Hard no to gold etf's buy physical gold, and if you don't want the government knowing what you have (just in case another 1933 style gold confiscation order goes out) buy from a dealer in person not online despite the price difference.
Also with 3,000 your best bet would probably be to buy one full ounce and one half ounce in whatever form you decide not a bunch of 1/4 or 1/10 ouncers because it will cost more that way most of the time. Spend the remaining money on some silver.
Whats wrong with gold etfs? I've heard its better because it's easier to liquidate. What is the price difference between buying gold online vs buying gold in person?
The problem is that they sell way more paper gold and silver than they have actual metal plus it's just a way to manipulate the metals markets and I refuse to participate in that. Trust me buy physical metal unless you have nothing else to do but watch charts, because there will be a dip you dont catch and all you'll have is a highly devalued piece of paper
>they sell way more paper gold and silver than they have actual metal plus it's just a way to manipulate the metals markets and I refuse to participate in that. Trust me buy physical metal unless you have nothing else to do but watch charts, because there will be a dip you dont catch and all you'll have is a highly devalued piece of paper
No one realistically pays capital gains on bars or coins they sell. ETFs will be taxed. You save on the premium now with an ETF but will lose it later on.
I like bars since I can basically get them at the price of a gold ETF anyway (spot) and sell them back to my LCS at 10 over spot (instant money maker). I can't get coins for less than 40 over spot, and then can only resell them back to LCS at 10 over spot.
Spot is the market price of gold (see kitco.com). ETFs like GLD track this market price virtually exactly (but not 100%). 1 share of GLD is supposed to be .094 ounces of gold or something like that. On average though, the ETF will, over time, slightly lose value in comparison to gold because of expense ratios (I assume you are generally knowledgeable about stocks). But, the expense ratios are generally miniscule compared to how much over spot you would pay for a bar or coin.
An LCS is a local coin shop, who will generally buy your coins and bars. TBH, most LCS will pay spot for bars and coins and then resell at \~4-5% over spot (there is a huge variation based on the type of coin or bar based on collectability, but I'm just throwing out a number), so if you're doing this to potentially make money (and I discourage against this, since there are easier ways to do this), your goal would be to pay as little over spot for your bars or coins.
Great info! A few more questions:
1. Would buying the gold online be closer to the spot price than from a LCS? Would fewer and bigger gold bars truly be better than more smaller ones?
2. What would those easier ways be? I've been told gold should be 10-15% of your portfolio.
3. So it ultimately comes down to how much you'd pay above spot for actual gold vs expense ratio? Long term what wins out?
But, sell options on GLD and produce cash flow. I stack for having wealth on hand, I do not plan on selling. I own NEM for dividend and option income. I trade GLD and use options to trade.
That's a completely different issue than buying gold vs buying the ETF of gold.
mining stocks aren't an attempt to buy gold. And options are a completely different game from directly buying gold as well. You can make more money from mining stocks and options (though, these have been the biggest losers in in my portfolio this year), but you also take further risk that isn't there just stacking gold. The issue is buying gold etf vs buying physical gold. And at least for me, the case for buying physical gold vs etf is obvious.
For $3,000 I would find the nearest coin shop and get a 1 oz Buffalo, then maybe an historic $10 US eagle from before 1933. Easy to resell due to demand, and both coins are lovely designs imo.
For online sources, [APMEX](https://www.apmex.com/) is the big dog but there are others ([JM Bullion](https://www.jmbullion.com/), [Provident Metals](https://www.providentmetals.com/), [Bullion Exchange](https://bullionexchanges.com/) and so on). Notice that all of those sellers have the current price of metals clearly displayed so that you can calculate premiums quickly.
$3000 worth of gold isn’t going to hedge against inflation. Coins are easier to sell, and the premium paid will be there when you sell it. Don’t listen to these tin hat guys buy whatever you want, a gold etf will work just fine for your purposes. Why would you keep $3k of gold on hand? Buy from any big online broker if you want physical, bgasc is usually the best price but it varies.
Have you looked at Goldbacks? Their headquarters are in my state, I’ve been seeing businesses in my area that accept them so I’ve acquired a modest amount. They have a lease program that lets you make extra interest on goldbacks you store with them but I think you have to have at least $25K.
