Hi CT friends, I admit it, I am a dummy when it comes to buying gold coins. I see the spot going up and i figure if I can buy under spot I am making a good deal. SOoooo, I invested $1760.00 including shipping for a Gov. $ 50.00 one ounce coin from Nationwide.Coins. I was assured Gov. meant the US Mint and the coin is 99.99 pure gold. Has anyone on this site dealt with this company before ? Any recommendations ? I see gold spot is up to $1703.00, which brings me to my next question. When I go to sell, is the only place you can get spot price is from a dealer or collector ? I am sure if I went to a Federal bank they would give me $ 50.00. If I go to a LCS they would offer me under spot, so my next question is, is gold coins really a good investment ? Dummy Dave
I haven't had any dealings with the company but from what i understand most dealers atm including LCS's are paying above spot for Gold and Silver, premiums for their resales are high too, check Apmex, JM Bullion, SD Bullion etc. and see where they are at, don't confuse the wallstreet paper prices with the real Physical prices, they are not even close atm, especially Silver and Gold Eagles.
Getting gold below spot is a good thing, but I have seldom managed it. Been awhile since I sold gold, but I don't think any dealers are going to pay spot, much less above spot. I ordered some years ago from Nationwide, but my memory says they were really pushy about wanting to sell graded coins. Bought 10 1/10 ounce gold coins and sold 9 to a LCS and made my money back.
As with any commodity, dependent on various factors, the simple answer to your question could be positive or negative. I believe you are buying bullion, which generally won't realize a short-term profit. You generally would be more likely to realize profit by acquiring a common date/type pre-1933 larger denomination U.S. Gold coin, just short of gem condition with luster, lacking extensive prominent "bag-marks". These coins are available, but quickly sold, and sellers are increasing pricing in a declining market. I'm seeing these coins in MS63 condition being regularly offered at MS66 CDN pricing. You will also find MS63 condition coins with extensive "bag rub/marks" being graded appreciably above "Gem" technical grading level. JMHO
I'm not familiar with the company you mentioned. But industry standard when it comes to buying/selling bullion coins (which is what you described) is dealers sell for about 10% over spot, and buy for about 10% under spot - give or take a percentage point or two depending on the dealer. And that 10% applies to 1 oz coins. Percentage goes up as denomination/weight goes down. And bullion coins are defined as standard bullion coins from any govt., as well as common date gold from any country, including those graded and slabbed as high as MS63 and 64 in some cases. That has been industry standard for decades.
I guess I am not making myself clear. My question is; If I buy a one ounce coin, no matter where it comes from, I am talking about one ounce of gold. If it is worth spot price where can you redeem it for spot or close to spot ? Dave
I’m not familiar with that company so I only buy US gold coins or well know gold pieces like the maple leaf, Krugerrands and US gold. Just buy and hold long enough and it will be higher than when you bought.
That depends on how you define "close to spot". As I said above, just about any dealer there is will pay you about 10% less than spot at any time. And that's about the best you can hope for. Of course you also have to realize that spot changes - goes up and goes down - literally by the minute, every day. And on some days, those changes in either direction can be significant. At times trends in either direction also develop and trends can last for days, weeks, or months. To see examples of this all you have to do is take a look at charts of historical spot prices. To put it quite simply, hoping to make a profit by buying and selling gold is quite risky and for all intents and purposes is nothing more than gambling.
