Did I make a MISTAKE buying these gold coins?
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- čas přidán 24. 07. 2024
- In this video I talk about buying gold coins and a mistake I made when I first started investing in physical gold. If you are wanting to buy physical gold then this is the video for you. The larger a piece of gold is the smaller the premium on that piece of gold is typically. This goes for gold coins such as gold krugerrands and gold eagles as well as gold bars. If you want to pay the lowest premium and get the most for your money they I advise buying gold in the 1 oz size. When you buy a 1 oz gold coin the total cost will run you just over $2,000 today, but the premium you pay for the gold will be significantly lower compared to fractional gold. Below is my video on trading silver for gold:
When to Trade Silver for Gold:
• I will start selling m...
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Topics I cover in this video: gold coins, gold coin, buying gold, buying gold coins, gold krugerrand, gold krugerrand coins, gold krugerrands, gold eagle, gold eagle coins, american gold eagles, investing in gold, gold investing, physical gold, best gold to buy, best gold for investing, gold mistake, mistake buying gold, gold investing mistake, what gold coins to buy, best gold coins to buy, best gold to buy, best gold to invest in, best gold coins for investing, worst gold to buy, worst gold for gold investing, gold bars, gold bar, investing in gold bars
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I agree with you on the lower premiums for larger coins and I agree with your get the most for less philosophy, but with that being said not every one can afford to buy 1 oz gold and 10ths and 1/4s are very liquid and that premium (all though less) does stay with the fractional sizes when you go to sell. They are not hard to move when you need to, and in my opinion I believe its important to include fractional gold in your stack. I would not say the same for silver though. I think fractional silver is a complete waste of money unless we are talking about junk silver. Just my opinion
Theirs also the Scottsdale 1/100th ounce bar which seems pretty good for starters
I dont get your logic at all. help me out. if you can't afford a one ounce gold piece how can you afford a higher premium?
@@DrSchor you dont have to get my logic. You do you.
@@DrSchorhis logic is that he doesn't have the will power to save money until he can buy an ounce. So you buy fractional gold before you waste the money on something else because it's sitting in your account.
I started stacking 1/10 gold after I became wealthy because it doesn't matter about premiums, and I don't need to sell a whole oz. A lot of buyers shouldn't be buying metals because they are still struggling with their finances.
Excellent video and from my own experience, totally agree. Thanks for breaking it down to show exactly how much we lose buying fractional gold.
As a stacker I believe you should have the 1/10, 1/4 and 1/2 ounce coins in case you need some fast cash.
I cannot save cash for the life of me so I started stacking to have as a savings account that is hard to buy anything from.
When things happen, you can sell that fractional gold instead of a full ounce then buy that same fractional gold later that same year.
Same here
Yo,...SD, really great video, especially for those of us DCA-ing. Great eye-opener!
I did the same thing when I first started. Thanks for sharing your knowledge. Good video.
I could argue that through your diligence, you actually did it the RIGHT way. Not only do you finally have that ounce, you also have the pieces of fractional adding further weight to your collection
Was it a mistake or part of the learning process? There are valid reasons to get smaller fractional gold in spite of the premiums, but if you're looking to maximize your gold purchase buying one ounce is almost always better. Thanks!
I like what Harry from the coin shop said in one of Dragons' videos... those get put in the box labeled "tuition" as learning experience.
So easy to get caught up in collecting that it’s easy to overlook the premium that may be very hard to recoup even longer term.
I stay away from all gold bars. 1 oz coins are my go-to.
I started to put money in a gold ETF regularly. And when I have saved enough, I sell some shares, visit a coin show and buy a 1oz gold piece. Making sure buying and selling the ETF is free of transaction fees and it has a low expense ratio. With this I have more gold exposure and I save a lot on premiums.
Your rational is 100% on. The problem is some people (including me as a youngin) can’t save. For those, I would say it’s better to buy a 1/4oz than try to keep that money in an account when you know full well it will get spent elsewhere before you save up enough for a full oz.
why can't you develop self control about how you spend your money.
are you a man or a mouse?
Thank you Dragons! It was nice to have this all spelled out so we could see it with our own eyes.
Actually I would think it's good to have some of each size.
Great knowledge, because i was stacking 1g bars, i have a 10g and a few. 2G! Full OZs only moving forward for now, thanks
Thanks for sharing. I appreciate the information so thanks SD 🐉 as always 🐅
Also I’ve noticed the best way to go is to save, and just buy an ounce of gold.
