Buy gold ? How ? Where from ?

[michaelangelo]

I listen to iamthewitness.com which is packed with useful info. Although I'm not very up on financial stuff. I don't understand some of the jargon used by Ognir, Rafeeg or Daryl. I suppose that like most people I'm quite stupid on the real truth about fincance and how it really works.
I keep hearing peolple say buy gold. But where do you buy it and where do you keep it once you have it ?. How do you know it's pure gold ? Also don't the Rothchilds or Rockerfellers control the price of gold ? So couldn't the value go down ? Some say buy platinum or silver. Has anyone bought any of these here ? Any advice welcome please.

[MonkeySeeMonkeyDo]

I listen to iamthewitness.com which is packed with useful info. Although I'm not very up on financial stuff. I don't understand some of the jargon used by Ognir, Rafeeg or Daryl. I suppose that like most people I'm quite stupid on the real truth about fincance and how it really works.
I keep hearing peolple say buy gold. But where do you buy it and where do you keep it once you have it ?. How do you know it's pure gold ? Also don't the Rothchilds or Rockerfellers control the price of gold ? So couldn't the value go down ? Some say buy platinum or silver. Has anyone bought any of these here ? Any advice welcome please.

Any talk of finance, money, statistics, economy, etc puts me right to sleep and i have no appetite for it generally. What I'm wondering is how people can purchase ordinary items, like groceries, when instead of cash we have a stick of gold, silver or platinum? "Keep the change" maybe?  :think:

[abduLMaria]

I listen to iamthewitness.com which is packed with useful info. Although I'm not very up on financial stuff. I don't understand some of the jargon used by Ognir, Rafeeg or Daryl. I suppose that like most people I'm quite stupid on the real truth about fincance and how it really works.
I keep hearing peolple say buy gold. But where do you buy it and where do you keep it once you have it ?. How do you know it's pure gold ? Also don't the Rothchilds or Rockerfellers control the price of gold ? So couldn't the value go down ? Some say buy platinum or silver. Has anyone bought any of these here ? Any advice welcome please.

Any talk of finance, money, statistics, economy, etc puts me right to sleep and i have no appetite for it generally. What I'm wondering is how people can purchase ordinary items, like groceries, when instead of cash we have a stick of gold, silver or platinum? "Keep the change" maybe?  :think:

It takes a while to find a good dealer or dealers - people you can trust with $$.  When it comes to doing a transaction, you will usually be sending them $100's or $1000's - to a complete stranger.

There's also trust involved with locking down a price.  You can make a deal for a transaction over the phone, and the price will go down - so as a buyer you might want to back out of the deal.  Not a good idea - you've just made a legal agreement to send someone a check; they have made a legal agreement to send you precious metals.

So there's all kinds of trust involved.

my observation is that some areas of the country have local coin dealers with good prices on gold & silver; some don't.  there's also online dealers -
http://www.apmex.com/

To watch the gold & silver spot (live) markets -
http://www.kitco.com/charts/livesilver.html
http://www.kitco.com/charts/livegold.html

To study the historical markets -
http://www.kitco.com/charts/historicalsilver.html
http://www.kitco.com/charts/historicalgold.html

Gold especially is a large market.  Both markets tie in with other world markets, such as stock markets, currency markets, and the price of oil.  Watch how gold & silver trade versus the other markets.  When you're buying this gives you the ability to predict downticks in price (so you can buy at a lower price).

I suggest studying the markets before committing major cash.  Right now it looks like gold is going UP, UP, and AWAY.  Time will tell.

One good way to start is, just buy a small amount, e.g. 20 ounces of silver ($400), or a 1/4 ounce of gold ($330).  Once you have money invested that will focus your attention like nothing else.

MSMD raised a good question about "how do you turn it into cash".  Basically, you sell it to the same dealer you bought it from, or to a private party.  Therefore, it's VERY important to know how they work, so that your expectations are realistic, and because it will affect how much gold or silver to buy.  For example, my local dealer pays spot for gold, 25 cents below spot for silver.

