worth buying gold 1/10 at a time??

Smart Buying

Although many will tell you that the economics justify purchasing Gold Eagles in 1 ounce increments, if you do an advanced search of closed auctions on eBay, you will verify that a smart investor could have purchased both the 1/10oz. and the 1 oz. Gold Eagles at virtually the same percentage premium.

I have consistently purchased 1/10 oz. AGE at comparable percentage premiums, and can purchase large quantities of these coins consistently at approximately a 1% net difference.

Having consistently sold both denominations of the American Gold Eagle, I can show that it is much easier on the open market to liquidate 1/10 oz. than the 1 oz. AGE.

I personally recommend purchasing certified 1/10 oz. AGE coins if the premium is relatively insignificant (e.g. less additional cost than bulk certification), and have consistently purchased the more desirable proof coins (which have relatively greater future potential) at a favorable premium.

As previously recommended in this thread, I agree that if you save to purchase the 1/4 oz. AGE, you can better optimize the advantages of both the 1/10 oz. and the 1 oz. AGE.

My experience has been that if you are consistently investing a small amount of funds in PM as an investment, you probably are more versatile purchasing VG+ grade "Junk Silver" at a small premium.

 

Log in or Sign up to hide this ad.

The actual study demonstrated that randomly chosen portfolios were likely to outperform professionally chosen portfolios because the random choices included the stocks of companies either too small, in out of favor industries, or that were financially weak, -- and these tended to be avoided by the professionals not to mention that the random portfolios didn't pay expenses or management fees. This subsequently morphed into the idea that an index fund is likely to outperform professional management. In recent years, the professionals have started to outperform the index funds by taking advantage of the index weakness of being capitalization weighted in the most popular stocks or price weighted in the stocks with the better prior performance. So the index fund managers have changed the game again by coming up with funds weighted by earnings, dividends or other fundamental factors. In the meantime, value investors have been outperforming both the index managers and other professionals for a very long time, putting to bed the lie that there is no metric that can be used to evaluate stocks.

So the profession has advanced far beyond the chimp stories that were popular a few decades ago, but some folks are still stuck with the monkey mentality.

 

All this talk of chimps...? are we still discussing bullion here or plant of the apes movie? "ITS A MAD HOUSE,A MAD HOUSE!" LOL

 

When I first started buying gold I started with the Dos Pesos gold coins and moved on to the 1/10ths. It allowed me to save and make a profit moving up to whatever size I wanted. Never got past the 1/4ozs tho', but for the record it works. Don't listen to people who say the premium is too high or you'll never move up.

 

Thanks man! :smile

 

How about rare gold coins? is it a better investment than the regular/standard bullion gold coins? Anyone???? Thanks.

 

This question can't be answered without knowing the investment goals, timeframe, and details about the specific individual.

 

If you wish to invest in gold, invest in gold. If you wish to invest in collectible coins, don't. They are two separate assets, where the PM has some definite investment qualities, collectible coins really do not. Do not confuse the two. If you can buy an old coin for its bullion value, feel free, but anything in excess is in jeapordy.

Chris

Edit: Just to clarify, I buy thousands in rare coins a year. I never consider them part of my portfolio, though, since the return is unpredictable. My return on these conis is my enjoyment, not financial. If my wife makes some money when I am dead from them, good for her, but I am not counting on it. Counting on returns from any collectibles is a dangerous game.

My aunt's beanie baby fortune, and my nephew's baseball card fortune, are testament to this fact.

 

If you buy gold get 1 oz. If that is out of your range--get 1 oz silver

You want coins-whatever type--buy KEY DATES with the BEST HIGHEST GRADE YOU CAN AFFORD GRADE BY PCGS AND NGC

 

Yeap well said i remember lot of Adults who spent a lot of $$$ in trading cards thinking they going to see the same growth we witnessed till the 80s and believing it is going fund Timmy's college fund. In last 10 years or so it hasn't worked well...

 

Thank fir everyones input.. after spending a ton of time on the phone I finally found a 1/10. Picked it up this morning for 200 bucks with a silver eagle part of the deal.. think that worked out real good!!

 

Good Deal man!
Enjoy.

 

I don't see any reason not to buy 1/10 oz coins. especially if that's all you have money for at the moment.
do it

 

Provident has a good deal right now on 1/10 maples going for $172 about 15 bucks cheaper then Apmex, but then they are normally cheaper then them in most cases. Another thing to look at when constricted with a budget are the 2 peso coins that are just shy of a 1/20th. They are very cheap above spot, easy to move in North America and right now $81 a coin in comparison to say a 1/20th panda that will sell for $110-125.