Investing in Gold New to buying any tips or help?


buying gold
IcyPolls.com asked:


Im looking to invest in gold to diversify my liquid capital. I had a horrible experience with GoldLine They tried to charge me 2.5X the spot price of gold Anyway canceled my order and looked elsewhere.
Found this site onlyrarecoins.com and was wondering if this is a good price for american gold eagle coins
http://onlyrarecoins.com/products/2009-American-Eagle-Gold-1%7B47%7D10oz-Coin.html
Any help would be appreciated.
Thank you!

This entry was posted on Sunday, March 21st, 2010 at 12:00 am and is filed under Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “Investing in Gold New to buying any tips or help?”

  1. Nighthawke Says:
    March 23rd, 2010 at 1:19 pm

    I wouldn’t be buying any gold right now. Smart investors buy when everybody else hates gold and they sell when everybody else loves it. Currently, it’s the latter. I wouldn’t buy gold unless it made a successful retest and hold of the $1000 level. A break below that level and everybody will be selling. Nighthawke

  2. ThinKabootit Says:
    March 24th, 2010 at 11:59 am

    Gold is neither particularly liquid (in normal circumstances) nor is it an “investment”….

    Here’s graph of the inflation-corrected price of gold for the past 600 years;

    Does that look like an “investment” to you?

    Don’t waste your money. Really. Let’s pretend you spend $16,000 on 100 of these “2009 American Eagle Gold 1/10oz Coins” (you’ll have about 10 ounces of gold, worth about $11,000). Twenty-five years from now, you’ll have about 10 ounces of gold, which will possibly be worth about $11,000, but far more likely will be worth the “historical-adjusted average” of $6,270…so you will have spent $11K and have something with $6.3K “buying power”

    If you bought a diversified Growth stock mutual fund instead, your $16,000 would grow in value at between the potentially awful worst-case rate of 6% or the best-case rate of 11-12%, so in twenty-five years you’ll have assets with a “dollar value” of somewhere between $68,670 and $272,001 (with a real, net-of-inflation “spending value” of between $52,334 and $129,909)

    Which sounds smarter to you? Owning gold 25 years from now with a “best-case” likely real value of $6,300? Or a stock fund that may have underperformed and be worth only $52,334?

    Gold/coins are a scam, and are currently just an opportunity for dealers to “prey” on an undereducated & fearful public. Goldline are perfectly “reputable”, the same thing will happen to you wherever you go, silly goose! ThinKabootit

  3. Computer Guy Says:
    March 26th, 2010 at 6:33 am

    When you buy “rare” coins you are paying substantial premium for the rarity, over the fair value of the gold in the coin. You can buy so-called “bullion” coins (e.g., krugerrands, maples, pandas) for a small premium over spot, if you can find them.

    Those gold eagles are 1/10 ounce, and they are selling them for $159, that comes to $1590/ounce.
    Spot price this morning is $1103.60 /ounce.

    Grandpa Computer Guy

Leave a Reply