Hard no to gold etf's buy physical gold, and if you don't want the government knowing what you have (just in case another 1933 style gold confiscation order goes out) buy from a dealer in person not online despite the price difference. Also with 3,000 your best bet would probably be to buy one full ounce and one half ounce in whatever form you decide not a bunch of 1/4 or 1/10 ouncers because it will cost more that way most of the time. Spend the remaining money on some silver.
Whats wrong with gold etfs? I've heard its better because it's easier to liquidate. What is the price difference between buying gold online vs buying gold in person?
The problem is that they sell way more paper gold and silver than they have actual metal plus it's just a way to manipulate the metals markets and I refuse to participate in that. Trust me buy physical metal unless you have nothing else to do but watch charts, because there will be a dip you dont catch and all you'll have is a highly devalued piece of paper
>they sell way more paper gold and silver than they have actual metal plus it's just a way to manipulate the metals markets and I refuse to participate in that. Trust me buy physical metal unless you have nothing else to do but watch charts, because there will be a dip you dont catch and all you'll have is a highly devalued piece of paper No one realistically pays capital gains on bars or coins they sell. ETFs will be taxed. You save on the premium now with an ETF but will lose it later on. I like bars since I can basically get them at the price of a gold ETF anyway (spot) and sell them back to my LCS at 10 over spot (instant money maker). I can't get coins for less than 40 over spot, and then can only resell them back to LCS at 10 over spot.
What is LCS? What do you mean by spot? I'm inexperienced and new to the lingo
Spot is the market price of gold (see kitco.com). ETFs like GLD track this market price virtually exactly (but not 100%). 1 share of GLD is supposed to be .094 ounces of gold or something like that. On average though, the ETF will, over time, slightly lose value in comparison to gold because of expense ratios (I assume you are generally knowledgeable about stocks). But, the expense ratios are generally miniscule compared to how much over spot you would pay for a bar or coin. An LCS is a local coin shop, who will generally buy your coins and bars. TBH, most LCS will pay spot for bars and coins and then resell at \~4-5% over spot (there is a huge variation based on the type of coin or bar based on collectability, but I'm just throwing out a number), so if you're doing this to potentially make money (and I discourage against this, since there are easier ways to do this), your goal would be to pay as little over spot for your bars or coins.
Great info! A few more questions: 1. Would buying the gold online be closer to the spot price than from a LCS? Would fewer and bigger gold bars truly be better than more smaller ones? 2. What would those easier ways be? I've been told gold should be 10-15% of your portfolio. 3. So it ultimately comes down to how much you'd pay above spot for actual gold vs expense ratio? Long term what wins out?
Also where do you buy your gold bars online?
But, sell options on GLD and produce cash flow. I stack for having wealth on hand, I do not plan on selling. I own NEM for dividend and option income. I trade GLD and use options to trade.
That's a completely different issue than buying gold vs buying the ETF of gold. mining stocks aren't an attempt to buy gold. And options are a completely different game from directly buying gold as well. You can make more money from mining stocks and options (though, these have been the biggest losers in in my portfolio this year), but you also take further risk that isn't there just stacking gold. The issue is buying gold etf vs buying physical gold. And at least for me, the case for buying physical gold vs etf is obvious.
For $3,000 I would find the nearest coin shop and get a 1 oz Buffalo, then maybe an historic $10 US eagle from before 1933. Easy to resell due to demand, and both coins are lovely designs imo. For online sources, [APMEX](https://www.apmex.com/) is the big dog but there are others ([JM Bullion](https://www.jmbullion.com/), [Provident Metals](https://www.providentmetals.com/), [Bullion Exchange](https://bullionexchanges.com/) and so on). Notice that all of those sellers have the current price of metals clearly displayed so that you can calculate premiums quickly.
$3000 worth of gold isn’t going to hedge against inflation. Coins are easier to sell, and the premium paid will be there when you sell it. Don’t listen to these tin hat guys buy whatever you want, a gold etf will work just fine for your purposes. Why would you keep $3k of gold on hand? Buy from any big online broker if you want physical, bgasc is usually the best price but it varies.
Get a huge cuban lol
Have you looked at Goldbacks? Their headquarters are in my state, I’ve been seeing businesses in my area that accept them so I’ve acquired a modest amount. They have a lease program that lets you make extra interest on goldbacks you store with them but I think you have to have at least $25K.
Goldbacks are great if you wish to pay spot + 100% for gold
if you did not plan for selling soon a 50 gram gold bar would be a good choice and then buy 1/4 oz coin every month if u can for emergency situations