Making Money with Gold and Silver Coins

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geneok's picture
geneok
Status: Member (Offline)
Joined: Sep 4 2011
Posts: 2
Golf and Silver Coins

Will you provide at least three dealers who are trustworthy?  Secondly, which Gold and Silver coins should one purchase and why? I'm rather new at this but believe the dollar will ultimately collaspe so I'm more interested in protecting what wealth remains rather than trading. Although trading to make a little money would please me very much!  Thank You.

Best regards,

Geneok

JAG's picture
JAG
Status: Diamond Member (Offline)
Joined: Oct 26 2008
Posts: 2490
 And people still think

And people still think there is not a bubble in gold....

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 1547
Gold

There is not a bubble in Gold.  You must be listening to CNBC JAG. 

Maybe we see what Egon Von Greyerz has to say?

http://goldswitzerland.com/index.php/deus-ex-machina-egonvongreyerz/ 

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/29_Von_Greyerz_-_Gold_Will_Trade_$3,000_-_$5,000_in_2012.html

"Egon von Greyerz (EvG) is the Founder and Managing Partner of Matterhorn Asset Management AG and GoldSwitzerland. EvG started his working life in Geneva as a banker and thereafter spent 17 years as Finance Director and Vice-Chairman of Dixons Group Plc, the UK’s largest electronic and electrical retailer and a FTSE 100 company.

Since the 1990s Egon von Greyerz has been actively involved with financial investment activities including Mergers and Acquisitions and Asset allocation consultancy for private family funds. This led to the creation of Matterhorn Asset Management -MAM, (www.matterhornassetmanagement.com) an asset management company based on wealth preservation principles. MAM is part of the Aquila Group, Switzerland's largest independent asset management group."

featherjack's picture
featherjack
Status: Bronze Member (Offline)
Joined: Dec 7 2010
Posts: 51
'bubble'

JAG wrote:

And people still think there is not a bubble in gold....

LOL

ewilkerson's picture
ewilkerson
Status: Gold Member (Offline)
Joined: Jul 18 2010
Posts: 390
The only bubble is the one

The only bubble is the one that willl finally burst and we or the Israelis, probably Israel, bomb their nuclear facilities and they block the shipping.  I imagine the oil bubble will burst all the way to $200 or so and gold $5000 or possibly more.  My point being there is so much that can go wrong in 12 that there is a fundamental base under gold.  It might flip around some, but the odds are probably 3/1 that it goes much 50%-75% higher over the next 24-36 months.  Just my feel of the world right now.  We're up the creek everywhere you turn, so gold goes higher!!  Sorry if I missed someone's point.  I'm sitting on some stairs at the beach trying to catch a signal.

Happy New Year All

Ernest

JAG's picture
JAG
Status: Diamond Member (Offline)
Joined: Oct 26 2008
Posts: 2490
Jim H wrote: There is not a

Jim H wrote:

There is not a bubble in Gold.  You must be listening to CNBC JAG. 

Sorry Jim,

You lose all credibility with me once you quote a gold-is-kingworldnews interview.

And I don't watch CNBC, unless there is a nasty market crash underway. I enjoy the look of constipation on Maria's face on those days...

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 1547
How about Dave from Denver then?

He still likes Gold Jag;

http://truthingold.blogspot.com/2011/12/bubbleno-bubble-and-happy-2012.html

"I have never ever in close to 30 years of observing, studying and participating in all aspects of the financial markets seen an investment opportunity in which the fundamentals that support the undervaluation of an investment sector permeate every aspect of the system AND in which these fundamentals are right out in the open for everyone to examine - and yet, the same fundamentals and evidence are ignored by the vast majority of investors and analysts. It's beyond stunning. It's also the unequivocal exact opposite of the conditions that would support the view that the precious metals sector is in a bubble. Right? When a sector is in a bubble you have almost EVERYONE in every part of the investment universe looking for literally insane reasons to justify paying a ridiculous valuation level for a stock/asset."

I don't agree with everyone interviewed on KWN, but many of the regulars are very insightful.  

I am going to have a hard time from here on, what with having no credibility and all....   

tomadkins's picture
tomadkins
Status: Bronze Member (Offline)
Joined: Sep 9 2009
Posts: 31
making "money" with gold and silver coins

CM Community,

I like gold and silver coins.  But a few definitions.  Gold and silver coins "are" money.  The currency we use...has tokens:  penny, nickel, dime, quarter, etc.  A coin per se, comes from a government mint.  A round comes from a private mint.

Now the question was something +/- to do with making "money" from gold and silver coins.

First things first:  ALL premium on neumismatics will disappear over time.  That is:  the "extra" you pay over the content of a coin is generally called a premium.  You may be able to buy a Gold Eagle or Krug or whatever...and to do that in today's market...you will pay a "premium" over the listed spot price.  However, OVER TIME, this premium will change...it may go higher or it may go lower...but over time...the premium will disappear (more or less) and the price for the coin will more closely reflect the spot price of the metal content.

In 2008, there was a premium on 90% coins...why?  Because of the utility of 90% as an alternative medium of exchange is my take.  At one point, the premium on 90% was approaching 50%.

But back to the main point:  making money with these coins.

One thing that I've done is to swap betwen gold and silver.  That is:  when I first purchased 90% (10/2008) I bought ~ 80:1.  Then earlier this year, I swapped some of my silver (yeah, I know:  shoulda swapped all of it) for gold at < 40:1.

The result?  With the same amount of money, I effectively DOUBLED my ounces.

I bought silver at 80:1.  For the price of 1 ounce of gold, I bought 80 ounces of silver.  Then (this year) I swapped my silver for gold at < 40:1...which means I was then able to double my ounces.

By this method, I was able to turn an otherwise sterile holding into something productive.

But the real issue here is:  improving (maintaining) your purchasing power.  To me, THAT is the crux of the matter.

Whatever portion of your assets you place into a gold or silver position will allow you to "make money" as the purchasing power of the dollars you swapped for this purchase shrinks in value.

By merely owning gold/silver...you are side-stepping from the inflation/devaluation risk that is inherent in the dollar (and all paper currency worldwide).

So:  purchase gold/silver coins.  Buy bullion vs collectibles.  Take physical delivery.  Store in a secure location(s).  Rinse and repeat.

Happy New Year !

Tom A

No_Fiat's picture
No_Fiat
Status: Silver Member (Offline)
Joined: Oct 20 2011
Posts: 104
 You cannot make money with

You cannot make money with gold or silver coins, because you will be trading them in for fiat dollars. As long as the FED can monetize anything they want we cannot beat the system.

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