The quest for a Troy OZ of gold.

[thecrazyone]

1 troy Oz is basically 32 g. I have been buying grams when poss, but am nowhere near 32, yet.

For you veteran stackers, is this the path that you took?

[silverflake]

crazyone, I am 54 years old and will tell you a story that will make you pine for "the good old days". And I know there are folk here that are older than me with even better stories but.....here goes.

I started buying gold (and silver) in 1991. Why? Because my grandfathers instilled in me a basic understanding of "real money". Very basic. Extremely basic. But enough that when I saw an ad in a magazine one day for Littleton Coin Company for some Franklin half dollars it lit my curiosity and when I received those 5 Franklins (which I SEVERELY OVERPAYED FOR), I was hooked on silver (first).

********* Caveat: before reading the rest, it is my personal experience through buying and observing that Littleton Coin Company may very well be the most over priced coin dealer out there. That said, let the buyer beware. ********

Anyhow, shortly after, I bought a "Coinage" magazine (do they still exist?) which included advertisements for coin dealers throughout and most were reasonable and fair priced. I bought my first 1/10th ounce gold eagle in 1993 - for $44!!! After I graduated college, I had a dealer in California(found in the magazine) who had stupid cheap gold (right close to spot). Once a month (and I still have my receipts) I would buy a 1/4 AND a 1/10 ounce Gold U.S. Eagle for $120-130 (not including shipping).

My wife thought I was a bit crazy as our budget was tight, I was just out of college, she was in nursing school but I kept buying mostly 1/10 and 1/4 eagles. Around the year 2000 as my knowledge increased on sound money and the internet started to take off, I realized how cheap gold really was historically and I sold some stocks (stupid luck, right before the tech wreck) and with the money, paid off my student loans and bought some pre-1933 U.S. gold that I knew were dirt cheap. I got an UNC St. Gaudens $20 gold Double Eagle, an UNC Liberty Head $10 Eagle, UNC St. Gaudens Indian Head $10 Gold Eagle, and a couple of UNC Liberty Head $5 Half Eagles. Prices? $350 for the Double Eagle $240 for Liberty $10 (a bit pricey but this thing was beeeeautiful gem uncirculated), $299 for the St Gaudens Indian $10 (pricey too but these always carry a premium) and the $5 Liberty gold were less than $100. I still have all of these coins.

From there and ever since, I have been a dollar cost average type of buyer. I buy every 3-4 months. I have since 1991. I have mostly silver but my point is that the bulk of my gold was bought when gold was less than $500/ounce! Thus what seemed pricey to me then, now seems nostalgically cheap!

Bottom line, buy on a regular basis if you can. But if you can sell something or inherit a bit of cash, maybe try buying something bigger than a gram. I have these too and I realize how small they are. Even If you scrape together enough to buy a 1/4 ounce gold eagle, that will turbo boost you toward that ounce. Also, I still believe that silver is undervalued and when it moves upward (hopefully before I die) I WILL sell a lot of it. And when I sell it, I need to put it into something of worth (tangible) perhaps for my boys to inherit. Thus, I will spend the proceeds of my future silver sale on gold and/or land and/or real estate. Theoretically. Definitely not bonds, treasuries or stocks.

Anyhow, keep stacking even if it is a gram at a time. You'll be amazed at how fast 10 years of your life flies buy and If 1 gram is all you buy, in 10 years you'll have a tidy stack.


Best of luck.

[thecrazyone]

Thanks for that!

You and I are close in age, but your stacking skills are way better than mine!

[68Camaro]

Fractional is the most expensive method of acquiring bullion. I have a fair amount of fractional, but larger sizes have smaller premiums and you'll be better off if you can store your cash, be patient, and wait for the right time to strike on larger coins. I got a larger fractional gold 20 fr coin (just under a quarter oz) this past year off RC, at something close to spot (don't remember the details - would have to look it up). Tellijg you for your own benefit, not that I want the competition.

[thecrazyone]

Nah I get what you're saying and appreciate the advice, thanks!