Investment Gold is HARD to buy here in Peru

DoChenRollingBearing

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And why would that be? I sure don´t know, but now I have some time to find out. Gold jewelry is easy to buy (at reputable shops even), but I have not "found the key" to find bullion coins or similar. The couple of times I briefly looked for gold coins were Peruvian ones that circulated (at least some) decades ago, but the mark-up was around 40%, yow!

Peru does not produce bullion coins even though they are No. 6 in world gold production. THAT might make a nice little item for them to make, maybe at a slight premium...! :)

* * *

Another possibility might be to buy local gold in bar form.

I once in another US city was buying a gold coin when a guy entered who needed a few grams for his jeweler employer. The shop did not have gold shot or other 24 kt around, so he opened up a 1 oz gold bar container and melted off the amount that his customer needed. I did not find out how much nor what the mark-up was (but I imagine it was kind of steep).

I do know that PLENTY of jewelry is made here (and the work is cheap), but I do not know how & where the jewelers get their gold.

Also, Peru does not, to my knowledge, have a reputable refinery. Most Peruvian doré bars (from the mines, typically some 60% pure) are exported, many to Miami (!), Miami I believe is the No. 1 US city importing gold -- surprised me when I learned that.

Anyway, if I get news, I will pass it along for our community´s interest.

(And next time, I want to see a gold mine!)
 

pmbug

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Peru doesn't have any coin shops? What about pawn shops?
 

rblong2us

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but its still perfectly safe to put mercury amalgam inside our mouths ..........

Think it smacks of an anti gold article.
 

DoChenRollingBearing

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Mmm, mercury amalgam...

Sounds like it tastes great!

Besides, how else am I going to get my Vitamin B12?



EDIT: Bug, it was AT a coin shop where he quoted me a Peruvian gold coin for 40% over spot., grrr...
 

pmbug

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Ah.. I see. I'm guessing then that there is likely some govco reason (taxes, fees, regulations somewhere along the supply chain) for the 40% markup as that is far beyond anything you would expect from a free market dynamic.
 

DoChenRollingBearing

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I had an hour or so this morning (actually Mon morning) to check around. I went to two reputable-looking jewelers, they both quoted me (rough numbers here) for about $2050 for +/- 30 gm of 18 kt gold as a bracelet (heavy links). By my calculation that works out to be about 23 gm of gold worth about $800.

The jeweler at the five-star hotel wanted $2800...

So, from what I have seen, there are no bargains here.

But I did find ONE Peruvian One Libra coin from 1916, very close to .24 toz, so I offered $400 for it, and they took it (originally wanted $450). So, these coins are not the relative bargains as are bullion coins in the USA, Canada, Australia, etc.

The Peruvian coin is rather nice though...:

http://www.apmex.com/product/50014/peru-gold-1-libra-au-agw-2354

And APMEX has it at some $390 (depending) or so. Ah, well, no bargains so far here on gold.

SILVER is a different story, there are LOTS of unique pieces of jewelry and trinkets of silver.
 

DoChenRollingBearing

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Today my wife visited her favorite jeweler here (Lima, Peru). She asked about getting a gold-bling bracelet for me, this one would have been heavy at 45 gm (the ones I got quoted earlier were 30 - 33 gm approx.), 18 kt gold.

Still works out to price of way over 100% above spot. Three places quoted about 2.5 times spot, one quoted some 3 times over spot. Yikes!

So I settled on buying that Peruvian "One Libra" coin I mentioned before, approx 8 gm, 22 kt, date 1916 (not rare or special) for $400. A bit more than a common date US $5.00 gold piece (pre-1933), so while not a bargain, not ridiculous like having jewelry made.

The thing I liked about bling (heavy bracelet or chain) is that it would not be suspicious should I decide to implement a "Plan B" should Hillary be our next capo... Who at the airport is going to take a bracelet or chain? Coins might look like wealth transfer...
 
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