hedgeless_horseman's E-Z Internet Guide On How To Actually Buy Gold, and Not Just Talk About It, Bitchezzz!!!!

hedgeless_horseman's picture

"When robbery is done in open daylight
by sanction of the law,
as it is done today,
then any act of honor or restitution
has to be hidden underground."

-Ragnar Danneskjold

 

The internet and ZeroHedge are filled with articles discussing why it is a good idea to buy gold.  If I only had an extra ounce of gold for every time I typed or read the phrase Gold, Bitchezzz!!! here on ZeroHedge.  Which brings me to the topic of today's article, hedgeless_horseman's E-Z Internet Guide On How To Actually Buy Gold, and Not Just Talk About It, Bitchezzz!!!!  

Several years ago, I posted a brief parody on the topic of gold, The Twelve Steps...

 

The Twelve Steps

We came to understand that our government is powerless over its spending - that our nation's debt had become unmanageable.

We came to believe that a power greater than our fiat currency could restore us to sanity.

We made a decision to turn our savings and our investments over to the care of gold, as we understand gold to be a physical asset - not a paper promise.

We made a searching and fearless inventory of our wealth.

We converted to gold, to Krugerrands, and to Maple Leafs, the fiat paper assets of our wealth, thus eliminating our counterparties.

We were entirely ready to have gold remove all risk of default.

We humbly asked the coin dealer to reduce our exposure to The Inflation Tax.

We made a list of those politicians that expose us to The Inflation Tax, and became willing to work against them all.

We gave direct support to Libertarians whenever possible, except when no Libertarian is on the ballot, and then we voted against the incumbent.

We continued to create wealth through our own industry, and then we converted it to gold, and promptly buried it.

We sought through silver coins to increase our contact with precious metal, as we understand silver to be a physical asset - not a paper promise, paying for as many day-to-day transactions with silver as possible, using our credit card (not debit) for what was not, and paying off the entire balance each month.

We, having had a fiscal awakening as the result of these steps, tried to carry this message to others, and to practice these principles in all our affairs.

 

If you feel like you are one of us, or want to be one of us, but need a little help getting started, then keep reading, because this article is for you.

As long-time ZH readers may know, as an American, I prefer buying one ounce South African Krugerrands and Canadian Maple Leafs, and not coins from the United States Mint.  I am frequently asked about this preference, and I usually respond with something like this:  

Unlike the kilo bars, one ounce Canadian Maple Leafs [and Kruggerands] don't have serial numbers, can be claimed as foreign currency with a face value of $50 [one ounce Maple Leaf] , and are much harder to core and fill with tungsten [versus a bar].  They are also easier to stick up your ass in a pinch.

 

http://www.zerohedge.com/news/2016-12-08/which-these-would-you-rather-ha...

These may seem like minor points to some, but it is my understanding and experience that DHS does allow me to enter and exit the USA with up to $10,000 of undeclared cash and coin, and that the Maple Leafs are counted by their face value of $50 Canadian dollars, and not at their melt value or market value.  It is also my belief that the United States government would have an easier time making illegal, confiscating, or requiring a mandatory exchange of any coins issued by the United States Mint, as opposed to foreign currency.  See India for a present day example.  As far as being able to smuggle gold coins in my ass, well, I have had the privilege of knowing two very amazing people that owe their very lives to doing exactly this.

I like to buy gold every month, right before Options Expiration, when the big banks and paper-gold traders historically hammer down the quoted price of gold.  Remember, the idea is to buy low.  The CME OpEx calendar is available here:    

http://www.cmegroup.com/trading/metals/precious/gold_product_calendar_op...

By being a regular-monthly customer, I am able to negotiate a lower premium and overall price from the coin dealer, because he wants my repeat business.  

Regarding premiums, when buying or selling 1-10 one-ounce Krugs or Maples, I expect to pay or receive a premium of between $30 and $45 above the spot price for gold, which is also a negotiable amount between the Bid and the Ask quotes listed on www.kitco.com or similar websites.  Do not ever trust the dealer to determine the spot price.  Look it up on your phone.  

In addition, I benefit economically from, and enjoy emotionally, the self-discipline of consistently paying myself first each month. This is no small thing.  Please, spend some time pondering these concepts while holding a gold coin in one hand, and a credit card statement in the other hand.

