My last gold purchase has lost a bit of value. (not)
My last post about gold was a story about being careful when getting gold mailed to you from an online source.
The price in dollars has fallen about $50 dollars per ounce since I made that purchase. Most people look at the spot price of the precious metals when they determine how much their stack is worth. So as an example, here are the two gold eagles I got from S.D. bullion.com
At the time of purchase I paid about $2,000 per coin, that was including shipping and insurance. So $4,000 for two gold Eagles shipped to me. Looking at the price below, that means even when the manipulated (IMHO) spot price on the Comex went down, the premiums went up because there is very limited physical supply on the retail side. In fact, these coins are mostly sold out and you can't even buy the other years right now.
Quantity Check / Wire Bitcoin Credit / PayPal
1+ $2,069.59 $2,090.49 $2,155.82
(Source)
https://sdbullion.com/2020-1-oz-american-gold-eagle-coin-bu
(Why must I pay so much more using Paypal?)
The same purchase would now cost me over $4,300 using Paypal as I did. I believe that this will continue to get harder to get these in the future and the value will only go up from here.
The same thing is happening with silver and platinum. The silver spot price is $27.59 but the real price is $32 and close to $40 dollars if you can find eagles. The same with platinum, the spot price is $1,260, and the price to get a coin is north of $1,500!
This is what will happen when the next market crash happens, the spot price will crater from people that have to sell for liquidity and margin calls. This can be misleading due to the rising premiums that show the real market for precious metals.
The moral of the story is to buy the physical metal, not the fake paper contracts.
Thank you for reading my blog and have a great day!
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Is the gold minted in a coin more expensive than a bar for instance because of it being a collectors piece? Would you get more gold if it wasn't a coin is basically what I am asking?
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Good question, the gold eagles are 22 karat gold but weigh more so they have a whole ounce of gold. Bars are a bit cheaper but more likely to be counterfeited. If you counterfeit an Eagle the penalties are far greater so it's less likely to happen. The graded coins are more collectible, I have some on the way and will post about that soon. Here is the cheapest gold bar, it's still over spot by almost $75.
https://sdbullion.com/1-oz-gold-bar-in-assay-our-choice-brand
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STOPCheck out the last post from @hivebuzz:
Thanks, @hivebuzz!
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You're welcome @tbnfl4sun, nice motivation 😉👍 Keep going like this!
Happy Valentine's day 🌹
You are a few of people who are able to buy physical metals successfully. Even though I'm planning to buy physical silver for myself, I have never taken any action to do so. Besides, during pandemic, it seems to be a bit more challenging for me to find and store properly.
Congrats dear, it makes much more sense than the contracts ^^
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Thanks, this pandemic has made things challenging, storing your metals can be tricky. I try to keep some in different places so nobody could get it all if they found any at all.
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They're really expensive, I thought the gold bars held more karats than this ones, I mean the eagle. Must be a lover of these shiny cutties.
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Correct, most bars are .999 pure. The Canadian Maples and some others are .999 pure too. The Eagle weighs more but has 1 ounce in it too.
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Wow, thats amazing. I see the reason for the eagle now.
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Those coins look really nice. They did a great job with the design.
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I always liked the Eagles, I think the silver ones look so shiny compared to the gold ones.
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Silver is different obviously. I was wondering how does it feel to hold so much gold in your hand :)
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When I put it all together it is a feeling of wealth that I know won't ever fail me!
I think I have 10 ounces now altogether, time to add more silver if the premiums ever come down.
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If gold would worth $4000 tomorrow and you would like to sell it, do you have a place where to sell it at market price?
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There are many local coin and bullion buyers in the U.S.
There are a least three near me that buy at spot value.
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wow 4k value per coin!! that's awesome
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2,000 per coin, but I do think 4,000 is a good possibility in the next few years.
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The good thing is that weigh, of the coins, will never change, @tbnfl4sun.
That's one thing you can always count on, they usually look the same if kept out of the elements too.
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Nice you already got a 7.5% profit based on current prices. I think the biggest problem is that the paper contract prices are heavily manipulated. I wish I had bought physical gold/silver over mining companies stocks but either way, I am still at a profit since I bought on the dip.
It is too bad the mining stocks also tend to follow the paper contract prices. Therefore the manipulation hurts, but I find them much better compared to ETFs where they might not have the actual gold/silver.
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I hear you on that, it burns me when my miners go down with the paper price even when they are turning a nice prophet. If they had the nuts for it they alone could put a stop to it. They borrowed too much from the same people smacking the price down to step up.
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I'd rather have the coin now, than hope to get it later. It's the right move considering the crazy physical supply situation.
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I have never seen this much supply shortage that lasted more than a week, I have some graded ones that haven't shipped yet after almost 2 weeks. Lucky I got them locked up before they sold out!
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Yes, gold holds its value!
Very nice purchase, @tnbfl4sun!
Thanks, @silversaver888, I think silver is doing very well too, I cant wait for the rest of my graded Items to arrive hopefully soon.
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Yeah, there has been quite a delay! I am patiently waiting for orders from the second week of January!
🥰🌺🤙 !ENGAGE
ENGAGEtokens.I assume there is some value in the rarity of the coin going on too, no? Or do those go mostly by the price per oz or gold?
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Yup, rarity maters.
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