Ok i love my ASE coins but i am thinking of buying some gold? It takes up less space ( i dont trust banks with my hard currency) and i think having some of each (gold/silver) on hand is a good idea. Is 1/10 oz,1/25oz ok? or do i wait and buy 1oz coins? Do i buy ALL the silver i want and then start buying gold or some of each at the same time? I have more dollars then sense so i need some help here,thanks.
Coin Man, As promised, I've sent some reading material in a "care package", you might consider learning before investing. To answer your question, I believe you'll find small denomination Gold Coins to be the easiest for liquidation, should your youthful priorities change.
I love mine too. Good, you should if you can get into them. Do get some AGEs but don't fear other gold coins that are available since this sounds like an investment leaning thread. Absolutely! But silver bullion takes up a lot too. It is good to not keep all your money in any one basket. They are all fine sizes though the fewer pieces of the smaller denominations you buy at a time tend to carry a higher over spot premium from a dealer. IF you are interested in the smaller denominations perhaps you should buy in larger quantities. They will take up more storage space though. Again, if these are just investments, then look for offers from bullion dealers if they have reduced over spot prices for one type of gold coin or denomination of gold coin over the other.
At first I thought people would jump all over this post, but now I am not surprised by the lack of response here. Investing in gold is complicated and an inherently risky venture. The advice to educate yourself is a good one. I am sure that if you take the time to do so you will do well. TC
If you want to buy gold or any other investment product, dollar cost average is the only way to go. This means simply buying small amounts over a long time. You will buy high but you will also buy low.
Gold is definitely a bigger investment then silver. If you make a mistake with silver, you might be out tens of dollars at most. If you make a bad gold investment, you might be looking at hundreds of dollars of bad investment. My suggestion is to find someone impartial who knows more about gold investing and take them with you. It would be akin to bringing along someone who knows about cars before you bought a used one, or getting an apprasier before purchasing a house. Good luck.
If you are good at market speculation, you will master this art. I think gold will climb another $150 (give or take) an ounce, and then dive as the economy picks up. So if I'd buy, it would be short term, and gambling when I should sell. But, that is my speculation, and I do not claim to be an expert at all! I would do some investigating, and draw your own conclusion. Then make an educated decision, and kick yourself if you screw up!
If it's an investment, then you should keep selling it in mind. At APMEX today, they're buying 1/4 ounce AGEs for 13% less than they're selling them for. For one-ounce coins, that difference is only three and a half percent. Buying fractional gold gives large instant losses.
For this reason, many experts recommend buying half eagles rather than the 1/4 ounce bullion releases. Actual coins hold bullion value as well as numismatic value, limiting the losses during major drops in bullion metal prices.
That's what I'm hearing. But, at over $1000 per ounce, it's a little hard to spring for gold in these hard economic times for a great deal of people.
I started collecting gold on the very small side at first. First I started with the dos pesos gold coins which are around a 1/20th of gold. After awhile I started buying 1/10ths. Of course if I had bigger money at the time I would have started larger but my preference would not have been buying from the US mint. As much as I'd like to have an American Buffalo gold coin or an American Eagle oz. The likely hood of making a profit when you decide to sell is not likely unless you get your coins graded and even then, it's still a toss up IMO. I prefer the pre-1933 gold coins as I feel you can get a better deal buying it and if you get a very nice coin then you can resell at a very nice profit. Just a few things to consider. :kewl:
Of course, if you do go the Indian half eagle or pre-1933 gold coin route, now you are getting more into numismatics. The grade of the coin will make a huge difference in the price. So, having knowledge on coin grading is a must. That's why I suggested getting advice from someone who knows about those coins and taking them with you. If on the other hand, you buy a brand new AGE from the mint, you are almost guaranteed that the coin will be in MS 67-69 condition. Beware of over grading when you buy, and beware of under grading when you sell if you go the Pre-1933 route. I think it is more important to have Pre-1933 gold coins graded then AGE, because slabbed, nobody can argue the grade of the coin....now it just become a dispute of what they will pay you when you sell it. Don't sell it for much less than what a reputable price guide says it's worth.
buy the coin, not the slab. the grade of a coin can always be argued. i will quote q. david bowers from his book "grading coins by photographs." he says, "what is gem uncirculated or mint state-65 to one expert can legitimately be viewed as a lower grade, ms-64, by another expert, and ms-66 by yet another. this is because grading is interpretive, not an exact science."
My gold pickups have been bullion only, I have gotten some exjewelry coin pieces for bullion weight, and some foreign restrikes, again at weight, make sure when doing this that you remember gold coins from the us were 90% so the price is 90% of the weight, otherwise you are buying copper at 1100 an ounce.
This is very true, but some ebayers use this phrase frequently to sell a whizzed and dipped XF or AU coin as mint state. It pays to at least kind of know the grading scale, so you can avoid buying from these people who deliberately overgrade problem coins.