Although I may primarily transact with my local coin dealers, I have also traded with pawnshops, at yard sales, at swap meets, and privately with friends and acquaintances.  It is important to develop a relationship with, and even support, all of the numismatic shops in one's geographic area.  It is also important to vary one's habits, and to experience buying and selling gold coins outside of a coin dealer. 

There are usually no transaction receipts or records of any kind for these exchanges, and so it is up to the individual taxpayer to track his own capital gains and losses, be that as it may.  

I am not a tax expert, am not giving any professional advice, and cannot even spell CPA or IRS.

It is also up to the individual to provide his own security.  To that end, see my article:

http://www.zerohedge.com/news/2015-09-10/guide-learning-use-sidearm-defe...

As I mentioned, the subject of this article is not why I think it is good to buy gold, but how I think it is best to buy gold.  Let us examine a few of the reasons why it is best to buy gold coins, specifically.  

Gold coins are very...

  • Anonymous - No serial numbers, no block chain, no way to track who owned or owns it.  Very difficult to tax.
  • Fungible - Unlike gems, generally speaking, one Krugerrand or Maple Leaf is as good as any other.  Stay away from grades, collectibles, mint, or proof.  
  • Portable - It fits in your pocket.  Unlike real estate, I can carry a million dollars of gold coins, about 50 pounds, in a good knapsack, and a whole lot more on a little sailboat.
  • Durable - They don't rust away, burn, or even tarnish much.  Gold coins left on the bottom of the ocean for centuries are worth more, not less.  
  • Recognizable - I can and have traded Krugerrands or Maple Leafs in many places in the USA, Europe, Asia, The Caribbean, and Latin America.  One really doesn't need any special equipment to determine authenticity, once you get the feel of them.
  • Stashable - Neither blood, nor sweat, nor tears, nor dirt, nor heat, nor cold, nor rain, nor sea, nor worm, nor moth, nor flame will affect or diminish the value of gold coins.
  • Meltable - If push comes to shove, gold coins can be melted and cast into larger or smaller ingots, jewelry, furnishings, and hardware.
  • Affordable -   Expenses are low, as you don't need a Bloomberg terminal, phone, or even a desk.  You don't have to pay storage fees on a hole in the ground.  If one ounce is too expensive, you can get 1/2 ounce, 1/4 ounce, 1/10 ounce. 1/20 ounce, and 1 gram coins, although the premium will be higher.  Or consider silver coins, I like Mexican 1 oz Silver Libertads (Random Year), but understand that they have very low portability.

I transact in cash, so as to not create a record, and buy an amount greater than $1,000, because then gold coins are exempt from sales tax where I live, and less than $5,000, because I believe that the coin dealer is not required to get an identification or report these transactions to the IRS.  The limit used to be $10,000, I believe, until Our Beloved Big Brother passed The Patriot Act, for our own security and protection from scary terrorists, of course.  

I like to invest the same amount of money in gold each month to benefit from the age-old and proven mathematical concept of Dollar Cost Averaging.  When gold is cheap, then I end up buying more ounces, when it is expensive, then I buy fewer ounces with the same amount of money.  On average, over time, my purchase price per ounce is less, so that my return is greater...much greater.

So what do I do if my monthly investment is say, $3,000, the spot Bid/Ask is $1172.40 / $1173.40, and I agree to buy 2 one-oz Kruggerands at $1173 + $35 premium, totaling $1208 x 2 coins = $2416.  I still have almost $600 to spend.  What a great problem to have!  The oldest lil_horseman would call this a White Person Problem.  Depending on what the seller has in inventory, I can buy 1/2, 1/4, or 1/10 ounce Krugerrands, or if I don't want to pay the higher premium, maybe some Mexican 1 oz Silver Libertads.  What is not to like about a pure silver coin with beautiful and topless Liberty on it? The important thing is to sell those depreciating US Dollars in exchange for something that holds its value.

Building wealth should be fun!  I don't need to waste my life listening to horseshit narratives about the latest stock offering, reading bond offerings, checking the NAV of mutual funds, or worrying that my account is going to be Corzined.  I don't have to help pay the mortgage of some portfolio manager.    I can sleep at night, because the value of gold coins has NEVER gone to zero.  I can practice disintermediation.  

