Where's the best place to buy gold?

Discussion in 'Homesteading Questions' started by GR8LIFE, May 4, 2005.

  1. GR8LIFE

    GR8LIFE Well-Known Member

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    I was reading the thread about mustard plants and someone mentioned the gold standard and it triggered me to start a new thread to ask for some information about buying gold. I have always had a nagging thought that I should have at least some money invested in gold as part of my survival strategy but I never knew how to buy it. Can anyone recommend whether it is best to buy gold as a bar or in coins? I suppose coins would be better because they would have a lower value than a bar and could be used in more transactions. Also, how do you know a reputable source from which to buy it? I wouldn't know real gold from fake so I don't want to get ripped off. I'm not interested in buying gold certificates because I am thinking of it in terms that if everything really went south and we had to barter and had to deal in trade instead of money. I'm looking to diversify my barterable items. I've already thought about stockpiling nails and screws and other small items that are pretty inexpensive to buy now but would be so valuable if no one was able to make them and we were left on our own to survive.

    Can anyone help me find out how to buy some gold?
    Colleen
     
  2. bearkiller

    bearkiller Well-Known Member

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    Colleen,

    Gold coins would be my choice, but do not forget they are high value. As in trade one for a new car or a new house even. During WW II a man who had received a one ounce gold coin in payment for something relatively cheap before the war used that coin to purchase an entire restaurant later in the war.

    For most items we would need during tough times also consider "Poor Man's Gold" ie. silver coins. Choices here include so called "junk" silver which is pre-1965 90% silver US coins, dimes, quarters, and halves. I am not a big fan though because they are so easy to confuse with current clad coins. I do like the 1 ounce silver medallions or coins.

    Purchase them at many places online. But my favorite place to go is Resource Consultants. They are more than competative with others and often can find what you want at a better price than many others. Plus the people are straight up and honest as people get. Patrick and Linda Gorman are the owners. Located at 6139 S. Rural road, Suite 103, Tempe, AZ 85283-2929 Call 800-494-4149, FAX 480-820-5905 email metalguys@aol.com.

    bearkiller
     

  3. marknfl

    marknfl Member

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    I have thought about gold also. But I am kind of concerned that everyday people may not want it. It has value and will keep its value. I am thinking most of trading or bargining will be done with people like myself and would have no real need. They would rather trade for something they can use now. I was thinking of maybe of have a small stock pile of cigerettes (sp), and liqour. I don't smoke and the alcohol i can take it or leave it. I am thinking down the road these items may become scares and there are people who would really want them. Screws and nail night be a good item.
     
  4. WindowOrMirror

    WindowOrMirror ..where do YOU look? Supporter

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    You have to think about what you're keeping the metal for. It's my guess that while gold is a potentially great way to ensure that a monetary investment KEEPS value, it's NOT a good survival tool. Why not? Because it's worth TOO much. Something far more portable and RECOGNIZEABLE is needed (junk silver coins, etc). A horse might sell for a few quarters, rather then a gold piece.

    Here's my theory on a large event (TSHTF / TEOTWAWKI):

    PHASE 0: Things are happening in the world that have no reasonable way to be reversed, or there is no reasonable chance people will choose to reverse the trends. Some people will recognize this and begin to prepare (some would say we are here now). Savings, food, etc in storage are helpful here. This phase could last for years.

    PHASE 1: Tactical (short-term) things happen that are significant and large, but can still be rationalized away by the masses (sheeple). Some people will see this and respond, credit cards and checks may no longer be accepted. I keep cash in my safe for this eventuality. this phase could last days / weeks.

    PHASE 2: "It" happens. Asteroid, complete bank collapse, invasion, major depression, whatever. All forms of payment are useless, massive panic ensues, food and water stocks dwindle. Raw survival is the mode of the day, there is no barter, there is massive violence in urban areas. I keep my head down, hide out, and live on my stored food and water. This phase will last 3-30 days depending on how close you are to specific urban areas (some cities run low on food earlier than others).

    PHASE 3: Those who haven't food and water have died. The population is far lower now (potentially), and those people left have prepared, or have been taken in by those who prepared (or have gotten just plain lucky). People begin to trade food, drink, etc for things that they don't have (according to Maslow's heirarchy). Food and water first, then medicines, soap, base commodities, etc. This phase could last weeks / months.

    PHASE 4: Communities have re-established themselves on a local level. I have beef, stored grain, and a vegetable garden. I trade these things to you for eggs and honey, and so on. Social areas are built and these small communities begin to be internally sufficient. People begin to trade items outside of a survival setting (ammunition, nails, lumber). This phase could last weeks/months/years.

    PHASE 5: These communities have either reached out to other communities or have begun operating at a surplus in certain areas, or have a cyclical reuslt set (like harvesttime). In lieu or barter or trade (because people have what they need), a placeholder for future service or goods becomes needed... "money" is one form of this, though bullets and nails would come first. At this stage, some basic silver coins are useful. No one person would likely have enough surplus to sell a "gold coins worth" of anything.

