Investing in precious metals 101

Best place to buy gold bullion?

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  • Thu, Dec 18, 2008 - 04:45pm

    #1
    GR8TFUL

    GR8TFUL

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    Best place to buy gold bullion?

Like most things these days, I would guess that the internet would be the best (i.e., cheapest) place to buy gold, but hopefully some of you can advise me. I’m not interested in trying to purchase one or two coins on ebay, but rather dollar cost averaging several lump $10,000 purchases.

There’s a local dealer who normally has Eagles & Maples, & currently he is charging $80 over spot (roughly 10%). Seems like a high margin to me, but the advantage is immediate delivery & no records. Buying online, I’d have to pay some premium over spot, plus shipping & insurance, plus wait for delivery. And of course there would be a record of my purchase. I don’t really care about that, but all other things being equal no record is better.

 Can any of you recommend (from personal experience) online dealers? Who consistently offers the best price & service? Or should I just make the 10 minute drive, pay the local guy his $80 premium, and be done with it?

 PS: Sorry if similar questions from others have already been answered–I did a search for "gold bullion" and "gold dealers" on this site but so much stuff came up that I couldn’t find what I was looking for!

  • Thu, Dec 18, 2008 - 05:00pm

    #2
    scbt

    scbt

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    Re: Best place to buy gold bullion?

I just checked NWT mint on line (good prices), they charge $65.00 over spot and take up to 14 weeks to deliver (free postage).  If I was dropping 10k, I’d rather pay the $80.00 over spot per coin and walk away with the item and no record of me purchasing, but there could be some hidden gems on line that I’ve never been able to find…

  • Thu, Dec 18, 2008 - 06:21pm

    #3
    SteveS

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    Re: Best place to buy gold bullion?

Under the ACT tab, Chris has a nice writeup on buying gold, including a few places he has dealt with.

A few weeks ago  I made my first purchase, from golddealer.com ( California Numismatic Investments). Their add-on was a bit higher than others but they have a low minimum ($2000) and free shipping. I received my order in about a week after I did the wire transfer.

I wanted to buy locally, but when I called to get general info they hung up on me – twice. So I went online and found CNI to be very patient and helpful with explaining the process.Others are probably good too, but you will probably narrow it down quickly based on exactly what you want to buy and how much you want.

Like you note, buying gold shows up a lot here – maybe we can keep this thread going with recommendations from others as to who they go to and what the experience was.

 

  • Thu, Dec 18, 2008 - 06:54pm

    #4
    GR8TFUL

    GR8TFUL

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    Re: Best place to buy gold bullion?

Thanks for the info., Steve–that’s what I was looking for!  In case others are interested in online sites that Chris "recommended" here’s the info. he wrote in the ACT section:

———————————————-

Where should I buy it?

There are lots and lots of potential sources. Go comparison-shopping and get the best price you can. A couple of good sites are:

  1. http://tulving.com
  2. http://certifiedmint.com
  3. http://www.coloradogold.com
  4. http://www.golddealer.com

Consider also your local coin shops, which have the advantage of enabling you to more easily participate in smaller purchases and preserve your anonymity, should that be important to you.

 ——————————————————————–

Today, tulving.com seems to have the best price–Maples for $49 over spot and Eagles for $69 over spot, both offer free shipping/insurance. So, for $11 more a coin I can buy locally, get immediate delivery, and of course no records. Guess that’s what I’ll do . . .

 

  • Thu, Dec 18, 2008 - 06:58pm

    #5
    Brainless

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    Re: Best place to buy gold bullion?

It is true that many have problems finding a good source to buy gold i have problems setting up to sell gold.

Credit card payment is out of the question because money can be requested back for as long as a year. Money transfer requires trust from the buyer and obviously when i start i don’t have build up credibility.

Transport and insurance does cost but is reasonable.

I am working on it but i don’t expect to be up and running quick. I am now reading ebay en paypal rules to see if selling gold is allowed through their channels.

I registered http://www.physicalgold.org to setup shop to provide people a way to buy physical gold. It will be directly from the ‘factory’ so markups are low. Quantities can be anything between 1 gram and 1500 gram. I want to do this to provide a service and not for making lots of money. As long as i can keep it break even i am fine. The work, in this case actually my wifes, is our contribution.

My question is what are the conditions that will be necessary to be trustworthy enough for people to buy with me.

Suggestions are very welcome. 

  • Thu, Dec 18, 2008 - 07:16pm

    #6
    GR8TFUL

    GR8TFUL

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    Re: Best place to buy gold bullion?

Brainless: You wrote:

 I registered http://www.physicalgold.org to setup shop to provide people a way to buy physical gold. It will be directly from the ‘factory’ so markups are low.

