Buying gold

Discussion in 'Bullion Investing' started by CoinBlazer, Mar 5, 2019.

  1. -jeffB

    -jeffB Greshams LEO Supporter

    Is it, though? Those capsules add a LOT of volume to the 1/10, proportionally much more than the 1oz.

    It looks like the two tubes each hold the same number of coins. The one on the left is slightly smaller, but holds only 1/10 the amount of metal!
     
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  3. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    the 1/10 OZ allows you to climb the ladder slower and is more affordable
    Not everybody has $1,200 at a time to slap down on one coin, and trying
    To save can be really tough as something always comes up, and there
    Goes your money !! for me it was a new washer and dryer last month
    ..LOL
     
  4. Clawcoins

    Clawcoins Well-Known Member

    @mpcusa .. love that stack of Platinum APEs !!
     
  5. -jeffB

    -jeffB Greshams LEO Supporter

    Yes, but what does that have to do with a "comparison on size"?
     
  6. Mkman123

    Mkman123 Well-Known Member

    stick with something that everyone wants like gold and silver OP. Don't do platinum or palladium. How many people buy them? Not many. I had a pawn shop guy who sells 90% at melt tell me he doesn't buy palladium or plat. When I was in thailand, the main thing everyone wanted was gold. Tell them palladium or platinum, most likely they would not care at all or confuse it with silver.
     
    Clawcoins likes this.
  7. Collecting Nut

    Collecting Nut Borderline Hoarder

    Let's do some basic math. I rounded.
    Currently silver is about $15 an ounce.
    Gold is about $1287 an ounce.
    1 oz ASE is 19.60 for a 2019.
    1 oz ASE is $18.50 for a 2018.
    1 oz GAE is $1415.50 per ounce.
    1/10 of GAE is $154 per ounce.
    10 1/10th GAE would be $1540 for 1 oz.
    A 1/4th oz GAE is $370 each or $1480 per ounce.

    A 1/2 GAE is $723.50 or $1447 per oz. Still, that's $31.50 more than buying the 1 oz GAE outright. With that difference one can own 1.7 oz of silver.

    That's $124.50 per ounce higher to buy 10 1/10th ounces than it is to buy 1 1 oz round. We all know buying in smaller quantities is more expensive but if all boils down to what we can afford and dollars and cents.

    For the $124.50 difference, one could buy 6.73 oz of 2018 ASE's.

    A junk silver dollar can be bought for $17.00 or $13.15 per silver ounce. Then there's junk silver coinage. I'll not get into that but with today's spread of the silver to gold ratio, silver appears to be a much better choice for stacking at the present time.

    Just my opinion and that changes as does the price of PM's and the ratio changes. Like most people, I can afford an ounce of silver a lot easier than an ounce of gold.

    Silver does take more room to store but I think as the spread between gold and silver rises, silver will be more apt to climb faster than gold providing a higher profit when it's time to sell.

    I won't get into it but I feel the ratio will be changed before the end of the year.
     
  8. -jeffB

    -jeffB Greshams LEO Supporter

    How's that again?
     
  9. myownprivy

    myownprivy Well-Known Member

    Silver is poor man's gold. Copper is a homeless person's silver.

    There's nothing wrong with silver or copper, but once you get serious about putting away 5-10% of your money into PMs, you won't be able to do it with silver. If you have anything close to middle income or higher, it will be near impossible for you to easily store that much in silver.

    Average household income in the US is $75,000. 5% of that is $3750 that you could be putting in metals. That's a couple ounces of gold or 200-some ounces of silver.

    After just 5 years of doing it, what will be easier to store: 10 ounces of gold or over 1,000 ounces of silver?

    So, please, don't advise the young man to buy silver. Silver is a poor investment strategy on its own. Maybe buy mostly gold and a little silver as well. But focus on gold as being the primary PM you use. But of course, if you're a teenager and just starting to save money, put it into the market with a mutual fund or ETF. You'll do much better.
     
