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Ammit
2nd October 2013, 18:45
Hi all

I am looking into the investing in gold that a lot of folk talk about and would love to have your advice or comments on the subject.

Is investing in coins better then investing in bullion. I imagine there is not a lot of difference. Also, with the supposed lack of gold world wide, could it actually end up as a worn out commodity with something else taking it's place like platinum which seems to have a higher value at present. In which case I have to ask if Platinum is the way to go?

Don

RunningDeer
2nd October 2013, 18:58
Hi Ammit, this site is helpful: U.S. Gold Bureau (https://invest.usgoldbureau.com)

They provide free consultations and the site explains questions you've asked in your OP.

Ammit
2nd October 2013, 19:09
Many thanks Paula.

RunningDeer
2nd October 2013, 19:20
Ha! Just pulled this up. One minute and the talk is about gold and silver. I'll add here, even thought I'm only 5 minutes into it. IMO, it's never a waste of time with David L. Smith and James Corbett.
:wave:


Introduction to Bizarro Economics - The Geneva Business Insider
http://avalonlibrary.net/paula/Recovered/Corbett_zpsc1f53141.JPG
James Corbett of the Corbettreport.com (http://www.corbettreport.com)

x-X_3G_PGPs


Published on Oct 2, 2013

David L. Smith of the Geneva Business Insider blog joins for our monthly conversation on world events. This month we discuss Smith's article on JP Morgan's manipulations and dissect the bizarro economics of our quantitative easing era. We also touch on the unfolding Euro crisis.

Bob
2nd October 2013, 19:21
Paula and the Group -

Gold is sorta like a bigger hedge - gold coins having a potentially higher collectors value.. AddSub I believe could offer some experience in GOLD investing too.

Gold or silver for investment? I have seen that asked at times - some folks have said if one has silver in the portfolio as well as Gold that silver would be easier to use for small denominations in paying for goods.

ref:
http://www.bloomberg.com/news/2013-08-25/hedge-fund-gold-bets-at-six-month-high-after-rally-commodities.html

here is the def of a HEDGE : http://www.investopedia.com/terms/i/inflation-hedge.asp

Rocky_Shorz
2nd October 2013, 19:28
right now paper gold is getting dumped because there are no real reserves to cover them, so even though the value should be higher that's only for real gold, they need to separate it with 2 different values, real and air... the air is for manipulation to keep the real from getting too expensive.

I bought a couple huge bags of silver used coins when it was around $8 dumped a bunch at $35 and held the rest, it's value won't plummet because the paper is actually backed by silver and leave it in their vaults or call it and have it shipped to you.

I have a bunch of 10th oz Krugers I bought years ago I'm hanging on just to have some, but paper is a big factor in your decision on whether gold is a good investment.

We all know the market is about to get crushed before Koch Brothers allow the game to move forward, so stepping back now isn't a bad idea...

buy in right when the deal is announced on the debt ceiling and ride it back up...

nothing is really changing, these huge swings in the market is where the big boys make their money...

Bob
2nd October 2013, 19:31
Of course Rocky - get the solid item in possession not paper promises :) - commodity in hand is worth more than a bird maybe coming to land in ones' bush..

RunningDeer
2nd October 2013, 19:36
Bang! Ilie’s new streamlined search engine found my post in 4:35 seconds flat: posted on “The Network Hub (http://projectavalon.net/forum4/showthread.php?61182-The-Network-Hub&p=734909&viewfull=1#post734909)”.

Thanks, Bobd. I like that site. Great for regular folks. Some more information for people on the fence on to hold paper vs. metals. Below, I've added definitions for people that need a refresher on definitions cover in the video.

Two of my favorite guys: Greg Hunter & Gerald Celente.


Gerald Celente: Market Crash, Tapering in 2014, Upcoming War and More

http://avalonlibrary.net/paula/Recovered/header_zpsc9992506.JPG

Greg Hunter of USAWatchdog.com (http://usawatchdog.com)

G-CYU--VowQ


Published on Sep 24, 2013

http://usawatchdog.com/war-with-syria... - Gerald Celente of TrendsResearch.com says the top trend coming is war. Celente contends, "They are bound and determined to have war. The sarin gas had nothing to do with this." What does Celente see coming with the Federal Reserve's $85 billion a month of money printing? Celente says, "I believe they are going to start tapering because they are turning our currency into confetti. . . . This can't go on forever." My best forecast is they are going to start tapering, but in 2014." When they do cut back on the money printing, what happens to the market? Celente predicts, "You are going to see a market crash." Join Greg Hunter of USAWatchdog.com as he goes One-on-One with the nation's top trend researcher, Gerald Celente.

From “INVESTOPEDIA (http://www.investopedia.com/investing/investing-basics/)”:

'Quantitative Easing' Defined (http://www.investopedia.com/terms/q/quantitative-easing.asp)

A government monetary policy occasionally used to increase the money supply by buying government securities or other securities from the market. Quantitative easing increases the money supply by flooding financial institutions with capital, in an effort to promote increased lending and liquidity.

'Quantitative Easing' Explained

Central banks tend to use quantitative easing when interest rates have already been lowered to near 0% levels and have failed to produce the desired effect. The major risk of quantitative easing is that, although more money is floating around, there is still a fixed amount of goods for sale. This will eventually lead to higher prices or inflation.

Related Video for Quantitative Easing (http://www.investopedia.com/video/play/quantitative-easing/)

'Quantitative Easing 2 – QE2' Defined
(http://www.investopedia.com/terms/q/quantitative-easing-2-qe2.asp)
The second round of the Federal Reserve's monetary policy used to stimulate the U.S. economy following the recession that began in 2007/08. QE2 was initiated in the fourth quarter of 2010 in order to jump-start the sluggish economic recovery. The Federal Reserve announced plans to buy $600 billion in long-term Treasuries, in addition to the reinvestment of an additional $250 billion to $300 billion in Treasuries from earlier proceeds from mortgage-backed securities. This, in theory, would push yields on Treasuries and bonds down, creating a surge in investment and consumption expenditures.

