Question on Buying Gold

[ultrarunner]

When I became an Uncle back in 2001 I decided NOT to buy the kids cheap junk that no one would care about or remember.

I did go and buy ten 5 US $5 Gold coins for $37.50 each and gave them out for Christmas and birthdays...picking up a few more over the years.

Last I checked, the price has ranged from $165 (out of stock) to $299 (Home Shopping Network).

Since the gold value of a tenth of an ounce gold these days is about $150 and I'm no longer able to find gold coins anywhere close the bullion value anywhere... any ideas on the most economical way to buy US Gold Coins or non US Gold Coins?

The coin shops where I traded don't have any for sale...

 

[Bison]

I would wait till gold crashes.
buy low sell high is the only way to get ahead.

 

[ultrarunner]

TBN had a pop-up from Goldline...

I clicked on it and it required my personal info to get more information.

Looks like the kids will get cash for Christmas and Birthdays.

 

[bp fick]

Gainesville Coin has a solid website and they are fair, honest folks.

I also like apmex. apmex.com

 

[zzvyb6]

Best way to buy gold coins for gifts I have found is thru an investment house (as I do via Morgan Stanley). The problems you will have are paying too much and then getting ripped off when its time to sell them. The condition of the coins is as important as the weight. Condition means looks and actual gold weight. There are plenty of counter fitters out there in several contries (especially where tractors are made overseas) that have good dies and can plate lead coins reallt well. So, you pay a lot to have it assayed, which devalues the coins.

This means you need to have a good account in good standing in order to be able to participate in the coin purchase programs. Because they buy a lot of gold coins of several flavors, they have a staff function to do this. This can mean that you never actually take posession of the coins (because you can doctor them) and that they remain in a vault. You get a certificate signifying ownership. Otherwise, buy midwest farmland or windmill weights. They stopped making them a long time ago...

 

[ultrarunner]

Never thought about counterfeit coins... too bad coin collectors can't just buy them from the mint direct.

What's a windmill weight?

I like the property idea and have taken that route on a small scale... the property taxes have become a real bear.

I must be the luckiest guy around... even in this economy and Real Estate Market, the county assessors say my property has doubled on one and worth more than I paid back in 2005.

Maybe, I should just buy 1964 Kennedy Half Dollars... shouldn't have to worry about counterfeits there...

 

[automech]

I buy gold coins from Kitco.com Real easy.

 

[zzvyb6]

A windmill weight is part of a gravity powered windmill governor mechanism. Popular weights were in the form of animals (horses, pigs, birds, etc). They are highly prized primitive Americana and have developed a reputation as a valuable collectable (especially to those who have money to burn).

Look on eBay for some examples. I'm not suggesting 100% investment in them, but round out your porfolio with some 'Made in USA' stuff. Its rapidly going away.

On the other hand, I'm delighted that my property values are tumbling. Property taxes will eventially reflect this new reality. I'd love to see it go to zero value as the long train of Ages glides away and I approach my grave like one who wraps the drapery of his couch about him and lies down to pleasant dreams...

 

[grsthegreat]

last time i sold my gold coins i got hit with a nice big cap gains tax......didnt know they would do that. took the sale right out of me.

been pissed off with gold trading ever since. Since you cant eat gold, i dint bother.

i do wish i bought it at $360/oz, but hind site is ...........


i certainly wouldn't buy it at 1400 an ounce..

what i wish i did was to buy more las Vegas sands stock when it was down to $2.87 per share in 2009.

i bought some..not enough. its now about $43/share. the people buying gold boast they have doubled maybe tripled their money. mine has increased like 1500%. darn, i wish i bought more of it.

 

[ultrarunner]

Thanks for the explanation... I didn't know such things existed.

I would be fine with tumbling value since I'm in it for the long run... it's just when the Assessor has 22 comparables and discounts them and says my property keeps appreciating???

Also appreciate the tips on gold... never bought by mail, phone or Internet. The prices are much better than the local California Coin Shops around me.

My 3 nieces from one brother know exactly I gave them the gold coins and how many they have... my niece and nephew from the other brother don't have as many because the parents were not thrilled about being responsible for the coins.

The kids range from 6 to 9 years old.

 

[schoolsout]

Best way to buy gold coins for gifts I have found is thru an investment house (as I do via Morgan Stanley). The problems you will have are paying too much and then getting ripped off when its time to sell them. The condition of the coins is as important as the weight. Condition means looks and actual gold weight. There are plenty of counter fitters out there in several contries (especially where tractors are made overseas) that have good dies and can plate lead coins reallt well. So, you pay a lot to have it assayed, which devalues the coins.