5:45 - thanks for the cheat sheet 👍
I like how you broke that down. Definitely an oz is the best way to go.
Good information for the new Stacker👍
Great video brother thanks for the info
Great advice! And beautiful display as well. I wonder how often the 1/10 ounces show up as a great option?
Another great video! Great advice. Best to save up for 1oz or at minimum 1/2oz
Love your channel. Sometimes it’s nice to buy a piece of gold that’s affordable. It satisfies the craving lol
craving for what? spending too much money on a higher premium ? If you cant afford a one ounce piece, how is a higher premium affordable?
Very good video!
Thanks for the math and business information.
Great video
Crazy premium s 💯
Here in UK our sovereigns tend to have the same premium as the 1oz Britannia, granted it still doesn't add up perfectly as they're 1.8g shy of an ounce with 4 full sovereigns (finne weight) but as they're so liquid and affordable it's hard not to trust in them here especially if you can snag a shield back
Silver is silver, ultimately. Just don't want to be holding much PAPER when the music stops!
I believe they were talking about a gold Britannia as opposed to a silver. I could be wrong though.
Good Info Silver Dragon. At Current secondary market, do you think $35 for ASE is still too high? Now days some collector coins are going for as much as 34-40 such as the germania minted coins and rounds and selling well.
Only if they fake bro, then you made a mistake. But if they real, you just added to your war chest 😎👍
31.1 grams is correct for the Troy ounce. I've been using 28.4 and dividing that into 2100 for gold and thinking then that would be about $74 per gram---It should be $67---And I foolishly bought over 50 1 gram w/assay cards and loss my tail on it---Live and learn sometimes the hard way.
The shop I go to for gold talks more about the spread then premium , as in the gap between the buy and sell price.
When you think back to buying those early 1/10oz. gold coins if you hadn't bought those & gotten the gold 'buying bug' would you even be buying any gold now & would you even have a stack, no matter the size? I didn't buy a Rolex for my first wristwatch but the inexpensive watches I purchased when I was younger made me a watch enthusiast/collector so that over time I worked up to purchasing that Rolex. Sure, I've sold a few & traded a few but I still have & enjoy my watch collection & it all started with that affordable Timex/Citizen/Bulova/Seiko.
1800 George 3rd GUINEA 22 carat gold 91.67% pure Diameter 17mm . 2.8g selling for in UK £185.00 depends where you get it. 1908 GOLD SOVEREIGN ( GVF ) MELBOURNE MINT 7.98. Pure gold £425.00 so I prefer Guinea or Sovereigns nothing modern it's a antique and wil increase in value.
fractional gold has similar or lower premiums then silver
That wasn't the case a few months ago
Look at bars rather than coins, premiums are much less, applies to silver too. Also check the spread of buy/sell prices. Some gold coins are better than others.
Bars are the easiest and most easily counterfeited form of gold which makes them hard to resell. The latest crop that hit shops in CA two weeks ago fooled both the Sigma and the XRF. I would not touch gold bars with a 10 foot pole and even my LCS advises against them and only buys them at a steep discount...
Good video!
Hi,
I'm new to the gold & silver market and would like to know why there's a market set price for a troy oz of silver, yet when buying silver coins, the price is different due to what's actually stamped on the front & back of the coin?
I'm happy to stick with silver for now. It's the only viable option for storing wealth. But if the chance to buy one ounce of gold pops up, I'll certainly take it
I have a maplegram, premium wasn't really a consideration. It was a cute little coin to collect just for the novelty.
Interesting comment on the premiums on the gold coins. what you didnt discuss is what premiums do you get when you sell these coins.. Its not such a bad deal if these smaller coins keep their premium when you sell them,, So what does a coin dealer pay you when you sell?
I know! I know! Pick me! They pay you as little as possible, right? Well, was I right or not?
Don’t the premiums stay when you sell also? So, if it’s a rare or proof coin it keeps it re-sale value, yes?
Are the new coins better than old coins? There is a sale on French 20 Angel coin. But maybe its better to go for the new minted?
