Based on this info, I think Nude’s suggestion to buy Canadian Maple Leaf gold coins, is a sound one.

Since there is indeed a dollar amount attached to the Golden Eagle, I’m concerned the same shenanigans might happen again.

Count me in on the camp of believers that a GD II is looming.

I’m not sure who or what maintains the premium for face value.  The melt value is so much greater than face value, especially today.  I find it interesting that even beyond parity, gold American eagles sell for more than Canadian maples, despite the maple leaf being 99.99% pure, whereas American eagles are 91.67% pure.  The only thing I can figure is there is a greater premium for the confidence of a US-minted coin vs. a Canadian coin, and this premium more than offsets the difference in melt value.  Not much confidence in a chunk of gold without an assay.  Don’t even get me started on the selling prices of natural gold nuggets!
When I bought gold 6 or 7 years ago I chose maple leaves.

awgee - 14 July 2008 04:17 PM

I just realized I answered a question, but it may not seem like the answer because I wrote in a different context.  So ...

When buying and selling physical gold, you do not pay fees or commissions.  Instead, there is a bid and an ask price.  Or a buy and a sell price.  If you buy from a coin dealer it would look something like this.  Mr. Coin Dealer will sell you a one ounce American gold eagle for $1000, and after you buy it, if you turn right around and sell it back to Mr. Coin Dealer, her will buy it from you for $950.  The spot price of gold at that moment will probably be right around $975.  When buying very large quantities or if you buy on the futures market, the price is wherever the bid and the ask price meet.  Interestingly enough, if you could freeze time, you could buy bulk AGEs from Tulving at his sell price and then sell the single AGEs on Ebay for a profit immediately, because the purchase of smaller amounts of precious metals demand a premium.

Just an extra tidbit.  The cap gains tax on gold and silver in coin or bullion form is the 28% collectibles rate, as it also is on GLD and SLV, although hardly anybody pays the collectibles rate on GLD and SLV.  I have not yet been in a audit where the rate on the ETF was in question, but I do know the applicable tax code.  The cap gains tax rate on mining stocks is the same as other stocks.  If you buy less than $1000 worth of gold or silver in California, you have to pay CA sales tax.

Awgee, thank you for these helpful posts! You mention that you prefer the American Eagle coins. What is the advantage of this as opposed to something like the Credit Suisse 1oz gold bars (.9999, 24 KT), for example?

Also, when I view the prices on Tulving, it indicates “Spot + $X” (for example, American Eagle is Spot + $34.95). Is this $34.95 not a “fee”?

BLUE FIRE - 14 July 2008 10:02 PM

You mention that you prefer the American Eagle coins. What is the advantage of this as opposed to something like the Credit Suisse 1oz gold bars (.9999, 24 KT), for example?

I think I answered this in a previous post.

BLUE FIRE - 14 July 2008 10:02 PM

Also, when I view the prices on Tulving, it indicates “Spot + $X” (for example, American Eagle is Spot + $34.95). Is this $34.95 not a “fee”?

If you wish to call it a fee, I guess you are free to do so, but in the pm world, Haines’ selling price is spot +$34.95 and it would be refered to as the selling price.  Call it what you want.

Call me a nutter, but between the gold thread, SiPC thread and IndyMac thread, I’m beginning to think the investments I need to make are in Remington and Colt.

The gold info is great, thanks.  I don’t know why, but the thought physically piling a bunch of gold coins in my safety deposit box makes me feel like a miser.

Why exactly am I doing the gold play again?  Inflation hedge? Dollar collapse hedge?

Hi all,
I’m baaack Anyway, remember how I was laughing at people buying gold at this forum. Ok, I was wrong, I take it back.
Now please can somebody tell me where exactly can I buy American Eagle or Canadian Maple coins for a reasonable price? I got a list of dealers from U.S. treasury (or mint?) website, but I’m not sure if that is the best way to go about it.
Any suggestions/recommendations? Thanks in advance.

I’m having fun and learning a lot on this one. What about platinum?

blackacre-seeker - 18 July 2008 10:51 PM

Hi all,
I’m baaack Anyway, remember how I was laughing at people buying gold at this forum. Ok, I was wrong, I take it back.
Now please can somebody tell me where exactly can I buy American Eagle or Canadian Maple coins for a reasonable price? I got a list of dealers from U.S. treasury (or mint?) website, but I’m not sure if that is the best way to go about it.
Any suggestions/recommendations? Thanks in advance.

The least expensive is www.tulving.com.  He sells at wholesale prices, so you have to buy in bulk.  Check out the website to see what “bulk” is.  For smaller quantities, try APMEX.  Avoid Monex like the plague.

tmare - 18 July 2008 11:21 PM

I’m having fun and learning a lot on this one. What about platinum?