Maybe in a subsequent article I will write about safely storing gold coins.  Until then, use your imagination, but don't put them in a bank.

Peace and prosperity!

h_h

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HRClinton's picture

Diamonds, not clunky gold, are a girl's best friend. 

So are rights as co-owner to property or a bank account. A precious painting will do nicely too.

I know what I'm talking about, as "I am richer than you are". To quote a good friend of mine, Jamie Dimon.

TheAnswerIs42's picture

Here is the definitive listing of what is reportable (IRS Form 1099-B) and what is exempt for both buying and selling:

     https://www.jmbullion.com/reportable-bullion-transactions-infographic

By following these rules you can easily buy/sell PM coins in ANY amount with no reporting requirements at all.

The exemptions for some fractional coins and some foreign coins are interesting.

Note that ALL bars/rounds are reportable.

Also note the requirements for reporting cash transactions over $10000 (Form 8300).

Note that personal checks, bankwires, PayPal, ACH transfer, credit/debit are NOT considered Cash and thus are NOT reportable.

Always make sure that whomever you are dealing with is aware of these rules.

MadhyaBharatx's picture

this is interesting. Good charts.  At least one analyst is honest and is accurate.

 

https://t.co/LM81DZlPyF

 

copied from below.

BrownCoat's picture

"DHS does allow me to enter and exit the USA with up to $10,000 of undeclared cash and coin"

Just don't show up to the border with $10,000 face value in gold coins. The border guard may steal it (asset forfeiture) until you can prove where it came from. A few years ago, national govt added regulations for coin dealers to create paper trails. 
Basically, you have something of value, the govt mafia wants it. 

debtor of last resort's picture

We failed to see the exchange rate between surplus energy and physical gold is a zero sum game.

Fred C Dobbs's picture

I havn't bought gold in a few years as we are building a house without a home loan.  My gold buying went numismatic after I was asked many years ago by a US Customs official if I had bullion or numismatic coins when leaving the country. I started thinking 1933 gold confiscation and started buying St. Gaudens at about 45 USD over spot which shortly changed to 100 USD or more.  I then went to pre WW I European 20 Francs.  I can't remember the premium over spot but it was low.  My favorite were the French Lucky Angels but they were not always available at my local coin store.  If a gold coin is needed for a bribe these would be a good place to start as they are less then 20 percent of a one ounce coin.  Everyone can see they are old and you can point out the heavy weight is gold.  I collected several tubes of these and really liked them.  History, attractive, nearly uncirculated condition and gold.  The house will be done soon and hopefully I can start buying them again. 

 

From Amerigold.com

Legend of the Lucky Angel

The magnificent 'Guardian Angel' design on the obverse was originally created during the French Revolution by Augustine Dupre, and was considered a lucky charm from the start. Dupre claimed to have been saved from the guillotine by the lucky Angel coin in his pocket. French pilots in World War I rarely took flight without one in their kit; and German fighter pilots received an Angel for every fifth Allied plane shot down during World War II.

Unlike most forms of gold bullion, they are exempt from broker reporting requirements. In our opinion, they're better than bullion for bulk gold buyers.

HRH Feant's picture

HH: very funny take on the 12 steps! This is a 12-step program I can get behind, no problem!

I like what you said about being able to sleep at night. Learning to pay yourself first, and saving, are habits best acquired when young but this habit can be learned at any age. Dollar-cost averaging is an excellent method. It isn't complicated and I like it when I can apply the KISS rule.

I also prefer Maples (gold and silver) along with Aussie kangaroos. The purity is higher at .9999 versus .999 for Eagles. Plus there is the advantage that no one hates Canadians or Australians but the US has plenty of enemies.

I have the Kitco app on all of my devices. I have bought from Kitco over the years and never had any problems. I also like JM Bullion and SD Bullion. Always a good idea to shop around and get the best price / shipping / customer service.

Not My Real Name's picture

For me, .999 vs .9999 purity is irrelevant as long as the coin contains one troy ounce of gold. 

When you consider gold American Eagles also contain a small amount of silver, they actually have more precious metal value than gold coins from elsewhere.

