Want to start buying gold. Please educate me.

[knibloe]

Several years ago when I started coin sorting I set goals as to how much gold, silver and copper I would like to have. To date, I have not managed to find any gold in circulation I have decided that if I am to ever reach my gold goal, I will have to buy it.

My thoughts are that I would like to own some gold products that will be usable if the SHTF and will also appreciate in value if SHTF never happens. I am thinking about 1/10 oz gold coins. Any thoughts

[97guns]

if your intentions are to store wealth then gold would be the way to go but if your looking at possible bartering in the future im sure silver and even copper would serve you better

[Country]

What you buy is somewhat dependent on how much CASH you are going to spend.

For a small amount of CASH, keep it simple: 1/10 AGEs or 1/10 oz Maples. These are easily bought and sold in case you have to sell. Premiums for these small GOLD coins in BU condition will be at least 10% over spot, but that is what you have to buy. Try to buy them with as little discount as possible over spot. Circulated AGEs are worth no more than spot. Stay away from the high premium 1/20 oz coins or 1 Gram bars.

For larger amounts of CASH, buy larger sized AGEs or Maples or Kruggerands. Supplement these with a dose of European GOLD or possibly some small "brand-name" bars. Have a variety of stuff, like you do with your SILVER.

When you start out, stay on the main highway with GOLD that is easily bought and sold. If you become more sophisticated, then by all means venture out into the more obscure areas.

Any questions? Post a few here.

No one knows what the future will portend. That is why a diversified store of wealth in GOLD, SILVER (or possibly Platinum/Palladium), and COPPER is best.

[argent_pur]

My ignorant and humble opinion...if ever there comes a time when the international monetary system changes (which I think very likely), when a new system is instituted it will be backed by PM's, but still paper in functionality. I really don't see a time when physical metal will exchange hands...David Morgan of silver-investor.com agrees. Buying gold is a great move because it's true value will be recognized when the world's currencies are backed by it again, but I would get as much of it as I could for my dollars, and 1/10 oz'ers carry steep premiums.

Some gold is better than no gold, obviously, but 1 oz. bullion coins are the most highly traded and have the lowest spreads. If that's out of your price range, go with 1/2 ounce coins.

If you absolutely, positively must have smaller denominations, there's a great thread going on right now about euro fractionals that have a high liquidity and smaller premium than a comparable-sized modern fractional bullion coins. Again, my opinion

[knibloe]

Country,

Thanks for the reply. I don't want to spend a lot. I want to buy small over a long period of time. I was thingking that 1/10 oz eagles were the way to go. Is there any difference between these and 1/10 oz maples?

So, if I look I should be able to get them at 10% over spot? That would mean $150 right now. Can I get this price on 1-2 at a time? Any suggestions on where?

[Corsair]

You just missed my sale. I've been selling for the past few weeks at $155, and then one day only at $150.

[knibloe]

[quote="Corsair"]You just missed my sale. I've been selling for the past few weeks at $155, and then one day only at $150.[/quote

Darn, I've been waiting for about 6 weeks on some financial news. It came through and I should have some wiggle room now. Instead of being a day late and a dollar short, I am just the day late. I guess it is the same result though.

[Rodebaugh]

PM sent.

[JadeDragon]

AGE come in 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz denominations with the stated amount of actual gold weight in troy ounces and face values of $5, $10, $25, and $50. By law, the gold must come from sources in America, with an additional alloy of silver and copper to produce a more wear-resistant coin of .9167 (22 karat) Each of the four sizes contains 91.67% gold (22 karat), 3% silver, and 5.33% copper. Production started in 1986.

The Canadian Gold Maple Leaf is offered in 1⁄20 oz, 1⁄10 oz, 1⁄4 oz, 1⁄2 oz, and 1 oz denominations and is guaranteed to contain the stated amount (in troy ounces) of .9999 fine gold (24- carat) though exceptions exist. The coins have legal tender status in Canada for their face values ($1, $5, $10, $20 and $50). A 1/15th oz coin was also produced in 1994 only.

http://en.wikipedia.org/wiki/American_Gold_Eagle
http://en.wikipedia.org/wiki/Canadian_Gold_Maple_Leaf

I was quoted $156 on a 1/4 oz Maple on Sunday. Look for a coin dealer or bullion dealer (often also involved in currency exchange). APMEX is a reliable online dealer.

[argent_pur]

According to Michael Kosares of USAGold, you should "try" to rate your level of concern of SHTF-barter-madmax scenario and whatever that percentage is, put that portion of your gold portfolio in pre-33 euro fractionals, while the rest of your gold portfolio should be in standard 1-oz. bullion coins that have low premiums and high liquidity for the asset preservation portion.

He said most portfolios he's dealt with are 50/50.

My level of concern for madmax/mankind-going-completely-berserk is just above zero, thus my earlier advice to stay in 1-oz. bullion coins. I didn't take your personal level of concern into account, my apologies knibloe

[AGCoinHunter]

Also, invest in somewhere to store them. If you are holding a bunch of PM's for SHTF senerios, you dont want them sitting in a safe deposit box at a bank. I encourage you to get a good safe and do you best to secure it within your residence. Very few safes are crackproof but you can get some quality security/fire safes out there that should detour someone from stealing your investment.

Lets face it as the economy spirals into deeper depths in the near future the likely hood of someone attempting to rob you will grow no matter where you live.

[knibloe]

Thanks to everyone for the help and info. I want the best of both worlds. I want something to use if the SHTF (not a big worry for me) and something to diversify my portfolio so as to preserve assets. They draw back is my wallet size. I can see myself coming up with an extra $150 to $200 here and there for a 1/10 oz. I cannot see myself coming up with an extra $1400 for a 1 oz. (and if I did, I can see my wife's veto all over that one).

[argent_pur]

I cannot see myself coming up with an extra $1400 for a 1 oz. (and if I did, I can see my wife's veto all over that one).

Haha, I first wanted to start buying PM's in 2004 (the year I got married). Silver at the time was $7/oz. and gold was in the high 700's if I remember correctly. My wife said NO!

Here we are over six years later, and when we got our tax refund a week ago she says to me very encouragingly "You can put it all in metals if you want to!" I was never more turned on in my life And I was the one who had to tell HER no, lol She has said to me on more than one occasion that she wished she would have told me to go for it. She's told her family many times how much we could've profited had I bought back then. A little encouragement for you, knibloe

[JadeDragon]

Buy in the $150-$200 chunks and build up your stash. If the wife complains just tell you could have spent the money on beer and strippers instead.

[knibloe]

Make my first purchase of 1/10 oz eagles. Got them for $155. Thanks to everyone