    PHASE 6: Bankers (or some other method of aggregating wealth) come into play, and we begin the long slide downward yet again... ;-)

    Anyhow... these are just my thoughts... I deal in silver coins, though I own a bit of gold as well. Junk silver quarters minted before 1965 are your best bet. 90% silver, recognized in the USA as currency and easily identified as silver. Safe, safe safe.

    R
     
  5. Jane in southwest WI

    Jane in southwest WI Well-Known Member

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    Here are good websites where you can get lots of information (including the current spot price of gold and silver):

    http://www.321gold.com/

    http://www.gold-eagle.com/

    I highly recommend Don Stott as dealer (and a really nice, honest guy to do business with). Here is his website with prices listed, including junk bags. If you have questions I am sure he can help you.

    http://www.coloradogold.com/

    My advice is to spend some time on the websites listed above (lots of good articles) and learn all you can.
     
  6. frugalville

    frugalville Well-Known Member

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    Jane// do you post at GE ? if so what's your handle ? I've been hangin there for years.

    As far as survival and gold.. I think they are 2 different beasts. Nothting can beat some land, a source of water, and a good education.

    Gold and Silver can protect the fruits of your labor though. 10% in bullion coins is the recommended investment for new timers. But it all starts with one coin, that will plant a mentality that will change the way you see daily events. Google kondratieff winter and start reading...

    Colorado gold is great, and Don writes a 3 day a week column that is worth a read. Now I can help you with what and what not to buy, if you are a first time investor.

    Do not buy off of ebay. Most coin transations are cash transactions and you can get ripped off. Below is a clip I originally posted at GE, but made its way to GIM..

    http://goldismoney.info/forums/showthread.php?t=8239

    Stick with 1 oz bullion coins. No bars at first. Bars must be assayed, or proven to be authentic when sold, and normally cost a fee. US gold eagles are gold with a small alloy, copper i think. Canadian maple bullion and philharmonics are .999 pure gold.. and they are beautiful.. ST gaudens ain't no ugly babe either..

    Pick up some silver as well.. the above posters comments are spot on ..90% US junk coins is the cheapest way. There are other countries junk silver out there but the silver content varies. The safest way against prices to buy silver is 40% clad coins. They have the highest face value to silver content but are bulky to store. A $1000 face bag of 90% silver (face value of coins) is about 700 ounces of silver, which is about 70 lbs...it's heavy.

    Silver is probably the most undervalued metal out there. It is used in just about anything electronic, the medical fields due to the fact that organisms can't grow on it, and of course photography (don't buy the digital camera crap either.. That's just US spin. If you want to shoot a photo that will last, you shoot it on film.)

    Say away from numismatics or rare coins until you know what you are doing. Bullion coins are the safest and easiest. They come in denominations down to 1/10 an oz of gold.

    Also mining stocks are at 2 year lows after a wonderful run. IF you are a stock market investor.. do some lurking at gold-eagle and you will soon find a couple of stocks to plat the gold bull. but DYODD. Not investment advice.
     
  7. antiquestuff

    antiquestuff Well-Known Member

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    Junk silver is better--easier to separate to use smaller amounts of-for smaller items. Also far cheaper to collect lots of it.
    As for online auctions: you gotta be careful, but you can get good deals. A while back, I got about 5 ounces in old quarters for less than spot silver price because the spot price went up during the auction (this wasn't on ebay--less popular auction site, so not much competition). If you know what you're doing, it can be a good way to get it--you can tell real silver from modern clad stuff because it's solid silver at the edges, and, if you get a good guide, you'll know the correct dates for different coins for silver.
     
  8. bearkiller

    bearkiller Well-Known Member

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    Those of you that commment that your'e "not sure" about gold gotta remember that gold and silver has been money for over 5000 years. Paper has been "money" only because Uncle says it is. And EVERY single time historically that paper has been used for money it has fallen in value to nothing. The biggest recommendation for gold is that it has always held value, especially when compared to paper money.

    Also silver today is at its lowest value in that 5000 year history and as such represents the buy of a lifetime. Given the fundamentals of both gold and silver I think it is easily possible that silver could increase in value to rival gold.

