Gyroscopic Investing

The 1/10th ounce coins are selling like hot cakes...

http://www.bloomberg.com/news/2013-04-2 ... -coin.html

Remember what muppets do, they don't sell on the way down... buying anything but a 1 oz coin is incredibly stupid too.  The premium can be higher than a 1 oz semi-numismatic.

MachineGhost wrote: Remember what muppets do, they don't sell on the way down... buying anything but a 1 oz coin is incredibly stupid too.  The premium can be higher than a 1 oz semi-numismatic.

+1

MachineGhost wrote: Remember what muppets do, they don't sell on the way down... buying anything but a 1 oz coin is incredibly stupid too.  The premium can be higher than a 1 oz semi-numismatic.

I guess I must be a total moron then, since I have purchased a number of different coins of different sizes, e.g., Mex 50P... when those had the lowest premium of any coin I could buy.

Libertarian666 wrote:

MachineGhost wrote: Remember what muppets do, they don't sell on the way down... buying anything but a 1 oz coin is incredibly stupid too.  The premium can be higher than a 1 oz semi-numismatic.

I guess I must be a total moron then, since I have purchased a number of different coins of different sizes, e.g., Mex 50P... when those had the lowest premium of any coin I could buy.

As an absolute dollar amount, or as a percentage of the total cost?

Pointedstick wrote:

Libertarian666 wrote:

MachineGhost wrote: Remember what muppets do, they don't sell on the way down... buying anything but a 1 oz coin is incredibly stupid too.  The premium can be higher than a 1 oz semi-numismatic.

I guess I must be a total moron then, since I have purchased a number of different coins of different sizes, e.g., Mex 50P... when those had the lowest premium of any coin I could buy.

As an absolute dollar amount, or as a percentage of the total cost?

As a percentage.

Libertarian666 wrote:

Pointedstick wrote:

Libertarian666 wrote: I guess I must be a total moron then, since I have purchased a number of different coins of different sizes, e.g., Mex 50P... when those had the lowest premium of any coin I could buy.

As an absolute dollar amount, or as a percentage of the total cost?

As a percentage.

Then it made sense for you to buy.  Now you just have to hope you can get the same deal when you go to sell. 

Libertarian666 wrote:

MachineGhost wrote: Remember what muppets do, they don't sell on the way down... buying anything but a 1 oz coin is incredibly stupid too.  The premium can be higher than a 1 oz semi-numismatic.

I guess I must be a total moron then, since I have purchased a number of different coins of different sizes, e.g., Mex 50P... when those had the lowest premium of any coin I could buy.

There are exceptions to every rule. If you are getting a lower % premium over spot/melt value then that may be a good deal. But as pointed and rocket note you also need to consider liquidity. Unusual coins that are not readily known or frequently traded by dealers may be harder to unload if/when you want to sell.

I may take some heat for saying this, but I am not a huge fan of coins. Yes, having some gold in coin form may be useful because they tend to be a bit more liquid if we are talking about the common ones like Eagles and Krugerands. But if you have enough in coins to cover an emergency situation my advice would be to buy the rest in small bars. You will get more ounces for you buck. Coins look pretty, but we are buying gold here, not art. The premium on coins is starting to get to the point where I think people should remember that it's the melt value that you can generally count on getting back if/when you sell. Right now you will get some premium for coins. But that should not be assumed as a permanent given.

rocketdog wrote:

Libertarian666 wrote:

Pointedstick wrote: As an absolute dollar amount, or as a percentage of the total cost?

As a percentage.

Then it made sense for you to buy.  Now you just have to hope you can get the same deal when you go to sell. 

I got about 99% of spot for the 50Ps, which was about 3% less than the dealer was paying for Eagles. But I paid about 3% less premium that Eagles had at the time I bought, so it came out about even.