Vlad the Inhaler's picture

I also like the idea of sub 1 ounce gold coins vs silver, if you are going to hand off a coin to bribe your way across a border etc, good chance the soldier won't know shit about the coin other than it's gold and gold is valuable.

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Good article.  Since I plan on sticking it out here in the former land of the free I buy U. S. Minted Gold and Silver.  I figure it will be more liquid and recognizable when crunch time comes.

Also, I like Silver over Gold because of its lower denominations.  One ounce of Gold may work in a crunch if you want to buy buildings but for day to day survival I like Silver American Eagles. 90% Pre-65 U. S. dimes, quarters and halves as well as old Morgan and Peace Silver Dollars.  All these are U. S. currency, low denomination and I believe very recognizable and liquid in a crisis.

When I do buy gold I buy 1/10 Gold American Eagles with a face value of $5.

We must think ahead to when Gold is $3000 an ounce and silver is $75 per ounce due to devaluation of the dollar.

Again, I liked the article and agree with most points made but for one who is gonna stay here during the crisis low denomination U. S. minted Silver is what I buy and fractional Gold when I do buy Gold.

One more thought, do you really think big brother will hesitate confiscating a Kruggerand or Maple Leaf vs. a U. S. minted coin!?  If confiscation is a concern, one should buy coins having "rare and unusual value" such as graded Pre-33 Gold and graded Morgan and Peace Dollars.

Trust in God and keep your powder dry!

 

Tuco

 

AliSONY's picture

 

Seriously? This article is both profane, which shows a lack of true intelligence and it is nebulous and vague at best. Amazing what people consider journalism and analysis these days.

 

I see a lot of you discussing Shepwave  and they are good.  Their past evidence is hard and solid; no denying the evidence.But I have been discussing them less and less because the liberals on here will attack you if you disagree with them and face it, those on here have been bearish for so long that they not only missed the rally of the past five years but when the markets do crash they are going to be broke and cannot make any money on it.  

 

Here is the link that someone shared.  Former analysts from Goldman Sachs 

 

Can't argue with their preciseness and proven track record.

 

https://t.co/LM81DZlPyF

Lumberjack's picture

Then how about this?

 

SDSM outraged: Financial Police is investigating 22 Soros funded NGOs

http://macedoniaonline.eu/content/view/30915/2/

 

The dispute over the role of the civil society sector in Macedonia continued to expand on Thursday, as SDSM party spokesman Petre Shilegov said that 22 non-Governmental organizations are under investigation by the Financial Investigation Bureau. VMRO-DPMNE party responded that this press conference only serves as further proof that SDSM coordinates its activities with the by far largest umbrella organization of the civil society sector - the George Soros funded Foundation Open Society Institute Macedonia (FOSIM).

"According to information we have, on the initiative of the current director of the Security and Counter-Intelligence Bureau Vladimir Atanasovski, who was the former head of the FInancial Investigation Bureau, the Anticorruption Commission initiated investigations of 22 NGO groups. Additionally, 42 individuals, open critics of Nikola Gruevski and supporters of the opposition, are under investigation. We say that the time of politicians like Gruevski is over and there will be institutions that operate solely in the interest of the citizens", Shilegov said.

VMRO-DPMNE leader Nikola Gruevski blamed the Soros funded network of monopolizing the work of the civil society sector and said that its activities have been completely politicized in favor of SDSM. Darko Kostovski from VMRO-DPMNE responded to Shilegov's press conference to say that it is only further proof of the coordination that exists between SDSM and FOSIM.
"Petre Shilegov today promoted himself as spokesman for the NGO groups controlled by George Soros. He proved that their past vandalism, their attacks on the police and the destruction of national monuments was part of a joint plan between SDSM and Soros. SDSM and Soros were defeated at the elections. The majority gave a red card to the pardoned criminal Zoran Zaev and his NGO minions, who kept Macedonia in an artificial crisis for two years, inflicting enormous financial harm to the country in the process", said Kostovski.

The FOSIM coordinated NGO groups took part in what they called a colored revolution in 2015 and 2016, during which they would throw paint at landmarks and official buildings in the capital Skopje and across Macedonia, but would also clash with the police and destroyed an office of the President.

Fathead Slim's picture

You're responding to a spambot.

