» Topic: Physical goldBonner & Partners

Wednesday, 24 January 2018

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Physical gold

This topic contains 9 replies, has 7 voices, and was last updated by  Bonner & Partners 4 years, 8 months ago.

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    Do not overlook the importance of having a good number of “small” coins (like 1/4 or 1/10 RAND) in your collection for spending money. If times ever should turn sour again they will come very handy to get whatever you need at the moment and will be readily accepted. An ingot of gold will be of not much use in those times. I remember my mother trading a barrel of pigs fat for a few gold swiss francs in 1945 post war europe, which helped to feed us for months. I also heard stories of people fleeing Czechoslovakia from the communists in 1945 carrying their flight money with them in the form of precious stones. Stones larger than 3 carat were of not much use – too large.



    Would you recommend storing your gold in a storage facility or in your home?




    A small stash at home or nearby is always a good idea, however, multiple storage locations for large precious metals investments is just good planning.



    Just tp let other partners know, I recently bought some physical gold from The Tulving Co. in California. They sell at close to wholesale prices but require large orders. I have used them in the past without problem. I ordered some gold eagles last month and it took 5 weeks for the order to ship. They were marked as in stock and in the past have usually shipped in about a week. After two weeks I called and for the next several weeks got the run around that they would be shipped in 2-3 days, etc which never happened. After a month, I made a complaint to the Better Buisiness and they shipped in a week. I don’t know if this indicates some problems in getting physical gold product or a some financial problem at this company. Just another dot.


    RITA H.

    To Richard Winters: Appreciate the skinny on Tulving Co. Have never had a problem with them either. Will be sure to ask them up front if they can deliver right away or how long delivery will take before sending money again, in the hopes that they will give me a straight answer. Might mention that they come highly recommended by some well known subscription newsletters!

    Companies such as Kitco and Monex actually do take about 4 weeks to deliver, so Tulving is unusually fast.
    Rita Hulley



    I just bought some more gold from Texas Precious Metals (texmetals.com) last week after the big drop. Shipped in 3 days (!) at prices comparable to Tulving. That is a lot faster than 4-5 weeks.


    TODD B.

    I would suggest buying your gold coins locally at a coin show. I think pretty much any mid to large sized city in the US will have such an event periodically. Where I live there is a monthly coin show sponsored by the local coin club. I always pay in cash and take possession of my coins on the spot. No waiting. No paper trail. Completely anonymous.

    Some states (including mine) charge sales tax on the purchase of precious metals, which is why internet purchases are so popular. If you buy from a brick-and-mortar coin shop you will be charged sales tax. A coin show, on the other hand, is much less regulated. The show usually takes place in a rented facility (union hall, moose lodge, fair grounds, etc). Kind of like a flea market for coin collectors. Many dealers will “forget” to add in the sales tax. Ask around and you will likely find a dealer who is trustworthy and will give you a fair price.



    How big is the risk of buying fakes if you aren’t a coin expert?



    Todd: How big is the risk of buying fakes at a show if you aren’t a coin expert? I assume the sellers need to have some sort of license/paperwork to be authorized.


    TODD B.

    I think the risk is fairly small. If you already own some coins, then you know how they are supposed to look and feel. I too have bought over the internet, and there are many reputable dealers, but personally I like the privacy of a face-to-face transaction. And when you get right down to it, how do you know the coin you bought over the internet is real?

    The show I go to has been in the same location for a number of years. The gentleman that sponsors it also has a brick-and-mortar store. He has a license to buy/sell precious metals issued by the state. He is a member of the American Numismatic Association. He approves/disapproves all the vendors who exhibit at the show. The same vendors tend to be there all the time. Choose a vendor the same way you would any other professional. Build a relationship. Go slow. If the vendor won’t take time to talk with you and answer your questions then move along.

    Bullion coins have no collector value and you are only paying for the metal. In my opinion, this is probably where the majority of your holdings should be. Personally, I don’t buy gold mining stocks, but I do buy numismatic (collector) coins with a smallish portion of my portfolio.

    If you are going to buy numismatic coins then you need to be a little more careful. You are paying for the gold content, plus a premium based on the rarity of the coin (date it was minted, where it was minted, condition). The premium can be small for common dates, or many thousands for rare coins. Many numismatic coins are now sold “slabbed”, which means they are encased in a tamper-proof plastic holder. These coins have been graded and certified by a professional service such as the Professional Coin Grading Service (pcgs.com) or the Numismatic Guaranty Corporation (ngccoin.com). These services also offer pricing guidelines based on current market conditions.

    Numismatics is a really interesting hobby. These coins tend to hold their value even when the price of gold is falling because of their rarity. For me, there is something special about owning an old US coin from the 1800’s. These coins actually circulated. They were used by real people to save and make purchases prior to our modern era of central bank madness. I also like the fact that these old coins proudly feature designs based on Lady Liberty, not some dead president.

    But I digress… Hope this helps.

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