Gyroscopic Investing

Ok, I'm ready to make the plunge from the GLD ETF to my first one ounce gold coin. I've been to many of the gold web sites and they thoroughly confuse me. I would prefer a nice, new shiny coin as it will be my first, possibly from the U.S. or Canada or Australia. Does anyone have a good deal on this, possibly with free shipping and insurance for a first timer?

Thanks, in advance!

If you are just looking at buying one coin to get started, I would go to a local coin shop and I would buy a U.S. eagle one ounce coin.

When you see a maple, krug, and eagle coin side by side, you will probably see that the eagle is just a more handsome and refined looking coin.

That's what I would do.

Over time, I would aim to accumulate three or four different types of coins (perhaps some eagles, krugs, maples, and sovereigns).

When you are looking to buy more, there are lots of good places that do business by mail.  I have personally done business with www.ajpm.com and had good experiences.  (I have no connection to them other than being an occasional customer.)

Owning gold is a completely different kind of experience for someone who is used to thinking of investing in terms of abstractions represented by numbers on a computer screen.  It takes some getting used to.

I also use AJPM.  Go to their website and watch for their web specials.  I've done well with the specials and paid as little as 1% premium over spot.

Thank you. I just saw Proof American Buffalo 1 Oz .9999 Gold-Dates Our Choice on Tulving. They sure are appealing.

In Original US Mint Packaging for $94 above spot, 3 coin minimum. Free shipping and insurance. Is this too much?

I just called them with a question and somebody answered and immediately hung up on me. LOL!

Reub wrote: Thank you. I just saw Proof American Buffalo 1 Oz .9999 Gold-Dates Our Choice on Tulving. They sure are appealing.

In Original US Mint Packaging for $94 above spot, 3 coin minimum. Free shipping and insurance. Is this too much?

I just called them with a question and somebody answered and immediately hung up on me. LOL!

If possible, I would get a few different kinds to start with. 

It's more fun that way.

Reub, I would stay away from the proofs, as you are unlikely to get much above spot when you sell. I also have reservations about buying pure gold coins, as they are more easily damaged, and this may effect the price you get at sale. I personally stick with eagles, but buying what has the lowest markup certainly makes sense.

hogtied wrote: I also use AJPM.  Go to their website and watch for their web specials.  I've done well with the specials and paid as little as 1% premium over spot.

Goldmart and Tulving are the two cheapest dealers anywhere.  Texas Precious Metals is pretty good too.  I've used all three and have no complaints though I probably give the nod to Goldmart since they don't have a minimum purchase requirement like Tulving.  

I have used Northwest Territorial Mint - nwmt.com - in the past.  They have eagles, krugs, maple leafs, plus other gold coins, both bullion and coins.  If you have a smaller amount of money, you can even purchase a 1/20th oz of gold chinese panda or even smaller gold bars measured in grams.  I pass this info on to you as a person who has made several gold and silver eagle purchases with them in the past.  Service has always been excellent.  I do not know how their prices compare to other dealers in terms of mark-ups, prices over spot, etc. 

MediumTex wrote: Over time, I would aim to accumulate three or four different types of coins (perhaps some eagles, krugs, maples, and sovereigns).

When you see a maple, krug, and eagle coin side by side, you will probably see that the eagle is just a more handsome and refined looking coin.

Off topic: Although there are compelling tax reasons to own sovereigns in the UK they are ugly things. First impression is "slot machine token" rather than store of value, I think I'm going to have to label mine to make sure my heirs don't bin them or maybe buy an eagle and pop it on top of the pile.

Reub wrote: I just called them with a question and somebody answered and immediately hung up on me. LOL!

Yep sounds about right, I found buying gold a bit like going to a plumber's supply shop C.1980. However having something tangible as part of your portfolio is  good for your peace of mind. It's a bit like owning property except it fits in your pocket and doesn't have ongoing aggravation. 

If you have a local coin dealer it really might be worthwhile paying extra (at least for the first coin) to get a feel for the language and a choice of coin.

gizmo_rat wrote:Although there are compelling tax reasons to own sovereigns in the UK they are ugly things

I think that any coin with a dragon on it is very compelling

And if you are a fan of R.L. Stevenson's Treasure Island then you know that Captain Flint's treasure contained the following:

It was a strange collection, like Billy Bones's hoard for the diversity of coinage, but so much larger and so much more varied that I think I never had more pleasure than in sorting them. English, French, Spanish, Portuguese, Georges, and Louises, doubloons and double guineas and moidores and sequins, the pictures of all the kings of Europe for the last hundred years

Sovereigns would have fit very well in that

And yes, I had to look up what moidores (Portuguese) and sequins (Venetian) were.

I love the fact that coins spread through the world and were used by people who presumably had little conception of where those coins had come from. Coins from Uzbekistan were used in Yorkshire:
http://www.bbc.co.uk/ahistoryoftheworld ... gI8fVlOpuw

WildAboutHarry wrote: I think that any coin with a dragon on it is very compelling

I was about to say "there's only a horse", but with much squinting I can see that what I thought was a bush or cloud of dust beneath the horses hooves is in fact a dragon. Thanks for pointing that out, I'll cross art historian off my list of future careers. 