'Quantitative Easing 2 – QE2' Explained


Quantitative easing was intended to stimulate an economy through a central bank's purchase of government bonds or other financial assets. Often, central banks use quantitative easing when interest rates are already zero bound, or at near 0% levels. This type of monetary policy increases the money supply and typically raises the risk of inflation. Quantitative easing is not specific to the U.S., however, and is used in a variety of forms by other major central banks.

RunningDeer
2nd October 2013, 19:44
At about 6 minute mark: Today, Obama is meeting behind closed doors with Jamie Dimon of JPMorgan, Lloyd Craig Blankfein of Goldman Sachs, and Brian Moynihan of Bank of America.

About 8 minute mark: Gold went from 2008 $872 an ounce, to today almost at $1400.


Welcome To NEVERTAPER LAND: The U.S. Dollar MELTDOWN. By Gregory Mannarino
_DV_spnJkiE

Published on Oct 2, 2013

**Visit my website click here: http://traderschoice.net 

*U.S. National Debt Clock: http://www.usdebtclock.org/

Rocky_Shorz
2nd October 2013, 19:49
it took University of texas 1.5 years to receive their order for physical gold... It was delivered when gold was almost at peak price...

I'm not talking onsi twosies, that will always be covered to prevent panic, we're talking banks with half a trillion in paper gold outstanding, the market is too easy to manipulate when they are ready to buy or sell their physical gold...

Bob
2nd October 2013, 19:57
Something I saw with a gold buyer that I knew many years ago in Colorado was he would buy GOLD CHAIN - assayed chain, and when he needed money, he would take a link of the chain or two, and then have that sold. He had to find a trader who would pay a good enough exchange rate, but that was the technique of having gold chain in links... trade-able commodity physically in hand..

RunningDeer
2nd October 2013, 20:07
it took University of texas 1.5 years to receive their order for physical gold... It was delivered when gold was almost at peak price...

I'm not talking onsi twosies, that will always be covered to prevent panic, we're talking banks with half a trillion in paper gold outstanding, the market is too easy to manipulate when they are ready to buy or sell their physical gold...

True, risk either way. Can drive one crazy if you let it. Rule of thumb be in it for the long term, but seems like no rules are the rules. Even if 75% is lost on gold investment, better 25% in your pocket, than recycle the dollar bills...of book markers, insulation, toilet paper and origami igloo homes.

Hummm, I may have to rethink that last one.

:offtopic:

Peace&Love
2nd October 2013, 20:45
Hi,
I am also looking into this subject there is a great fortune 500 company selling physical gold (http://www.regalassets.com/a/2334/)
I will post more info on this thread if i have more data

Tesseract
3rd October 2013, 00:04
Trade it instead, that’s much more fun :).

I’m only half joking here. Do you really think you can predict the long term future of gold? By long term, I mean 1 to 5 years out. There are strong reasons why in 5 years it could be higher, and also why it could be lower. Or about the same. If you are valuing gold in currency you also have to predict the change in the $US value, or British pound etc. If I had to make a long term bet, I’d say gold would go down for the next 2 years to $600 to $1000, then either stay flat or recover back to $1300-$1600 in 5 years from now. I think gold is still quite over valued, but I won’t bore you with the details. But if I am right in my predictions, it’d be by accident more than anything. Probably the most important question you need to ask yourself is this: what will the gold price do when the US fed makes its first interest rate hike?

Platinum is safer IMO due to its many uses, and its more modest role as a safe haven. It should be less affected if there is a big sell off of precious metals as inflation hedges. And it could go up if the economy takes off or there is a shortage. It’s due for a price-bounce about now, but I’m holding off as the downtrend (the lows are getting lower – look at the 1 year chart) is still a little ominous, even for platinum.

Just on the coins question: sometime in the 70s to 80s, old Australian coins outperformed all conventional forms of investment for many years, but this was a peculiar situation. The domestic coinage changed to the decimal system in 1966. By the 80s or so the old pre-decimal coins began to be appreciated for historical reasons, their increasing rarity and the fact that they were based on gold and silver unlike modern coins – and so their value increased dramatically. Eventually the historical premium levelled off and today I suspect only the most savvy numismatists would be able to make highly profitable investments there. Maybe someone else knows more about US/UK coins, but I suspect the historical premium is not really increasing, as of today, for the vast majority of coins, it may be going backwards even. Compared to bullion, there is an extra risk with coins, in that the historic premium you pay now to buy them may actually reduce in the future. There are also a lot of modern ‘limited edition’ coins that the mints produce. Unfortunately there are so many ‘editions’ that they are really unlimited and are pretty much gimmicks. Only the most artistic of them are likely to increase in value over time (aside from bullion value changes).

Of course, if you just want gold to somewhat protect yourself against an imminent catastrophe, then the price you pay now is quite irrelevant. But in that case, you should not be disappointed if your gold loses value in the event that there is no catastrophe.

Spartacus
3rd October 2013, 12:03
www.bullionvault.com

Ammit, GBP is strong against USD right now. Maybe consider selling Pounds for Dollars and investing in gold (or other precious metals) with Dollars.

But DYOR.

Snookie
3rd October 2013, 15:37
I forget who it was that said gold usually doesn't loose it's purchasing power over the long haul. A hundred years ago a gold coin would buy you a nice suit, and today a gold coin buys a nice suit.