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.
Help me understand what you wrote here (unless it’s a typo)…
“I save money over the course of the year for paying my property taxes.”
I’d like to save money like that too.
It means over the course of the year I put away money for taxes.
when the opportunity comes to buy gold with no premium…sign me up.
— or even a low premium. I wish I’d utilized the metals pimp more when he was still working… and I wish I’d found someone to replace him when he backed off. Instead I thought I was “good enough” where I was. Hindsight says, “not so much.” and “you could always have more coins in the safe”
PMs were an aspect of prepping that even my wife could get behind.
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Following. An absolute must have if one is a dealer or “heavy” into p.m. investing. It would be a worthwhile endeavor to inquire of the dealer or owner of this equipment to conduct a survey or examination of all of one’s inventory of coins (piecemeal or in batches for opsec or security considerations) to validate them all to be sure the current in inventory items are all legit. A fee charged by the dealer or owner of such equipment can allay the initial cost of the equipment. Afterwards you could catalog or serialize the individual coins and spreadsheet organize them proffessionally (they are stored and kept in protective sleeves or holders, no?) so verified legit coins are not comingled with some errant bastard fake coins that you later aquired and tossed in with the rest into that Olde timey leather sack with string ties that gnomes carry around. Big money is involved in this hobby, go pro, so as to stay verified and frosty.
This device is well suited for a professional bullion trader, but for a prepper who may need to verify the authenticity of gold in a grid-down situation or when bartering in the field away from electricity, these devices work great and are very affordable.
https://www.amazon.com/Detect-Gold-Coins-Coin-Balance/dp/B01DCFCISG
Gold is not ideal for saving money. Any profit is taxed as a collectible, at full value, even if held long term. That can be up to 28%. But it is one way to guard wealth against a currency collapse.
Out of curiosity, if I buy a coin for $2600, and sell it for $3000, realizing a gain of $400…how exactly do I pay taxes on that? The coin guy who buys it isn’t required to report it, and I’m certainly not reporting it, so…..