too.

ttown · September 11, 2006 7:51AM

One other area you may want to look at it modern $5 and $10 comms they sell for near spot which is less than bullion in most cases. The thing about bullion, including Eagles is when it's hot you get spot although you pay 1 to 3% premium and in a falling market you don't even get spot. All this common stuff can be had on Ebay.

jpkinla · September 11, 2006 7:54AM

I started out JUST LIKE you and have spent countless hours studying the rare coin market and buying what I felt was the best I could buy. DO NOT buy rare coins until you study and read up on them. I would suggest David Hall's 1986 book entitled the "Mercenary's Guide to the Rare Coin Market" as a start.

Those prices are way over what you should have to pay for generic gold coins. Post on the forum and ask LOTS of questions!

Good luck! It is definitely the TIME to buy gold.....

imiinc · September 11, 2006 8:01AM

<< I started out JUST LIKE you and have spent countless hours studying the rare coin market and buying what I felt was the best I could buy. DO NOT buy rare coins until you study and read up on them. I would suggest David Hall's 1986 book entitled the "Mercenary's Guide to the Rare Coin Market" as a start.

Those prices are way over what you should have to pay for generic gold coins. Post on the forum and ask LOTS of questions!

Good luck! It is definitely the TIME to buy gold..... >>

Thanks everyone. Thanks JPKinLA.

YES, it IS the time to buy GOLD. That's why I'm here.

I'll start buy purchasing Gold and Silver Bullion.

Then I'll read up on the Rare Coin Market and then start buying when I'm educated.

Thanks.

Doogy · September 11, 2006 8:02AM

<< Try Ebay that's the low cost choice but look at the buyers feedback rating.....DuvalGold is a good guy for this type of material. >>

yup, ditto on Duvall Gold; also look at Goldberg Coin. As far as the prices quoted, those are FAR, FAR too high priced for what you are getting.

welcome to the forum!

Doug

cladking · September 11, 2006 8:16AM

Welcome aboard.

Now is a perfect time to get your feet wet in gold. Don't get fully invested yet but
this is a major dip and should be about played out. Don't expect to see a continuation
of the bull market for some time yet though.

michael · September 11, 2006 8:23AM

buy killer au58 true silders of better date threes and they got to have the right "look" and coloration

also buy one of the lost undefvlaued of the gold proof coin demoninations proof ten dollar gold liberties in proof 64 with killer eye appeal and the right look to them with orange peel and killer cameo

also wait till the end of the week as some suggesated and/or go to long beachj and pick PQ all there saints generics in ms 63 and 64

make sure you get good prices also but you got to really know your markets as per ther above but if you know your markets you will do really well

also any proof threes you can get strongly cameoed choice to really choice with orange peel and of copurse the right look and slightly better dates in this series

also any killer cameoed again proof gold choice to gem proofs of civil war era to pre civil war era with the right looks to them and you will also do well as a collector only

for long term hold with discretionary income

also any au58 with beautiful original skins on them and real 58;s also deeply prooflike would be a plus of slightly better dates type gold pre 1915 would be terrific monster deals they are out there but you got to underdtans the look and also the pricing structure

again the above is my opinion and also you got to know and understand 100% what you are looking at if not then let the buyer beware

for me i would staert out with killer eye appeal properly grasded saints generics in ms 63 64 if you can find them but make sure you pick thruogh the lots for sale at long beach

OnlyBuffalos · September 11, 2006 8:23AM

If you are investing in gold, the most liquid vehicle is the one ounce gold American Eagle.

If you purchase twenty or more ounces, a company with very tight spreads is The Tulving Company. Curent sell price is $613 (includes insured shipping) and current buy price is $594 per ounce.

Stork · September 11, 2006 8:25AM

Read this.

As someone already said, there are many threads on this forum if you do a search.

aww what the heck...here's a couple

Linkage
and another...

coynclecter · September 11, 2006 8:33AM

I won't tell you when to buy/sell. If anyone knew the future they'd be rich.

Buy when the price seems low but don't wait for absolute bottom or you might get left out. I find the best time is just when the price starts up for a day of 2. You don't buy in at the bottom but then again you don't buy just to watch it keep falling.

Best places to buy are bullion direct or hanes tulving. Kitco seems a little high to me. Take delivery and plan to hold for a few years. If you need the money in the next 12-36 months you might be forced to sell at a loss so don't do it.

Buy bullion only, preferably one ounce coins that are easy to recognize. The Kruggerand has the lowest premium and is recognized worldwide. If you want collectable coins then its a different animal and you need to get more educated first. This forum is a great place to start. For now, stick with bullion. The buy/sell spread is much better and you have less chance to make a bad deal.

When you get a chance look up midas or the lemetropole cafe. there you will learn why gold goes up/down is such huge swings, its all part of the manipulation by bankers.

Don't buy on margins, Take possession, think long term and don't panic and sell when they shake out of the weak hands like is happening today.

Catch22 · September 11, 2006 8:43AM

Like I said earlier, I like physical gold as well. But, strictly from an investment point of view, it's hard to argue the case for physical accumulation. This demonstrates what I'm talking about. And, you don't get more liquid than a simple phone call or a few key strokes.

New Member - Need Advice on Gold Coin Investing

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