What's the strategy on buying gold?

[KenJackson]

Currently I'm hearing predictions that silver will rise by a higher percentage than gold, so it seems to me that it make more sense to buy silver than gold right now.

But that's not the question I'm asking. I assume that a major motivation to buy gold is the fear that dollars, both in our wallets and bank accounts, will be whittled away to near worthlessness by hyperinflation. With that fear in mind, what size gold does it make the most sense to buy??

Those diminutive tenth ounce gold coins seem the most practical, even too large. But there's a noticeable increase in overhead per ounce when buying tenth ounce coins compared to larger coins. Bars of gold are more optimal than coins or rounds, but gosh, I'd have to tie up a huge amount of money to buy a gold bar.

So what size makes the best strategy?

[madfranks]

I buy the 1/10 oz coins, the primary reason being they are easier to liquidate as opposed to larger coins. Unless you're able to afford whole oz coins, it's easier to slowly accumulate the 1/10 oz coins. The premium doesn't bother me, because you generally get it back if you need to sell them as well. Also, if you ever need to trade them, you'll be happy you have 10 small coins instead of one large coin.

[Sparky]

I think the tenths have too much overhead and are small for handling. (No disrespect to madfranks; just my opinion.) Below 1/4-oz doesn't seem "satisfying" enough to hold. When you're itching to buy with less money, I'd go with silver. But you should be diligent to accumulate enough FRNs to buy gold as well. It's best to have gold in all sizes (1, half, quarter) and silver in all varieties (1 ounce rounds and coins, pre-1965 90% coins, and 10-oz bars). I'd leave the larger silver bars (100+ ounces) for the industrial users. If you have $2000 for a 100-oz silver bar, I think it's better spent on gold.

BTW, here are the current premiums on AGE by weight:

Current spot: $1293
1-oz: $1355 (5%)
0.50-oz: $709 (10%)
0.25-oz: $363 (12%)
0.10-oz: $149 (15%)

[willie pete]

Speaking for myself only, I think of holding gold, mostly coins, as a store of wealth, it's certainly not an investment as one would normally think of as an investment. I think you're fooling yourself if you're buying gold or other PMs in order to build wealth, broadly speaking of course, the only people that get rich in PMs are the companies and the US Mint that brokers them, PMs have never out performed the market (long-term), with that said I do believe it's practical and prudent to hold a small portion of your assets in PMs......now I'll wait for the Flammers :D

[Neuro]

Speaking for myself only, I think of holding gold, mostly coins, as a store of wealth, it's certainly not an investment as one would normally think of as an investment. I think you're fooling yourself if you're buying gold or other PMs in order to build wealth, broadly speaking of course, the only people that get rich in PMs are the companies and the US Mint that brokers them, PMs have never out performed the market (long-term), with that said I do believe it's practical and prudent to hold a small portion of your assets in PMs......now I'll wait for the Flammers :D
This is an interesting chart showing the difference between a gold standard and fiat in terms of market valuation vs gold:
http://www.sharelynx.com/chartstemp/free/longtermdowgoldlogtr1800an.php
I would say that never is largely correct in the long term apart from when you have a society collapse, but who knows it may not happen in our lifetimes... :)

[Hitch]

I think the tenths have too much overhead and are small for handling. (No disrespect to madfranks; just my opinion.) Below 1/4-oz doesn't seem "satisfying" enough to hold. When you're itching to buy with less money, I'd go with silver. But you should be diligent to accumulate enough FRNs to buy gold as well. It's best to have gold in all sizes (1, half, quarter) and silver in all varieties (1 ounce rounds and coins, pre-1965 90% coins, and 10-oz bars). I'd leave the larger silver bars (100+ ounces) for the industrial users. If you have $2000 for a 100-oz silver bar, I think it's better spent on gold.