IMO, platinum and palladium are more responsive to industrial supply and demand issues, whereas gold and silver are more responsive to investment demand.  I prefer palladium to platinum because palladium is close to a 1:1 substitute in catalytic converters and is less than a quarter of the price.

Would anyone here just supinely hand over confiscated gold?

Hmmmm?

Anybody?

Thanks awgee for the tips, really saved me a lot of time!
Lawyerliz, I also wondered how this confiscation would work. My guess is that the government would track down whoever bought gold recently (especially if all these dealers who sell it have to report it to some agency), and then quite literally knock on your door

lawyerliz - 19 July 2008 11:04 AM

Would anyone here just supinely hand over confiscated gold?

Hmmmm?

Anybody?

I don’t think they would have to confiscate it. It is currently illegal to accept gold as a form of payment or to use it to settle contracts. The relevant section of the U.S.C. can be found here. If stores and retailers can’t take gold as payment, can’t offer gold as compensation, and ordinary people can’t use it as money then it’s only remaining value is as an investment commodity. The government wouldn’t have to confiscate it as simple enforcement of existing law would be enough to discourage it’s use as “money”. The reason to own physical gold is two-fold: as a hedge against inflation and as an insurance policy against a very dark day when the laws become unenforcable due to war, revolution, or societal collapse.

Sorry Panda, I don’t know how to respond to a private message.
I went and bought coins from a dealer

Since I did this on the off chance that we would be in a survivalist
situation, I didn’t want anything electronic.  I didn’t buy them to make
money, tho I have made a bit.  We didn’t buy much.

I like buying individual shares only.  I like to pick the companies
myself.

Awgee, do you ever just buy from local dealers?

I have found a couple of south county dealers who sell American Eagles at spot + $40, which is basically the same price as tulving, but without the 5 oz minimum purchase requirement, and no shipping or insurance expenses (which I know is free from Tulving if you purchase at least 20 oz, but….).

BLUE FIRE - 26 July 2008 08:35 PM

Awgee, do you ever just buy from local dealers?

I have found a couple of south county dealers who sell American Eagles at spot + $40, which is basically the same price as tulving, but without the 5 oz minimum purchase requirement, and no shipping or insurance expenses (which I know is free from Tulving if you purchase at least 20 oz, but….).

No, I haven’t, but it sounds like a good deal.  Is Tulving down to a 5 oz. min.?  It used to be a 20 oz. min.  I have not bought since before Tulving went to spot + pricing.  He used to have a set price that would change twice per day.

Honestly, I find Tulving’s website nearly impossible to navigate, but from what I can tell the minimum order for gold is 5 oz, but 20 oz if you want free shipping and insurance.

BLUE FIRE - 28 July 2008 08:47 AM

Honestly, I find Tulving’s website nearly impossible to navigate, but from what I can tell the minimum order for gold is 5 oz, but 20 oz if you want free shipping and insurance.

If you’re not buying 20+ oz, why bother?

No really.  Even at a $1000/oz, if you can’t afford a 20 oz purchase, it’s fairly pointless for you to try and play this game.  Your transaction costs will kill you.

“Gold has fallen every session this month, with the most- active contract losing $94.40 since July 31. The metal entered a bear market today, declining 20 percent from a record $1,033.90 an ounce reached on March 17.“

Wow…awgee, you buying any on this drop?

Bloomberg on gold

Trooper - 11 August 2008 12:51 PM

“Gold has fallen every session this month, with the most- active contract losing $94.40 since July 31. The metal entered a bear market today, declining 20 percent from a record $1,033.90 an ounce reached on March 17.“

Wow…awgee, you buying any on this drop?

Bloomberg on gold

If I had cash to buy with, I would buy on this dip.

awgee - 11 August 2008 01:45 PM

Trooper - 11 August 2008 12:51 PM

“Gold has fallen every session this month, with the most- active contract losing $94.40 since July 31. The metal entered a bear market today, declining 20 percent from a record $1,033.90 an ounce reached on March 17.“

Wow…awgee, you buying any on this drop?

Bloomberg on gold

If I had cash to buy with, I would buy on this dip.

Took Awgees advice and had cash on the side line and loaded up on gold last Friday and today. Gold down to 829 an ounce today, Panda says “OUCH” but I am in it for the long haul. Let the inflation kick in and let the dollar weaken! Go Precious Metals!

Panda

Am I way off base or would any perceived “strength” in the dollar have the gov-mint salivating for another round of stimulus?  Obviously the powers that be are comfortable with an even lower dollar relative to world currencies and the anticipated global slow down must’ve given the gov-mint more room to run, no?

