Thinking of buying gold coins...

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From what I understand, the Canadian Maple Leaf is 100% gold as opposed to the American Eagle/Liberty coin that is .999999 22k. Local coin store has them for $1,609 an oz. which is $20 a coin cheaper than AMPEX...

I'm considering buying gold because:

-I have a portfolio of rental real estate, stocks and cash in the bank. That cash is sitting waiting for buying opportunities. I'm losing some money on the value of it (it is in a high interest savings and CD but still not up to par with inflation).

-I want to keep some money off the books away from government and away from home without it losing it's value due to inflation. Enter the reason I want to buy gold.....

-This has been recommended as a part of a balanced investment portfolio anyways as it does well when the economy tanks. Asset classes don't move in tandem. When stocks are doing well, gold usually goes down (and you use cash to buy more gold). Then when the stock market tanks you cash out the gold and buy more stocks at a discount).

Questions:

-How do I protect myself from getting ripped off even buying from a reputable gold coin dealer in Bellevue? What is a foolproof way to test the gold?

-What is involved in selling gold, will a dealer charge me a fee to buy back?

-I looked into AMPEX online to buy gold but the shop in my area is cheaper and I'd rather not have it shipped.

-What are some of the risks of owning gold?

-Is it better to keep in safe deposit box or look into...alternative storage solutions...
 

MannyGlocks

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Some year back so who knows if what I was told is still correct, that being said, a banker buddy of mine said "gold is for major investors" not the average citizen though he actually said "gold is for the big boys".
 

EHJ

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Find an established walk-in dealer near you. This relationship is important.
Most dealers make their 'premium' + spot. Meaning they will charge you the current (real-time) price plus a small handling fee. (The premium.)
This is sometimes just a small percentage of the bouillon price - and depending - sometimes a per-unit (oz. bouillon / coins*) fee.
(*When I say 'coin' I mean bouillon minted ounces, etc. Not circulation coins.) Depending on the country of origin - most oz metal has various alloys - but all are acceptable as 1 (or other) oz of pure golds - regardless of their actual weight. (Maples are 99.99 Kruegerands are closer to 90% but worth the same.)
As for selling - most dealers (if they like you.) buy back directly at the spot price that day. They make their money on the sell. Some make it on both ends - this is when having a good familiar relationship is important. This is the man who will be handing you cash when you need it.
Safe deposit boxes are recorded (not the contents - just that you have one) and are the first targets of any possible lien or seizure.
Get a big heavy safe nobody knows about.

Good luck! :)
 
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DeanMk

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From what I understand, the Canadian Maple Leaf is 100% gold as opposed to the American Eagle/Liberty coin that is .999999 22k. Local coin store has them for $1,609 an oz. which is $20 a coin cheaper than AMPEX...

I'm considering buying gold because:

-I have a portfolio of rental real estate, stocks and cash in the bank. That cash is sitting waiting for buying opportunities. I'm losing some money on the value of it (it is in a high interest savings and CD but still not up to par with inflation).

-I want to keep some money off the books away from government and away from home without it losing it's value due to inflation. Enter the reason I want to buy gold.....

-This has been recommended as a part of a balanced investment portfolio anyways as it does well when the economy tanks. Asset classes don't move in tandem. When stocks are doing well, gold usually goes down (and you use cash to buy more gold). Then when the stock market tanks you cash out the gold and buy more stocks at a discount).

Questions:

-How do I protect myself from getting ripped off even buying from a reputable gold coin dealer in Bellevue? What is a foolproof way to test the gold?

-What is involved in selling gold, will a dealer charge me a fee to buy back?

-I looked into AMPEX online to buy gold but the shop in my area is cheaper and I'd rather not have it shipped.

-What are some of the risks of owning gold?

-Is it better to keep in safe deposit box or look into...alternative storage solutions...
Buy ingots instead.
Melting down currency in the US is illegal, so the value of a coin is only whatever its monetary value is. Doesn't matter if its made of Gold or Tin.
I used to work with a guy who was deep into this and have already asked all these questions.
In fact, the other day, I found a walking liberty that I'd bought about 10 years ago and had forgotten about.
Its pure silver and I picked it up during that 5 seconds that Silver was worth about $50/oz.
It's worth? A dollar. It's a dollar coin.
Buy ingots. That way, its ONLY value is of the material its made from.