BTW, here are the current premiums on AGE by weight:

Current spot: $1293
1-oz: $1355 (5%)
0.50-oz: $709 (10%)
0.25-oz: $363 (12%)
0.10-oz: $149 (15%)

Great post Sparky, and this is exactly what I do. I don't hold any 1/10 ounce gold anymore, just too small, imo. 1/4 ounce for gold seems to be the perfect size for a small gold purchase. 1/4 oz is close to the size of a quarter, so you feel like you are buying a coin. Perhaps, save up enough to pick up a 1/4 oz coin, then any extra FRN's in your budget, buy silver so you can build your stack slowly and hold both metals.

[osoab]

buy low

[madfranks]

I dunno, for whatever reason, I like the 1/10 gold coins. The size of a dime and easy to liquidate in small doses. I know a full blown SHTF may not be likely, but if it does happen, I'd rather have small gold coins than large coins.

[KenJackson]

I know a full blown SHTF may not be likely, ...
That's the conundrum. We desperately hope it will NOT happen, but we plan assuming it WILL happen.

And I'm less convinced that it's not likely.

[Neuro]

That's the conundrum. We desperately hope it will NOT happen, but we plan assuming it WILL happen.

And I'm less convinced that it's not likely.
I don't know, sometimes I hope it will happen, but I am less certain about it happening any time soon. The system appears to be able to handle a lot of stress. I think I have in the past overestimated the psychology of the market. Especially nowadays when 95-99% of the market action is in the hands of the mega banks. A plunge out of their control, they stop the trading for a couple of hours to reprogram their high frequency trading machines to prevent or to control further plunge. And they can throw tons of money on 'restoring confidence'...

[gunDriller]

buy low

then fly to Colorado, and Sell High ?

[osoab]

then fly to Colorado, and Sell High ?

I thought we were talking Au here not Swazi Gold. :D

http://www.youtube.com/watch?v=1M5Ok8a6o1g

http://www.youtube.com/watch?v=1M5Ok8a6o1g

But I guess the buying principle would stay the same. Buy low.

[willie pete]

I don't know, sometimes I hope it will happen, but I am less certain about it happening any time soon. The system appears to be able to handle a lot of stress. I think I have in the past overestimated the psychology of the market. Especially nowadays when 95-99% of the market action is in the hands of the mega banks. A plunge out of their control, they stop the trading for a couple of hours to reprogram their high frequency trading machines to prevent or to control further plunge. And they can throw tons of money on 'restoring confidence'...


in addition to that you have the gov't carrying water for them too........how much did our negro president "loan" wall street again? $1t?

[ComputerYe]

Gold bars are available in different sizes and weights but one should consider factors like budget for buying gold, per ounce target, liquidity objectives, hallmark recognition etc.

[Shami-Amourae]

???

[madfranks]

Gold bars are available in different sizes and weights but one should consider factors like budget for buying gold, per ounce target, liquidity objectives, hallmark recognition etc.

Dang, I've never thought of that before. Gold bars are available in different sizes and weights? Mind = blown!

[Neuro]

Dang, I've never thought of that before. Gold bars are available in different sizes and weights? Mind = blown!
I wonder if this poster soon will enlighten us to what bars and hallmarks one should buy, maybe even from where? After he has established trust with us here so elegantly with truths hidden...

[BrewTech]

Dang, I've never thought of that before. Gold bars are available in different sizes and weights? Mind = blown!

LOL @ "ComputerYe"...

[osoab]

Gold bars are available in different sizes and weights but one should consider factors like budget for buying gold, per ounce target, liquidity objectives, hallmark recognition etc.

Don't you know that gold is a worthless metal?

[ximmy]

Gold bars are available in different sizes and weights but one should consider factors like budget for buying gold, per ounce target, liquidity objectives, hallmark recognition etc.

Post of the week!

[Hitch]

Gold bars are available in different sizes and weights but one should consider factors like budget for buying gold, per ounce target, liquidity objectives, hallmark recognition etc.

One should also consider factors such as tungsten filled gold bars, gold plated bars, fraudulent sellers who post on internet forums preying on unsuspecting customers to rip them off.

