About Buying Gold or Silver

[dank smoker420]

when you buy it you buy it at market price or whatever its going for at the time but when you sell it to get your money back who do you sell it to?
if you sell it to a goldsmith then they wont give you full price for it anywhere you try and sell it it wont go for what the asking price for gold is they also give you less so when you think your doing so good on gold your not doing as good as you think

am i wrong?

 

[cacamal]

too true you can try selling to the public via computer or newspaper ads but like any collectable type investment the pros burn you.

 

[EvlMunkee]

I buy online. There is a stock that actually buys and holds gold. It is called GLD. It takes about 10 shares to equal an ounce so now it is 160 something. It's very easy to buy and sell that way. I used to buy mining stocks but they are subject to other influences.
You are right about not getting full price from a dealer. They have to make money too. That means you have to have enough profit for both of you.

"SPDR Gold Trust (the Trust) is an investment trust. The Trust holds gold and issues shares (Shares) (in minimum blocks of 100,000 Shares, also referred to as Baskets) in exchange for deposits of gold and distributes gold in connection with redemption of Baskets. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion. The shares are designed to provide investors with a way to invest in gold. The Shares represent units of fractional undivided beneficial interest in and ownership of the Trust. The sponsor of the Trust is World Gold Trust Services, LLC. BNY Mellon Asset Servicing, a division of The Bank of New York Mellon, is the trustee of the Trust. Gold is held by HSBC Bank USA, N.A. (the Custodian), on behalf of the Trust. "

 

[NoDrama]

Sell your gold to a coin shop/ bullion dealer, they will give you FULL PRICE!!!

You can own all the GLD you want. but it isn't gold it is a ETF, you cannot ever get actual gold delivered to you unless you happen to be a institutional buyer with a minimum 5,000 contracts (400 oz of gold per contract). read the prospectus.

 

[MurshDawg]

Who wants to buy gold anyways? It has to be over inflated by at least 500% because of the down economy. ETFs are crap unless you are day trading, buying oil, or other hard to store commodities (easier to store metal than crude). If you do decide to buy gold make sure you buy gold coins that carry a denominational value. For example, 1 oz gold eagles are $50 USD legal tender. You can buy gold coins from any nation; Mexico, Canada, Australia, China, etc. I would buy 24 karat (.999 pure) coins the Gold American Eagles are only 22 karat (.995 pure).

 

[EvlMunkee]

Sell your gold to a coin shop/ bullion dealer, they will give you FULL PRICE!!!

You can own all the GLD you want. but it isn't gold it is a ETF, you cannot ever get actual gold delivered to you unless you happen to be a institutional buyer with a minimum 5,000 contracts (400 oz of gold per contract). read the prospectus.

I don't want the gold physically. Make more money in an ETF. I have read the prospectus. I have bought and sold GLD for 7 years and the price always stays with the actual gold price. Only it is much easier, faster , more convenient and more profitable.
If you want to actually hold it in your hand , this is not for you. I just want the profit. Depends on your stategy I suppose.

If the coin brokers are buying at full price then how do they stay in business? sell at full price plus?

 

[EvlMunkee]

Who wants to buy gold anyways? It has to be over inflated by at least 500% because of the down economy. ETFs are crap unless you are day trading, buying oil, or other hard to store commodities (easier to store metal than crude). If you do decide to buy gold make sure you buy gold coins that carry a denominational value. For example, 1 oz gold eagles are $50 USD legal tender. You can buy gold coins from any nation; Mexico, Canada, Australia, China, etc. I would buy 24 karat (.999 pure) coins the Gold American Eagles are only 22 karat (.995 pure).

Actually there are a lot of people that want gold. Why?...lets see....maybe because it is has made over 20% per year average in the last 10 years. And there is no reason why you would need to daytrade unless you want to. I would rather buy and hold

 

[MurshDawg]

Actually there are a lot of people that want gold. Why?...lets see....maybe because it is has made over 20% per year average in the last 10 years. And there is no reason why you would need to daytrade unless you want to. I would rather buy and hold

Well I know a lot of people want gold... right now. My point is that gold's value is over inflated by at least 500% I would rather buy and hold as well but I want it to be something tangible not some IOU that couldn't stand up to a bank run. AS far as precious metals goes; there are way more stable options than gold. How about palladium or platinum. Both are precious and both have heavy industrial apllications. The gold market will continue to gain as normal however you cannot discount the fact that particular commodity is in the high end of a bubble.

 

[golddog]

75-80% of Spot - Mostly Placer Gold (from miners)

If you want to hold gold, buy 1 ounce sovereigns, they trade a spot price.

I don't have any paper gold, but plenty of real gold

 

[EvlMunkee]

I agree with the high end ...yeh maybe a bubble too. Really though, it doesn't do down a lot when it goes down. And as long as I have been alive it has not had a lasting downward trend. Ten years ago it was $275. There has been plenty of opportunity there.

