Tuesday, September 30, 2008
Gold
Some of my friends have asked me about buying gold, so I decided to post this here if it would benefit any of my readers.
I got the bulk of my research on gold from Lew Rockwell's website, primarily the articles of Burt Blumert and Mark Thornton. Here are some of my notes:
1. Never use borrowed money to buy precious metals.
2. Buy the most traded items: American Gold Eagles, Canadian Gold Maple Leafs, South African Krugerrands, etc.
3. Store it in a safe place: not the Bank!
Thornton recommends 50% of your liquid assets in gold.
I bought my gold through Camino Coins, LLC. This was Blumert's company (now retired). While I had intended to purchase American Gold Eagles (just seemed patriotic if all were equal), I learned that, while the AGE does include 1 oz. of gold, it is not pure. There are other metals mixed in.
I bought the Canadian Maple Leaves because they are 100% pure gold, nothing else. You'll notice that Camino Coins does offer smaller denominations (1/2 oz, 1/4 oz, 1/10 oz), these have a much higher mark up. Your best value is to buy in full oz.
Also, silver is not as stable as gold. For example, if gold drops 25%, silver might drop 50%.
Here's another tip. When you call Camino Coins, they will lock in your price when they give you an invoice number. So, if gold goes higher (or lower) you still get it for the price at the time of your invoice. You can monitor the price of gold here. In the last five days, gold has fluctuated between $856.20 and $925.20 per ounce.
If you have a Mac or can use Yahoo's widget engine, you can download a handy widget here. This is a very neat widget, as you can set it to sound an alarm if the price of gold goes above or below a certain level. Ok, all that to say, if you can take the time to monitor the price of gold, or use this widget to monitor it for you, you could wait until gold hits around $855 or $860 and call then. (It fluctuates throughout the day - it's been as low as $853 and as high as $909 today). That way you can get the best price.
Even if the government won't accept a gold standard, we should accept a personal gold standard.
I got the bulk of my research on gold from Lew Rockwell's website, primarily the articles of Burt Blumert and Mark Thornton. Here are some of my notes:
1. Never use borrowed money to buy precious metals.
2. Buy the most traded items: American Gold Eagles, Canadian Gold Maple Leafs, South African Krugerrands, etc.
3. Store it in a safe place: not the Bank!
Thornton recommends 50% of your liquid assets in gold.
I bought my gold through Camino Coins, LLC. This was Blumert's company (now retired). While I had intended to purchase American Gold Eagles (just seemed patriotic if all were equal), I learned that, while the AGE does include 1 oz. of gold, it is not pure. There are other metals mixed in.
I bought the Canadian Maple Leaves because they are 100% pure gold, nothing else. You'll notice that Camino Coins does offer smaller denominations (1/2 oz, 1/4 oz, 1/10 oz), these have a much higher mark up. Your best value is to buy in full oz.
Also, silver is not as stable as gold. For example, if gold drops 25%, silver might drop 50%.
Here's another tip. When you call Camino Coins, they will lock in your price when they give you an invoice number. So, if gold goes higher (or lower) you still get it for the price at the time of your invoice. You can monitor the price of gold here. In the last five days, gold has fluctuated between $856.20 and $925.20 per ounce.
If you have a Mac or can use Yahoo's widget engine, you can download a handy widget here. This is a very neat widget, as you can set it to sound an alarm if the price of gold goes above or below a certain level. Ok, all that to say, if you can take the time to monitor the price of gold, or use this widget to monitor it for you, you could wait until gold hits around $855 or $860 and call then. (It fluctuates throughout the day - it's been as low as $853 and as high as $909 today). That way you can get the best price.
Even if the government won't accept a gold standard, we should accept a personal gold standard.
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