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Money, Business & Finance Ground >> Physical Gold / Silver - Buy Coins or Bars?


7/8/09 2:20 PM
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SirPrize
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I want to buy some physical gold, and maybe some silver. (Someone recommended going through APMEX.) Is it better to buy coins or bars, or does it matter? Why / why not?
7/8/09 7:07 PM
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cluster
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Coins have two types of value - the extrinisic value which is the value of the coin which relates to the rarity and condition of the coin and the intrinsic value of the coin which is what the value of the metal itself it. The coin will always be worth the greater of the two values, but those values will shift over time.

Bars will be worth the value of the metal at all times. If you buy anything other than a newly-minted coin from a treasury, you will be paying a premium for the coin.
7/8/09 7:09 PM
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cluster
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Also, consider what will be more liquid - a handful of coins that can be sold piecemeal or a 100 oz. gold bar....and which you'd rather have lying around your place.
7/9/09 11:09 AM
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SirPrize
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Thanks, Cluster.

By "bar" of gold, I didn't mean the 100 oz James Bond bars. I meant the little 1 oz (or 1g) bars. Still, it WOULD be easier to exchange the gold coins than gold bars (as currency / barter).
7/9/09 11:15 AM
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SirPrize
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Another question - When you buy your coins, are they all .99% gold, or do you buy some other mix (if there is such a thing)?

Suppose, for example, you have a tiny 1 oz bar worth $900. Wouldn't it be difficult to exchange a 1 oz coin worth $900? Would it be better to have 10 coins with 10% gold worth $90 each? If so, does it get tricky to determine the actual value of such coins?
7/10/09 10:35 AM
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cluster
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Keep in mind that the entire point of a coin is to standardize the value of...whatever it is. Whether it's a hard asset (like gold) or a quarter. The very fact that it's minted tells you what the intrinsic value of the coin is and should also be easy to determine if the coin has been adulterated in any way. That said, stick to the big gold/silver coins (kugerrands, maple leafs, eagles, etc.) and you shouldn't have any problem.
7/11/09 12:24 AM
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dunc
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Coins have collector value as well. I, personally collect coins (gold and silver) and would therefore rather buy coins than bullion. The problem is a morgan silver dollar sells for far more than its weight in silver. If I ever come across coins that are being sold at melt value I will almost always buy them.

Also, I would stay away from anything that isn't .999 if you can unless you are getting a really good deal. And i use apmex and think they are just as good as any of the others.
7/11/09 12:49 AM
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feralpig
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coins usually have higher premiums. You're paying extra to get the metal in coin form. Some people collect coins, so they have numismatic value beyond the value of the metal.

if it's an investment, buy bars. For shit-hits-the-fan-type scenarios, coins would be better. Coins are also good if you don't have much money (I periodically buy silver Philharmonics, an Austrian coin).

for bars, you might want to stick to certain refiners because it's easier to resell their bars.
8/26/09 10:52 PM
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koreviewz
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Edited: 08/26/09 10:52 PM
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 I'd buy bullion only.  Junk Silver is good right now.  I personally stay away from bars because they are not as easy to unload.
 
http://employment-coach.blogspot.com/
10/1/09 3:07 PM
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koreviewz
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 Anyone been buying gold or silver lately?
10/2/09 6:49 PM
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dunc
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yes. all the silver and gold I can get (within my budget) under spot or whenever there is a dip in price
10/3/09 10:25 AM
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koreviewz
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 nice

10/4/09 6:50 PM
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dunc
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Robert P Hansson - 
dunc - yes. all the silver and gold I can get (within my budget) under spot or whenever there is a dip in price


Finding silver below spot isn't going to happen unless you can luck out and get scrap silver (jewelry, kitchenware, etc.) from someone who isn't in the know. Even the wholesalers on the net usually charge around a buck over spot.

As for the question regarding recent purchasing of gold and silver...it's basically how I store my wealth in this screwed up, ponzi-scheme, inflated excuse we have for an economy. I keep enough cash in the bank to take care of business, but any excess money goes into precious metals.


Getting scrap silver isn't luck it is work. Also I purchase a great deal of pre 1965 silver coins for far below spot from three local banks. When the tellers get them I get a call and pay about 50% of spot. They are lazy and don't feel like going to a coin dealer.
10/5/09 9:26 PM
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dunc
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Robert P Hansson - So you're saying that you have a deal with several bank tellers who go through silver coins looking for pre-1965s? Then they call you personally when they find some?



Yes, I live in a small town that has no coin dealer. I also get a lot from my brother who is a banker. I have accounts with two seperate bank branches that allows me access to about seven banks in my general area. They either call me or hold them until I come in.

They know what they are worth but sell them to me because i will give back anything that has value above and beyond spotand also because they are not really motivated enough to look for another buyer. Also, in the area I live it takes about two weeks of going to a bank before they know you and your family personally. It is very small. I coin roll hunt as well.
10/5/09 9:27 PM
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dunc
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I am also not completely honest about how you get the value out of the silver coins.
10/6/09 12:20 AM
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koreviewz
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 If you want to get in on a network marketing precious metals business, message me.
10/6/09 1:09 AM
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Fugazi
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 Big reason to start stocking up on gold and silver(if you haven't already)------


The Independent UK reports :

In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar. 
 
 Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.
10/22/09 11:45 PM
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koreviewz
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 Exactly, I've been telling people this forever.  Get a combination of bullion and numismatics.  If anyone here is interested in a network marketing precious metals opportunity, send me an email here.

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