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Questions, I get questions....
A Mr. Richard Faylor from FT. Lee, NJ writes....
Hey Traderneal:
I believie you when it comes to gold, but I don't own anything physical. What's the best way to get me some gold? Also is it possible for me to get something that might give me some more upside than just the price going higher. Now keep in mind, I ain't rich folk, I can't be affordin' full ounces and stuff like that. I don't trust that GLD, did you ever read the prospectus?
That's a great question Dick, and believe it or not there is one vehicle that might work, and that would be US gold commemorative coins.
US commemorative gold coins have been around since 1982 and contain slightly less than 1/4 ounce of gold for the $5 denominations and the $10 denominations contain slightly less than 1/2 ounce of gold. I have been buying these things up left and right whenever I saw them at spot or less. Yes, spot or less. There have been times, when gold was $400, I was buying them for under $100. Now, keep in mind, for the most part, these coins have little numismatic value as they were produced in great quantities. Just recently, the US mint started a First Ladies gold coin series of 1/2 ounce coins, based, oddly enough, on the wives of the Presidents. These coins are known in numismatic circles as the First Hag coins. Anyhoo, the coins have maximum mintage's of 40k, and the first two series sold out in hours. When the coins first hit ebay, you could have sold them for about double from where they were issued. However, you can now buy the coins for melt. No big deal--just yet.
Coin dealers around the country have been buying these Presidential Wives coins, as well as any gold commemorative, left and right strictly to be melted. IMO, if you believe the price of gold is going higher, then you might want to grab a few of these coins and sock them away. You could make out twice as nice. First, the bullion value will go higher, and second, if these coins keep getting melted, and there is no law against melting these coins, the numismatic value could rise as well. Like I mentioned, the First Ladies series has a maximum mintage of 40k, so assume half eventually get melted, which is not unreasonable, you now have a coin that is that more scarce.
The Dolley Madison coin has sold about 9k. This in itself is on the rare side and could be a sleeper. You can still buy this coin directly from the mint, but why would you? It is about $100 over spot.
http://coins.search.ebay.com/gold_Modern_W0QQfromZR4QQfsooZ1QQfsopZ1QQsacatZ41106QQssPageNameZWLRS
Above, you will find a link to ebay that has only modern gold commemorative coins. As you would for anything on ebay, buy from established dealers who have good feedback, be careful, and don't get ripped off. If it seems like it's too good of a deal, it isn't and you will get burned. I haven't heard any stories of fake gold commemorative coins, so I think you would be ok. If you you want to play safe, then buy coins that are graded from, PCGS, NGC, ICG, or Anacs. The higher the number on the grade, the better.
Commem's that are very common that you might be able to find at or below spot are, the First Hag coins, US Olympic coins, Mt. Rushmore, US Constitution, US Congress, and World Cup coins. If you can find Jamestown, and the San Francisco coins near melt, buy them as they were issued in less quantities.
Good luck.
Hey Traderneal:
I believie you when it comes to gold, but I don't own anything physical. What's the best way to get me some gold? Also is it possible for me to get something that might give me some more upside than just the price going higher. Now keep in mind, I ain't rich folk, I can't be affordin' full ounces and stuff like that. I don't trust that GLD, did you ever read the prospectus?
That's a great question Dick, and believe it or not there is one vehicle that might work, and that would be US gold commemorative coins.
US commemorative gold coins have been around since 1982 and contain slightly less than 1/4 ounce of gold for the $5 denominations and the $10 denominations contain slightly less than 1/2 ounce of gold. I have been buying these things up left and right whenever I saw them at spot or less. Yes, spot or less. There have been times, when gold was $400, I was buying them for under $100. Now, keep in mind, for the most part, these coins have little numismatic value as they were produced in great quantities. Just recently, the US mint started a First Ladies gold coin series of 1/2 ounce coins, based, oddly enough, on the wives of the Presidents. These coins are known in numismatic circles as the First Hag coins. Anyhoo, the coins have maximum mintage's of 40k, and the first two series sold out in hours. When the coins first hit ebay, you could have sold them for about double from where they were issued. However, you can now buy the coins for melt. No big deal--just yet.
Coin dealers around the country have been buying these Presidential Wives coins, as well as any gold commemorative, left and right strictly to be melted. IMO, if you believe the price of gold is going higher, then you might want to grab a few of these coins and sock them away. You could make out twice as nice. First, the bullion value will go higher, and second, if these coins keep getting melted, and there is no law against melting these coins, the numismatic value could rise as well. Like I mentioned, the First Ladies series has a maximum mintage of 40k, so assume half eventually get melted, which is not unreasonable, you now have a coin that is that more scarce.
The Dolley Madison coin has sold about 9k. This in itself is on the rare side and could be a sleeper. You can still buy this coin directly from the mint, but why would you? It is about $100 over spot.
http://coins.search.ebay.com/gold_Modern_W0QQfromZR4QQfsooZ1QQfsopZ1QQsacatZ41106QQssPageNameZWLRS
Above, you will find a link to ebay that has only modern gold commemorative coins. As you would for anything on ebay, buy from established dealers who have good feedback, be careful, and don't get ripped off. If it seems like it's too good of a deal, it isn't and you will get burned. I haven't heard any stories of fake gold commemorative coins, so I think you would be ok. If you you want to play safe, then buy coins that are graded from, PCGS, NGC, ICG, or Anacs. The higher the number on the grade, the better.
Commem's that are very common that you might be able to find at or below spot are, the First Hag coins, US Olympic coins, Mt. Rushmore, US Constitution, US Congress, and World Cup coins. If you can find Jamestown, and the San Francisco coins near melt, buy them as they were issued in less quantities.
Good luck.
posted by Neal | 2:22 PM
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