Just want some gold coins stash

I am looking to buy some gold coins to keep in a safety deposit box for a long term investment.

I could use some help finding what I want. Assuming the premium is the same and the resale as reliable I don't care what kind they are. Gold eagles, krugerands, etc. Just so I don't go wrong I am assuming the 2009 gold eagles are an excellent bullion coin investment.

But I can't find a dealer that seems to have these in quantities less than 20 at a time. I'm not certain I wish to purchase that much gold as my first step into gold coins for investment.

Are there dealers that sell 5 at a time or are there other smaller coins I could choose and from who?

Some silver dollars might also be desirable. Just cant find it on net in quantities I intend to buy.

 

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Get 2009 Buffalo proofs from the mint.... you can order one at a time or 20. If you want other gold coins get them from apmex.com or modern coin mart (google it, the site may just be a dot com after the name or not)

 

there are several online dealers that trade on a fractional and ounce bases.

IMO... first see if you can establish a relationship at a local dealer/shop.
if not, here is a short list of online retailers
- APMEX
- bulliondirect
- Gainesville coins

All three deal in Ag/Pd/Au/Pt

DYODD

 

Thanks guys.

On the Buffalo coin, all I see are proofs. These are a lot more expensive than simple gold coins. I am unsure I want to enter into the actual coint collecting aspect of it versus the gold investment position. Long term how do the proof coins hold up in value and why would I want them instead of simple old Eagles or Maple Leafs?

And I did find a local store Saturday in Scottsdale. I am "assuming" that I must pay sales tax if I buy locally adding 9% to the cost. Why is this advantageous?

Thanks for any help guys.

 

You'd have to be a fool to pay sales tax. I bought some coins from a dealer in Indiana and had them shipped to a different state, therefore there was no sales tax. The shipping and insurance was much less than sales tax.

I'd suggest getting 1/10 ounce gold american eagles. There's a 10% premium for them over the one ounce coins, but you get that back when/if you sell.

I don't use safety deposit boxes. The state of california raids safety deposit boxes, that trend could spread.

 

These guys are reliable, competitive, and will sell you the quantity you are looking for.

http://www.golddealer.com/

 

You can get buffalo bullion coins(apmex.com) but the proofs will perform better. dont take my word for it though, check out the prices on those suckers. Also, while the coins are more expensive than a bullion coin they are much more enjoyable to own, command much more of a demand, and a much larger resale premium.
Ex: SO far this year, over 100k bullion coins have been made, while less than 30,000 proof coins have been made.

Sales tax SUCKSSSS thats why I dont buy locally anymore when I can help it.

 

IMO... if you are investing, you want to stay as close to the spot price as possible. This means bullion and not proofs.

An example…
2009 Proof Au Buffalo - $1410
2009 Bullion Au Buffalo - $1211.99
Spot - $1132.54

There are less expensive bullion coins than the buffalo.

Concerning taxes, I'm not sure of taxes in AZ? Confer with the dealer and then compare against online dealers.

What I will say is, if you establish a relationship locally you maybe able to receive better prices even if taxes are involved.

Another advantage to purchasing locally, no added shipping cost.

 

Safe

Purchase a small safe , unless you intend to also have silver. Used in good shape is fine. If you live in a house, you can go bigger and put other items in for safe keeping.

Pep

 

Heard this before... about buying as close to spot as possible... I dont get it.

In 2006 if you bought proofs (talking buffalo gold here) and bullion, they both would have made you money but the proofs more so, same with 2007, and with 2008, the proofs would have made you about three times as much as the bullion if not more.

 

The reason is because of the bull run in the spot price where price gains have been realized in investment grade and collectable PMs.

As a percentage one would see a greater profit margin in bullion than proofs when comparing to spot.
If the 2009 Proof Buffs have a high mintage, they will be seen as bullion, therefore the 2009 bullion coin will be the better investment.

If the OP is willing to do further research a mixture maybe a good idea but IMO if one is not willing to study the numismatic aspects of collectible coins... bullion is the best bet.

Also 2008 was an anomaly! Less than 20000 overall mintage because of the US Mint’s policies, this is a one off year as the numismatic aspects overtook the PM content.

