Gold coin vs. bar purchase advice.

Greetings. I have been reading many threads for several days. I stumbled on to this site by accident. It is a very entertaining and informative site. From here I searched for a companion site discussing bullion. I didn't really find anything as informative or message board based.

Anyway my beginner's narrative and question.

Typically for birthday presents or special occasions I have bought my son or my nephew triple E bonds (whatever they're called). I just go to the bank, get the form and withdraw the money from checking or savings. I always forget some key piece of information and make two trips. The boys get a gift, a card with some money (ChuckECheese allowance) and this thing that says you will receive your piece of paper in so many weeks.

Well they could care less. I thought maybe this year I would switch to those fancy slab coins from the mint or a dealer, etc... Thinking in a couple years the two could take them to show and tell (whatever). Basically something in their hands that was shiny, new and unusual. Reading the threads under bullion investing confused me. I am not buying this for investing. I guess my spouse and I or my brother and sister-in-law would just hold on to these coins for a long time but we wouldn't be looking to turn even a minuscule profit. Then I remember my uncle bought my brother and me these little silver bars for a number of years. So I re-read some threads. I reviewed apmex, pmg precious metals and northwest mint(?) sites as some mentioned in various threads. Further confusion. Apmex was the strangest, then northwest. They had a lot of options but I assumed (discounting mark-up) gold was gold. A 1/10th or 1/4 ounce US coin would be roughly the same price if equal MS or GEM rating. OR. At apmex, a gram bar of gold was a gram bar. But the prices were strange?!? A Credit Suisse bar was more than a PAMP bar that was more than another minters bar that was more than APMEX's brand bar for the same gram weight of .9999 pure gold.

My premise is something of interest for the kids to receive. I guess a bar of gold is simply worth its metal value but can't figure out why one brand is more expensive then another brand. (Onsite manufacture of the product?) Woul you just go with the least expensive option for a 1, 2, 2.5 or 5 gram bar? Next, what seem readily available, MS 69 or 70 coins would be a better option though slightly more expensive in tenth or quarter ounce? I found the coins more interesting than this little sliver of metal in a holder.

Does anyone have some general guidance? A suggestion?

Thanks for reading my tale!

 

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If it's not for "investing" and for the kids, I'd go with numismatic gold, or non-bullion older stuff. You can usually pick them up for the same price as modern bullion, which is mostly just over spot, and you have a lot of nice designs from all over the world to choose from. I think a coin would interest kids more than a bar.
Guy~

 

A bit of advice here old fellow.....no need to post your question twice ( two different threads)....drives the Mods batty....:smile

 

I just saw my double post. I tried to edit out some spelling errors and got a second post.

 

The difference in prices of gold and silver bars is simply the difference in premium (markup) over spot price. Different manufacturers and sellers have different premiums. You can find spot prices for gold and silver at kitco.com or any number of other sites. Spot price changes by the miniute. If you are simply buying for bullion value, buying bars that are attractive to you at the lowest premium is the way to go.

Buying fractional weights of gold and silver usually means higher overall premiums. For example, you would in most cases pay more premium when buying 10 - 1oz. bars than if you bought a single 10oz. bar. Therefore, buy the largest weight bar you can afford if you want to minimize costs, although sometimes you can find "sales" ("only 79 cents over spot", for example) on lower weight bars. I've also found success at bidding under spot or at spot on bars on eBay from sellers who are regularly selling bars almost every day.

 

No intentional investing.

An example: on one of the sites there was a minimum purchase for the small gram weights. I think a quantity of 25. I figured just buy 25 store in the dresser and dole them out over, birthdays, Easter egg baskets, Christmas stockings, etc... Second example: the 1/10 ounce coins would be for birthdays and Christmas. The slab has mixed reviews in the threads but they seem fancy to me. I think my son and nephew would find them interesting and could pull them out later for a school show n tell or a essay subject down the road.

A poster in my other thread had a good suggestion for the silver dollars in the slabs. My wife and I have a bunch of old dollars, half dollars, quarters, mercury dimes, wheat pennies (and the like) stored away that we received as kids in stockings, baskets, from family cleaning out clutter. They aren't in a case unless old coffee cans or music boxes are classified as such. We rarely think about them but we are not going to take them to the jewelry store and get rid of them either.

 

The prices at APMEX are based on supply and demand, some people prefer certain bars over others so they pay more for whatever reason.

I actually bought a gold coin from APMEX which I considered a steal yesterday so they have some great prices on certain things.

Anyway some here will disagree but you may want to look at the gold panda coins.

http://www.apmex.com/Category/375/1_4_Ounce___Gold_Chinese_Pandas.aspx

http://www.apmex.com/Category/376/1_10_Ounce___Gold_Chinese_Pandas.aspx

You will probably want to buy graded coins though.

