Does anyone buy physical gold for investment?

highslice · Dec 8, 2021

I have entirely too much cash in my portfolio and I want to diversify. I have all the exposure to the stock market that I want and bonds don't look good either with low yields and rising interest rates. So I am looking at precious metals. There are a number of highly publicized gold companies that advertise so much it makes me leery. Anybody have a trusted source for physical that doesn't charge a premium because they are selling "minted' coins? TIA.

OllieC · Dec 8, 2021

I've purchased from APMEX in the past. I bought a bunch of silver and gold about 10 years ago from them.

dtfeld · Dec 8, 2021

I looked at gold, but I think other precious netals have better up side.

My favorite lately is an ETF for all things lithium. LIT.

El Capitan · Dec 8, 2021

Any physical precious metal is a great safe haven vs cash.

I’m planning on moving everything I have including 401k into physical gold/silver….and ammo.

Gofirstclass · Dec 8, 2021

Not a precious metal investment, but how about VALE. It is an EFT that handles covered calls. Pays 12.5% quarterly dividend. At that rate you are going to be fully reimbursed for your purchase in 4 years.

dwna1a · Dec 8, 2021

I buy from APMEX and NWMint. Another place to check are local pawn shops. I’ve been buying Silver,Gold, and platinum since I was 16. Don’t buy gold stocks but the actual metals. GL to you

ttmott · Dec 8, 2021

No precious metals but rather tax-exempt muni's. I think this infrastructure rage will drive the municipal bonds into a good investment area.

ErikE · Dec 8, 2021

Yep, APMEX for gold and silver.

Buy it each month, put it the safe and try not to look at the spot price.

And then, sell it locally under the tax report limits for tax free gains.

highslice · Dec 8, 2021

ttmott said:
No precious metals but rather tax-exempt muni's. I think this infrastructure rage will drive the municipal bonds into a good investment area.

I have been kicking that around as well. My concern is that with interest being so low right now the bonds are expensive and any uptick in interest will kill prices. Yields are pretty low too, even considering the tax exemption premium.

Soulshine · Dec 8, 2021

Gofirstclass said:
Not a precious metal investment, but how about RYLD. It is an EFT that handles covered calls. Pays 12.5% quarterly dividend. At that rate you are going to be fully reimbursed for your purchase in 4 years.

After reading this, I looked into it and wonder if you'd expand on your recommendation in lay terms. Market novice here.

I have shares in a company that I used to work for and a few odds and ends but its steady and I don't pay much attention to it which should change.

ttmott · Dec 8, 2021

highslice said:
I have been kicking that around as well. My concern is that with interest being so low right now the bonds are expensive and any uptick in interest will kill prices. Yields are pretty low too, even considering the tax exemption premium.

Oh I don't know about that I've held NHCCX for about a year now and it has yielded just short of 4%.
Then OMFCX on the other end of the spectrum was 2.7%
Regardless both outperformed the cost of money and gold by a significant margin.
And this was 2021 so I'm thinking 2022 will track better. My opinion....

JHornsby3 · Dec 9, 2021

Yes. Gold, silver and of late copper. All in rounds of 10th to 1/2 ounce for gold. 1/2's and full ounces for silver. Copper is in 1avdp rounds. The best pricing we have been getting is through a few online sources. Pawn shops are usually at spot plus $5-$8 with either a 3% to as much as 4.5% for credit/debit cards. So we look at the factors before buying from the pawn guys.

Been getting Morgans and Peace dollars at a really good rate lately. Even found some great deals on $2.50 and $5.00 gold coins from 1800's to the 1920's.

As tempting as Silver Eagles are, they cost more and if you are in the need to sell for a fast buck, your only going to get under spot. How much under is only determined by the buyer. So while we have Eagles in the pot, we have more US silver rounds for the "I need cash quick" type of transactions.

Copper is one we have been getting into lately. Started buying rounds at less than a buck each and currently they are sitting around a buck over what we paid. And from reports, it's about to go up fast here soon.

If you want to know more about the sources, PM me. With some sources having very limited stock, I don't feel the need to put it out there for the world.

Creekwood · Dec 9, 2021

Inflation adjusted historical gold price:
<a href='https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart'>Gold Prices - 100 Year Historical Chart</a>
The gray bars are recession periods.
View attachment 116589

Gofirstclass · Dec 9, 2021

Soulshine said:
Not a precious metal investment, but how about VALE. It is an EFT that handles covered calls. Pays 12.5% quarterly dividend. At that rate you are going to be fully reimbursed for your purchase in 4 years.[quote/]

Soulshine said:

After reading this, I looked into it and wonder if you'd expand on your recommendation in lay terms. Market novice here.

I have shares in a company that I used to work for and a few odds and ends but its steady and I don't pay much attention to it which should change.

Click to expand...

Soulshine, I'm certainly not an expert in options trading even though I am a retired financial advisor. A "call" allows you to buy a stock at a given price. This is something you would do if you felt the stock price was going to rise. But unlike buying the stock the call allows you to control 100 shares for a lot less than what it would cost to buy that much stock. So basically, with a call you can buy the call then when the stock rises you "exercise" the call and you can buy the stock at what the old/lower price was. If the price of the stock goes down after you buy the call you just let the call expire.

Now, my bad, when I put that post in here I mistakenly typed in the ETF symbol of RYLD. I should have entered VALE which is the ETF I bought. It pays a dividend of 12.5% per quarter. So, if you calculate that out, at 12.5% per quarter that equates to a return of 50% per year. In two years your dividend has equaled the cost of the ETF you bought. From then on you just keep collecting that 12.5% (assuming they don't change it.)

Hope this helps.

Soulshine · Dec 9, 2021

That does help.

Thanks for taking the time to explain.

jmauld · Dec 9, 2021

I put some $ into gold at the beginning of the Covid mess. That was a mistake. Should’ve put that money into btc instead

Gofirstclass · Dec 9, 2021

Ya know if I was half as savvy an investor I would have invested in companies like 3M that make all this plexiglass crap I see everywhere I turn. Or companies that produce masks.

Oh well.

Wanderer 290 · Dec 11, 2021

Airline pilots fly to Switzerland and buy their francs. True value for exchange and the bring it back $8-9k each trip

Gofirstclass · Dec 11, 2021

Wanderer 290 said:
Airline pilots fly to Switzerland and buy their francs. True value for exchange and the bring it back $8-9k each trip

Tell me more if you would, please. We're looking at doing another Viking River Cruise and likely will be in Switzerland.

Wanderer 290 · Dec 11, 2021

Max cash on intl travel is $10k so that’s the only limiting factor I know of.
The francs are not traceable so a simple statement on reentry to the us “it was in your possession before you left and didn’t have to declare being under $10k”.
But I will double Ck with one of my buddies…

Does anyone buy physical gold for investment?

highslice

OllieC

dtfeld

El Capitan

Gofirstclass

dwna1a

ttmott

ErikE

highslice

Soulshine

ttmott

JHornsby3

Creekwood

Gofirstclass

Soulshine

jmauld

Gofirstclass

Wanderer 290

Gofirstclass

Wanderer 290

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