 

As I said above... run those numbers and you will see one would NOT see a greater profit margin. The potential for proofs to take off even if gold stays the same is much higher, the chance they will drop as much as gold drops (when and if it drops) is much lower than bullion (which is a guaranteed drop if gold drops) all in all proofs are just better investments. And if you really need a final bit of proof 2008w 1oz coin, issued at just over 1,000$ just saw one this month on Ebay PCGS pr70 go for $4,300 Bullion coin 2008, still running around 1400$ for a MS70. Not saying all years will do that, but the potential is much higher than with a bullion coin. You will get your money back from a proof, its not such a big venture... learn yourself up on them and then take the dive on some 09 buffalo proofs, you wont be dissapointed. They wont last forever so hop on it.

 

Even if 2008 was an anomaly 2007s are still selling for around $1700+ MUCH greater profit margin than bullion coins.

 

Don't misunderstand... I'm not saying do not purchase proofs. I like you enjoy proof buffs but they are more for collecting than investment.

Let me clarify my position... One has to do further research if investing in proofs over bullion.

Let's say Au increases to the several thousand-dollar level. There is a greater chance that the premium on modern proofs will decrease with the increase in the spot price.

In other words, can proofs always maintain their premium with a much higher spot price? IMO, I do not think so, as certain collectors will be priced out of the premium bringing the proofs closer to spot.

Again, if one is not willing to do the research... stay with bullion.

 

$1700 for a 2007 proof buff
IMO that is over priced! b.t.w. I am not a fan of the slabbed modern coin.

If you took a ’07 proof buff to you local dealer the best I think one could achieve is $1400. My guess is Ebay is the only place where one would get that price.

If you purchased at $1700, you'd be waiting a while to turn a profit yourself!

 

If not willing to do any research, I agree... stick with bullion. I think it will be interesting to see what happens to buffalo prices if gold goes way way up! we shall see! What ever you end up doing best of luck!

 

As they say... full disclosure.
I have all buffs and aside from the LC&C set, they have been my best performing coins!

Go buffs!
The best to you as well!

 

Guys, I have learned a bit fro this conversation. Mostly, I have learned that at this time I am not educated enough to be investing in proofs. While gold is a less complex subject.

Unless the "coin collecting bug" grabs me, versus gold investing, I will probably stick with bullion coins.

Also on the subject of safes, I already have a very high quality gun safe which houses my firearms. It would be very tough to defeat. However, no safe in the world is of use if someone grabs your loved one and holds a knife to their throat. You WILL open it. My safe is to prevent a local kid breaking in and stealing my firearms.

I use a safety deposit box in the bank for real valuables. For example, over the years I have split time between Asia (mostly Thailand) and the USA. My wife is a gold jewelry buff and it used to be cheap. So we have a LOT of Indian and Thai gold jewelry which is usually about 95-99% gold. That lives in the banks safety deposit box which is where any gold coins or such will end up as well.

At this point I am simply prepared to purchase some gold bullion coins whichever is the best value. I think I prefer the USA gold eagles. Sound ok?

 

Since you're more interested in the bullion investment than the coin-collecting aspect, you could skip actual coinage entirely and buy gold rounds or bars.

Just looked at apmex.com and here's a few sample prices:

1 oz Credit Suisse .9999 (24k) bar: $1,171.05
1 oz Gold Rounds .9999: $1,171.05
1 oz Bullion Buffalo .9999: $1,220.44
1 oz Gold Eagle .9167 (22k): $1,194.95
1 oz Gold Kruggerand .9167 $1,190.35

So the .9999 gold bars and rounds are the best way to invest in strictly bullion, with the Gold Buffalo being only a 4% uptick to go from non-coinage gold to a US Mint product. Even without becoming a "coin collector", I believe having bullion in well-recognized coinage makes it more portable. I'm more likely to believe the purity of a gold buffalo or eagle than a random-stamped round piece of gold.

The Eagles and Kruggerands cost more than the round but less than the Buffalo, but they don't have as much gold content. I personally like gold eagles, but that is because with the small amount of gold I buy, I want to have a numismatic interest in it as well. With silver, I do buy silver eagles, but I mainly go with silver bars.

 

Thanks. Having no experience I felt I would more likely trust something like a Gold Eagle to contain the amount of gold advertised than a random gold bar. And I assume dealers are also more confident in these items. So I will stick with stuff like that.

In fact, I am considering stashing say 7 Gold Eagles and 100 Silver Eagles as a start. Something like about $10,000 investment. After that I might just lurk here and try to learn more about the coin collecting/investing aspect of it.

My only question remaining is - was todays big runup just a spike and it will come back - or the start of a long term bull? And I know = no one really knows.