thinking about gold....

i am thinking of getting into some small gold purchases. i am trying to decide which route i should take. i was thinking of going for a series of 1/10 oz coins. they are more in the price range i am looking for and after seeing a few, i do like them quite a bit. that said, i do have quite a few questions:

1. i am not concerned with their appreciation in value, but if something were to happen, are they quite liquid?

2. this is a tough one, but do i do uncirculated, proof or graded? if graded, which company? i know this is dependent on what i am looking for, but are there many pros and cons for each route? i would be fine with uncirculated, but i am concerned it would be difficult for me to find ones that i liked. that said, i am leaning towards graded as they may be easier to find and i can possibly get a consistent coin. i would not mind proof, but it seems the costs are not worth it to me. any opinions would be appreciated.

3. what has happened to the higher purity us mint gold coins? last i heard, they were coming, but now i am unsure of their status. thoughts?

4. am i all wrong, and should i truly be looking for 1/2 oz, 1oz...etc...and should i take a look at other gold options? krugerrands, pandaa, leafs........

5. any and all thoughts, please.

thank you in advance

 

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thanks for the reply. i suppose the point you bring up with regard to the coins going down in value is at the heart of my dilema, do i go for "coins" (in the truest sense) or "bullion." i singled out the 1/10 oz because they fit my budget and it would provide a goal to acquire a series of the coins, even if they are largely considered bullion. the details of that plan have yet to be determined. i do not want to just collect gold for the sake of collecting gold, which is why i am not just buying bars. i like the idea of obtaining coins, but i fear i am uncertain as to how, why, what and i also fear the scope might be beyond me and my budget. i suppose with the bullion coins (like the eagles) i can get the "feel" of a coin, with a determined goal i feel i can reach, and some gold along the way. also, as i said in my previous post, i do like the coins. i am further confused in that i do not know if i should look around and choose another bullion coin, like the leaf, panda, krugerrand..etc...as i find many of them nice as well.

while i am not overly concerned if they go down in value, of course that is something i would keep in mind as a "just in case" scenario down the road. this is also why i am questioning when i would actually begin my quest, as this is a rather tough time to be getting into gold, even in the amounts i am contemplating.

depending on the path i choose, i am still going to have to determine if i should buy raw or graded. at any rate, again, thank you for your post. as you can see, i have a lot to consider.

thanks

 

I recommend Newmont Mining Company stock, if you are intent on purchasing gold. :kewl:

 

This coin is only about $72 worht of gold in it but it sold for considerably more money than that as I recall. It was amybe $350. I can't recall and it wasn't from heritage which means I'm not certain

 

Correction: I did get it from Heritage and I paid $218.50


Ruben

 

Don't buy Newmont Mining stock if you want gold. Newmont is a company, not gold, with all of the additional analytical problems that come with owning stock in a company. The gold ETFs, GLD and IAU are "paper gold" and more suitable if you want to go that route. I wouldn't be overly concerned with gold coins declining in price if you intend to hold them for ten years. There are a lot of people who think that because gold has traded within a well defined range for a fairly long time that this is predestined to continue. This is a low probability bet at the present time.

Don't worry too much about which gold coin you buy. You've already made a pretty good decision in choosing gold coins in the first place. Don't get too fixated on completing a set of something, such as every 1/10th ounce coin. As you point out, there is a lot to choose from, and buying one example from each major country minting gold coins can be a pretty nice set to have, and would be very easy to sell if you choose to do so someday. You can also throw in a couple of the pre-1933 gold coins as your budget permits.

Good luck and have fun. If it isn't fun, you are doing it wrong.

Everything written above is my personal amateur opinion, and keep in mind that your opinion is just as good or better.

 

I agree with Cloud. You're doing good just to have made up your mind to purchase some gold. Me personally, I like certified uncirculated coins. For modern coins, I buy MS69 grade. To me, MS70 isn't worth it. Also, I don't buy sight unseen. I always want to see the coin first and make sure I agree with the grade. I have a couple of certified 1/10 AGE. They're nice. I am also putting together a set of one of each denomination of the old 1800's gold Liberty style of coins. That's just the way that I've chosen to collect for right now. Don't worry about when you can complete a "set" of something, just buy coins when you can. The 1/10 oz series of AGE is nice. Lots of people collect them. As long as you average out buying more than one 1/10 oz AGE per year, you'll eventually complete the set. I understand what you're saying about the 1/10 oz being within your price range...mine too. However, as you're probably aware, you can usually get the larger AGE coins for a lower percentage over the spot price of gold. For example, let's say the spot price of gold is $550. You may pay $75 for a 1/10 oz coin, which would be $20 over spot. You may pay $165 for a 1/4 oz coin, which is $27.50 over spot. $27.50 for the 1/4 oz is a lower percentage over spot than $20 for the 1/10 oz. Just something to chew on.

