At what price will you start buying gold again?

Discussion in 'Bullion Investing' started by QuintupleSovereign, Nov 15, 2022.

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At what price per oz will you start buying gold?

  1. $1800

    1 vote(s)
    2.8%
  2. $1700

    1 vote(s)
    2.8%
  3. $1600

    4 vote(s)
    11.1%
  4. $1500

    4 vote(s)
    11.1%
  5. $1400

    2 vote(s)
    5.6%
  6. $1300

    5 vote(s)
    13.9%
  7. I'll buy at any price.

    9 vote(s)
    25.0%
  8. I won't be buying at any price.

    5 vote(s)
    13.9%
  9. Other

    5 vote(s)
    13.9%
  1. Collecting Nut

    Collecting Nut Borderline Hoarder

    Congratulations! A very good price.
     
    masterswimmer and -jeffB like this.
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  3. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    You can never have enough GOLD, I
    will stop buying when I am dead..LOL
     
  4. Andrew619

    Andrew619 New Member

    The question should be at what price will you STOP buying gold?

    I will stop buying 1 ounce coins at $2100. I will move to 1/2 ounce coins.
    I will stop buying 1/2 ounce coins at $1500. I will move to 1/4 ounce coins.
    I will stop buying 1/4 ounce coins at $1000 and not buy any more gold.

    I would never buy a 1/10 ounce coin.
     
    GoldFinger1969 likes this.
  5. masterswimmer

    masterswimmer A Caretaker, can't take it with me

    Not sure how this makes any sense.
     
    imrich, Mr. Flute and Collecting Nut like this.
  6. Collecting Nut

    Collecting Nut Borderline Hoarder

    Me either. It’s backwards.
     
    masterswimmer likes this.
  7. masterswimmer

    masterswimmer A Caretaker, can't take it with me

    So very simply put, you're willing to pay the equivalent of $4,000/oz in 1/4 oz coins but not pay, say $2,300/oz in 1 oz coins?

    The same illogical scenario plays out for your other examples as well? Please take a moment and explain this to me, and @Collecting Nut
     
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  8. Collecting Nut

    Collecting Nut Borderline Hoarder

    No wonder he won’t buy 1/10 ounce gold.
     
    masterswimmer likes this.
  9. Andrew619

    Andrew619 New Member

    I have a budget of $2000 a month to buy PMs. I'm currently buying a 1oz buffalo but once the cost of an ounce breaks the $2100 barrier, I'll switch to buying a 1/2 ounce eagle and bank the excess cash. If the 1/2 ounce eagle ever breaks the $1500 barrier, I'll switch to buying a 1/4 eagle.

    I'm just buying as much gold as I can to stay within my budget. It's really not that complicated. It was hard enough for me to wrap my head around buying gold over $1800. My next mental barrier is $2100. I'd rather start buying fractional and bank the extra cash.

    It's really not hard to understand and thanks for the support.
     
    Last edited: Nov 27, 2022
    -jeffB likes this.
  10. Andrew619

    Andrew619 New Member

    Partly correct. I'm not willing to pay $4,000 for a 1 ounce coin so yeah, I'd rather buy a 1/4 coin for $1,000 instead.

    Many people who buy fractional gold, can't afford to buy a 1 ounce coin so they buy what they can afford. It's a simple logical scenario that many bullion buyers subscribe to.
     
  11. Andrew619

    Andrew619 New Member

    Wonder doesn't really play a part in my decision. I just don't like tiny gold coins. It's a personal preference really.
     
  12. Collecting Nut

    Collecting Nut Borderline Hoarder

    But you are willing to pay $4000 per ounce if you buy 4 quarter ounces at $1000 each.
     
  13. Andrew619

    Andrew619 New Member

    Sure, in the same way that everyone who buys a fractional gold coin is over paying for an ounce of gold. People who buy a 1/10 ounce coin today for $280, is really willing to pay $2,800 an ounce. That's common knowledge. A 1 oz. gold eagle today is about $2000.00

    If gold reaches $4000 an ounce, I would be buying a 1/4 coin every month for a total of $12,00 for the year (give or take daily volatility).