This means you need to have a good account in good standing in order to be able to participate in the coin purchase programs. Because they buy a lot of gold coins of several flavors, they have a staff function to do this. This can mean that you never actually take posession of the coins (because you can doctor them) and that they remain in a vault. You get a certificate signifying ownership. Otherwise, buy midwest farmland or windmill weights. They stopped making them a long time ago...

not saying they are up to their shenanigans of old, but if you don't hold it, you don't own it. The banks push paper, OTC Derivatives. It has been admitted that there is 100 pieces of paper to one piece of gold. When the cards crumble, a certificate will do nothing for you.
----
New York, NY: (Jun-12-07) A class action lawsuit filed by brokerage clients against Morgan Stanley alleged that the financial firm told clients it was selling them precious metals that they would own in full. Morgan Stanley said it would store the metals, but made no investment specifically on behalf of those clients, or made entirely different investments of lesser value and security. The suit was filed by Selwyn Silberblatt in August 2005 on behalf of himself and others who bought precious metals, gold, silver, platinum, and palladium in bullion bar or coins, from Morgan Stanley DW Inc. and its predecessors and paid fees for their storage. The suit covered investors who did so between February 19, 1986 and January 10, 2007.

In a settlement reached, Morgan Stanley agreed to pay $4.4 million to settle the class action lawsuit. The company did not admit to any wrongdoing, but stated that the settlement was made to avoid the costs of protracted litigation. [REUTERS: PRECIOUS METALS FRAUD]

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Some sites for you all to read daily

Welcome To Jim Sinclair's MineSet
zero hedge | on a long enough timeline, the survival rate for everyone drops to zero
Jesse's Café Américain

 

[ultrarunner]

Do you ever wonder why Gold?

They can now make perfect diamonds....

Maybe, gold from lead is in the works?

 

[grsthegreat]

wait till they land on Saturn, and find its 62% gold.

i wonder what gold would be worth then hehe

 

[schoolsout]

why gold? Because gold is a finite resource that isn't used in industry (all that much) and most of the gold ever mined in the world still remains in vaults and whatnot. It is rare enough to be used as a currency.

Diamonds are formed from cheap material using high heat/pressure that can be replicated by man. Gold can not be formed out of thin air....and the main argument for owning gold....drumroll please......


Paper money CAN and IS being conjured up from thin air.

 

[schoolsout]

y'all want some stock plays to monitor? Well, miners I own...good way to play leverage and normal taxes apply with these.

Endeavour Silver: EXK
Great Panther: GPL
Vista Gold: VGZ
Nova Gold: NG
US Gold: UXG
Minera Andes: MNEAF
Paramount Gold and Silver: PZG
Silver Wheaton: SLW

Avion Gold: AVR (Canadian)
New Gold: NGD (Canadian)
Bayview Ventures: BYV (Canadian)
Rainy River: RR (Canadian)

 

[ragkar]

About fifteen or twenty years ago i decided to get some gold as an investment of last resort. If everything goes bust, gold is always worth something and it's easily portable.
I was advised not to get gold bars as they would have to be assayed before sale. I didn't want to get into the collector coin market since I didn't know what I was doing. so I settled on the current gold coin investments -delivered.
My biggest concern was that I would be scammed. Well I located a dealer and bought a bunch of US, Canadian and Krugerands. I'm very satisfied with that purchase.
The dealer that I used was Austin rare coin. Buy Gold Bullion Coins, Rare Coins, & Silver Dollars at Austin Rare Coins & Bullion

for your info, i just looked up prices and today gold is $1,426.20 per ounce. A 2011 US 1 oz from them is $1,573.20.

As a side benefit, these coins are wonderful graduation gifts. I gave two to my niece, ten years ago and she'll never part with them. I told her 'with these, you'll never be dead broke'.

 

[ultrarunner]

^^^This is the exact reason I started giving them to the nieces and nephew... although I was giving the 1/10 oz $5 gold coins... the oldest has more than an ounce and she is 9.

I just couldn't see spending money on junk stuff that would be trashed in few months and no one will remember anyway... but, that's the practical side of me.

 

[Scooby074]

Have you tried the Canadian Mint?

1/25-Oz Gold Coin - Geese (2011)

 

[ragkar]

I also gave one to my realtor for helping me so much finding my present home (Log A-frame on five acres of wood).

Once a year when I'm putting my tax return in the safe, I'll take one out. Then I might show it to the waitress or saleslady saying that it's one of those TV specials. After she's done admiring it, I'll break the news that it's the real thing. Genuine coin of the realm gold. It's money in two senses - it's a legal face value US legal currency and it's also a genuine piece of gold (actually 91 percent gold, the rest are hardeners. But that 91 percent is 1 oz. of gold). I get her to drop it on a wood table and tell her that she's hearing the sound of real money.

I love that sound.

To tell the truth, I gave those two coins to my niece when they were worth about $200 each.