Discussion in 'Bullion Investing' started by QuintupleSovereign, Nov 15, 2022.
Congratulations! A very good price.
Log in or Sign up to hide this ad.
You can never have enough GOLD, I
will stop buying when I am dead..LOL
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.
Not sure how this makes any sense.
Me either. It’s backwards.
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
No wonder he won’t buy 1/10 ounce gold.
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.
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.
Wonder doesn't really play a part in my decision. I just don't like tiny gold coins. It's a personal preference really.
But you are willing to pay $4000 per ounce if you buy 4 quarter ounces at $1000 each.
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.
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.
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.
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.
Thank you. I wanted to break down his misconception to the simplest terms. I hope it was clear.
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.
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 ?
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
Separate names with a comma.