I agree with everything you said ....but I am retired and the best I can do is 1/10 oz...I mainly stick with Silver bars but wanted a little gold
yeah, but there's also market conditions. if you're in a good dip and gold goes up 20% while you're saving up to purchase oz, fractional sounds less bad. it's somewhat likely to see a dipped price on the chart again at some point. but it's also a tossup whether a low price will ever be seen again after a few years. we're never seeing $400 or $500 gold again that's for sure! 😄
100% agree with the thought process. The tough part is to resist the desire to get some gold in the stack but knowing the smart thing to do is to wait and save for that 1 oz. Will be sticking with silver for now 🙂
Some may think that the smaller piece will be cheaper because the spot price is lower even with the higher premium you’ll still pay more with the higher spot price. The amount of money spent is the end goal. If you buy just one or two small pieces for sure. I’d rather spend 573 on 1/4 oz than 2000 plus for one ounce. Which one is cheaper out of pocket? Depends on the stacker of course
Can u tell us the premiums on junk silver. Also are theyre bargains on scrap gold
Great video
Bullion Exchange has a 25g deal for $1850. That's only 300 over spot, but you have fractional gold.
I don't believe it was a mistake! You'll make your money back sometime in the future when gold will be used for currency and/or bartering! I loved, loved loved this video because I learned something new!!! Thank you soooo much! Will put the money away until I have enough to buy gold again hopefully! We want the price to go up, but then it gets too expensive too buy!👍🙏
Yeah I heard the same bigger ozs smaller premium, smaller ozs bigger premium on gold..
What's more important? Premium or spot price?
Thank you!
Very good info 👍 Thanks as always!
I think you have to compare premiums and make the decision that you are comfortable with
Right now, if I only have enough to invest in either a 1/10 gold maple leaf or the approximate same cash amount in 1 t oz maple leaves - the premiums are almost the same.
I throughly enjoy your videos but I think you should be a little more upfront about any type of sponsorship or partnership you have with SD, or have had. especially when making a video solely with their website using their prices.
Kinda makes you question the validity of there content.
People truly do not pay attention
@@johnm7564 saying buy something from here isn’t the same as disclosing a paid sponsorship, I’m just saying. I love his videos I just think it’s a gray area he should consider being a little more transparent about.
@@brokechef1606he is very upfront about the SD Bullion partnership imo. Atleast he was. Maybe in the last month or two he has not been but was never an issue to me
Just my opinion
Silver Dragons, I don't look at the premium and calculate it the way you do, unless you are buying many gold coins. I just buy 1 coin not lots of coins. I look at the overall price. With larger coins you are also paying more money overall. The premium does not factor into the equation. I just buy the coin based on the total price. Im sure most people are not going to their local coin shop with a calculator to figure all this math out, they just buy whatever coin whether its even 1 gram by the total price.
I disagree! The minting-costs for 1 oz are basically the same as for producing 1/10 oz pieces. The fractional coins will probably hold their premiums pretty well.
If you believe the gold price will go up significantly than you must ask yourself how many people will still be able to afford 1oz goldcoins in the future: Full ounces could become quite illiquid and impossible to sell over spot at some point in time!
Agree. Fractional coins and bars will still command a higher premium at the other end due to their higher liquidity.
People said who is going to buy gold coins for $100 back in the day. Now people pay thousands on the same gold coin.
Agreed. If the world goes to crap, fractional gold is great to have. Try and get change for 1 ounce coin.
I think you should have used the qty costs of the smaller coins/bars. So for Grams & 1/10 as it would have been much lower as you would get them at lower cost per oz prices.
Yes still paying premium over 1oz prices but not as much of one. Also a bit more liquid in sales plus premium when sold.
Agree. With the 1 gram you need to buy 31. The SD price was around $3 less at this quantity which would reduce the premium by around $100.
If you're buying 31 grams at once to get the discount, then buy a ounce instead.
@AutarchKade it would depend, yes, cheaper by the OZ however if you want a "more tradeable" fractional amount the premium may be worth it as pointed out they didn't use the correct quantity amounts vs oz / Grams in their info. They compared apples to orange in price but not the other quantity that made weights even.
Completely agree! Curious if you are using a separate DCA spread sheet for your gold like you are for your silver? I think that would be a good video showing gold this time. My assumption is that you really did not make any mistakes on your journey and if you were trade up your all your fractional gold today for 1 oz are even larger gold bars purchasing at the lowest premiums today.
