Buying Gold? Make Sure To Comparison Shop

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Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
Buying Gold? Make Sure To Comparison Shop

I came across a web site offering gold and silver for sale, and for some reason the videos seemed a little too slick for me. I was totally reminded of those infomercials about investing in real estate and time shares. Y'know what I mean?

Anyways, the "opportunity" or "store" was called "YOUnique", but a little research quickly made me realize that it was considerably over-priced. I won't say "scam" but it certainly didn't make me think highly of it. I felt sorry for the less educated people who might end up buying there.

Basic Facts
There are 31.1034768 grams in a troy ounce. As of the time of this comment, a troy ounce of gold at spot price right now is $1,543.90.
(Source: http://www.kitco.com/charts/livegold.html). That is what I am going to use for comparison.

Examples From The "YOUnique" Site
A private label "Charles Robert" 3.52 grams gold coin sells for (at the time of this writing) $224.48. Now, 31.1034768 divided by 3.52 provides a factor of 8.836215. Well, $224.48 times 8.836215 is $1,983.55 for the equivalent of one troy ounce of gold. That is a mark-up above spot of 28.47%.

Another example from the site: A private label Moses Gold 1/10th ounce for $203.11.
Or $2,031.10 for ten, the equivalent of one troy ounce. A mark-up above spot of 1 ounce of 31.56%.

GainesVille Coins For Comparison
But look! Gainesville coins is selling an Austrian Mint, Austrian Philharmonic 1/10th ounce coin for $171.39 each.
Or $1,713.90 for ten, the equivalent of one troy ounce. A mark-up above spot of 1 ounce of 11.01%.

So... Beware of prices out there! Make sure to shop around.

Poet

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
Example Of A "YOUnique" Video

This is one of the "slick" videos that made me wonder.

"We are living on an incredibly abundant, wealthy and prosperous planet. Yet for many they are not yet sharing in the riches or living the abundant lives we are designed for."

You be the judge.

If someone's making money off that roughly 30% mark-up, who's paying the price?

Poet

SteveW's picture
SteveW
Status: Gold Member (Offline)
Joined: Jan 21 2010
Posts: 490
Coin sizes

While I agree that some of these premiums are excessive there is another aspect to this story. Looking at Kico's US $ prices now I see that gold is $1554.

1oz Eagle is $1639.47 (5.5% premium)

1/2 oz Eagle is $839.16 (8% premium)

1/4 oz Eagle is $435.11 (12% premium)

1/10 oz Eagle is $183.37 (18% premium)

Kitco's price of $181.82 on 101+ 1/10 oz Eagles (17% premium) makes the above offer on 1/10 oz Austrian Philharmonics look good! Besides those unique private label coins have collector value Wink.

PastTense's picture
PastTense
Status: Bronze Member (Offline)
Joined: Dec 13 2010
Posts: 47
If we have an economic

If we have an economic catastrophe, then premiums for collectible coins will disappear. I expect there will remain a small premium for gold/silver issued by your own country (such as the American gold or silver eagle).

Unless you can find good deals locally, stick with one of the major bullion dealers, such as Tulving or Apmex. Here are reviews of some of the major dealers:

http://www.goldismoney2.com/forumdisplay.php?8-PM-Dealer-Feedback

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