Things like that.

[BrewTech]

One should also consider factors such as tungsten filled gold bars, gold plated bars, fraudulent sellers who post on internet forums preying on unsuspecting customers to rip them off.

Things like that.Why ya gotta be such a debbie downer? I'm sure if that stuff was important Mr.... Ye, is it? Mr. whateverhisnameis would have mentioned it...

:p

[Hitch]

Why ya gotta be such a debbie downer? I'm sure if that stuff was important Mr.... Ye, is it? Mr. whateverhisnameis would have mentioned it...

:p

Heh, isn't it a GSUS tradition to beat up on new posters? If I recall, we've chased quite a few of them away over the years...

;D

[BrewTech]

Heh, isn't it a GSUS tradition to beat up on new posters? If I recall, we've chased quite a few of them away over the years...

;D

Methinks ComputerYe is just what the name implies... a Chinese bot.

[Hitch]

Methinks ComputerYe is just what the name implies... a Chinese bot.

That was the other factor I forgot mentioning, Chinese fake gold coins and bars. Take that Mr. Ye! :)

[madfranks]

Methinks ComputerYe is just what the name implies... a Chinese bot.

Normally spammers at least put a spam link in their posts, this guy didn't link anything.

[ximmy]

Normally spammers at least put a spam link in their posts, this guy didn't link anything.

ComputerYe just concern want to impart pertinent informations relevant for interest parties.

[Hitch]

ComputerYe just concern want to impart pertinent informations relevant for interest parties.

You can't just pop in on a forum like this one and pull a stunt like that, though. Ye should know better than that. Plus, Ye hasn't said anything since.

[Neuro]

Heh, isn't it a GSUS tradition to beat up on new posters? If I recall, we've chased quite a few of them away over the years...

;D
We don't chase, they just run :)... I suppose the main reason some strangers find their way in here is there car breaks down on Internet super highway, and ours is the closest house by... They realise this is a quite active dynamic place and register, then it dawns on them they arrived to Adams Family, and they really don't want to spend night here, so they run... ;D

[Neuro]

Methinks ComputerYe is just what the name implies... a Chinese bot.
Maybe the Chinese has designated our forum an official testing ground for Engrish version spam bot. They have now realized that his introduction didn't pan out so now they are working on 2nd generation. Chinese man has 1000 yeah plan. He come back stongah an bette, when gaylin foget. Gold vely impotaant foh futuh!

[Sparky]

You can't just pop in on a forum like this one and pull a stunt like that, though. Ye should know better than that. Plus, Ye hasn't said anything since.

Judge not, lest Ye be judged.

[madfranks]

Judge not, lest Ye be judged.

I see what you did there, ha ha.

[gunDriller]

Gold and Silver are seeming downright on-sale at these prices.


But then I look at ammo prices



PM's AND ammo prices are manipulated. PM's by the team implementing the Strong Dollar policy. ammo prices by their buddies Schumer, Feinstein, and Pelosi.

http://palmettostatearmory.com/media/catalog/product/cache/1/image/269x/9df78eab33525d08d6e5fb8d27136e95/a/m/ame_xm193af90.jpg

PSA has quality 5.56 on sale for 33 cents a round.


what's a better deal, Silver for $17 an ounce (current price delivered), or 45 of 5.56 rounds for $15 ?

which is harder to make ?


people talk about Gold being the 'embodiment of human labor' (distillation of human labor ? net result of human labor ?)

from seeing how hard 2 gold miner acquaintances work to bring home 1 ounce, 1 on a river mine using a ball mill crushing 20 tons a day, another using a metal detector to find streaks of placer gold in local rivers, how would i compare that to the labor of a machinist friend who can set up a CNC lathe to crank out bullet parts, and the labor of a firearms instructor who does re-loading ?


OK well i sort of switched there, from the comparison of silver's value to the comparison of gold's extraction cost.


oh heck they're all on sale :)