Silver actually makes sense to me as there are numerous industrial uses for it. I have never followed any of the other ones so ya got me there.

I concentrate on gold because my wife is from one of those places where it has a use in normal life. The people in her country buy, hold, and sell gold much more often than we do. The jewelry there can be used as currency because it is made with precise weights that make them a known value. For instance a small ring may be a quarter baht (one baht equals a half of a troy ounce). Or a chain may be 1 baht. All of it is 96+ %....23k. When I buy gold to hold I get it there.

 

[EvlMunkee]

75-80% of Spot - Mostly Placer Gold (from miners)

If you want to hold gold, buy 1 ounce sovereigns, they trade a spot price.

I don't have any paper gold, but plenty of real gold

So do you have to have it smelted? just wonderin

 

[golddog]

So do you have to have it smelted? just wonderin

My buddy has a small electric one. But usually we don't unless we are going to melt jewelry or make silver belt buckles.

I have been known to buy jewelry (hahaha 50% of spot), but I make Gold Nugget Jewelry.

 

[EvlMunkee]

My buddy has a small electric one. But usually we don't unless we are going to melt jewelry or make silver belt buckles.

I have been known to buy jewelry (hahaha 50% of spot), but I make Gold Nugget Jewelry.

That's cool. I'm a jeweler too.

 

[NoDrama]

If the coin brokers are buying at full price then how do they stay in business? sell at full price plus?

They sell with a commision, depending on the Metal and the current demand they average around 3-5% where I am.When silver is in backwardation they might charge 8-10% commission on Sovereigns.

IMO Gold is not in a bubble, if each dollar were to be backed by gold, gold would be priced at $30,000 per ounce. Gold is the most stable asset in existence, over the long term the purchasing power of gold does not diminish, currencies do.

 

[NoDrama]

[video=youtube;k08BXBGrCtk]http://www.youtube.com/watch?v=k08BXBGrCtk[/video]

 

[EvlMunkee]

wow. He really doesn't like GLD does he? Pretty interesting stuff. I wonder why my broker gives it such a high rating. I suppose it is the track record.
Maybe I've just been lucky all this time. I do take profits though so even if I lost it all my GLD today I would be way ahead. (not that I would want to)
It does warrant some investigation though. Thanks for posting

 

[dank smoker420]

75-80% of Spot - Mostly Placer Gold (from miners)

If you want to hold gold, buy 1 ounce sovereigns, they trade a spot price.

I don't have any paper gold, but plenty of real gold

you buy the gold from the actual miners? thats the way to do it

 

[golddog]

you buy the gold from the actual miners? thats the way to do it

It's really hard work for the gold you get.

A lot of miners in CA are growing

 

[dannyboy602]

I buy from a local metals dealer. When I sell he makes 1% of the spot price as commission. If I buy GLD or SLV then the profit is taxable. There is no paper trail through my metals dealer and I give him all of my metals business. As I'm only investing for long term I feel silver has more upside potential than gold.

 

[NoDrama]

Yep, my dealer likes to get cash for metal. no paper trails for me. Honestly though, physical gold and silver are treated as a collectible by the IRS for tax purposes, the tax on the capital gains from a collectible is double the normal rate for things like equities (Stocks). Unless of course you are collecting sovereigns. Sovereigns are actual Money, because they have a value printed on them. Examples of sovereigns are US Eagles, Canadian Maples, Australian Kookaburras, Austrian Philharmonics and even Chinese Pandas. Another form of sovereign money is the pre 1965 silver coins (aka Junk silver) used by the US and the pre 1967 coins used by Canada that were 90% and 80% silver respectively in denominations of Dime, Quarter, Half Dollar and Dollar coins. Mexico had silver circulation coins in the 40's and 50's and before. The thing with sovereigns, and why you want them, is that since they are money and by law money itself cannot be taxed there is no capital gains tax to pay nor a collectibles tax, in fact there isn't a tax to pay at all on these when you sell them. Big premium though, you won't be able to get Most of the official .9999 pure sovereigns for anywhere close to spot price, sometimes there can be a 15% premium on them. Shop around, US silver eagles usually have the biggest premium, but command the top resell price and are the most trusted form of silver on the market.

Some of the coins are so damned good looking that you end up just collecting them for their artistic value. The Chinese Pandas and the Australian Kookaburras are top quality and fascinating to look at all the detail. What is really nice about them is that the design is different every year, so it gives you something to look forward to. China has Suspended exports of the Panda, so they have the biggest premiums right now, I bought several hundred at the beginning of the year from the first shipment before the suspension of exports, so that was a bonus. I will hold them for a long time, perhaps the collector value will go up too, you never know.