It’s like a silver eagle. If I bought at 22$ eagle and can sell at 33$ now and also bought a round at 20$ and can sell for 28 then i would have made 11$ margin on eagles and 8$ margin on rounds with a higher premium for same amount out metal
You’re wrong again. You can buy Valcambi sheets of gold and silver bars and the premium wouldn’t be that high. You can buy a sheet of 50 1 gram bars for $3,496.95. Spot price on 50 grams is $3,131.66. That’s Spot price so that comes out to only $7.31 over spot for each 1 gram gold bar. DO THE MATH BUDDY!!
Keep your eyes on the premiums. It's not unusual to find deals on fractional that make them just as attractive as full ouncers.
The best way to buy gold is to buy silver now and redeem gold with it once it goes to the moon.
Hey bro. What's that black rubber looking surrounding your gold coins in capsules called?
@@ello_au cool, they look so convenient.
I don't understand why silver is a smart buy over fractional gold when for the most part, premiums on silver are higher than premiums on fractional gold.
i buy one 1/10 and 1/4 age’s each year. but that’s just the collector in me. everything else is one ounce buffalos or 1 oz age (i don’t mind paying a little more for eagles and buffalos)
I would be weary of buying gold & silver these days. Fraud and deception seems on the increase these days.
OK, so how come you don’t just sell off the fractional and rebuy whole 1 oz pieces? I think that is a good idea to have some fractional in your inventory because nobody can predict the future. And I would rather have some fractional gold at my disposal in the future just in case we are in for reasonable to sell than an entire 1 ounce piece.
Dear God silver dragons how much money do you have I thought you were middle class until I saw that gold lol
Yeah, I don't buy anything less than a 1/4 0z. of gold. Good advice.
by the same perfect reasoning, why buy anything under a kilo? thanks for explainging.
1/4 oz gold coins is a good weight.
Awesome video as always i was lucky to watch most of your videos before i started buying and learned alot before my first purchase and i like to save for 1oz definitely
Thr problem that we have in the UK with buying silver if you cannot afford gold to start with is silver is taxed here at 20% so add the dealers cut and it would tack you a long long turm to even break even on buying silver gold is tax free so if you have plenty of money to start with its not a problem.
UK folk should never buy silver
Then buy gold
Bro, these prices are way too high. I bought today 10 june 2023 2g and 5g Metalor bars and I paid 125€ for the 2 gram and 305€ for the 5 gram bars and the cheapest 1 gram they had was a PAMP 1gr for 70€...I bought them from a jewelry store in Wien Mitte The Mall , Vienna.
Right now, if you buy a ten oz gold bar, on SD bullion, its only a $35 Premium. You know, for who ever has $20,000 laying around.
I think you made a very good point. If you don't have 20K, don't buy gold. Otherwise, you are throwing your money away on making someone else rich with your overpriced premiums. Impeccable thinking. And Best Comment Here.
When it really matters it won't matter that you paid so much for the fractionals but in the here and now if you think bartering might be in your future then just buy silver. Pre 1965 US coins are even more divisible than the fractional gold, It is much easier to verify authenticity. For the price of a 1/10th oz gold coin today you could get roughly 110 silver dimes, This is much more divisible. Now if you really want fractional gold then you have to learn how to shop. Don't pay full retail, Be a regular at your favorite shop, Get to know the folks that work there and it is likely that you will get hooked up with better deals. The dips are a gift! Grow your stack!
The number I look at is the PERCENTAGE over spot, rather than the flat amount and then it really becomes obvious..for example at $188 over spot, that's (188/1986) = 9.5%. When you look at it that way, it becomes easier to get away from these high premiums. Imagine if you were going to invest 2000 in the stock market but the broker just took 10% right off the bat before you started.. it'd be like that.
That hypothetical broker is still better than buying silver. The percent over spot for premiums are insane
Yeah. I’m a $5 gold Indian kinda guy. They’ve Always been my favorite
Buying old European fractional circulated gold coins (90% or 91.67%) is way cheaper than those modern Britanias or Eagles and you will get more gold for your dollars at buying and when you sell you probably will get spot for both options. So, why would anyone buy modern normal bullion when you can get historical coins struck more than a hundred years ago and the 90% versions of those coins are even more sturdy and heavier in weight due to their silver added content.
Britanias, gold buffalos and eagles sucks (most dealers would pay you spot or maximum $20 over when reselling) but old gold sovereign or French Roaster or German 20 Marks are not being made any more (fixed supply means value may go up in the future) and they are sturdier and man these coins are more than 100 years old.