    Last edited: Mar 5, 2019
  10. midas1

    midas1 Exalted Member

  11. crazyd

    crazyd Member

    When you look at the % over spot for silver isn't it much higher than for gold - even fractional gold ? Not sure but feels the markups on gold are smaller.

     
  12. myownprivy

    myownprivy Well-Known Member

    Don't. Is saving $10 or so per coin worth getting your email/phone spammed by this company for the rest of your life? I say no. You might say yes. But research the company first. https://www.bbb.org/us/tx/houston/p...-bullion-reserve-inc-0915-90016124/complaints
     
  13. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    I was simply showing the comparison, the 1/10 OZ is small and not much
    To look at, as a matter of fact the 1 OZ coin is actually smaller the an ASE
    By a long shot, its much more comforting to look at your holdings with
    Out the aid of a magnifying glass..LOL
     
    midas1 likes this.
  14. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    Everybody wants, what makes them money !! what ever that may be, Palladium
    Is up over $1,500 right now so if you got in early you have more then doubled
    Your money, I call that smart !! on the same token Platinum is on the other
    Side of the spectrum its currently at $832 an OZ in my opinion its a great buy
    Right now, I am sorry if people are not educated enough in Thailand to know
    A good situation when they see one.
     
    midas1 likes this.
  15. midas1

    midas1 Exalted Member

    Many cointalk members have bought the promo. 1/10oz AGE coins from Nationwide w/o difficulty or being bombed w/ spam. yeah, they called me a few times pushing product. I replied No Thanks.. Periodically they send me a very nice large coin booklet. End of story.
     
  16. midas1

    midas1 Exalted Member

    I bought my coins shortly after Houston was struck by a hurricane that delayed my order by a couple of days.

    You're correct, lots of complaints w/ the BBB.
     
  17. Collecting Nut

    Collecting Nut Borderline Hoarder

    The junk dollar is $17.00 but the silver content (.07734 ounces) is a cost of $13.15. One would be paying $4.85 over spot to get the coin. The coin being worth a higher amount than just silver.
     
  18. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    I think you have to do whats right with you current situation, as a silver
    Alternative if funds are tight, your best bet is the Krugerrand 1 OZ silver
    Coin, world recognized as with its brother the Gold Kruger, you can now
    Get these on the cheap !! even less expensive then ASE,S !
     
  19. juris klavins

    juris klavins Well-Known Member

    Yes, generic 1 oz.silver bullion bars/rounds cost about 6-7% over spot when bought in larger quantities - 90% silver coins are a better deal - $100 face value (1000 dimes or 400 quarters) can be bought for $1120 or 3% over spot, which equates to the typical premium for 1 oz. gold bullion coins (generic 1 oz. gold bars are cheaper, at only 1.5-2.5% over melt) - whatever you choose to buy, try to find a reputable dealer with low premiums and no sales tax ;)
     
  20. -jeffB

    -jeffB Greshams LEO Supporter

    No, that's still not right. You're multiplying $17.00 (the cost of the silver dollar) by 0.7734 (the ounces of silver in a silver dollar, you slipped a decimal place) to get $13.15 -- but that's backwards. You'd divide the cost of the silver dollar by 0.7734 to get what you're paying per silver ounce ($21.98), or multiply the spot price of silver by 0.7734 to get how many dollars worth of silver your coin contains (currently $15.04 * 0.7734 = $11.63).

    As you say, though, Morgans do trade at a higher price than silver spot.
     
    Collecting Nut likes this.
  21. myownprivy

    myownprivy Well-Known Member

    Jeff is right. But let's make it simple: Always know the Actual Silver Weight of a coin (ASW) and multiply that by spot. That tells you the silver value of the coin. Anything above that is premium.

    Our example: Spot is $15.15 right now. A Morgan dollar has .7734 ounces of silver. That means it contains $11.71 cents of silver. Simple.

    If you memorize the asw of common junk silver coins, do this simple calculation every time.

     
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