There are also commemorative gold coins that sell for cheap and gold eagles, along with older US gold coins as was said.

 

Personally, I think the modern coins and coin sets are perfect for annual gifts. Whichever you choose (proof sets, ASE's, AGE's, etc...) they have the year on them so they aren't necessarily getting the exact same thing over and over. Over the years they will accumulate a set, and it could drive interest in filling in the older dates or starting to collect other coin series. Perhaps, In the future they will go back to their dated coins and think "2009, My dad gave me this when i was only XX years old!"

I personally wouldn't think getting the same 1 gram bar (which is very tiny, BTW) over and over wouldn't be that much fun. But then, I suppose getting the same ASE with a different date on wouldn't appeal to some as well...

Also, I wouldn't shell out the extra $$ for slabbed coins either... The mint packaged ones are cheaper and well protected. They also come tend to come with reasonably attractive packaging and a card with some info about the coin. You can even sign up for a subscription from the mint web site, and they'll send you the coins/sets each year without you having to remember to order them

--Paul

 

official gold coin with face value. like american eagle, american buffalo, canadian maple leaf, australia lunar II, mexican libertad, austria philharmonic, south africa krugerand, chinese panda and many others.

 

I love your avatar, an orange and yellow sucker.. Very scuba like!

Anyway, back to the question..

Yes, a Gold coin is prettier to look at but you probably will get stuck with a premium.

Is this for investment or looks? or both?

 

I would avoid bars, they are cute - but they are not as liquid as coins when it comes to selling. With coins I tend to buy older stuff, out of favour, like Krugerrands, 1967 Canadian $20 commemoratives Austrian or Hungarian 100 Korona coins etc. The reason I buy those over Maples, Eagles etc, is less mark up.

The only bars I like are the Pamp Suisse, but only because of the design of them, otherwise the markup on them is too high usually.

 

Yes those Pampers are very nice bars.. Too bad I don't own any.. A little pricey for even my taste

 

Best Option For You and Your Children

From the options you were referring to the modern graded MS70's are by far the best gift for your children. Being able to explain to your children that these coins are PERFECT specimens, and that they have been graded out at the maximum score MS70 by the NGC (Numismatic Guarantee Company) will mean something to them.

They will always know that these coins are in PERFECT condition because they are in the new NGC Edge View holders. You will be able to explain who NGC is and how their grading system works, and they will have PERFECT coins (always call for volume pricing).

Numismatics (rare coins) would be great to hand down also. But, the MS70's (modern graded) are probably the best, and easiest, way for you, for now, to share with your children.

 

Oh brother......

 

lol.. yep.

 

So Let's See green18,

looks like your only purpose on this blog is to be negative, and attempt tp talk down to others.

Why don't you take an actual position on something rather than simply trash talk. Are you so afraid that someone will ridicule you also?

Sure you can quote "John Milton", but do you have any original thoughts of your own? Or, just HATE! Maybe you should get a new hobby. This is called Coin Talk - not "Hate Talk".

 

Who are you referring to?

 

MR PMG. Cool your jets. Green is sarcastically disagreeing. Far from HATE. Ever heard of agree to disagree? We understand your feelings are hurt, but your talking in extremes. Your post was strongly opinionated about PERFECT MS 70 coins which most collectors don't strive for per say. Also, your new here and Green is clearly not so have some respect for that.

 

Boss - I Disagee

I disagree and think you should let green18 defend their own tirade of POOR behavior them self. Someone who wanted help accidentally posted twice and he went off on them.

MS70's are HIGHLY desirable and very liquid. If you don't believe me then maybe you should follow ebay auctions like another participant recommended.

If the forum for this site is intended to bully up on other people then green18's got it right. If that is not the purpose then green18 has got it wrong.

For you to say otherwise is only an illusion. It is not fact, and it is certainly not true. So if you would like to perpetuate lies maybe it is you who should select another forum.

You're not the Boss of ME!

 

I got a bunch of threads out here no with my intent. At first, I thought it would be a supplement gift versus the E bonds I had been buying. At least something "in hand" for the birthday besides a silly toy. Now it is a mix of both investment and gift. I will still buy bonds from the bank but just not as high a value. I began buying the proof ASE's and think I am still heading down that road. I am trying to get all the 2000 to current proofs or sets in graded form first. Then pick up ungraded ones. There is a premium but they are nice and increase better than his savings account.

I stopped buying briefly to save enough to purchase the Buffalo proof. If lucky enough to get one! Hopefully that will kick up in value like his 529 has rebounded some.