(You will get between %95 and 100% of spot price when reselling them) yet you will pay only 4% or 5% over spot to get .1867 oz or .2304 oz or .2354 oz of gold for those historic coins. And they are still government coins backed by respective governments of United Kingdom, France and Germany.
I’m with you Emmit. I like the old south and central American coins as well. I don’t think you can go wrong with these as the premiums are so low and I’ve never gotten less than 98% of spot
I agree. I like sovereigns and francs and marks. Do the math and they are usually the best bang for your buck. Plus they are old and grow fewer in number every day. Hopefully the stacker masses don't discover them before I can collect a wheelbarrow full.
It doesn’t matter what size you have, half or 1oz are good for those that can afford to spend that type of fiat without sacrificing much, but for those on a stricter budget 1/10ths and 1/4oz are good, even 1g bars are ok if you’re really struggling… the important rule is - buy what you can afford! …after all the idea is to protect your wealth, and we all have different levels of wealth, you’re not going to get rich quicker by buying bigger, you’re more likely to go broke if you overstretch your budget
What is the deal on selling?
So I guess my LCS is doing me a solid selling me gram bars at spot…. $60 each last week.
Your premise is incredibly naiive. In the past (before 2021) it was worth getting fractionals, they were hitting premiums of $50 for 1/4 ounce eagles and $70 for 1/10 (on SD bullion, no less!). TODAY and in the future it is not worth it. You WERE smart to collect fractional then before it was too late. You lucked out, in reflection!
if you can only buy one ounce or less in a year, I think fractional pieces are fine. Definitely a mistake for anyone wanting to build up significant holding in physical gold.
When it comes to Gold stick to one ounce . When it comes to Silver, Kilo bars is the way to go.
Amazing that the 10ths are going for less of a premium than the 1/4 oz. Wise advice. Save up for the full oz. I issued a challenge to silver stackers for this on my channel.
I still want a tube of 1/4 oz Brits.
really the question you should ask yourself first is.
are you a stacker or a collector.
Imagine the 7.3 ozs. I bought for every Oz. Price today.
But a dealer would buy back 10 tenth ounces coins to equal an ounce more than a single 1 ounce coin. So you would re coupe some of the high premiums but yes by far one ounce is the way to buy.
Scammer
But when purchasing 1 troy ounce of any gold bullion, don't you want to receive the highest purity for your dollar spent, like .9999 fine instead of Krugerrands or USA bullion coins.
Shouldn't the Krugerrands and the USA bullion coins either be priced less or weigh more than 1 ounce since they are less than .9999 fine?
They weigh more. You still have one ounce of total Au content which is why price is close enough where difference is driven by market demand, not by purity.
The downside of .999 gold is durability. Your 22kt eagle and 24kt buffalo start at basically the same price, but the buffalo is way more easily scratched. A little copper and silver mixed in makes for a more durable coin.
Was the gold to silver ratio over 60? Then yes.
Nothing is wrong about "buying bigger is cheaper" but... no one that I ever met, had trouble recouping their fractional premiums on a sale. Often, thanks to the market timing, it was even profitable to resell them later. So don't be completely mislead. Buy the gold you can afford, you'll be able to sell it later just fine, regardless and get break even or more, unless you just make a dumb, emergency sale, and you'd have lost doing that with "big" gold too.
Can you believe in 2004 gold spot was $500?
No! I wish I was smarter back then.😢
@@NIGHTHAWK. me too. Maybe in 2030 we will look back now and say we wish we paid more when spot was $2k lol. Or than again, maybe spot will be back to $500 per oz. Who knows
But when you sell the fractional gold don’t the premiums go with it .
Buy it now and then sell 30 years later you will make money.
Or even if you sell it a year later to a friend or your coin dealer you still break even or make more .
Yes.
should not round until the last step. I only buy 1Oz. Started with Brits
Your theory is correct, but it depends on when you purchased the gold coins. If you purchased 30 years ago, it doesn’t matter what premium you paid, you definitely made money.
Yeah, I'm just stacking silver but I am stacking platinum too.. Not much though.. Just want to get to 5oz or so
Curious why platinum? Not much history behind it like gold/silver
@@brucehansen7949 there's more history than most people know about honestly, just very little of it... But I want to be Diversified, so platinum is way lower due to lower demand from manufacturers.. But Im speculating with a sell date between 2030 - 2033.. So I'm in no hurry to sell, but I'm sure Platinum will be used more by then.. makes a great catalyst 😉