Question on Buying Gold

[ultrarunner]

When I became an Uncle back in 2001 I decided NOT to buy the kids cheap junk that no one would care about or remember.

I did go and buy ten 5 US $5 Gold coins for $37.50 each and gave them out for Christmas and birthdays...picking up a few more over the years.

Last I checked, the price has ranged from $165 (out of stock) to $299 (Home Shopping Network).

Since the gold value of a tenth of an ounce gold these days is about $150 and I'm no longer able to find gold coins anywhere close the bullion value anywhere... any ideas on the most economical way to buy US Gold Coins or non US Gold Coins?

The coin shops where I traded don't have any for sale...

 

[Bison]

I would wait till gold crashes.
buy low sell high is the only way to get ahead.

 

[ultrarunner]

TBN had a pop-up from Goldline...

I clicked on it and it required my personal info to get more information.

Looks like the kids will get cash for Christmas and Birthdays.

 

[bp fick]

Gainesville Coin has a solid website and they are fair, honest folks.

I also like apmex. apmex.com

 

[zzvyb6]

Best way to buy gold coins for gifts I have found is thru an investment house (as I do via Morgan Stanley). The problems you will have are paying too much and then getting ripped off when its time to sell them. The condition of the coins is as important as the weight. Condition means looks and actual gold weight. There are plenty of counter fitters out there in several contries (especially where tractors are made overseas) that have good dies and can plate lead coins reallt well. So, you pay a lot to have it assayed, which devalues the coins.

This means you need to have a good account in good standing in order to be able to participate in the coin purchase programs. Because they buy a lot of gold coins of several flavors, they have a staff function to do this. This can mean that you never actually take posession of the coins (because you can doctor them) and that they remain in a vault. You get a certificate signifying ownership. Otherwise, buy midwest farmland or windmill weights. They stopped making them a long time ago...

 

[ultrarunner]

Never thought about counterfeit coins... too bad coin collectors can't just buy them from the mint direct.

What's a windmill weight?

I like the property idea and have taken that route on a small scale... the property taxes have become a real bear.

I must be the luckiest guy around... even in this economy and Real Estate Market, the county assessors say my property has doubled on one and worth more than I paid back in 2005.

Maybe, I should just buy 1964 Kennedy Half Dollars... shouldn't have to worry about counterfeits there...

 

[automech]

I buy gold coins from Kitco.com Real easy.

 

[zzvyb6]

A windmill weight is part of a gravity powered windmill governor mechanism. Popular weights were in the form of animals (horses, pigs, birds, etc). They are highly prized primitive Americana and have developed a reputation as a valuable collectable (especially to those who have money to burn).

Look on eBay for some examples. I'm not suggesting 100% investment in them, but round out your porfolio with some 'Made in USA' stuff. Its rapidly going away.

On the other hand, I'm delighted that my property values are tumbling. Property taxes will eventially reflect this new reality. I'd love to see it go to zero value as the long train of Ages glides away and I approach my grave like one who wraps the drapery of his couch about him and lies down to pleasant dreams...

 

[grsthegreat]

last time i sold my gold coins i got hit with a nice big cap gains tax......didnt know they would do that. took the sale right out of me.

been pissed off with gold trading ever since. Since you cant eat gold, i dint bother.

i do wish i bought it at $360/oz, but hind site is ...........


i certainly wouldn't buy it at 1400 an ounce..

what i wish i did was to buy more las Vegas sands stock when it was down to $2.87 per share in 2009.

i bought some..not enough. its now about $43/share. the people buying gold boast they have doubled maybe tripled their money. mine has increased like 1500%. darn, i wish i bought more of it.

 

[ultrarunner]

Thanks for the explanation... I didn't know such things existed.

I would be fine with tumbling value since I'm in it for the long run... it's just when the Assessor has 22 comparables and discounts them and says my property keeps appreciating???

Also appreciate the tips on gold... never bought by mail, phone or Internet. The prices are much better than the local California Coin Shops around me.

My 3 nieces from one brother know exactly I gave them the gold coins and how many they have... my niece and nephew from the other brother don't have as many because the parents were not thrilled about being responsible for the coins.

The kids range from 6 to 9 years old.