Buying Sizes of Gold

69mach351 said:

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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benjamen said:

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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69mach351 said:

Okay, I am curious if I am missing something here....

http://www.providentmetals.com/5-gr...gold-bar-in-assay-card-9999-fine-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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benjamen said:

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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69mach351 said:

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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benjamen said:

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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HCA1961 said:

For some strange reason, Canadian Gold Maples tend to have a significant lower premium than American Gold Eagles. :shrug:

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ADK said:

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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Mark said:

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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benjamen said:

"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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benjamen said:

"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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