Looking for advice

TJMAC · March 13, 2010 11:57AM

Hi,

This is my first post to the coin forum and was looking for some advice. I am looking at investing about $2,500-$3,000 in gold coins. I kind of like the idea of buying one high grade gold coin. Maybe an MS64 or MS65 St. Gaudens. The graded rare coins intrigue me. However, I am not closed to the idea of buying bullion gold coins. Does anyone have any advice to offer as I am a novice.

TomB · March 13, 2010 12:00PM

Well, quite a bit of this depends upon your longterm motivation for buying the gold. If you are buying it for the history or romance of old gold then the Saint is a better buy, but if you are buying as an inflation hedge then modern bullion is a much better play based upon the lower premiums over spot. I truly enjoy classic gold, but do not own much because I do not like to pay the premiums required to buy the coins. Therefore, my gold holdings are primarily modern commems and bullion coins.

TJMAC · March 13, 2010 12:05PM

Thanks for the quick response. Are grades important for new bullion coins? Also, I was looking at a website called APMEX to buy my coins. According to the research I have done on the board the reviews of this site have been fairly positive, especially, compared to Blanchard and Gold Line. However, is there a better place to buy?

My motivation is mainly from an investment standpoint, so I guess the buillion is a better option.

Thanks again.

lcoopie · March 13, 2010 12:08PM

if you want bullion, then as long as its authentic, grade is not very relevant
most of it is high grade anyhow.

TomB · March 13, 2010 12:09PM

APMEX is a reputable source for bullion and I have purchased from them, too. If you use the Bing cashback program on ebay there are at times good buys on gold and silver bullion, but you cannot count on this to happen.

Some folks will pay extra for MS70 or PR70 modern gold bullion, but a fairly large percentage will not. I am among those who will not pay for highly graded bullion since almost every modern gold bullion piece sold by the US Mint would grade at least MS69 or PR69 and I do not think the value is there in my opinion for longterm appreciation. My modern gold bullion and modern gold commems are nearly all raw. That is, uncertified.

Robb · March 13, 2010 12:10PM

Ungraded bullion is best for investment. You would likely be able to find a good deal or two on the US Coin BST or over on the Precious Metals forum they have a BST thread as well.

Robb · March 13, 2010 12:11PM

Link to the PM forum BST thread.

RedTiger · March 13, 2010 2:48PM

Grading classic gold is a specialty within the coin hobby. Because of that I would suggest a novice avoid the high grade classic gold coins where the price is mostly dependent on the grade. There are too many low-end for the grade coins, and that is what most novices will end up with.

As others have suggested, the modern bullion coins, is a safer area for the novice.

If a person is really interested in classic gold, start looking at online images. Then hopefully progress to looking at coins in person. Then start buying coins where the next grade down isn't a big drop in price. Then only after a person has learned the basics of grading gold (it will take a while), then and only then start buying the higher grade coins. Like I said, grading gold coins is a specialty within the hobby. Do you have other coins as well, or is this your first foray in collecting? If this is a first time purchase, take some time to research before buying. Start slow, and learn as you go.

Steve27 · March 13, 2010 5:34PM

<< <i>Thanks for the quick response. Are grades important for new bullion coins? Also, I was looking at a website called APMEX to buy my coins. According to the research I have done on the board the reviews of this site have been fairly positive, especially, compared to Blanchard and Gold Line. However, is there a better place to buy?

My motivation is mainly from an investment standpoint, so I guess the buillion is a better option.

Thanks again. >>

For a $2500-3000 purchase Tulving is probably better than Apmex.

greghansen · March 13, 2010 7:46PM

Well, I guess I disagree with the majority here. For investment purposes and the amount your looking to spend, I would try to buy one $20 Liberty in either NGC or PCGS MS64 with a CAC sticker. I have owned both bullion and graded $20 Liberty's since gold was under $300 an ounce and I can tell you for a dead certainty that even though your paying a premium for the numismatic value of the coin, on a percentage basis, the $20 Liberty coins have well outperformed the bullion. Bullion is finse, I've got nothing againt it...and I do own it... but if your looking for the biggest 'bang for your buck' on price increases, bullion is not the way to go IMO.

golfer72 · March 13, 2010 8:31PM

For investment purposes I would pick just straight raw bullion. Since the premium above spot is the lowest it is a safer investment. The problem with graded gold coins like St Gaudens etc is there is no guarantee that the grading standards wont change or something else wont come along causing these coins to lose their premium above spot. As far as graded modern bullion coins I wont even go there. With raw bullion you have an ounce or whatever of basically pure gold with no fluff built in.

CB2597 · March 13, 2010 8:41PM

Are you guys talking about buying like Credit Suisse,Pamp Suisse or Johnson Matthey 1 oz,10 oz. gold bars? Just want to learn more from this discussion/thread.Thx

PerryHall · March 13, 2010 9:02PM

<< <i>Are you guys talking about buying like Credit Suisse,Pamp Suisse or Johnson Matthey 1 oz,10 oz. gold bars? Just want to learn more from this discussion/thread.Thx

>>

Try visiting the Precious Metals forum here to learn about PM bullion bars and coins.

TJMAC · March 14, 2010 2:32AM

Again, I want to thank everyone for their comments thus far. I have done some online research, but wanted to go to this forum since I am getting a collector/investor take and I put some trust in that. I am a participant in the sports card forum as I primarily collect vintage baseball and football cards. My card collecting is hobby first, investment second. With getting into gold coins, I am looking to diversify my portfolio. I know $2,500 to $3,000 is not a large amount, but I thought I would start there.

To be honest, I have decision to make now that I have had the opportunity to look at some of the beautiful older coins. I guess like my card collecting, I am drawn to vintage items. Now I am tempted to maybe buy one gold bullion coin and a St. Gaudens, but I will have to do more research. I have three young kids and the idea of giving each of them one of those beautiful old gold coins someday seems like a nice idea. Are there any other old gold coins that appear to be a better value?

One other question, I know this is a US Coin Forum, but are there any advantages/disadvantages to buying gold bullion coins from other countries besides U.S. (American Eagle/Buffalo). It doesn't seem like there would be on the surface, but I am just curious.

Redtiger, thanks for your advice. I am in no hurry so I will be sure to read some more if I buy an old gold coin. Steve, I will check out Tulving.

lkeigwin · March 14, 2010 7:19AM

If you turn on your PM option we can reach you directly and privately.
Lance.

Looking for advice

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