Does Gold's Markup Bother You?

Discussion of the Gold portion of the Permanent Portfolio

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StdDeviant
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Re: Does Gold's Markup Bother You?

Postby StdDeviant » Wed Mar 15, 2017 2:09 pm

dualstow wrote:
StdDeviant wrote:My answer: No, gold's markup does not bother me at all. It's very, very small. And insignificant.

Here's my take on it (posted in another thread, so I'll just post the link):
viewtopic.php?f=5&t=8914&start=60


I was just reading that post. You make a compelling case for coins.


Thanks, dualstow. Certainly not original ideas on my part. If you haven't read Rowland & Lawson's book "The Permanent Portfolio," I highly recommend it. The most ubiquitous 1 oz. gold coins available are the #1 recommended way of owning gold. I don't own much this way YET. IRAs don't
make owning gold in any form other than an ETF very easy. But knowing I can try to fend off the zombies with a few American Eagles (and some 1/10 oz. Eagles as well) in my pocket gives me a tiny sliver more hope than carrying a thumb drive with my Quicken backup or a printout of my most recent Fidelity statement.
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dualstow
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Re: Does Gold's Markup Bother You?

Postby dualstow » Wed Mar 15, 2017 2:28 pm

StdDeviant wrote:Thanks, dualstow. Certainly not original ideas on my part. If you haven't read Rowland & Lawson's book "The Permanent Portfolio," I highly recommend it. The most ubiquitous 1 oz. gold coins available are the #1 recommended way of owning gold. I don't own much this way YET. IRAs don't
make owning gold in any form other than an ETF very easy.


It is indeed a fine book, and the kindle version is usually one of the open tabs in my browser. If I remember right, I started with Craig's posts at bogleheads, then bought Harry's 'Fail-Safe Investing' and 'Best Laid Plans...' I already had most of my coins by the time Craig & MJ's book was out, but it's a great resource. EDIT: and Harry Browne's Money Talk radio show archives, which I first found through this forum. Very helpful indeed. I think one can still find a torrent for them.

I have a love-hate relationship with ETFs, but mostly hate. O0

But knowing I can try to fend off the zombies with a few American Eagles (and some 1/10 oz. Eagles as well) in my pocket gives me a tiny sliver more hope than carrying a thumb drive with my Quicken backup or a printout of my most recent Fidelity statement.


Trivial prediction: 9 out of 10 forum members will reread the word "sliver" above thinking it said silver.
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Re: Does Gold's Markup Bother You?

Postby technovelist » Wed Mar 15, 2017 6:24 pm

How about trading on a (roughly) 1% buy-sell spread on popular coins?

You could apply for a dealer's account at Dillon-Gage in Dallas. That's what they usually have as a spread for the American Eagle, obviously depending on the market.

I don't know exactly what their requirements are, but it couldn't hurt to ask if you are planning to trade at least 20 or 30 ounces at a time on occasion.
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Re: Does Gold's Markup Bother You?

Postby TennPaGa » Wed Mar 15, 2017 8:02 pm

dualstow wrote:
But knowing I can try to fend off the zombies with a few American Eagles (and some 1/10 oz. Eagles as well) in my pocket gives me a tiny sliver more hope than carrying a thumb drive with my Quicken backup or a printout of my most recent Fidelity statement.


Trivial prediction: 9 out of 10 forum members will reread the word "sliver" above thinking it said silver.
8 to go.
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dualstow
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Re: Does Gold's Markup Bother You?

Postby dualstow » Wed Jul 12, 2017 12:46 pm

technovelist wrote:Markup is not the issue. Spread, including all costs, is the issue.

Is there any point to buying fractional gold coins, or is that just too costly, like buying silver?
(I have only bought 1oz coins).
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Mark Leavy
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Re: Does Gold's Markup Bother You?

Postby Mark Leavy » Wed Jul 12, 2017 5:36 pm

dualstow wrote:
technovelist wrote:Markup is not the issue. Spread, including all costs, is the issue.

Is there any point to buying fractional gold coins, or is that just too costly, like buying silver?
(I have only bought 1oz coins).


No sense in buying a large amount of fractional coins. As noted, the spread will kill you. But 1/2 oz coins are about the size of a quarter and go through an airport scanner just fine in a bundle of change. They make a fine plan B or C. A small number is plenty.

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Re: Does Gold's Markup Bother You?

Postby dualstow » Wed Jul 12, 2017 6:15 pm

Thanks, Mark.
I once read about wealthy people and high value numismatic coins going through a scanner.
It was either an article or a post by Medium Tex.
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ochotona
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Re: Does Gold's Markup Bother You?

Postby ochotona » Wed Jul 12, 2017 8:05 pm

dualstow wrote:Thanks, Mark.
I once read about wealthy people and high value numismatic coins going through a scanner.
It was either an article or a post by Medium Tex.


Must be lots of that going on in Venezuela.
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Desert
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Re: Does Gold's Markup Bother You?

Postby Desert » Wed Jul 12, 2017 9:12 pm

Mark Leavy wrote:
dualstow wrote:
technovelist wrote:Markup is not the issue. Spread, including all costs, is the issue.

Is there any point to buying fractional gold coins, or is that just too costly, like buying silver?
(I have only bought 1oz coins).


No sense in buying a large amount of fractional coins. As noted, the spread will kill you. But 1/2 oz coins are about the size of a quarter and go through an airport scanner just fine in a bundle of change. They make a fine plan B or C. A small number is plenty.

Mark


Very interesting ...hadn't thought of that before.

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