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I am new at buying gold – need help

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  • Sun, Sep 09, 2012 - 03:57am

    #1
    Lykkelig

    Lykkelig

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    I am new at buying gold – need help

Hello

I am new to gold investing. I have decided to invest in physical gold, but I have yet to buy my first coin. I am in the process of finding out how concretely to do it. I have a question for anyone out there who has experience with this. Hope you can help me out.

I have seen vidoes on youtube in which investors of bullion coins show their collections of physical gold. It seems as if gold bullion coins are often in protective plastic covers.

I have read that 24 carat gold is very soft and has to be in a protective cover and is not supposed to be removed from the cover. 

I am curious: How do you know that the gold you have purchased is real ? If you cant remove the gold from the plastic and personally inspect it. (Measure its height and diameter and weigh it.)
I have seen videoes of people on youtube perform these standard tests to verify the authenticity of their gold. If the gold is in protective plastic covers and are not to be taken out of there, I guess it is entirely a matter of you trusting your dealer then?

Thanks for any answer or comment you may have.

lykkelig
 

  • Sun, Sep 09, 2012 - 02:18pm

    #2
    Ken C

    Ken C

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    What to buy

As far as whether to buy 24 kt or 22 kt. I think that it can be argued either way. Keep  in mind that you are not going to be carrying the coins like pocket change so if you take care of the 24 kt you should not have a problem with damage. Store them in the tubes or covers they come  in.

I personally like American Gold Eagles but any of the other major coins are good too. Sealed coins are usually numismatic coins and that is a different investment than buying bullion coins. I see little benefit in sealed numismatic coins. If you are buying bullion coins for their bullion value protection there is no reason to get sealed/graded coins.

Always buy from a trusted source. In addition to being able to measure coins you can always compare newly acquired coins with ones that you already  have. There should be NO difference. If there is you have a problem.

  • Sun, Sep 09, 2012 - 06:34pm

    #3
    Lykkelig

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    Ken C:Two things. First

Ken C:

Two things.

First thing.

So you like American Gold Eagles. They are 22 karats.

Do you own any 24 bullion coins like Austrian Philharmonics or Canadian Maple Leafs?

If you do. Did they come in a package (plastic capsule, vacuum pack) when you bought them?

If they did, and you did not remove them from their cover(you are not supposed to, I am told, since fine gold coins are extremely soft and can easily be damaged – and the value of the gold is decreased when the original package has been opened), how have you personally verified the authenticity of the product?

You cant weigh them, you cant really measure their diameter og height, when they are in a protective cover.

Second thing.

About the 22 karats coins that you own. Since they are a little harder than 24 karats maybe they are not in a package (plastic capsule, vacuum pack).

If you touch them and test their authenticity, how do you do it.

The testing procedure that I have heard of is this: You weigh them, measure their thickness and diameter, test them with a magnet and of course you check the design.

If for example your American gold Eagle is 2,87 mm in thickness, 32,70 mm in diameter, weigh 33,93 grams and does not respond when you run a magnet close to it, I guess that you can be 100 percent certain that your coin is the real thing. Please tell me if you agree with this testing procedure, or if there is something I am missing here.  

If anyone else wants to comment please do. I would appreciate all comments. Thanks.

 

Lykkelig

  • Sun, Sep 09, 2012 - 09:22pm

    #4
    Ken C

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    Too much angst.

You are WAY too concerned about touching bullion coins.

You are not going to damage bullion coins by touching and handling them. Obviously don’t drop them or bang them around.

If you are dealing with numismatic coins then there is a concern about opening the package.

When you get a bullion coin carefully take it out of the package and weigh, measure and compare all you want and then put it  back in the package then put it away somewhere safe.

 

 

  • Sun, Sep 09, 2012 - 10:01pm

    #5
    shanti

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    buying gold and silver coins from coin shop

Thanks for the comments, I just called all the coin dealers in my area and checked the current prices on line.  some dealers told me on the phone how much over the spot price they charged. So I went to the dealer that charged less.  The spot prices are online, so I checked a few websites to get a price range.

