I’ve mentioned in the past that I have a buddy who works in a coin shop. I also mentioned that, from time to time, he’ll sell me gold at spot – no premium. Usually this happens when he gets something in thats a little odd of in an unattractive condition. For example, if he gets a gold coin thats bent… its harder to sell than one that isnt, so he buys it for below spot and then flips it to me.

So..with that backstory done. Here’s todays acquisition:

Its a US Gold Eagle (1 troy ounce) coin. It has some sort of crud or something on it whih makes it aesthetically not as attractive as one that doesnt have such an issue. So, a good question would be how do you know thats a real gold coin and not some made-in-China knockoff thats all over eBay?

Well, my buddy at the shop has a gold tester which you can see in the photo. I don’t have silver tested, usually…. but I always have gold tested. He tests it when he buys it, but I politely insist the he test it in front of me before I purchase. I trust him very much, but theres always the possibility of mixing the coin up with another one. And this keeps everyone on the same page.

The tester isnt cheap, they cost about a grand. But if it keeps you from buying one Chinese carbide-filled ‘gold’ coin, then it has paid for itself…twice.

When I get the opportunity to buy gold at spot, I usually jump on it. I use the money from one of my various savings funds. For instance, I save money over the course of the year for paying my property taxes. If gold becomes available, I’ll convert some of that savings into cash figuring that by the time the taxes come due, the gold will still be worth what I paid or better. And if it dips, I have enough to cover it anyway. But my lizard brain likes having some gold in the safe.

I’d really prefer a smaller fraction of gold…I love me some 1/10 oz… but I almost never get those at spot. They are far too desirable, even at their inflated premium. But, hey, when the opportunity comes to buy gold with no premium…sign me up.