WildAboutHarry wrote:
And if you are a fan of R.L. Stevenson's Treasure Island
...
Sovereigns would have fit very well in that

Yes, I think I was expecting something a little more Long John silver, delivered in a wooden chest.  Instead I got small, well used pieces of working currency that you wouldn't look twice at in a handful of change. However that does seem apt.

gizmo_rat wrote: Yes, I think I was expecting something a little more Long John silver, delivered in a wooden chest.  Instead I got small, well used pieces of working currency that you wouldn't look twice at in a handful of change. However that does seem apt.

You should have been thinking a trip to Long John Silver. 

(I don't know if they have Long John Silvers in your part of the world, but it's a McDonald's-style fast food place that serves seafood of amazingly poor quality.)

gizmo_rat wrote:Yes, I think I was expecting something a little more Long John silver, delivered in a wooden chest.

Long John Silver didn't get much of Flint's treasure:

Jim Hawkins wrote:He [Silver] had cut through a bulkhead unobserved and had removed one of the sacks of coin, worth perhaps three or four hundred guineas, to help him on his further wanderings.

And perhaps to help him start a low-grade seafood restaurant

I've been happy with BullionDirect.com.  

I think the premiums are a little more than what you might get at a local dealer, and there's also a shipping fee, but it's very convenient.

They'll store your gold for you, which can come in handy if you want to buy a few coins over time before you request delivery.

Lots of good advice here.  

Once you get some experience buying coins and feel more comfortable with the process, be sure to check out local coin shows for some of the best deals on small quantities.  They can be hit or miss, but I recently picked up a 1/4 Krugerrand for $10 under spot during the last dip.

MediumTex wrote: (I don't know if they have Long John Silvers in your part of the world, but it's a McDonald's-style fast food place that serves seafood of amazingly poor quality.)

Sadly, this is the only kind of fish my wife will eat.

bigamish wrote: Sadly, this is the only kind of fish my wife will eat.

I don't think there's any actual fish...just deep fried breading.

Adam1226 wrote:

bigamish wrote: Sadly, this is the only kind of fish my wife will eat.

I don't think there's any actual fish...just deep fried breading.

I heard it was fish lips compressed into the form of a filet.

MediumTex wrote:
I heard it was fish lips compressed into the form of a filet.

Sounds like the fish equivalent of a hot dog.  Yummy.

Your "deep fried breaded fish lips" sound good but in this neck of the woods you can obtain deep fried battered Mars bars (I think it's a Milky way bar in the US) from amazingly poor quality seafood takeaways.



The resulting confection could probably be used as an emergency candle.
Before you ask, I don't think its been franchised yet.

MediumTex wrote:I heard it was fish lips compressed into the form of a filet.

One of Long John Silver's (the restaurant, not the pirate) tag lines is "We Speak Fish".  So you might be right on the fish lips thing.

Reub, you might want to call around to your local coin shops and see whether they might happen to be able to offer you a reasonable deal as well.  Sometimes you'll luck out and they're having a nice special.  A high-quality local coin dealer is a good resource.

There's also something really cool about talking money when you're surrounded by shelf after shelf of history's decommissioned currencies.  Certainly puts you in the right frame of mind for picking up some real money (aka gold.)

That being said, if no good deals appear locally, Tulving's good for when you are looking to buy in volume.  I'm sure the other recommendations on the thread so far are great as well.

For most vendors, it's best to have a method put together for performing wire transfers and\or obtaining cashier's checks.

gizmo_rat wrote: Your "deep fried breaded fish lips" sound good but in this neck of the woods you can obtain deep fried battered Mars bars (I think it's a Milky way bar in the US) from amazingly poor quality seafood takeaways.

My favorite "creative fried food" has to be deep-fried Nutter Butters.  Fantastic!

Thanks for the great advice. For some reason my appetite is calling so I think that I'll eat something before delving further into bullion.

Trying to find it on this forum, without success... so sorry if this has been discussed:

What is a fair price above spot to pay for a gold coin (Eagles, in this case).  I have what appears to be a good dealer near my home charging 5% above spot.  Seems a bit expensive.

moda0306 wrote: What is a fair price above spot to pay for a gold coin (Eagles, in this case).  I have what appears to be a good dealer near my home charging 5% above spot.  Seems a bit expensive.

Eagles do appear to carry a fairly big premium from my experience.  Even Tulving charges a 3.3% premium over spot on Eagles.  But the good news is that they will also buy Eagles at 1.8% over spot.  So the coins are clearly worth more than their simple gold content.

Krugerrands, by contrast, can be purchased for only 1.4% over spot (again using Tulving as a reference.)  So Eagles are clearly a pretty special, highly-valued coin.  Still, I like the Krugerrands for being the closest thing to a coin-shaped lump of bullion at spot.    I never feel quite sure how the premiums might fluctuate, so I tend to like them low.  I doubt it really matters very much, though.