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Old 06-12-2012, 06:46 AM   #1
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Buying Sizes of Gold

Good morning!

I have not bought any gold, but have casually looked at it and wondered what the desired size is. Sure you can get it cheaper (per oz) buying it in larger sizes, but there seems to be a market for the 1/10oz, and 1/4oz just the same. Doing the math, these usually fall between $1775/oz and $2000/oz, when buying in these smaller sizes.

My thoughts are they are there for people that don't want the large cash outlay and they should be more liquid (since there is a broader market that can afford them). The downside, is that it may take longer to make anything on, because of the premium that someone would pay. Is that something to be concerned about when looking at these? Like I said, I haven't bought any, but if I ever do, I would want to think it all through.
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Old 06-12-2012, 07:11 AM   #2
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I have bought some 1/10 ounce Gold Eagles. They are *tiny*. Easy to lose. I think that if I'm inclined to buy gold in the future, I will buy 1oz bars.
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Old 06-12-2012, 07:15 AM   #3
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Originally Posted by 69mach351 View Post:
Good morning!

I have not bought any gold, but have casually looked at it and wondered what the desired size is. Sure you can get it cheaper (per oz) buying it in larger sizes, but there seems to be a market for the 1/10oz, and 1/4oz just the same. Doing the math, these usually fall between $1775/oz and $2000/oz, when buying in these smaller sizes.

My thoughts are they are there for people that don't want the large cash outlay and they should be more liquid (since there is a broader market that can afford them). The downside, is that it may take longer to make anything on, because of the premium that someone would pay. Is that something to be concerned about when looking at these? Like I said, I haven't bought any, but if I ever do, I would want to think it all through.
Unfortunately, it is much more expensive to buy gold in amounts less than half an ounce. This is a very strong reason most people start out with silver when they first get into precious metals. Unless you are wealthy, gold is expensive!
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Old 06-12-2012, 07:21 AM   #4
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Originally Posted by benjamen View Post:
Unfortunately, it is much more expensive to buy gold in amounts less than half an ounce. This is a very strong reason most people start out with silver when they first get into precious metals. Unless you are wealthy, gold is expensive!
Amen to that!

It appears that the secondary market (like ebay) is okay with paying a higher price on most PM's in smaller sizes, even though they can buy them cheaper from dealers online. Guess that is something else to figure out. Sometime, I would like to buy a little gold. Like others said, it is expensive. I am curious about platinum as well.
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Old 06-12-2012, 08:47 AM   #5
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Okay, I am curious if I am missing something here....

http://www.providentmetals.com/5-gra...e-bullion.html

5 grams here is going for approximately $273 right now. That is $54.60/gram. 1 troy oz of gold is 31.1035 grams. So an oz of this would be in the $1698 range. This seems to be a good deal for a small amount of gold. Am I wrong or did I do anything incorrectly?
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Old 06-12-2012, 09:06 AM   #6
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Originally Posted by 69mach351 View Post:
Okay, I am curious if I am missing something here....

http://www.providentmetals.com/5-gra...e-bullion.html

5 grams here is going for approximately $273 right now. That is $54.60/gram. 1 troy oz of gold is 31.1035 grams. So an oz of this would be in the $1698 range. This seems to be a good deal for a small amount of gold. Am I wrong or did I do anything incorrectly?
As I said above, anything below a half a ounce of gold will cost you more premium.

Cost wise: 10 0.1 ounce coins > 4 0.25 ounce coins > 2 0.5 ounce coins
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Old 06-12-2012, 09:23 AM   #7
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Originally Posted by benjamen View Post:
As I said above, anything below a half a ounce of gold will cost you more premium.

Cost wise: 10 0.1 ounce coins > 4 0.25 ounce coins > 2 0.5 ounce coins
I completely understand and agree with you. I just wanted to make sure that my math was correct. For a small amount of gold, that is a significantly better deal than buying the 1/10oz or even the 1/4oz coins (assuming my math is correct). Essentially, it is around $30 (by weight) more than a 1oz gold eagle), which would make this an attractive option if someone was looking to buy a small amount.

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Old 06-12-2012, 09:33 AM   #8
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Originally Posted by 69mach351 View Post:
I completely understand and agree with you. I just wanted to make sure that my math was correct. For a small amount of gold, that is a significantly better deal than buying the 1/10oz or even the 1/4oz coins (assuming my math is correct). Essentially, it is around $30 (by weight) more than a 1oz gold eagle), which would make this an attractive option if someone was looking to buy a small amount.
Humm, that does look like a good deal premium wise. Keep in mind, bars usually have less premium that coins. Do the same math, but compare it to different sizes of bars from that same manufacturer.
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Old 06-12-2012, 09:41 AM   #9
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Originally Posted by benjamen View Post:
Humm, that does look like a good deal premium wise. Keep in mind, bars usually have less premium that coins. Do the same math, but compare it to different sizes of bars from that same manufacturer.

I will take a look around. I would prefer to have coins if/when I choose to buy gold, but this didn't seem to bad for a smaller amount. Thanks for checking it over
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Old 06-12-2012, 09:50 AM   #10
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For some strange reason, Canadian Gold Maples tend to have a significant lower premium than American Gold Eagles.
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Old 06-12-2012, 09:55 AM   #11
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Originally Posted by HCA1961 View Post:
For some strange reason, Canadian Gold Maples tend to have a significant lower premium than American Gold Eagles.
I am not sure why the various country coins carry a higher or lower premium beyond which you find prettier to look at?

If you want to see a crazy difference in premiums for essentially the same thing, compare an American Platinum Eagle to a Canadian Platinum Maple Leaf.
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Old 06-12-2012, 10:18 AM   #12
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Yeah. Exactly! I'm all for buying American but......that's hard to overlook.
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Old 06-12-2012, 10:29 AM   #13
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For what it's worth, I'm buying silver 'cause; a) it's less expensive, b) I personally don't feel gold will yield as big a return on an investment as silver (in this day and age), and c) I personally believe that as more and more countries begin competing in the global market, the demand for silver (and palladium) will increase, especially in electronic applications. Silver may become the new gold.
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Old 06-12-2012, 11:08 AM   #14
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I thought about buying some Perth Mint bars recently... I might get one for my next purchase. They look nice and carry a relatively low premium.

Silver is the money of the people. If gold is remonitized, silver will be right with it. IMHO.
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Old 06-12-2012, 11:15 AM   #15
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Originally Posted by ADK View Post:
I thought about buying some Perth Mint bars recently... I might get one for my next purchase. They look nice and carry a relatively low premium.

Silver is the money of the people. If gold is remonitized, silver will be right with it. IMHO.
"Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves."

— Norm Franz
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Old 06-12-2012, 11:27 AM   #16
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Originally Posted by Mark View Post:
For what it's worth, I'm buying silver 'cause; a) it's less expensive, b) I personally don't feel gold will yield as big a return on an investment as silver (in this day and age), and c) I personally believe that as more and more countries begin competing in the global market, the demand for silver (and palladium) will increase, especially in electronic applications. Silver may become the new gold.
It is all a gamble and anything can happen, but I think I tend to agree. I still believe in diversification though.


Originally Posted by benjamen View Post:
"Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves."

— Norm Franz
Strive to be the king and don't let yourself become a slave.
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Old 06-12-2012, 03:26 PM   #17
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Originally Posted by benjamen View Post:
"Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves."

— Norm Franz

One of my favorite quotes. I like the idea of trading silver with the gentlemen while keeping gold like a king and always appearing as a peasant.

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