Buying gold

[EL_TIGRE_de_Tigre]

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.

Slippage is buying at the offer as opposed to the bid and commission and, or markup ... that would be the definition of slippage.

As for the situation in Germany or elsewhere for that matter ... no, or low inventory empowers sellers to DEMAND MORE. That after all is why asset prices appreciate. And the reverse is true as well, prices go down because buyers are willing to pay less. So, in a sense, sellers control upside moves and buyers control downside moves. You would think it to be the opposite of that, but it's not. And then if there is an inside market or market maker (MM) they get in the middle of a transaction and depending upon any given move, they need to make a market wether they have inventory or not. Any gap up or down once they start filling orders has to be closed if they are to balance out their order book. Otherwise, they would be out of the game very quickly.

Lastly, if a person is trying to buy $5K to $10K worth of coins, that really isn't the kind of buyer who will enjoy great pricing. You need to be in the $250K+ arena to start enjoying pricing power.

 

[EL_TIGRE_de_Tigre]

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.

The problem with the jewelry links (As stated in an earlier post within this thread...) is that links or pieces or stray gold need to be ASSAYED before any credible buyer will touch them. And no credible buyer is looking to make a transaction for 2 or 3 links of gold. Time and money spent determining percentage of metal content is reserved for larger sellers. That is why one ounce .999 fine certified major country specific coins are the best vehicle for quick and easy liquidation. Any experienced buyer knows the item and it is just a matter of "SCALING" THEM TO VERIFY WEIGHT!

 

[EL_TIGRE_de_Tigre]

Slippage is buying at the offer as opposed to the bid and commission and, or markup ... that would be the definition of slippage.

As for the situation in Germany or elsewhere for that matter ... no, or low inventory empowers sellers to DEMAND MORE. That after all is why asset prices appreciate. And the reverse is true as well, prices go down because buyers are willing to pay less. So, in a sense, sellers control upside moves and buyers control downside moves. You would think it to be the opposite of that, but it's not. And then if there is an inside market or market maker (MM) they get in the middle of a transaction and depending upon any given move, they need to make a market wether they have inventory or not. Any gap up or down once they start filling orders has to be closed if they are to balance out their order book. Otherwise, they would be out of the game very quickly.

Lastly, if a person is trying to buy $5K to $10K worth of coins, that really isn't the kind of buyer who will enjoy great pricing. You need to be in the $250K+ arena to start enjoying pricing power.

ONE OTHER THING ***

THE BEST TIME TO BUY or SELL ... depending upon wether prices are increasing or decreasing ... Is when markets are calm and implied volatility is LOW! That is the time when spreads are narrow!

 

[Caribbean Cool]

ONE OTHER THING ***

ONE OTHER THING ***

THE BEST TIME TO BUY or SELL ... depending upon wether prices are increasing or decreasing ... Is when markets are calm and implied volatility is LOW! That is the time when spreads are narrow!

Oh no Tigre....the best time to buy or sell is the opposite...the best time is when volatility is out of sight. Example-one day years ago gold went up 100 dollars from 1800 or 1900 or so the next day.....then dropped a 100 or so the next day. That was it...the top. Wells Fargo went to $7 in the 2008 debacle. It was all over the place percent wise....Buffett had a field day. When bitshit, oops, bitcoin hit its top it was anything but calm. It is possible that when an issue has been sitting around for an extended period...sure that might be the time to accumulate but otherwise when things get crazy is when the fun starts. And then there was 1987....the crazier it got....the better it got. By the time things calmed down the ship had sailed!