Thinking of buying gold coins...

[DeanMk]

Yep, what I've been saying since Post #37....I believe that article also mentioned the old "coin smashing" machines one would find at an arcade (used to find at an arcade?), as an example of legal modification of a US coin....however....if you charge someone a quarter to smash their penny, aren't you making a profit by altering a US coin?......I smell a loop hole! ( )

Dean

 

[thorborg]

Our gold tallies much less than we purchased it.
We actually hoped it would!
Had I bought it for investment, I'm a looser for sure, as not only will the price need to go up considerably, but beyond what I paid by weight, to recoup the seller premium added that I knew I wouldn't get when I sell.
We bought gold for security and peace of mind. It has done it's job well in that respect.
The economy at the time was in shambles, the rail yards were totally empty showing little commerce happening, Miles and miles of rural railways were lined with empty rail cars rusting away, the freeways were nearly devoid of truckers and work was hard to find. The homeless population had gone up ten fold.
Even worse, in order to keep forcing our subjugation, the political regime was calling for this to be the new normal.
For now, thing have reverted to the prosperity and optimism we expect from our country.
Like the food and water we have squirreled away, gold, silver and many other back up resources allow us to believe we have prepared the best we can not only so we won't be beholden to others, but to actually thrive during an extended crises.

 

[HB of CJ]

Another point of view. It takes a buyer and a seller to move gold. What this may mean is that gold is only as valuable as some buyer is willing to pay for it. Goods, services, considerations, debts, etc..

Gold prospectors usually have to sell their raw gold at a discount depending upon the purity. I for one do not know anybody who pays spot value for gold or silver. It is always discounted somewhat.

Have you considered buying from distressed sellers? Whole nine yards coin collection sells. Estate sells. Good old cash may be king here. Once you own gold then what do you actually do with it?

Consider SOME "street silver" and a few small gold coins? Instead of gold consider buying real property that holds its value? Titled farm land comes to mind. Many other good opportunities. Just me.

 

[DeanMk]

Land is not the security it once was.
Value is akin to antiques. If everyone likes it / wants it, its valueable. When everyone decides they don't like / want that anymore, value drops.

 

[Alexx1401]

I get two silver ounce coins every Christmas from my parents, they do the same for my kids as well (4 kids). When I turned 20 I started buying silver bullion (1once at a time) and as I got older I started buying silver bars (10oz). I keep them in sealed worn looking pales that can be gunned in plain sight, LOL. One time I was going to cast some lead bullets and grabbed the wrong bucket and almost made an expensive mistake.

Well you could have sold some silver bullets

 

[leadcounsel]

I'm probably not the right person to ask about this, but here's my opinion.

I like things that are either tangible and useful, that generally retain value pretty well (land, houses, guns, ammunition, tools - all ideally purchased second hand or inexpensively as possible). Or if I'm looking at it as a pure "fiat" investment, I want maximum return on investment possibilities with limited risk.

Gold and silver don't really tickle me much, frankly. They are the ultimate 'con' that so many have bought. Outside of electronics, they are of no use. Jewelry isn't a "use" it's a luxury item.

And while they might 'store' wealth alright, they haven't done that well in the last decade. Just looking at the last 8 years after a spike, both silver and gold have lost a LOT of value. And their volatility seems arbitrary and unpredictable. Look at the last 20 years. Silver started at $5, spike around 2012 at $50, and now is $18. Why? Lots of potential for ups, and downs. But for all the volatility, the maximum return in 20 years was from $5 to $50, or a 10x return on Silver. Similar story with Gold. In 20 years it went from $300 to spike at $1800 in 2012, now down to $1500. Best possible return in 20 years was 6x return on investment. For both of these PMs, you sat on physical items that are of no utility, and got a "best case" return of 5 or 6 times investment.

Much of my ammunition has done about that well. It either went for useful training and fun, or it has appreciated in value - some of which nearly as good as silver or gold.