 Not to rain on your parade, but the source is the mint, and I don’t see how you’d be able to buy or sell lower than companies who have been around for decades and do hundred million $ + transactions per year . . . best of luck to you though.

My main frustration w/ investing in gold is the spread. Most of us pay a premium when we buy AND when we sell (though I wouldn’t be surprised if many investors have never sold any of the gold they’ve bought), so gold has to go up about 20% for the average joe investor to just break even.

  • Thu, Dec 18, 2008 - 07:19pm

    #7

    Tom Page

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    Re: Best place to buy gold bullion?

Excellent experience buying from Tulving.com. Quick phone call order, a walk over to the bank to send wire, and recieved shipment registered mail within 2 days.  

 

  • Thu, Dec 18, 2008 - 10:44pm

    #8
    Brainless

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    Re: Best place to buy gold bullion?

Check this http://www.goldtraders.or.th/index_en.php

At the top you see this:

 
gold and jewelry price Gold Price by Gold Traders Association 18 December 2008 16:39 .
Gold 96.5 % Buy Sell
Gold bars, Bullion (THB) 13850 13950
Gold Ornaments (THB) 13644 14350

 these are prices in Thai baht. The spread is 100 baht (about 3 US$)

As export of gold bars and bullion is forbidden the price for gold Ornaments are the ones i have to use.

The spread there is around 700 baht (21 US$), but more importantly the difference between bullion and ornaments is only 400 baht (12 US$).

I bought bullion annd ornaments myself about a week ago for 13100 and 13400. The price now is already almost 1000 baht more.

Now here is the good thing about the difference between Bullion and Ornaments.

(Please note that in Thailand they use a 1 baht coin as a weight, that is at least 15.244 gram for bullion and at least 15.16 gram for ornaments)

 if you buy ‘1 baht’ weight gold you pay today 13950 for bullion and 14350 for ornaments. 400 is the markup.

Now if you buy more it gets interesting. Say you buy 5 baht weight then bullion wil be 5×13950, make it into a coin or a bracelet or something else add about 400 for manufacturing. Now the 400 baht is divided over 5 baht ‘raw’ gold and it is now 11.76$ markup over a price total of 2051US$.

for comparing purposes with a 99.99% pure oz of gold you can calculate it like this.

1 troy ounce is 31.1034768 gram, 1 baht is 15.244 gram, bullion is 99.99% pure, Thai gold is 96.5% pure

First calculate how much gold there is in 1 baht gold.      15.244 * 0.965 = 14,71046 grams.

then calculate how many baht gold is in 1 troy ounce       31.1034768 : 14.71046 =   2,11438 Baht (weight)

That means i can sell 1 troy ounce of gold for  2.11438 x dayprice for bullion + 400 baht manufacturing costs

Today that would mean 2.11438 x 13950 + 400 = 29.896 baht ( 879 US$)

879 US$ would be 9 US$ above spot price.

Above prices in US$ are calculated with an exchange rate of 1 US$ = 34 baht. 

 

And to prove how much markup is normal here is a gold bracelet on ebay for 529US$.

http://cgi.ebay.com/22k-gold-heart-bracelet-from-thailand-bb_W0QQitemZ350091420687QQcategoryZ92718QQcmdZViewItem

I can sell that same item for 450US$

  • Mon, Dec 22, 2008 - 01:25am

    #9
    Brainless

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    Re: Best place to buy gold bullion?

24K or 99.99% pure gold coins won’t last a few days in your wallet. It is much to soft. 22K is as high as you can get to have a coin that can at least withstand some use, even better is 18K.

Weights. About 1 gram is around 25-30US$. Still too large amount for daily use. 0.1 gram (2.5US$) comes close.

I don’t see it happen. Gold is not as easy as the coins and paper we have now.

Linking money and gold is a good thing. Money can be made in lots of different nominations. And it can be re-adjusted to a gold standard when the need arises.

 

  • Mon, Dec 22, 2008 - 07:13pm

    #10

    KKPSTEIN

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    Re: Best place to buy gold bullion?

[quote=Brainless]

24K or 99.99% pure gold coins won’t last a few days in your wallet. It is much to soft. 22K is as high as you can get to have a coin that can at least withstand some use, even better is 18K.

Weights. About 1 gram is around 25-30US$. Still too large amount for daily use. 0.1 gram (2.5US$) comes close.

I don’t see it happen. Gold is not as easy as the coins and paper we have now.

Linking money and gold is a good thing. Money can be made in lots of different nominations. And it can be re-adjusted to a gold standard when the need arises.

 

[/quote]

These shekels are sent mint fresh in a durable sealed plastic certificate, so they are protected until you break that seal.

In history when currencies fail, pure gold and silver have always become the money of last resort.

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