KC Spike's picture

A spambot  Is there really such a thing?  Read the charts. They HAVE been calling the markets basically exactly. Seems like a lot of ignorant criticimms going on with no research.  Typical of this board. Truth by FIAT is not truth. This is what liberals need to understand. 

Lumberjack's picture
Signed As Law: Ohio Takes On Asset Forfeiture

http://www.activistpost.com/2017/01/signed-law-ohio-takes-asset-forfeitu...

 

On Wednesday, Ohio Gov. John Kasich signed a bill that reforms asset forfeiture laws to prohibit the state from taking property without criminal charges in many cases. The new law also takes on federal forfeiture programs by banning prosecutors from circumventing state laws by passing cases off to the feds in most situations. 

Capn Mike's picture

You mean Kasich is not a COMPLETE ASSHOLE??? Huh. Well good for him. +1 Kasich.

 

Umh's picture

Kasich did something right? I guess he didn't have a choice.

Fireman's picture

Ag

Au

Pb

 

On to the  co££ap$€ of worthless Pentacon protected fiat filth and the execution of the banksters and political whores that peddle it!

Handful of Dust's picture

Good information HH. Thank you.

bookofenoch's picture

Gold, Bitchezzz!!!!

Someone had to say it...

overmedicatedundersexed's picture

once you aquire PM's you will want more. to the proper groomed buyer it is like your favorite bink or blanket..makes you warm and secure.

alas, we cannot trust anything , fiat frn's nor PM's -all is folly.

but the ju's did not print PM's outta thin air, so I go with PM's and they do make me feel warm and secure, so there is that.

Hitler liked gold so much he started WWII to get it all. or some such..and the Ju's were not happy their fiat paper was tossed aside. right mr yellen, mr ben shalom bernake,mr greenspan???

Latitude25's picture

My 2 cents.  Check all gold coins with the mobile app bulliontest.  I've found fake maple leafs before I  bought them.  Crossing boarders has never been a problem.  DHS are on cruise control and bullion coins pass right through.  

Fathead Slim's picture

Learn to check coins without cell phone service. Make a list of diameters, thickness and weight. Carrying a small scale and a small dial caliper is key. Counterfeits can be detected easily by measuring thickness, diameter and weight and comparing to your list of coins.

If what you're checking doesn't match your entry for the coin type, pass on it. I've been buying coins and using this method for decades and have never been burned.

Fred C Dobbs's picture

My wife takes gold and silver out of the USA too.  Her last trip she was taking a lot of gold coins and complained about having them in the plastic tubes.  She wanted them loose in her traveling money belt.  She put them on the conveyor belt at the TSA check point and the male government employee took them out and gave them special attention.  When she got to her destination she was short 2 gold eagles.  I filed the proper TSA loss forms and have not heard from anyone. 

Capn Mike's picture

That's what? $2400????

Holy shit, THAT's not the way to do it!

 

pparalegal's picture

I like PCGS & NGC certified "collectible" coins.  They were exempt from confiscation last time and are no longer simply government issued things to be outlawed or recalled (because Uncle Sam owns all currency).

Fathead Slim's picture

I have a friend who thinks that rare stamps are the way to preserve his wealth. I think that's a mistake. I don't trust an 1893-S Morgan dollar in a PCGS MS66 slab to hold a value past the spot price x.77 ozt. in the case of a societal collapse

Fred C Dobbs's picture

I came to the same conclusion. 

Yen Cross's picture

  Buying is the EASY part. Selling is where the vultures want their cut.

Patriot Eke's picture

Only sell it once you're retired, and then only sell to local coin shops.  Sell a few coins at a time.  It's not reportable, and it is tax free.

Manipuflation's picture

Why would anyone sell physical gold in this crowd?  Trading maybe.  I am on 18 years of never selling any gold once it has come into my posession.  Maybe you have your own way of doing things but when gold hit $1900 but I was not going to get back what I sold and then try to buy back again.  Silver I did have some fun with and plan to again.  

Gold goes to my wife and children.  Probably most of the silver will too.  I have no idea what I am doing with platinum and I only have a one half ounce coin.  I just had to have that coin.  I did palladium and barely made anything when I should have made bank but you couldn't get the metal either.  I had physical palladium and sold at $650 after buying at $430 for a $70 premium.  Then I had to pay $50 to sell.  Not a lot of buyers of palladium I found out.  

