I am looking for advice on the best way to buy small numbers of gold U.S. Eagles (just one or two at a time). I think they are very beautiful, and also am interested in having the diversification that a small amount of gold can add to one’s finances. I have many questions though. A quick comment first: I’ve been lurking here awhile and would just like to commend you all on an excellent forum with many knowledgeable, enthusiastic, and helpful members. I apologize if my questions aren’t exactly on topic for this forum, but if it is ok with you all, I’d love to pick your brains. If you’re aware of another forum that is more appropriate for my questions (and as helpful and unbiased as this one), please let me know. Ok, my first round of questions: First, if I am primarily interested in bullion coins as a precious metal (rather than numismatic) investment, how concerned should I be about date and condition, if at all? I presume date shouldn’t matter much. Condition must matter – but I presume I needn’t be looking at graded coins? (Also, when I asked some newbie questions to my local shop, I detected a hint of disdain in the guy’s voice – if the shop realizes they’re dealing with a rookie, am I likely to get inferior coins? How do I protect against this?) Second, two stores in my area sell the 1oz gold eagles for spot plus $25 (plus 5% tax here in MA for bullion purchases under $1000, or I guess I could head to CT where there is no such tax). This seems like the most simple approach, though perhaps not the cheapest. On the internet it looks like they can be had for spot plus $16 (or so) plus shipping, handling, and insurance. After shipping, handling, insurance, does this still work out to be a cheaper alternative in small quantity? Does anyone here have a reputable, trustworthy site they are confident recommending? Are there other options I’m not considering? (I’ve read a number of posts in this forum in which people state that they bought at “just over spot” – is $16 to $25 over spot for an ounce of gold considered “just over spot” or am I missing the boat?) Thanks in advance for your help!
Welcome to the forum. Your questions seem straight forward enough. A lot of dealers seem to have issues with newbies, although I must admit I am not aware as to why. Sure they ask a lot of questions, but how does anyone learn without asking. Anyways, it is pretty standard for dealers to sell at an average of $20 above spot. For the purposes of gold, the date and relative condition does not matter. Most bullion pieces have never circulated, and other than a finger print or some other form of mishandling, they aren't bought or sold any cheaper. Dates usually do not make much of a difference. Some dealers have customers that have put date runs together, but this is not the norm. When buying a few ounces at a time, you will be buying over spot. Shopping around for the best price is good. CT is also a good choice. Here in Delaware we share the no sales tax logic. Buying over the internet is fine, but remember that shipping and handling add up quickly. When someone claims to have bought just over spot, they are referring to very close to spot value. I don't know any dealer that does this, in small quantities. If you are going to deal with a coin dealer to buy your gold, make sure they treat you right. If they don't have time to answer your questions, you should not have time to buy their goods.
Thanks very much, ND. If buying just one or two eagles at a time, how should I expect them to be packaged (if at all) at the shop? And what is the best way to store them? (I'll keep them in my box at the bank, but do they need to be in special containers/packing?) Should I avoid handling them, or is a fingerprint or two ok? Thanks again!
Most of us dealers keep these bullion coins in tubes. When a customer buys one, it will usually be placed in a 2x2 flip. If you plan on holding onto them for quite some time, spend the dollar and put them in a airtite holder or something simular. This will protect them from mishandling, and scratches. It will also allow you to hold the coin without getting fingerprints on them. Gold has a certain amount of copper in them, and copper spots over time. A silica gel pack in your safety deposit bank is a good idea. They run about $5.
And as with any coin, hold it by the edges (what is sometimes the reeded edge) until you can get it into the airtite. The oil and dirt on our fingertips can and will damage any coin.