I suggest doing transactions between 5:15 PM Eastern Time Friday, and 6 PM Eastern Time Sunday.  That's when the markets are closed.  At first it can be very nerve-wracking if you're doing a deal while the markets are open, because the prices keep changing.

One of the things I did when I first got involved was I drove from one dealer to another and sold an ounce of gold I had just bought.  Basically, I wanted to test the market - to make sure it's REAL.  It cost me the "spread" - which was about $20.  Totally worth it.

There's a new tax law in Obama-care which requires the filing of 1099 forms for all transactions $600 or over (income tax reporting).  As a result, I am starting to buy gold fractionals - e.g. 1/4 ounces of gold.  If gold goes to $1500, the Frac will sell for $375+ - so it won't have to be reported.  A half ounce frac will sell for $750+ - it will be reported to the IRS.

There were some CFTC (Commodies Exchange) hearings in late March 2010 that really pulled back the veil on market manipulation.  JPMorgan and HSBC used massive naked short positions to reduce prices (they're selling metal they don't have) - which was actually good for buyers.  During one of the time periods discussed, early February 2010, silver fell to $16 and then $15 an ounce.

The markets were more predictable then.  Overall what I would say is, buy a little when prices are high, then "back up the truck" (buy more) when prices are lower.

[Fulcrum]

About a year ago I sold a motorcycle and bought 200 silver eagles, if I sold today? maybe a $1000 gain but that would be in an ebay deal, much less if it went back to the dealer.

I bought from a local gold and silver dealer, the one with the WE BUY GOLD sign in front, but only before watching the going price on e-bay.
The dealer was higher than eBay which I pointed out and after some back and forth he agreed to meet the lower price.

Silver is still under valued but do not wait to much longer, in a SHTF scenario silver coins will get a meal or tank of gas or ?

Where to keep it? A good safe bolted to floor joists in a closet work for some of your booty, and a well hidden or disguised secondary safe for the rest, but thats just my opinion.

Bill Murphy: "Silver can double in a week, the price is held down with derivatives!"
http://www.youtube.com/watch?v=4J7x3xcToeQ
May 11, 2010 — Bill Murphy, Chairman of the Gold Anti-trust Action Committee, discusses this past week in the markets.

[michaelangelo]

Thanks for the gold buying tips folks.

[§N9sh2bj]

To bypass the mark-up on 'coins', there are rounds. Like coins however they are not described in the public commercial realm using the legal word 'coin/s', as 'coin' is some trademarked crap of the legal society. They are coins however to the man-on-the-street, which is who you would be bartering with, and they have a known weight (one ounce) and purity .999 or .9999 and trade for FRN's usually for much closer to spot than coins. If you buy a single coin, expect to pay an additional 10% premium beyond the usual fees.

Another link, http://freelakotabank.com/.

I had a conversation on a large phone conference with the guy who owns this operation, who happened to be on. He seems legit. No complaints although I have myself not ordered. http://www.silvergoldmintdirect.com/

Whereas 1/10 ounce gold coins might be hard to find, you can probably get rounds easily enough. I prefer silver though, easier to make change and I'm not buying a new car with the stuff, that's for the yuppies and other bobble-heads. More like one silver round or coin is good for trade of bag of rice.

[bigwaga]

I just got some silver from www.bullionbypost.co.uk here in the UK. just a small bar, got to start somewhere :-)

John

[abduLMaria]

I just got some silver from http://www.bullionbypost.co.uk here in the UK. just a small bar, got to start somewhere :-)

John

they look good.

i have to also admire Canada's laws on this subject.  No Tax on any transactions involving .999 gold or silver.

i think it's important to visit a variety of dealers to see what they do.

there's one coin shop locally that was selling silver Eagles for $25 at Christmas, when silver was about $19.

but you can buy the same thing from dealers like bullionbypost.  price check for a Silver Eagle at APMex -
http://www.apmex.com/Product/23331/default.aspx

$22.60, $22.10 if you get a roll of 20.

so some dealers charge a $2.50 spread for an ounce of silver, other dealers charge a $6 to $10 spread for the same ounce of silver.