I agree with you.   

TeethVillage88s's picture

Yeah, man. I am sympatico.

I bought some point after 2009 into Gold Paper. Somehow I bought at the top of the market and lost my ass.

So... Palladium and Platinum seem to have little physical market.

- Only Buy Silver & Gold, probably only Phys
- But I am a loser, I lost, I am not a timer, I am not a trader
- Buy and hold, Silver & Gold
- Buy and hold, Silver & Gold
- Buy and hold, Silver & Gold
- Buy and hold, Silver & Gold
- Buy and hold, Silver & Gold

DirkDiggler11's picture

Great read HH and I like the perspectives you presented on how to by Gold and why you do what you do monthly. Also, thanks for not pimping some freakin Marry Poppins Special, the Unbreakable Wonder Unbrella that will end up getting someone shot full of holes. Who the hell brings an unbrella to a gun fight anyways ???

Patriot Eke's picture

You missed one of the best reasons to buy it.  My father was buying gold for 30-300 dollars an ounce.  Now he can sell a coin a month to pay his bills while retired.  When he sells that single coin, it is entrely tax free unlike other ways to fund your retirement.  That is the main reason I like gold.  I also like that you have to risk death to steal it from me.

hedgeless_horseman's picture

You missed that this article is not about reasons WHY to buy gold, but rather HOW to buy gold.

Patriot Eke's picture

My reply was not meant as a jab.  I have a lot of respect for you and really appreciate your content.  My comment was only meant to add to the good advice you already gave.  When I explain that perk of gold as a retirement plan, a lot of people have the proverbial light bulb in the head look.  They usually go, "ah ha!"  It's a big deal when you figure out an easy and legal way to avoid taxes once retired.  :)

hedgeless_horseman's picture

 

Understood. 

No worries.

It's all good.

Manipuflation's picture

Hedgeless,  I understand the man's point about his father. 

I respect you Hedgeless and most everyone here does.  I am not from the burbs. 

One day, I am going to write about that I brought my wife from Russia and over the course of a decade and a half I taught her how stick up for herself against ME and to tell me to fuck off if need be.  Now she rides a Harley and I am proud of that.  It's her bike.  And does she ever like it.  She was going on her own at about 53 mph for a while but I wouln't ride with her anymore.  I would watch because I would pull off and then follow her blocking off cars.  She can take care of herself now and she has done it herself.  Now she understands freedom.

All from a woman who said she would never even ride a motorcycle no matter what.  Took a few years. 

 

lasvegaspersona's picture

Gold can be melted...thus no worries how you hold it. 

In the past 3 years good counterfeits have been made so a relieble source is required.

If we survive with a viable currency system intact gold, not gold and silver , will be the reserve. I'd go at least 5;1 gold;silver. It is only the desire for that 'ratio' to drop that encourages so many to silver...I don't buy it. the world has chosen gold over silver.

numapepi's picture

In any scenario that will require you to use gold eagles as forms of currency, are the same scenarios that unwanted attention could get you killed, and every eye will turn to you, the moment you pull one out...

Silver not as much.

TeethVillage88s's picture

Gold Bullion Counterfeit List needed now!

I've seen some videos on PAMP and Australian Bullion bars... but haven't see much more than the big bars with tungsten, what are they like 1 kilo?

Really, we all know that reeding of coins is to prevent shaving... and there are many techniques... what are we talking about?

ZH... Tyler Durdin, we need a list if there are coins counterfeited. Since I've not seen this, the poster is... an old poster... and familiar poster... but he must be wrong in CONUS and correct in OCONUS?

I guess, this is a ZH Article... who will write it? OCONUS Counterfeit.

Hongcha's picture

I buy based on what I think the CHINKS are going to want, when the flag goes up over there and they fly to the US and Canada and hoover up every ounce.  American Silver Eagles and American Gold Eagles.  I have used apmex for 15 years and they have been reliable.  I could probably get a lower prem but I pick up the phone and get an honest-to-gosh customer service rep in OK City and I like that.  They also provide insurance.  Just got 100 SAEs yesterday by UPS, in fact.

I avoid the Pandas - they are widely counterfeited in China.  They counterfeit Eagles too but those are obvious.

lasvegaspersona's picture

For now the price of a good, thick plated gold Eagle is relatively high. If the POG rises then it will be  more common to see high quality fakes.