I checked the reviews of the dealers on line, but I didn’t think about  the gold not being real.  That does complicate things. Huh, I don’t know, Guess you hope the dealer is honest.

  • Sun, Sep 09, 2012 - 11:54pm

    #6
    Lykkelig

    Lykkelig

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    Ken C wrote:You are WAY too

Ken C wrote:

You are WAY too concerned about touching bullion coins.

You are not going to damage bullion coins by touching and handling them. Obviously don’t drop them or bang them around.

If you are dealing with numismatic coins then there is a concern about opening the package.

When you get a bullion coin carefully take it out of the package and weigh, measure and compare all you want and then put it  back in the package then put it away somewhere safe.

 

 

I have never been near a gold coin in my life. The dealer I am considering buying from have guidelines for handling gold. Those guidelines correspond well to what people on youtube are demonstrating.

Do you have a comment to the second part of my post. Appreciate the feedback.

  • Mon, Sep 10, 2012 - 01:51am

    #7

    Travlin

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    Look here

Lykkelig

Since you are new to buying gold you should check out the following.

How to buy gold.
http://www.peakprosperity.com/buying_gold

Where to buy gold from trusted dealers.
http://www.peakprosperity.com/where-to-buy-gold-and-silver

A simple tester.
http://www.fisch.co.za/home.htm

Try the search box in the upper right corner of every page to find many discussions on this topic.

Travlin

Test, test, test
Test, test, test
Test, test, test
Test, test, test

  • Mon, Sep 10, 2012 - 03:44am

    #8
    redfir223

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    Where to buy

Lykkelig,

Look up Provident Metals online. I have purchased from them and they are honest and I have yet to find a dealer who beats their prices. Some complain about slow delivery but they use the most secure method available in USPS, certified mail which has a verifiable chain of custody from Provident to you, (when I have picked up my packages at my post office they come out of the PO safe) but this takes a little extra time which security I prefer over speed. They also protect themselves by allowing time for your payment to clear which makes good business sense to me. To answer your concern about the authenticity of the coins you buy, if you deal with a reputable dealer and buy known coins such as American silver or gold Eagles, Maples, Kruggerands, etc., you have nothing to worry about. If you buy from Craig’s list or out of the newspaper, I would be more concerned. 90% US silver coins are easy to recognize and are another option. Provident has those as well.

redfir

  • Mon, Sep 10, 2012 - 03:51am

    #9
    earthwise

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    When I was a newbie……..

Lykkelig

I bought gold for the first time in 2009 and was also a little nervous. I trusted Chris’ endorsement (on his ‘Buying Gold and Silver‘ page) of these guys at California Numismatics Investments (golddealer.com). Their spreads were among the lowest and I had to take a chance on somebody, so I sent them a lot (to me) of money via cashiers check, and lo and behold a couple of weeks later the Post Office notified me I had a package to be picked up. It was gold!!  Pretty stress free if you can control the initial nervousness. I bought Krugerrands by the way. Just ’cause they were a little cheaper. I made a later purchase with the same results and have referred three family members to them, who also all had the same results. I’ve since learned that most reputable dealers operate the same way. No big deal. If you’re hesitant, make a small purchase to get your feet wet, then follow up with susbsequent buys.

 

P.S. Also, most reputable dealers will walk you through the process. 

 

 

  • Tue, Sep 11, 2012 - 03:20pm

    #10
    Base821

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    Anyone have any experience with any of the bullion vaults?

I have used Colorado Gold and have enjoyed the transaction.  The only issue is that they use the USPS and that can be slow and the tracking is poor.  

I was wondering if anyone has had any experience working with any of the bullion vaults?  I am considering opening an account with Goldmoney.com but am a little nervous.  How secure is your gold *really*?  I do not mean from a security standpoint, but from a legal standpoint as well as a trust standpoint.  Most of them have regular audits, etc but I would really appreciate anyones experiences in this.

Thanks

Base

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