PANDA - 11 August 2008 06:02 PM

Took Awgees advice and had cash on the side line and loaded up on gold last Friday and today. Gold down to 829 an ounce today, Panda says “OUCH” but I am in it for the long haul. Let the inflation kick in and let the dollar weaken! Go Precious Metals!
Panda

I would still leave some cash around - no point on catching the falling knife unless it stabilizes. I disposed of most of my gold out of sheer luck the day before the last Fed meeting as I didn’t thrust the market’s reaction to whatever the fed was up to.

We now have gold at -20% and silver at an incredible -30%. Can you believe precious metals are depreciating faster than houses built with shady loans?

This market is vicious - be careful out there.

I am not that old, but back in the 80’s, everyone was crazy about gold that even stay-at-home mothers started to “invest” in gold.  Then it dropped like a piece of lead.  I started to look at gold when it was like $300 back in 2001, and was very surprised that it went up so much in past few years.  I just feel that it is way over priced, and it just give me flash back of the 1980’s.

I do agree for the futures and short term day traders, gold and silver is a very dangerous investment, but for the long term investor, I am very bullish with commodities as I will continue to buy as the prices fall. I am also planning to buy more equities in foreign countries, especially in Japan, Korea, Hong Kong, and China as prices are starting to look very and very attractive again. I sold out of all my Chinese/Hong Kong equities about a year ago (as valuations of Chinese companies were starting to get way over priced) and the next 6 month, I am looking to aggressively to buy up the asian equities at bargain prices again.

As Silver dropped 9% in one day on Friday, I see it as a huge discount (buying opportunity) to get in at 40% discount from the peak. Gold prices under $800 is an incredible bargain. I think Gold prices will probably correct more down to $750 tops in the near future to completely wipe out the short term speculaters.

Gold is headed toward at least $2,200 an ounce currently at $786.00 up from $280 so far, and Silver at $100 (currently $12.70, up from $4)

IS PANDA CRAZY???????

In 1981, the histortic seventies gold bull market finally topped out at $850. After adjusting for inflation, to merely equal what it did in 1981, gold would have to go (only) to $2171. Silver topped out at $50 in 1980. After adjusting for inflation since then, to merely equal what it did in 1981, silver would have to go up to $125.

Why is Panda so bullish that metals could even go much higher than that? The biggest single factor that drives gold and silver is monetary inflation, and that’s already several times greater now than during the great gold and silver bull market of the seventies. And also silver supply will be almost become obsolete in the next 10 - 15 years.

Graph, You may be laughing at Panda now for continuing to buy gold and silver at these bargain prices and loading up on cheap quality asian equities, but i will be laughing at you in a couple of years.

Panda

PANDA - 16 August 2008 06:48 AM

I do agree for the futures and short term day traders, gold and silver is a very dangerous investment, but for the long term investor, I am very bullish with commodities as I will continue to buy as the prices fall. I am also planning to buy more equities in foreign countries, especially in Japan, Korea, Hong Kong, and China as prices are starting to look very and very attractive again. I sold out of all my Chinese/Hong Kong equities about a year ago and looking to aggressively to buy up the bargains.

As Silver dropped 9% in one day on Friday, I see it as a huge discount to get in at 40% discount from the peak. Gold prices under $800 is an incredible bargain. I think Gold prices will probably correct down to $750 top in the near future to completely wipe out the short term speculaters.

Gold is headed toward at least $2,200 an ounce currently at $786.00 up from $280 so far, and Silver at $100 (currently $12.70, up from $4)

IS PANDA CRAZY???????

In 1981, the histortic seventies gold bull market finally topped out at $850. After adjusting for inflation, to merely equal what it did in 1981, gold would have to go (only) to $2171. Silver topped out at $50 in 1980. After adjusting for inflation since then, to merely equal what it did in 1981, silver would have to go up to $125.

Why is Panda so bullish that metals could even go much higher than that? The biggest single factor that drives gold and silver is monetary inflation, and that’s already several times greater now than during the great gold and silver bull market of the seventies. And also silver supply will be almost disappear in the next 10 - 15 years.

Graph, You may be laughing at Panda now for continuing to buy gold and silver at these bargain prices and loading up on cheap quality asian equities, but i will be laughing at you in a couple of years.

Panda

We dumped all our gold awhile ago, so I really don’t care if it goes up or down. Panda, for your sake, I hope you are right and that it continues to climb. $2,200 an ounce? Wow!  That would make you some sweet cash.  I’m too nervous to invest in commodities right now. Like Astute Observer, I went through the 80’s and witnessed gold crash.  When gold crashes - it crashes hard.