Buying gold

[EL_TIGRE_de_Tigre]

Truthfully, Products like the one you refer to are not for everyday people. (But I don't know your background or skill set / experience level ... It could be for you???) They will be in over their head with something that they do not understand. And if they do not understand what they own, they will be turned inside out when they wish to exit the position. THIS, for most everyone except for a professional or very shrewd PPT (Private Professional Trader) is poison to a portfolio. (And if you have a hand holder ... That is code for a full service broker ... They will simply fleece you. The slippage will be enormous such that it would be hard to make a profit, because they took all the easy money in the form of commissions)

 

[NeoWonk]

I was assuming he was looking for Gold Chains - which I think you can buy on Libertad and Corrientes as well:

 

[EL_TIGRE_de_Tigre]

I was assuming he was looking for Gold Chains - which I think you can buy on Libertad and Corrientes as well: View attachment 6801

NO, you are mistaken.

This person came across as quite genuine and serious in the post with respect to taking physical possession of the metal for a way to preserve buying power / use as a hedge against inflation or otherwise. I can't see any indication the poster was seeking the metal in jewelry form.

As an FYI >>> Jewelry is perhaps the single worst way to invest or acquire precious metals & or gemstones as jewelers have ENORMOUS markup in what they sell. Once you buy it and walk out of the store with it, it is worth about a third to a half of what you just paid assuming you have an uniformed buyer to work with.

 

[jeff1234]

I bought 1 oz US Mint coins years ago. Stored them in my safe deposit box. They've appreciated nicely and now I give them as gifts to the grandchildren. Buying them and storing them was effortless as long as I could take delivery in the US. I spoke to a coin dealer about them once. He didn't even need to see them, knew exactly what they were and how much he'd pay. The other choice to sell them would be on Ebay, I'm not sure how much of a hassle or how expensive that would be.

 

[EL_TIGRE_de_Tigre]

I bought 1 oz US Mint coins years ago. Stored them in my safe deposit box. They've appreciated nicely and now I give them as gifts to the grandchildren. Buying them and storing them was effortless as long as I could take delivery in the US. I spoke to a coin dealer about them once. He didn't even need to see them, knew exactly what they were and how much he'd pay. The other choice to sell them would be on Ebay, I'm not sure how much of a hassle or how expensive that would be.

Jeff,

You just validated my primary point - Thanks for that!

One once coins of any major country are a known quantity and highly sellable in a very easy manner. This is the only PHYSICAL GOLD VEHICLE I would recommend. Everything else has issues. And they are too numerous to completely address without writing a book.

As for eBay >>> STAY AWAY. There are SCAMMERS all over that service and eBay finds in favor of their buyers 99.99% of the time. A person would feel bad to give their coins away and not get paid! eBay is not what it was in the beginning. It is a SCAMMERS paradise now.

Better to throw what you want to sell in the rubbish - You will feel a lot better in the end!

 

[jeff1234]

As for eBay >>> STAY AWAY. There are SCAMMERS all over that service and eBay finds in favor of their buyers 99.99% of the time. A person would feel bad to give their coins away and not get paid! eBay is not what it was in the beginning. It is a SCAMMERS paradise now.

Better to throw what you want to sell in the rubbish - You will feel a lot better in the end!
[/QUOTE]

So, if not Ebay, how do you convert gold coins to cash?

Wouldn't it be wiser not to buy gold during a crisis?

 

[EL_TIGRE_de_Tigre]

eBay is but one SINGLE outlet in a world of BILLIONS of people.

The problem with eBay is dishonest buyers who eBay protects.

There are a GAZILLION reputable gold bullion dealers out there for starters. Follow that by jewelers who stray into the area of buying and selling gold, but be warned, they will try to underbid a person who isn't savvy. SOLUTION - KNOW WHAT YOU HAVE and know what it's CURRENT VALUE is. Anyone can be formidable in the jewelry store simply by knowing those two pieces of information. AFTER THAT ... coin dealers are another great outlet, but they are no very different from jewelers, so be aware.

SELLING to INDIVIDUAL, private people is risky. Even if you can agree on price, you take the risk of being robbed. These kinds of transactions are most comfortable and trustworthy in a business setting. A BRICKS & MORTAR store. It is a CREDIBILITY issue.

 

[EL_TIGRE_de_Tigre]

One other thing ... just about every reputable seller ... IS A BUYER. And most of the time, slippage is only that 1% or less depending upon volume.

 

[easyliving]

Just a caveat. I don't know what you mean by 'slippage' of 1% but both the spread (difference between buy and sell) as well as the premium over spot are significantly more than 1%. Currently, the premium for physical metals is insanely high if you can get physical. I spoke last week to a friend in Germany where gold is commonly held, and he said every dealer was out of stock except one who was charging a 300 (!) Euro premium.

It is easy to get reliable price information online from reputable dealers to get an idea of what prices are at any given time, but spreads and premiums definitely move around.

 

[LookingToThrive]

Jewelry is perhaps the single worst way to invest or acquire precious metals & or gemstones as jewelers have ENORMOUS markup in what they sell. Once you buy it and walk out of the store with it, it is worth about a third to a half of what you just paid assuming you have an uniformed buyer to work with.

I disagree in the specific case of gold chains.
The ability to remove a link or two at a time makes them competitive with silver coins and they are easier to transport. Jewelry is a high cost way to acquiring precious metals but bulk gold chains have very low markups as the labor involved is quite small. I have personally acquired such chains at a smaller premium to bullion spot than american eagle coins though I strongly recommend going to a well known/liquid jewelry market for such buys and I'm unaware of any existing in Buenos Aires even in good times (please jump in with where I should be going!)

Probably wouldn't be the main part of my gold buy if I was looking to store wealth/be a prepper/commit to Zero Hedge but I think a lot of people are getting into gold right now just want to feel comfort in their ability to handle a couple of months of anarchy and are looking to buy <$5k. For these people, gold chains are a reasonable thing to consider alongside gold and silver coins.