[michaelangelo]

I live in the UK and bought some silver from these.  1 OZ silver bars and coins.
Can anyone tell me if these were a good choice/price to buy silver from ?.
Instead of paying into a pension scheme from my salary I think it's wiser to buy gold or silver.

http://www.sarniasilver.com/

www.silvercoinsbullion.co.uk

[Fester]

Franklin Saunders, who has been interviewed by Catherine Austin Fitts, has these rules for buying metals:
http://the-moneychanger.com/commandments.phtml

Ten Commandments For Buying Gold & Silver:

I.  Always take delivery
II.  Never buy premium if you can avoid it.
III.  Buy bullion for business, numismatics for fun.
IV.  Buy silver first, then gold.
V.  Buy small gold first, then large.
VI.  Never buy exotic coins or modern rarities or anything you don't understand.
VII.  Know your dealer.
VIII.  What governments can't find, they can't steal.
IX.  Never swap bullion coins for U.S. $20 gold pieces.
X.  Never break the law.

Four Bullion Portfolios & FAQ *Please note that our recommendations vary depending on your concerns and the market.

If you want to invest in gold and silver to protect your assets and have something easily divisible and spendable in the event to hedge currency depreciation or collapse, then:

v    If you have $5,000 or less to spend

    * At least half in silver – either US 90% silver coin or 1oz. Silver Rounds
    * half in British Sovereigns, French 20 Francs, or 1/4 oz. American Eagles. (All references to "ounces" below mean troy ounces of 480
      grains or 31.1034 grams).

v   For $10,000 buy

    * two-thirds US 90% silver coin or 1oz. Silver Rounds
    * the balance divided between a fractional coin like British Sovereigns, French 20 Francs, or 1/4 oz. American Eagles AND
      Krugerrands, Austrian 100 Coronaes or Mexican 50 Pesos..

v     For $25,000 buy

    * two-thirds US 90% silver coin or 1oz. Silver Rounds
    * half of the remaining third in Sovereigns, French 20 Francs, or 1/4 oz. American Eagles, and the balance in one oz. Krugerrands,
      Austrian 100 Coronas, Mexican 50 Pesos, or American Eagles.

v    For $75,000 buy

    * two-thirds US 90% silver coin or 1oz. Silver Rounds
    * $5,000 worth of Sovereigns, 20 Francs, or 1/4 Eagles
    * the balance in Krugerrands, American Eagles or 100 Coronas.  For over $75,000 simply do multiples of this portfolio.

If you want to invest in precious metals to simply protect your assets and don't think you'll ever need to actually barter with them, then

v     If you have $5,000 or less to spend

    * half in US 90% silver coin or 1oz. Silver Rounds
    * half in one ounce Krugerrands or American Eagles, or in Austrian 100 Coronas or Mexican 50 Pesos.

v     For $5,000 through $25,000

    * Put at least half of your money in US 90% silver coin or 1oz. Silver Rounds
    * Put the rest in one ounce Krugerrands or American Eagles, or in Austrian 100 Coronas or Mexican 50 Pesos.

v    For $75,000

    * Get bags of US 90% silver or 1oz. Silver Rounds for 2/3 of your order
    * The balance in Krugerrands, American Eagles, 100 Coronas, or 50 Pesos.  For over $75,000 simply do multiples of this portfolio.

 FAQ

Moneychanger, what is US 90% silver coin and why do you recommend it?

US 90% silver coin is quarters, dimes, and half dollars minted before 1965.  Each face value dollar (4 quarters, 10 dimes, or 2 half dollars) contains 0.715 of an ounce of silver.  Coins are traded in "bags" of $1,000.00 face value containing 715 troy ounces pure silver. (We refer to a "face value dollar," the value stamped on the coin's face, which is always less than from the "paper dollar" cost you must pay.  So if you have $1,000.00 in paper dollars to spend, you will never get $1,000.00 face value.) You can purchase any portion of a bag that you wish.

We recommend 90% silver coin simply because it is often the cheapest, most divisible, most widely recognised and traded form of silver.

What about Silver Rounds, what are those?