Dean
 

BrandonQuixote

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I use APmex to buy 1oz silver bars at the lowest premium possible, usually second hand. I buy 10 at a time. Save and buy 1oz Gold bars, you'll pay less premium over fractional but fractional is more liquid. Look at second hand pieces to save money online, if you can get closer to spot than APMEX, at your local store, do it.
 
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Here are some methods for testing - 5 Proven Bullion Methods to Test Gold & Silver at Home

Whenever you go to sell the method is just like buying - shop around and find who will give you the best deal. Many shops will have advertised buy / sell prices which are indexed to “spot pricing” . But remember it’s a hedge against inflation (you mentioned cash sitting and losing value,,,) so when you do decide to sell have a plan to use the currency for something and sell the amount you need to achieve that something. Also, I would cost average your purchase over a given time. Let’s say you want to buy $ X amount. Divide that by 12 (x/12) and make 12 purchases over the year at the first of the month. Or if you want to really spread it out and acquire a pile, make it a standard purchase forever... you purchase x amount every month... say 5% of whatever net household is (basically after all bills are paid, your savings/investment amount)

Doing this will minimize risks of losing value. The other risk is getting ripped off so you should talk to your homeowners insurance provider and ask what the limits are and if you would need any additional coverages. If they don’t cover then you should invest in a good safe (or two!) and have one hidden and the other in the open. Yes you could have a safe deposit box and that is safe too but I like to lay all my precious metals out on the bed and roll around (doesn’t everyone.)... oh, and SHTF currency, random acts of philanthropy dropping coins into red salvation buckets during Christmas....

I would try to stay away from numismatics. It is a very fickle ‘hobby’ and I’ve seen some try to lure investors into it by conflating precious metals and coin collecting...

And I would consider BOTH gold and silver. Perhaps some palladium and platinum too. And I would consider both ingots and coins. Diversity!

Oh, don’t forget a complete complement of brass, copper and lead!,
 

GWS

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Not sure that platinum or palladium are good choices
To less trained folks platinum looks like silver.
I recommend sticking with just gold and silver and unless you're really wealthy, emphasis should be on silver
 
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Buy ingots instead.
Melting down currency in the US is illegal, so the value of a coin is only whatever its monetary value is. Doesn't matter if its made of Gold or Tin.
I used to work with a guy who was deep into this and have already asked all these questions.
In fact, the other day, I found a walking liberty that I'd bought about 10 years ago and had forgotten about.
Its pure silver and I picked it up during that 5 seconds that Silver was worth about $50/oz.
It's worth? A dollar. It's a dollar coin.
Buy ingots. That way, its ONLY value is of the material its made from.


Dean
Gotta call BS on this. Don't know who gave you this information but I think you've been misled. You can get spot value for bullion coins and melt value for 90% silver coins from just about any coin dealer.
 

BrandonQuixote

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Even if it was illegal, how would “they” ever know? Bars, coins and bullion pull a premium over spot, especially the hand poured stuff. So why melt it when you could lose value? Nothing’s stopping you from melting down what you got and pouring your own though.
 

Carbon

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Most of your questions can be answered best by the owners/bosses of your local coin dealing establishments. They are generally friendly folk who like to talk metals/numismatics, and dont usually mind answering questions as there most likely isnt a line of folks behind you. I would find the shop that you feel is right for you and build up a rapport with them. Gun shops and coin shops are very similar come to think of it.
 

Alexx1401

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The only "problem" with gold or silver is storage. If you have a box at a bank it's of course known. As long as no one is going to come after you for money should be safe. If the bottom falls out one day and they close the banks? You should eventually get it out. If you store it somewhere else you need to of course let a couple people know where it is. If you die unexpectedly will family be able to get hands on it? then of course make damn sure you can trust those who know where it's at.
 
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The u.s. Mint still sells bags of well worn silver coins. In a barter/shtf scenario wouldn't it be better to be able to make "change"?

just looked, they don't, but they are here Buy Silver Dimes | 90% US Silver Dime Rolls & Bags, and elsewhere. I'm sure.

the Mint still sells precious metal coins,not direct, and you can be sure of the quality.I

 
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