TeethVillage88s's picture

"plated gold Eagle"

WTF?

I've not heard about counterfeit gold eagles nor Chinese Pandas.

But f it, I don't have either.

Bemused Observer's picture

Coins are ok, but personally I prefer to accumulate old gold jewelry, from estate sales and such. Firstly, because I always get it mind-blowingly cheap (I don't even have to remember what I paid, unless gold goes to like 10 dollars an ounce, profit is huge and guaranteed.) I never cease to be amazed at finding say, a 30 gram bracelet, 14k, for a dollar...who sells that for a buck? Who cares? Just keep doing it...

Availability? Hell yes...every weekend in spring, summer and fall I get anywhere from 8-50 grams of 14 or 18k something, I've never paid more than 5 bucks for a piece.

Liquidity? Oh yes, I've never had any problem converting some to cash if needed, I have an honest 'gold guy', and precalculate what a piece is worth based on weight/caratage. The whole process takes less than 10 minutes.

Safe from confiscation? Now that's the big thing...should that ever happen again, coins and bars could be very difficult to trade, or even to own. But women's jewelry has never been subject to such confiscations in the past. Of course, that could change, but if things get so bad that they are ripping gold off women's necks and seizing wedding rings, I'll just lay low and wait for the inevitable to happen...once they hose all the blood off the streets, I'll pop back up with my gold. Lets see if they ever cross that line...I'm betting they won't, because the logistics and optics would almost certainly make it a self-limiting phenomenon.

It may well be illegal to trade gold one day, but if that happens, I'll still have an easier time trading a necklace than someone else would with a bunch of Krugerrands. And, if caught, my necklace will be a lot easier to explain than those coins. A woman trying to trade her necklace for food money doesn't attract the kind of attention that some guy with a stash of coins would, she seems more desperate than cunning.

And of course, moving about with gold is much easier if you are wearing it than if you are lugging around a stash...and it's probably much easier to hide jewelry up your ass if needed than Krugerrands...(ouch!)

I'm also filling a bin with stuff like SIM cards and other gold-rich electronic and other scrap...just accumulating for now. But if gold should have a serious price spike, that scrap will sell fast, if I don't decide to refine it myself. I made a killing on scrap the last time gold went high, though I'm definitely not in selling-mode these days.

And, just as a reminder folks...keep a stash of those 1's, 5's and 10 dollar bills. Remember, ATM's dispense 20's, and should there be a bank 'issue', all your neighbors will have 20's coming out their ass, and change won't be available for long. You don't want to be the guy who either has to pay 20 bucks for that milk, or end up buying shit you don't need just because there's no change for that 20.

Fathead Slim's picture

The trouble with karat gold scrap is that there's always a spot price penalty in refining and converting it to coin. Dealing with a refiner or a broker for refiners entails paperwork.

I made money on scrap during the climb to $1920, but since the spot price beatdown, dealing with scrap became unattractive. Scrap isn't for stacking. It isn't easily tested, which makes its use as money problematic.

24k Asian "jewelry" that was made for taking savings along when crossing borders is better, but still subject to complication come conversion/trade time. Coin is best for stacking, IMO. Obsolete monetary coin is what I've been stacking, US $1-20 coins and British Sovereigns.

Other stackers, so far, have been willing to trade me pre-ban US gold coins for .999 rounds at my own premium charge, but the amount of US and Brit gold money available has shrunk somewhat.

I don't worry much about another FDR style seizure announcement for US gold money. When the next round of confiscation comes, it probably won't matter what form your hoarded gold takes, the PTB will want it all.

Dame Ednas Possum's picture

Silver tableware at car boot/ garage sales is a winner too. 

Food Loaf Junkie's picture

Wow, you must be in the richest area, I won't bother asking where.  I also hunt the yard/garage/estate sales and have never found anything like that other than one ring and two pairs of earrings.  People around here know what little bit of gold they have and don't give it away.  I feel lucky if I score some sterling silver that is not priced at spot.  I do better asking if they have any old coins, about 20% of the time they do and I pay them fairly, a good buy is one thing, cheating them is another.  You have to answer at the end of the ride for what you do.