    Spread out over 1 year, that's more affordable to me than spending $12,000 on 3 one ounce coins.
     
    Last edited: Nov 27, 2022
  14. Andrew619

    Andrew619 New Member

    Given this hypothetical of $4,000 gold, I have a feeling, at that point, I would be liquidating my stack from 2006. Anyone remember when spot price was $800 an ounce.

    I remember the first gold coins that I ever bought was the 20th Anniversary 3 piece gold set from the US Mint. I think the retail price was $2600.00.

    Does anyone remember that set? That's when the PM fire was lit for me.
     
    -jeffB likes this.
  15. -jeffB

    -jeffB Greshams LEO Supporter

    So, dollar-cost averaging, which is probably the very best strategy available for people who realize they can't accurately foretell the future. :)

    You're Doing It Right.
     
  16. masterswimmer

    masterswimmer A Caretaker, can't take it with me


    Your logic is skewed, badly I might add.

    Today's $1,989* 1 oz AGE price (that's a $229 premium above spot) does not equate to two 1/2 oz AGE's today. The 1/2 oz AGE today is running $1,053 each. So two 1/2 oz AGE's (1 troy oz) would cost $2,106. That's a $117 premium for the 1/2 oz over the 1 oz at today's pricing. And that is $346/oz premium over spot.

    Your scenario only gets worse when you get to the 1/4 oz AGE today. You would be shelling out $550 for a 1/4 oz AGE today. Four of them would be $2,200 for the same total of one troy oz of gold. That's a $211 premium for the 1/4 oz over the 1 oz. And that is $440/oz premium over spot.

    So in your future $4,000/oz scenario, you might get the 1 oz for $4,000 (if you can find someone selling bullion for spot with zero premium), but you're paying the premium for 1/2 oz and even moreso for the 1/4 oz. So you're not getting two 1/2 oz AGE's for $4,000. It would be the spot plus the premium for 1/2 oz fractionals. The same for the 1/4 oz fractionals. More likely $5,000+ for four 1/4 oz AGE's.

    Just for ha ha's I did the same comparison for the 1/10th oz AGE even though you said you would not stack them. The 1/10th oz is $273. So 10 of the 1/10th oz would set you back $2,730 at today's prices. That's a whopping premium of $741 per oz premium over today's 1 oz AGE. And it's a $970/oz premium over spot.

    * For consistency I used Provident Metals pricing for bullion today 11/27/22 for all the above examples. At this time gold spot price is $1,760 per oz.
    I also used the lowest prices for Provident's AGE's for each oz and fractional. So I did not selectively use inflated prices to make them look worse.
     
    Collecting Nut likes this.
  17. slackaction1

    slackaction1 Supporter! Supporter

    Thanks for examples took some time and research Swimmer, YOUR AN EDUCATOR!!
     
  18. masterswimmer

    masterswimmer A Caretaker, can't take it with me

    Thank you. I wanted to break down his misconception to the simplest terms. I hope it was clear.
     
  19. Collecting Nut

    Collecting Nut Borderline Hoarder

    It was clear to me. And from the last few posts I have reached a decision. I’ll buy the gold as I want but at the prices he’s willing to pay I’ll be pleased to sell what I own to him. I could make some good money doing this. :)
     
    masterswimmer likes this.
  20. GoldFinger1969

    GoldFinger1969 Well-Known Member

    If you believe the long-term trend of gold is UP....or you like it as insurance against financial implosion....or you just believe the next $1,000 is UP and not DOWN.....wouldn't you want to buy more aggressively as it declined ?
     
    mpcusa likes this.
  21. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    It all depends on what your ultimate
    goal is, some people buy and sell like
    the wind, my camp says buy 3-4 once’s
    a month and hopefully the price is still
    with in a good range, it’s all in the timing :)
     
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