Hi everyone, I know this doesn't pertain to coins, but I have a question that I hope someone here can answer. I am thinking of investing in gold. I want to buy gold bars but I really don't know where to start. If anyone can recommend who I should talk to, I would really appreciate it. Most places won't sell unless you buy over 15 ounces, which is more than I can afford. I also see a wide variety of prices between places. Also, if anyone can tell me whether coins or bars are better as an investment. I've thought about coins but I am afraid to get too "attached" to them. Again, I am sorry if this doesn't exactly pertain to coins. Thanks, Scoob
Welcome to the forum, Here is an earlier thread about coins as investments http://cointalk.org/showthread.php?t=664&highlight=investments Now whether you wish to invest in gold, I would certainly recommend coins versus bars. The reason is the ability to turn liquid. Coins are usually better quality than bars. I have seen bars in 14, 18, and 24 karat. Bullion gold coins minted in the US are 24 karat. They sell near bullion in just about every coin shop in the country. As we (dealers) move bullion around, it is on a very rare occasion that bars will be offered. I hope that helps.
Thanks National for the reply. I just read over the link you suggested. I guess the main reason I was a bit leary to "invest" in coins is because as you said, the prices are pretty much valued on the appeal of other collectors. Much like other collectibles. Gold bars wouldn't fit in to that category, but then again it is the liquidity of the bars. I am not yet sure what to do. If I did "invest" it would just be a small portion. Scoob
Why not try gold bullion coins. They can be bought at any coin shop for just a little over bullion. But if the market drops be prepared to lose. Investments are best left to investment brokers. Now I do deal with a few brokers as their "coin guy". The nice part about the coins, is that you can buy in tenth, quarter, half, and one ounce. Tenth ounce coins sell in the forty to fifty dollar range. Not too bad for gold. This way, you won't lose your shirt if the market falls. Just one opinion.
I'll echo National dealers thoughts on this..... The Bullion pieces are of great beauty, but they are much easier to sell when the time comes......... be careful though..... if you buy some of the wonderful bullion beautys, you just may find yourself becoming a coin collector.... (and those cats are weird people) QUEENKOIN, QUEEN OF KOINS
Uhhhh - Nd - American Gold Eagles aren't 24 karat. They are 22 karat - or .9167 gold. Each coin though - depending on its denomination does contain 1/10, 1/4, 1/2 or 1 oz of pure gold. This is because the coins are slightly overweight to make up for the alloy content. Nd is correct though Scooby - American Gold Eagle coins are more liquid ( easily sold ) than bar bullion. They are also quite easy to obtain and at a small premium over melt value. I think you misunderstood when Nd suggested the coins - you were thinking, I assume, of the older gold coins issued by the US. The American Gold Eagle is issued today - and has been every year since 1986. The coins are commonly bought and sold as bullion - for only a few collect them as numismatic items. And the advantage to you with these coins is that there is no minimum when you buy. You can buy just 1 - or a 1,000 of them. It's all up to you.
OOPS. My turn to say DUH. I have no idea what I was thinking. You would think after all these years dealing I would know better. Well, at least I was correct in suggesting bullion coins over bars. So at least that part of my brain was thinking right.
It is extra tough to find a Maple in gem though. Poorly struck for the most part. Bad planchets also. I know, none of that matters for bullion, but like you said, many a collector was brought out of this bullion game.
I'll tell you, I've always wanted to build a Gold 1 ounce Bullion type set.... A Maple Leaf, Panda, Gold Eagle, Krugerrand, ect..... I think this would be a very cool set...
Gold bullion coins trade about the same level as the gold bars but they have a somewhat wider acceptance, in my experience. Yes you can get credit suisse bars in 1 oz size but they don't cost any more than a Krugerrand, Maple leaf, etc...and all the gold value is the same. Some gold bullion coins carry a slightly higher premium than others. Eagles retail for about $5 more than Pandas, for example. If you prefer pure gold there are several coins to choose from. The Canadian Maple, Austrian Philharmonic, Chinese Panda, Australian Kangaroo are all 24k. The Krugerrand and Eagle are 22k but still contain a full oz of gold, plus the 10% alloy. The only people that I've seen that shun 22k coins consistently are jewelers...they like the 24k coins because they melt them and use them in casting. Buying gold can be a fun and rewarding experience. There's nothing else that gives us that warm fuzzy feeling like gold does. Just be sure to shop around and know a little about it before you buy. Buy from someone you're comfortable with, who can speak intelligently about the market. Post here if you have any questions, we are always eager to help. Nick
This thread is right up my alley as I've been thinking of picking up a gold coin or two for myself for speculation. Up till now, I've stuck to silver bullion, which I buy mostly in 10oz bars for a few cents over spot. Most of it I bought a few years ago for $50>$55 ; which I now can sell for around $80, (but I'm holding out till silver (hopefully!) goes up a bit more. However, one time I went to my dealer and he was low on silver so he sold me a couple of gold coins: 1894 Austria 20 Cor. .19604 (says XF on card) 1903 Russia 5 Rub. .1245 (says AU on card) I forget what I paid for them, but it must have been close to spot gold at the time or I wouldn't have taken them. Are these considered a type of bullion since they are not very rare and can be bought close to spot? BTW One problem though: I have gotten slightly attached to them (and I thought I had a heart of stone). Instead of turning them over for a quick profit, I may give them to my little neice for her birthday.
Hi Doc, I think the idea of giving those coins to your neice for her birthday is a pretty good one. One of my Uncles got me started in the hobby, about 40 years ago, by giving me a silver coin.
Hi Well, the only thing is that I think I've heard that you may have to pay taxes on bullion if you sell for a profit. Didn't I hear that the ASE all have different amounts of silver every year?? Or am I confused-- Speedy
The tax question should go to your tax person but my understanding is that capitol gains are capitol gains. Doesn't matter if you made money on your home, Walmart stock, or gold coins. Uncle Sam wants his taste.
From what I have read, I think you may have to report profits to the IRS if you are selling gold bullion coins other than the Eagles, even then you have to be selling more than 10 ounces (I think). Right now, it's just looking in to who to deal with. If anyone has suggestions, I would like to hear them. I am only looking to buy a few ounces at a time right now. Some places I have checked on the net have a 10 or 15 ounce minimum to buy at a time. I've always been somewhat interested in coins since my dad collects, only silver though. My only fear like I said earlier is that I will get too attached to the coins. Scoob
Call any coin dealer. All of us have gold bullion coins available. If you can't find one in your local phone book, give me an email and I will send a few names your way. I see about 80 listed in Wisconsin in the dealers directory.
Here is a good article on investing on gold. Not specifically coins or bars, but gold overall. http://kitco.com/weekly/paulvaneeden/apr022004.html