    And lastly, when times are really tough, nothing else will substitute for gold. Many people were able to leave South East Asia only because they could pay with gold coins.

    bearkiller
     
  9. Mudwoman

    Mudwoman Well-Known Member

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    Here is where we buy our gold and silver. Have had excellent service and no problems. www.ajpm.com
     
  10. stonefly71

    stonefly71 Well-Known Member

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    I belong to the GPAA and have been a prospector for about 5 yrs now. You can but coins but they will cost you about 300 to 400 bucks each depends on what the price of gold is right now it's 429.00 per oz spot and silver is at 7.00 bucks I'd go with silver as it has went up all most 4 bucks in the past 3 yrs or so. If you want gold and depends on where you live go out and look for it yourself cheaper that way a used metal detector if you live out west or a gold pan ans sluice box will be enough to get you started with. And if you find a nugget you can get more out of it then you can selling it at spot price do to the rarity of the nuggets. just keep hording it till you get a lot of it then find a refinery to send it to and they will send you a check. I know a guy who has put 3 kids thru collage with his prospecting. But it's hard work to find a lot of gold. you will find more fine/flour gold then you will most anything but it will add up and you get a free workout while doing it. NC./ GA is a good place in the east to look for gold out west CA./AZ/NV/WY/CO/MT/ all those places have a lot of gold to be found on public land. AZ/NV is a real good place with a detector out in the desert. Anyone want more info e-mail me and I'll try and help you out. As they say the old timers only got about 5 % of all the gold out back in the old days so there is still plenty left to find you just have to know how and where to look for it. But like I all so said I'd be buying up all the silver I could as it has been going up from about 3 bucks to 7 bucks over the past 3 yrs or so. Later Matt
     
  11. norris

    norris Well-Known Member

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    I buy silver and gold (in that order of preference) from:

    My local coin dealer

    http://www.tulving.com/

    http://apmex.com/home.asp

    (again in that order of preference)

    There is one site on the web that is by far the best place to learn about investing in precious metals:

    http://www.goldismoney.info/forums/index.php


    The best deal right now is 90% silver pre-1965 US dimes, quarters and halves, whch are sold by the bag. A "bag" contains $1000 face value and has (wear adjusted) 715 ounces of pure silver plus some copper.
    There is no question of authenticity with these coins and they are cheaper than any other kind of silver. They are often referred to as "junk silver" coins.
     
  12. nobs

    nobs Well-Known Member

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    Why coins? I have a stash of gold jewelry bought from pawn shops at good prices. It can always be melted or sold along the way when prices go up.
     
  13. Hoop

    Hoop Well-Known Member

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    Gold is absolutely one of the poorest investments out there.

    If you had invested $10,000 in gold back in Jan 1982, your investment today would be worth roughly $10,800.
    Of course, if you were unfortunate enough to have invested in gold back in early 1980, your $10,000 investment would today be worth less than $5000.

    Gold is no longer the "standard" bearer of currency. The greenback (which has absolutely no backing) is now the king of currency.

    Silver is nearly as bad.

    IMHO, land is the best investment.
     
  14. Quint

    Quint Well-Known Member

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    I think of gold more as of a insurance policy. It may lose value but IF something ever did happen it could very well be useful. I keep a few thousand in precious metals maybe. I haven't tallied it up lately. I wouldn't dump all my savings in it however.

    I use to believe in all of the "the financial collapse is coming" hysteria. A rather intelligent fellow I knew had very persuasive arguments for it. Worked at a factory and lived very spartan even for my tastes and hordes away gold. Another fellow I know never went for the "the stock market and US economy is a house of cars about to collapse" hoopla and now at the age of 40 has made enough in the market and other investments to be not only a millionaire but a millionaire couple of times over. Even if the market would collapse tomorrow he would still be in decent shape because isn't dumb enough to have all of his money in stocks. He has three successful businesses he owns outright and is a partner in probably a half a dozen more. Everything from car washes, a vending machine company, convenience stores and even interests in a restaurant or two. He hardly works at all anymore. He told me a few months ago that he spends maybe 4 hours a week actually "working" which consists of him sitting behind a computer reviewing numbers. He tries to get to his various businesses on a weekly basis and make contact with his managers but if he wants to go hunting or fishing or play with his rich boy toys he'll put that off.

    Chicken little guy slogs away in a factory hording gold and frankly as far as I can tell never really enjoys the fruits of his labors. My wealthy friend lives life to the fullest, doesn't sweat money and spends most of his time pursuing his hobbies and interests and spending time with his family.
     
  15. TennOC

    TennOC Member

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    Kitco.com is a good place to buy metals. They have a "pool" to buy silver, read all about it.........
     
  16. GR8LIFE

    GR8LIFE Well-Known Member

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    Thank you all for your contributions of where to buy gold and your comments about silver, etc. They have been very informative. Just as an aside, I didn't think of gold as an investment, just as a fallback if dollars are no longer useable and I was thinking of it more on a global scale rather than just for trade locally. My thought was that if our country collapsed and other countries kept going, I would have something that I could sell to them to buy things I needed. It is just a hedge similar to the comment made by one of you about the people in Vietnam. Since there is always the possibility that another country could come in and take us over if we collapsed, I just wanted to have another card to play if I had to deal with foreigners. I think your leads on where to buy gold and learn more about it were very helpful.

    Colleen