Silver Rounds are simply one ounce, 99.9% pure silver coins minted in the United States.  They are made by various private refineries and are NOT just round "blanks" of silver.  They all have varying pictures because these companies have varying production runs using different designs.  Regardless of the picture on their front and back, all silver rounds we sell state clearly on their face, "1oz. Silver, 99.9% pure (or .999 fine)."

We sometimes recommend Silver Rounds instead of 90% Silver Coin because premiums (not our commission - the premium is the percentage over the spot price that you pay for a coin) on both coins fluctate for a variety of reasons.  Since we consider it our duty to sell you liquid coins for the best price, sometimes our recommendations change.

Why do you recommend gold coins like Krugerrands, Austrian 100 Coronaes, and Mexican 50 Pesos, and what are they?

We recommend these foreign coins because they cost less per ounce and give you more gold for your money than the American Eagle gold coin series.  All of these coins are well known in the industry and any dealer will readily buy them.

The 22 karat South African Krugerrand gold coin contains exactly one troy ounce of fine (pure) gold.  The American Eagle copied the Krugerrand's specifications, and is minted to exactly the same weight and fineness.

The Austrian 100 Coronae is an official re-strike from the Austrian mint.  It is 20 karat (90% pure) and contains exactly 0.9802 troy ounce fine gold.  The Mexican 50 Peso is an official re-strike from the 400-year old Mexico City mint.  A 20 karat coin, it contains exactly 1.2057 troy ounce of fine gold.

These three coins take turns as the cheapest on our price sheet.

What about the purity of the Krugerrand, Eagle, 50 Peso, and Austrian 100 Coronae?  Will they be worth less later since they're not 24 karat?

Purity is largely irrelevant among gold and silver dealers.  Coins and bars are bought and sold based on their weight, not their purity.  Unless you're going to melt the coins down, it's just not an issue.

Why do you recommend older-issue, foreign fractional gold coins instead of modern issues or American Eagle fractionals?

Modern issues like American Eagles, Maple Leaves, Philharmonics, and Nuggets include half, quarter, and tenth ounce coins:  the smaller the coin, the higher the cost per ounce.  With the smallest coins, premiums over the gold content approach 15%.  That makes no economic sense because gold is gold.  British sovereigns (containing 0.2354 troy ounce fine gold), French 20 francs (0.1867 oz.), Swiss 20 francs (0.1867 oz.), German 20 marks (0.2304 oz.), Netherlands 10 guilders (0.1947 oz.), the whole series of Mexican peso coins, and a number of other gold coins offer lower cost per ounce and good liquidity.  Not recommended are gold coins so infrequently seen in this country that you will suffer a big discount when you sell them, such as Iranian Pahlavis (0.2354 oz.) or Saudi guineas (0.2354 oz.).  If you can't sell them, they're not a bargain.

 Moneychanger, nowhere in your recommendations do I see anything about pure gold coins like the Canadian Maple Leaf or Austrian Philharmonic.  Why not?

Gold is one of the softest and most ductile metals.  Pure gold coins scratch and scar very easily unless handled with extreme care.  Throughout history gold coins have generally been alloyed with copper or silver, hardening them to withstand circulation.  Customers often unwittingly damage pure gold coins and therefore receive up to 5% less for them when they sell.  In our opinion the purity of 24 karat gold confers no benefit and in fact often creates drawbacks.

What about government gold confiscation, Moneychanger?

We expect it more likely for you to be abducted by aliens than for the Federal Government to attempt gold confiscation.

First, gold no longer forms a significant part of the monetary reserves in this country, as it did in 1934 and therefore, confiscation makes no sense.

Second, the folks who tell you about government confiscation are generally trying to sell you overpriced coins that will line their pockets and empty yours.  For more on this topic, go back to our homepage and click on Numismatics/Confiscation among the bulleted items.
                   Franklin Sanders

 Franklin Sanders / THE MONEYCHANGER
P.O. Box 178  Westpoint, Tennessee 38486-0178
(888)218-9226; Fax: (931)766-1128 mailto:Franklin@The-Moneychanger.com">Franklin@The-Moneychanger.com