Gold Buying Tips: What's Your Best Advice?

Discussion in 'Bullion Investing' started by Peter T Davis, Feb 20, 2009.

  1. Argento

    Argento Perplexed

    I am guessing between 2015 and 2020
     
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  3. desertgem

    desertgem Senior Errer Collecktor

    I do prefer to own stock that I can personally evaluate a little. I never considered Walmart until I was in a superstore. I didn't like a nearby Circuit city, and really beginning to not like the Best Buy in town. Costco is my favorite in town and I really liked the local gold mining company. You will never hear it mentioned on CNBC as it is rather small, but now I know the people and if I want I can go to the overlook trail and count the number of truck dumps per hr :bigeyes:. Rather like not buying even a slabbed coin if you can't see it.

    When this thread was posted
    http://www.cointalk.com/forum/t44834
    the stock was about $1.00

    Jim
     
  4. Victor

    Victor Coin Collector

    Oh Baloney :>p
     
  5. maksimfa

    maksimfa New Member

    going by that formula... i need to go out and buy another 2 or 3 monster boxes of american silver eagles. =P

    For someone in early to late 20's a bit hard to gather 20oz of gold, esp at $1k an oz.

    Silver, doable.
     
  6. cowdog

    cowdog AA Weinman look alike

    great question. Most of the advice here is good. I am no expert on investing, but I think that most Americans would be better off to do several thing before they buy gold.

    1.Pay off all credits cards and unsecured debt
    2. Have enough cash in a stable bank or credit union for a month or two
    3. Have enough cash hidden at home to run their household for at least two weeks
    4. Buy silver bullion or junk silver

    After that buy gold bullion slowly, more when the price is lower, less when higher. Buy both from excess built up in the household hidden money account. Always pay cash, and use only money you can afford to lose.
     
  7. maksimfa

    maksimfa New Member

    Even though by law i am prohibited against providing advice online, I can add a few general notes as the previous poster hit it on the head about setting priorities straight.

    Before investing in anything, stocks, bonds, gold, silver, cars....

    build a solid financial base.

    1. Establish a minimum cash reserve. $1k for a rainy day.
    2. Pay off all debt, not including mortgage, but anything such as car notes, credit cards, etc. These debts carry a high adjustable rate typically and no prudent advisor will promise you 20% returns.
    3. Build up your cash reserve to 3 to 6 months if you are still working. 1 year if you are retired. By months I mean commited fixed and discretionary expenses.
    4. Make sure you are financially protected in case you lose your job, or get hurt and cannot work. Also in case of unforseen death. Family must be protected. God forbid you pass away, dont leave instruction, spouse sells off your gold coins for 20% going rate and takes the 90% silver half dollars to a coinstar at the grocery store.

    Make sure there is money in case of death, ie insurance, and do leave instruction, ie wills and trusts.

    After that is done... by all means invest, speculate.
     
  8. tekhen

    tekhen Member

    I have pondered the minimum/build/enough cash statements...
    From a bullion perspective isn't Ag/Au cash?

    For example...
    - instead of $1k in fiat for a rainy day what about 1oz og Au for a rainy day?
    - how about two weeks of household cash in PMs instead of fiat?

    DYODD
     
  9. tekhen

    tekhen Member

    For Au, one will most likely have to play catch up...
    My parents didn't save in PMs for me and I didn't start until my 30s, so it will take time.
    The best place to start is at birth (an ounce per year). When able, one can then make the purchase themselves and if done in this manner an ounce of Au becomes very "doable".

    For Ag (using SAEs and @ 20y/o) it would be 2 mint boxes/1000ozs = $18500 using today's pricing.
    The same applies... it would be better for the parents to start and the child to continue.
    Since this is not typically done at birth, one would have to diligently save. In time, it can be done and history has shown that one will be very happy with the results from this very simple savings plan.

    and of course... Ag is the cheapest route and if one cannot afford Au, Ag is 'next' in line but if one can... do both.

    1 ounce of Au per year
    50 ounces of Ag per year


    DYODD
     
  10. cowdog

    cowdog AA Weinman look alike

    Good question, but you need to think about various rainy day scenarios.

    1. widespread loss of electric power-No ATMS.
    2. Need to loan money to family and friends during their rainy days.

    I am not a big fan of fiat money, but it still serves a basic purpose that you can take it right now to the corner store and bring home necessities. Most merchants are really still in a fiat mentality, and will be unless the whole system collapses.
     
  11. tekhen

    tekhen Member

    I see...
    as for #2 start telling them to purchase Au & Ag and you won't need to 'loan'
     
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