Back to investigating in Gold

So as I continue to do research on what to do on gold investments, my strategy is 75% bullion, 25% numismatic. Why 25% numismatic? Well it might be good to have a little fun with this. Nothing crazy here.

Regarding bullion, I think I will look at Maple Leafs since the premium is lower than the US Eagles.

But I called US Gold Bureau, a precious metals acquistion company, just to get more information and it was strange. Bullion prices seemed fair, but their Numismatic gold seemed very high compared to bullion price and relative to gray sheet prices. In addition, they were really pushing MS70 Eagles like it was a commodity everyone wants. That had me scratching my head.

 

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If you want to invest stick with generic bars.
And the closer you can get to the source the fewer people there are getting their "handling fee".

Numismatic gold has all the add-on's associated with the production process.
And grading adds even more.

 

These companies suck you in with ''fair'' bullion prices but their underlying agenda is to reel you in with a ''close'' on overpriced ''collectibles''. BEWARE!

 

These companies suck you in with ''fair'' bullion prices but their hidden underlying agenda is to ''close'' you on overpriced ''collectibles''. BEWARE!

 

I keep my bullion gold and my collectable gold coins in silos. For an investment hedge, I have some gold American Eagles. I don't buy graded ones or have them graded. They are an attractive one ounce of gold. Nothing more.

Collectable gold? I approach those like I would any collectable coin. Grade, price etc.

As Mr. Caro pointed out, there are many horror stories from the last Gold Rush about bullion dealers selling overpriced gold collectables.

Keep them separate in mind and approach when buying

 

I only buy from my LCS. They have been running specials lately. This week 1 oz gold bars $13.00 over spot. (not sure what s/h would be, since I buy over the counter). Check them out at scoin.com
Scotsman Coin, St Louis.

 

$13 over spot is reasonable.

Yep, I can see where folks can get screwed over by these companies selling overpriced MS70 coins.

I am sticking with bullion and Maple Leafs - the premium on the Eagles are high.

 

If you want to see a comparison of premiums on various gold products, read Patrick Hellers monthly news letter, Libertys Outlook. He list bullion coins from all countries and compares which bullion coin is the current best price over spot. www.libertycoinservice.com. Click on Newsletter, Current Issue.
(6 months ago, he forecasted $20.00 silver by Labor Day!)

 

Thanks so much on your feedback on this. This is no territory for me and I am excited yet a bit nervous I will mess up.

 

Gold hasn't been that great an investment compared to the S&P 500. Still for a little diversification, maybe not a bad choice. Be sure to take physical possession. A few companies that held gold for investors have gone under leaving investors not holding the bag (of gold). Secure storage is a whole other topic. If there is some kind of survivalist motive, gold is probably not the best choice. Small denomination, common, worn silver coins that are readily recognized (e.g. silver dimes) would be better for the apocalypse. If you are expecting a monetary collapse, hasn't happened yet in the U.S. except for the South during the civil war. Yeah, there have been panics, depressions and recessions, but nothing comparable to the Weimar Republic or Zimbabwe.

Numismatic investment is an oxymoron. It's a hobby (an addiction for some of us), where if done right, you might not lose too much, and if very lucky, might gain on inflation. If it could be done reliably as an investment, big money funds would exist. Google Athena Fund, CAMI or coingate to find out what happened when it's been tried.

Cal

 

thanks calcol. I am looking to diversity my portfolio a little. I also also looking at silver bullion.