You could do worst, but you could to a LOT better.

We could cherry pick stocks to demonstrate total loss of money, or incredible returns like Amazon or Apple...

And on the wishful thinking end...

Bitcoin, of course, in just the last 10 years, a $100 investment would have probably made you a billionaire.

I honestly am kicking myself whenever I think of Apple, Amazon, and Bitcoin. I nearly invested in these and wish I would have, or course. Oh well...

Looks like the OP has some diversification with various investments. If you're looking to invest, it's my opinion to continue to diversify and look for some possible "home runs" like the next Apple or Bitcoin.

Gold and silver are just so boring and they aren't good for much. You can't eat them. Unlike copper or lead, they're too valuable to melt down for ammunition. In theory you can sell or trade them but you're going to take a loss on the buy, and the sale side with commissions. But if I have $1000 I'd rather have that in useful ammunition versus precious metals silver and gold...

 

[awshoot]

...
I honestly am kicking myself whenever I think of Apple, Amazon, and Bitcoin. I nearly invested in these and wish I would have, or course. Oh well...
...

Same. I'm a geek too, so I have no excuse for not being at least 100millionaire. *sigh*

 

[DeanMk]

I honestly am kicking myself whenever I think of Apple, Amazon, and Bitcoin. I nearly invested in these and wish I would have, or course. Oh well...

My sad confession....I almost went to work for Microsoft in 1986.
In those days, new hires HAD to buy 5 shares of company stock, which was taken out of your first cheque.
In 1986, whole stocks of Microsoft sold for $10 a piece.
I turned down the job because, not knowing what a "Mircrosoft" was, it sounded like a pyramid scheme to me and I had so many bills that needed attention, I couldn't spare the $50.
....

 

[Muggs919]

I get two silver ounce coins every Christmas from my parents, they do the same for my kids as well (4 kids). When I turned 20 I started buying silver bullion (1once at a time) and as I got older I started buying silver bars (10oz). I keep them in sealed worn looking pales that can be gunned in plain sight, LOL. One time I was going to cast some lead bullets and grabbed the wrong bucket and almost made an expensive mistake.

Well, you would have had some supply/bullets for werewolves then.

 

[dobeman]

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...

Stay away from numismatics. Watch dealer premiums against spot price. Higher the premiums for collectibles, you get ripped off. Look up volunteer precious metals. Reputable.

 

[dobeman]

I'm guessing all you metal mavens are fabulously wealthy.

It's a store of value against inflation. Look up the Dow priced in gold over the years.

 

[skarz]

Allocate no more than 5% of assets towards precious metals. It's only an inflation hedge. Don't follow the "doomsday" forecasters--if it really came down to Armageddon gold wouldn't matter anyways. Simply have a small amount invested in physical bullion or ETFs so you can sell when the price climbs high. Anything past that should be treated like a hobby.

 

[dobeman]

I'm probably not the right person to ask about this, but here's my opinion.

I like things that are either tangible and useful, that generally retain value pretty well (land, houses, guns, ammunition, tools - all ideally purchased second hand or inexpensively as possible). Or if I'm looking at it as a pure "fiat" investment, I want maximum return on investment possibilities with limited risk.

Gold and silver don't really tickle me much, frankly. They are the ultimate 'con' that so many have bought. Outside of electronics, they are of no use. Jewelry isn't a "use" it's a luxury item.

And while they might 'store' wealth alright, they haven't done that well in the last decade. Just looking at the last 8 years after a spike, both silver and gold have lost a LOT of value. And their volatility seems arbitrary and unpredictable. Look at the last 20 years. Silver started at $5, spike around 2012 at $50, and now is $18. Why? Lots of potential for ups, and downs. But for all the volatility, the maximum return in 20 years was from $5 to $50, or a 10x return on Silver. Similar story with Gold. In 20 years it went from $300 to spike at $1800 in 2012, now down to $1500. Best possible return in 20 years was 6x return on investment. For both of these PMs, you sat on physical items that are of no utility, and got a "best case" return of 5 or 6 times investment.

