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[beech_trees]

I'm debating beginning a long-term investment strategy centering around aquiring gold and other precious metals. I'm wondering if others might care to post their thoughts on the subject, as well as good primers on the net.

Of particular interest to me is e-gold: I'm wondering if it's for me however as I'd like to actually possess the bullion myself. For example, what would happen to everyone's e-gold accounts in the event of a EMP burst or other catastrophic failure of the internet?

Thanks gang,

Dave

by the way, here's one of my passions: http://www.bunabayashi.com

[Delos]

Hey trees,

Start reading the commentaries at www.kitco.com for starters. Mostly bullish opinions, but more moderate views are represented, too.

I think e-gold is suited better for transfer of assets than for long term storage. Nothing beats the gold in your hand for security, plus it feels good!

[Bobaloo]

If you're buying gold as an investment, treat it like any other investment.  Don't put all of your eggs in one basket.  Don't necessarily swallow the conventional experts' definition of "diversification", however.  Consider land as an investment.  Having 10 acres around your house opens up a lot of opporunities for self-sufficiency.  Firearms and ammunition are effectively inflation-proof, as well.

Set your priorities as well - if you're buying gold to hedge against an economic collapse, don't forget that you'll need food, water and medicine a lot more than you'll need a pile of gold.  You can't eat it, and it makes a lousy defensive weapon.

I personally prefer to have the gold in-hand.  If trouble comes, I can always bug out with a sizeable seed fund.  Set aside a certain amount of your income for gold purchases each month, and try to buy in large enough quantities that the shipping/insurance fees don't eat up too much.  I wouldn't recommend buying 1 ounce at a time, for example, but three or four ounces at a time is probably reasonable.
 

[mantispid]

Hey trees,

Start reading the commentaries at www.kitco.com for starters. Mostly bullish opinions, but more moderate views are represented, too.

I think e-gold is suited better for transfer of assets than for long term storage. Nothing beats the gold in your hand for security, plus it feels good!

Don't forget the silver either.
 

[Bear]

When you buy or sell gold, be very clear on the cost of insured shipping with whomever
you're dealing. Some places include insured shipping, some don't, some do if over a
certain amount, some only for gold, etc..

If the purpose of owning gold or silver is for security during rough times, why put some
one else in the position of being able to grab (or appropriate) your investment? I'd say
keep it at home. The only question then is how to conceal it from thieves.

In California, you can avoid sales tax on the purchase if you buy $1,000 of bullion
or more at one time. If you're buying in California from out of state, it doesn't matter.
You won't pay California sales tax on the purchase.

Gold coins under an once in weight usually carry a premium on them because the
cost of manufacture is greater per ounce. The good news is that you should get the
premium back when you sell it.

All 1 troy ounce gold coins don't weight 1 troy ounce. Some weigh more. US, Mexican,
British and South African coins contain additional amounts of silver or copper to
make the coin more durable. Canadian, Chinese and Austrailian coins are 'pure' gold.
In all cases a 1 troy ounce coin contains 1 troy ounce of gold, but the coin may be
heavier due to extra metal.

The Mexcan gold 50 peso is 1.2 troy ounces to be equal to a weight equal to a popular
size in Asia. Odd but true.

If you live in the US you can put gold American Eagles or Silver Eagles in your IRA, but
that means someone else has to hold the coins. Kinda defeats the purpose.

I hope this is useful.

Bear

Oh yeah, check out http://www.golddealer.com . I've dealt with these folks, and they
seem both competent and honest.

 

[Dull'Hawk]

What are the thoughts on American Liberty Dollars issued by Norfed?
Kent

[beech_trees]

Thanks for the excellent observations and websites, everyone.

I've come to the conclusion that gold (for my purposes) is best used as a hedge against rising interest rates, in a diversified portfolio. I'll no doubt keep some physically on hand in case of SHTF-age...

Dave

[TANSTAAFL]

ALWAYS pay cash and give no id--as if that had to be said.

BTW-- I think newere regs require dealers to report purchases over $3000 now

[Bear]

I wouldn't be surprised about the $3000 trip wire. It's been that way for money orders purchased from the
Post Office for some time now. It wouldn't be too strange that now 'financial institutions' - including gold
dealers - now have to report purchases at or over that amount.

Does anyone know of a gold dealer in the Reno, Nevada area who is reasonable?

Bear
 

[Claire]

BTW-- I think newere regs require dealers to report purchases over $3000 now

AND report any purchases that are "structured" to avoid the $3,000 reporting limit (e.g. four purchases of $800 in a short period of time). OR single purchases that "look" as if the intention was to avoid the $3,000 reporting limit (e.g. a purchase of $2,999.99).

It's very much a crapshoot as to what "suspicious" transactions have to be reported and which don't. The business is left to decide which purchases are "suspicious" -- and it's a federal crime for a business to guess wrong.

I suspect the feds would just love to see a lot of precious metals dealers be forced out of business amid allegations of "money laundering."

(Somebody else should confirm that $3,000 is the reporting threshhold in precious metals. I haven't kept up with the post-Patriot Act specifics, but up to a couple of years ago, reporting limits ranged from $750 (for wiring money overseas) to $10,000 (for certain bank transactions). The rules change regularly and I haven't had enough $$ lately to bother finding out what's in force in which business right now.)

[Desertrat]

Although I haven't been active for the last ten or so years, I spent some twenty years as a "vest pocket" coin and bullion dealer/collector.

I prefer to buy for cash at either coin shows or from known dealers.  Or, buy the occasional collection from some individual.  If you're a bit calloused, calling on heirs of those listed in obituaries can result in "quiet acquisitions" without official notice.

For silver, I prefer "junk" U.S. silver coins of the 90% era.  0.712 ounces per dollar of face value, for halves, quarters and dimes.  They trade at the smallest premium over bullion value.  The "replica" one-ounce silver coins are sucker bait, given the high premium to buy--and dealers will only pay bullion prices.

Gold?  I think that now is not at all a bad time to acquire more.  Two years ago would have been better, of course, but my time machine's broke.  I think a 20% or more rise is quite possible, as the dollar weakens.  And one can feel secure that the odds are against losing capital value anytime soon.

I commonly carry a 16X lens, and have knowledge of counterfeit gold.  I've made some really good--for me--deals in bars and beer joints...

Caveat emptor,

'Rat

[RagnarDanneskjold]

Anybody on the list have any experience with precious gems?  I don't, but have heard from others that diversifying into gemstones is a wise idea.   I found this:
Introduction to collecting and investing in gemstones linked from here: Open Directory Project: Gemstones

[Hidden_Variable]

Gold is good bc:
1.It is an inflation hedge.
2. It is accepted world wide.

Gold is bad bc:
1. It is heavy.
2. It has to be securely stored.
3. It is subject to counterfeiting & debasement.

A good foreign bank acct w an assortment of "hard" currencies along with a few sacks of "junk silver" coins seems a better bet, unless you think Doomsday is gonna happen..  

[Delos]

ALWAYS pay cash and give no id--as if that had to be said.

BTW-- I think newere regs require dealers to report purchases over $3000 now

Spent over this amount last week . . . nothing different.

Counted money, pocketed gold, handshake, thank you, see you in a few months.