goldbugs - $750 is it time to buy?

[Locrian]

Is this a good time to buy or will it drop further?

[abelenkpe]

1. I'm no expert

but I've read some articles that suggest it may drop a bit further. I'm hoping that it gets to 700. I want to get a few coins.

[tuckessee]

2. Buy what? Paper or physical gold?

Can you actually find physical gold (or even silver) at normal "spot plus" prices?

Common 1/10 oz bullion coins are still selling for 100+ dollars on ebay. Many people report local shops are cleaned out of bullion gold.

The spot price vs. real world price has been experiencing a major disconnect for the last 2-3 weeks. I see no signs of it abating.

[girl gone mad]

3. I still think you should stay out.

You may miss a run up, but gold appears to be trading like a commodity rather than a currency, and commodities will likely continue to get crushed for some time.

I'm still buying yen on dips.

[my2sense]

4. I'm interested in buying

Can you tell me where you buy yours and what the process is. Do you actually receive the gold?

[upi402]

7. kitco is popular and worked well for me n/t

[Locrian]

9. local coin shop

I always buy from a local shop I know.
$20 over spot, and only Krugerrands or Eagles.
That way no shipping costs etc.

[Art_from_Ark]

15. I wonder if the stigma from Krugerrands is finally lifted

For a while, their import was prohibited, as was the owning of certain dates. But even after the prohibition was lifted (early '90s, I believe), some customs agents still believed that all imports of Krugerrands were prohibited, and dealers were selling them for as little as a couple of dollars over spot.

[diamidue]

10. APMEX

http://www.apmex.com/

Been buying from them for years. Very respected and honest.

[northernsoul]

17. Bulliondirect.com

Their Nucleo bullion exchange appears to a be the best way to buy and sell at close to spot. I've been steadily accumulating bullion this way for about a year and it's been a good deal for me.

[A HERETIC I AM]

5. Not a recommendation either way, but consider Gold Exchange Traded Funds.

Buying physical gold presents unique problems (shipping, storage, etc.) so an investor considering the purchase of precious metals would be wise to consider using an ETF or a CEF for such an investment.


State Street Global Advisors offers their SPDR Gold Trust ETF. The gold backing the shares is actual, physical bullion, held in a vault and in a trust account.

InvescoPowerShares offers several precious metals funds.

This Wikipedia entry discusses these and other options.

The potential gains with such a purchase may have tax consequences you should investigate thoroughly. An advantage to using an ETF for such an asset is that it can easily be purchased inside an IRA, while titling physical bullion or coins inside a tax qualified account presents an extra hurdle or two one must negotiate.

Speak with your Tax Advisor and your Financial Advisor and take the time to completely research the risks involved before venturing into commodity investing.

[my2sense]

6. Thanks!

:hi:

[A HERETIC I AM]

8. Interesting article from Bloomberg on this subject;

http://www.bloomberg.com/apps/news?pid=20601212&sid=ae.xb05JePEE&refer=home

[EmeraldCityGrl]

11. Wondering if someone could answer a question about pre-1933 Historic

Gold coins.

I was told these were the only coins exempt from confiscation by the government. The following is an example of what i have read.

"Times were very good for many Americans in the mid- to late-1920s: the stock market had grown exponentially driven, in part, by a frenzy of investing which sent stock prices well beyond their true value. In 1929, the frenzy ended. Black Tuesday started a stock market crash which ultimately led to the Great Depression.

By 1933, the demoralized nation looked to Washington, D.C. and President Franklin D. Roosevelt for salvation. Recognizing the inherent value of a currency based upon gold, and seeking to stabilize the U.S. dollar, Roosevelt confiscated gold coins owned by American citizens (all but $100 worth per individual).

Americans were required to turn in their gold coins to a Federal Reserve Bank in exchange under penalty of large fines and/or jail sentences.

http://www.goldline.com/precious-metals/articles/gold-confiscation-order.html

Is this still the law. Could the government confiscate gold and are historic coins exempt?

[diamidue]

12. Anything is possible.

I trust no one in the govt. (or the Fed. Reserve) anymore. It seems that they can just change the rules whenever it suits them -

I find it hard to believe that they'd try to confiscate our gold, tho. I doubt there is enuf gold in private hands to even put the tiniest dent in the massive USA debt. And I don't think there is any way, with so little gold, that they would try to put the USA back on the gold standard.

I think it is wise to hold a little gold as a safety net. If they try to confiscate your gold coins, you can always melt them down and make them into jewelry. ;o) I've even read of refugees who put fabric around their coins and made them into clothing buttons so that they could escape without carrying coins in their pockets. Gold coins have allowed a lot of people to escape dangerous situations/afford to immigrate. I would rather risk confiscation or monetary loss, than risk being left with nothing - should the economy collapse or fascism rear it's ugly head.

[EmeraldCityGrl]

13. Thank you. I once heard a Holocaust Survivor tell the story

of her mother sewing diamonds into the hem of her dress. She had to digest the
stones over and over again while in the concentration camp. Eventually it was the
stones that financed her opportunity to travel to New York.

What a shame in 2008 we might consider such a thing.

[Art_from_Ark]

16. The law was finally repealed in the waning days of 1974

For a while, any gold coin "of historic value" could be bought and sold. Some countries like France, Spain and Austria made restrikes of past "historic" coin designs with the old dates*, rather than current-dated bullion coins, and sold them to American collectors.

*This is why you can find so many "new" 1908-14 French "rooster" 20 franc golds, 1892- and 1915-dated Austrian gold coins, and 1878 Spanish 50 pesetas

[Terry in Austin]

14. Doesn't sales tax take a bite?

If there's a sales tax charged each way -- when you buy and when you sell -- it seems like you'd have to have a pretty healthy runup before you'd make money on the sale.

For instance if you buy at $700 with an 8% sales tax, and sell at $826, you've made about a dime.

What's the deal? Is this just a fact of life in the gold biz, or is there something I'm missing here?

[AnneD]

18. Laws are made by the wealthy.....

here in Texas, you can purchase bullion over $1000 sales tax free. Boy was I shocked to hear that.....not:sarcasm:

[Locrian]

20. werid

Its a weird thing. I dont pay sales tax were I am. And when you sell - no capital gains tax.

[distantearlywarning]

19. Only one problem:

You will find that the price of physical gold these days is WAY above spot (i.e., paper gold). What Wall Street says about gold and what people who are actually buying and selling the actual product say about it are two different things right now. You will also find that it is a little bit difficult to buy in certain quantities.