And, I'm along with everybody else. Whatever you decide one, make sure you like and enjoy what you're purchasing!

 

great points everyone. as you have all stated it is about fun and how one chooses to collect. that is one reason i wanted to focus on just one type of gold for my entrance into this fun new world. it is just my personality, i lean more towards the OCD side and the goal and sense of accomplishment that would come with defining my goal and achieving is just the way i work. i can't help it.

that said, i think i will go with the 1/10 eagles as my "starter" and see where it leads. i do feel the pain of actually paying more percentage wise for the smaller coins, but with the market, 401k, roth, ING savings and actually living day to day i am just not ready to put more funds towards this endeavor right now. maybe the "next" foray will be something more.

.....now.....i have to tackle the uncirculated or graded route. i am leaing towards graded at the moment just for the "nicer" consistent coin factor. any thoughts here? i realize it is just another premium on the lower priced coin, but damn that OCD. i have quite a few silver eagles, all uncirc, but i think i want a "step up" for the gold. any thoughts on grading firm?

thank you

 

Personally I would go with the 1/4, 1/2, or 1 oz gold coins. I bought a 1/10 oz eagle a while back because it was affordable...man that thing is small! I have a hard time just reading the date. Later I bought a 1 oz eagle and LOVE it. Because of the size it, I can see the beauty of it much better.

 

Hi GD
In your opinion what would be a good gold coin to get for numismatic value circulated. Old circulated
coins have so much history and that is what I like, not bullion coins I wont something that will last forever.

 

When EF Hutton talks....Everyone listens.....

 

I always like to have some gold in the house and some gold in the bank. Who is to say what will become of the American dollar ten years from now. It would be nice to have something of value to stay the course until a potential crisis is over. Noticed I said potential for to me gold is like an insurance policy not an investment. But I do know of some who did quite well thinking of it as an investment when the price was much lower then it is today.

 

Do you not think that the value of coins, and even gold, is pretty subjective and the the world has moved away from the "gold standard". That is to say, 50 years ago, most big-money guys were pretty psoitive about gold ownership. Now, I think things have changed in the western world. I think most people thaink that nothing, not even gold, will save you if the fit hits the shan.

I personally think the key to long-term security is to be as self-sufficient as possible and not owe anyone anything, especially the banks. Is it not possible that gold could decline in value under certain conditions. Who would the average American even sell gold to under Mad Max conditions?

 

If you look around the internet, you can find a lot of folks writing US dollar doomsday articles. If you believe them, the dollar will self-destruct any day now. If you look at the archives of what they wrote five years ago, their message was the same. I think the reality is that the US dollar is managed just about like every other fiat currency in history, and will gradually lose value. Nobody can really protect themselves from doomsday if it happens. You can waste your life and your money trying. That said, the old advice to keep 5-10% of your assets in silver and/or gold is probably sound. There are numerous studies that demonstrate that long term investing in commodities of almost any type with periodic rebalancing both reduces the volitility and increases the return of almost any investment portfolio.

Gold is one of the only assets you can buy now for the same price it sold for in the 1970s. It is difficult to think of any other asset class that meets this test and is suitable for investment. Some people think this is proof gold is undervalued, others think it is proof that gold will never rise. Take your pick.

I think gold and gold coins have one of the most OBJECTIVE prices in the world -- set by a free market on a daily basis. That's about as objective as anything can get in this world. Objective doesn't mean fixed. If the price of something is fixed, then someone subjectively set it at that level, like US interest rates.

So buy a few gold coins because they are beautiful, historic, liquid, permanent and probably undervalued wealth.

 

If I bought gold, I would probably never sell it. It's too much like regular artwork.

Other than managing debt, I like to acquire really useful, one-time purchase items, that would be useful in the future regardless of what happens in society. Things like a log splitter, chipper, pressure washer, a sufficient quantity of tools to fix basically anything, grain mill, chain saw, solar power, wine and food storage facilities, and other tangible things. Tthere is also the option of collecting guns, ammunition, artwork, gemstones, and coins.

I think gold coins are beautiful, but I just can't sell stocks and liquidate meager cash accounts to do so.

Fortunately, I am not yet hooked like you guys. :hug:

 

You Must Think Of Gold As A Hedge Against Chaos ,not Just As An Investment.remember The Currencies Of The Wopld Are Only As Good As The Ability Of The Country To Honor It!gold Is The World Money When The Fiat Currencies Are Worthless.when A Commoduty Is Up In Price Is A Risky Time To Buy It.

 

for g.d. the gold man

Thanks for the info on the gold $10 indians what is your opinion on the french gold 20 francs? 1899 to 1914
roosteres brilliant uncirculated for $110.00