Much of my ammunition has done about that well. It either went for useful training and fun, or it has appreciated in value - some of which nearly as good as silver or gold.

You could do worst, but you could to a LOT better.

We could cherry pick stocks to demonstrate total loss of money, or incredible returns like Amazon or Apple...

And on the wishful thinking end...

Bitcoin, of course, in just the last 10 years, a $100 investment would have probably made you a billionaire.

I honestly am kicking myself whenever I think of Apple, Amazon, and Bitcoin. I nearly invested in these and wish I would have, or course. Oh well...

Looks like the OP has some diversification with various investments. If you're looking to invest, it's my opinion to continue to diversify and look for some possible "home runs" like the next Apple or Bitcoin.

Gold and silver are just so boring and they aren't good for much. You can't eat them. Unlike copper or lead, they're too valuable to melt down for ammunition. In theory you can sell or trade them but you're going to take a loss on the buy, and the sale side with commissions. But if I have $1000 I'd rather have that in useful ammunition versus precious metals silver and gold...

with stocks timing is everything. you can't time the market. Wonder what someone would think who bought bitcoin on the way down. and when people are rushing into stocks on emotion and not value, it will lead to pain.

 

[Siglvr]

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".

Yes, I wish I hadn't bought so much when it was under $300 a share. NOT

BTW, Bushman, good call. Nothing beats rental homes for investments. My kid called a while back asking about gold. It seemed a tad high at $1200 an ounce, since the kid has everything else dialed in, stocks, rental homes etc etc, I said, might not be a bad idea to get a bit. He did, not an unhappy camper. BTW, one thing I did 20 years back which I don't really work anymore, is I had an Ameritrade account (they were one of the few that allowed direct investment into Canadian Stocks). I stuffed $10 grand in it with only Canadian stocks. The idea is that in an emergency where it was a true SFTF in the US, I'd still have a it stuffed up in Canada in case I had to bail for any reason. At this point, it's now literally @30.000 + cash and a few thousand in stocks. Couple of those company's went private and I wan't paying any attention.

Making the assumption that you have plenty of guns and ammo, trade goods and all prepping needs covered already.

 

[coop44]

I know where there are two hard rock gold mines in Arizona, problem is they are on the Barry F. Goldwater bombing range outside of yuma. My dad and grandfather were pulling $40 a ton ore out in 1960, well over an ounce a ton. Have thought about sneaking in many times, but decided getting locked up wasn't worth the hassle.

 

[awshoot]

I know where there are two hard rock gold mines in Arizona, problem is they are on the Barry F. Goldwater bombing range outside of yuma. My dad and grandfather were pulling $40 a ton ore out in 1960, well over an ounce a ton. Have thought about sneaking in many times, but decided getting locked up wasn't worth the hassle.

Seems getting locked up might be the least of your worries. ;-)

 

[coop44]

Seems getting locked up might be the least of your worries. ;-)

Unexploded ordnance? Any thing hitting the ground at a couple hundred miles an hour and not exploding wil likely be in tiny pieces. Pretty much all the surfaces out there are solid ancient volcanic rock, even where you see sand there is only a few feet of it before you hit solid rock.
nothing alive out in that area at all, no tumbleweeds, no snakes, no scorpions, like another freaking planet.

 

[leadcounsel]

with stocks timing is everything. you can't time the market. Wonder what someone would think who bought bitcoin on the way down. and when people are rushing into stocks on emotion and not value, it will lead to pain.

Um, that's true with anything one might buy.

 

[wired]

I always read when someone that says in the case of actual SHTF that gold wont matter. Then I look in the history of man to find a time when the S did HTF and it has many times and gold didnt matter. Nope , havent found it yet. Gold matters.

 

[DeanMk]

It's a ploy so they can have more for less.