I just rewatched this podcast again. In the podcast, you mention a 3 to 7% markup when buying a coin. When I go to Google today April 6, 2023, and search price of gold per ounce, I see Monex live showing $2,020.00. If I go to Apmex.com and look at a Buffalo coin, I see a price of $2,226.39, so closer to a 10% markup.
Assuming I have the above right, I wonder about holding the metal versus the GLD fund you mention later in the podcast. Following my first listen to your podcast, I did make a purchase of shares in that fund. I recall that you said that fees in the fund over time eat into profit and therefore you recommend holding the metal rather than the shares, though you sometimes temporarily buy the shares to lock in a price. Presumably the fund, though, doesn't have the 10% initial markup? Or do I have that wrong?
Then my related question would be on the sell-side. The podcast discusses how to buy, but if one later wanted to sell, the GLD fund would be easy and presumably there are no transaction costs other than taxes. When selling the physical gold, would one encounter fees?
Put differently, I understand your point when you talk about gold being HIGHLY liquid. I interpret that in the context of being accepted as a thing of value in every country for the last 4,000 years. Amazing! But on the other hand, the GLD fund shares can be liquidated by pressing buttons on a computer. By contrast, I wonder how long it takes, and what fees are involved, with the physical gold.
Great podcast! A couple questions: (1) When you mention a target like 10% in gold, are you referencing 10% of net worth or 10% of investment portfolio? (For people like me with expensive houses that they live in as their residence, these can be wildly different numbers.) (2) It was interesting to me that you suggested coins as the entry point because buying the etf gld (one of your other recs) seems WAY EASIER. My assumption is you encourage the former rather than the latter because it's "outside of the system" and thus less subject to seizure by governments, creditors, etc. Do I have that right?
Thanks for the question! I'm aware of the potential for silver and the fact that according to its historical value ratio it looks undervalued relative to gold. As I mentioned in my podcast, I stick to gold because it is the purest monetary metal. That does not mean silver is not a great way to save, nor does it mean I don't like silver. It is just my preference based on the time I have to keep up with it. Here is a link to someone who has an expert opinion on your question: Keith Weiner of Monetary Metals and Co. The article will guide you to some specific commentary and a specific outlook. Good luck, you are on the right track.
Jim, it seems like dealer price relative to spot price is much more favorable on bars relative to coins, especially as the bar sizes get to 10 ounces and higher. Are there disadvantages of bars relative to coins and higher ounces relative to lower ounces, e.g., when it comes to resale? Is the best strategy on these gold sites to sort to find whatever item is closest to spot value?
When one buys/sells physical gold, is there any kind of registration process with the government, as there is with buying a firearm? Or is it more akin to buying a watch, where you pay for it, get a receipt and that's the end of it? What prompts this question is one of confiscation by government, court, creditor, etc.
PS I asked ChatGPT4, and it tells me that in the USA:
"buying and selling physical gold is more similar to buying a watch, where you pay for it, get a receipt, and that's the end of it. Generally, there is no registration process involved in buying or selling physical gold, and ownership of physical gold is not typically tracked by the government."
I just rewatched this podcast again. In the podcast, you mention a 3 to 7% markup when buying a coin. When I go to Google today April 6, 2023, and search price of gold per ounce, I see Monex live showing $2,020.00. If I go to Apmex.com and look at a Buffalo coin, I see a price of $2,226.39, so closer to a 10% markup.
Assuming I have the above right, I wonder about holding the metal versus the GLD fund you mention later in the podcast. Following my first listen to your podcast, I did make a purchase of shares in that fund. I recall that you said that fees in the fund over time eat into profit and therefore you recommend holding the metal rather than the shares, though you sometimes temporarily buy the shares to lock in a price. Presumably the fund, though, doesn't have the 10% initial markup? Or do I have that wrong?
Then my related question would be on the sell-side. The podcast discusses how to buy, but if one later wanted to sell, the GLD fund would be easy and presumably there are no transaction costs other than taxes. When selling the physical gold, would one encounter fees?
Put differently, I understand your point when you talk about gold being HIGHLY liquid. I interpret that in the context of being accepted as a thing of value in every country for the last 4,000 years. Amazing! But on the other hand, the GLD fund shares can be liquidated by pressing buttons on a computer. By contrast, I wonder how long it takes, and what fees are involved, with the physical gold.
Thank you much!
Great podcast! A couple questions: (1) When you mention a target like 10% in gold, are you referencing 10% of net worth or 10% of investment portfolio? (For people like me with expensive houses that they live in as their residence, these can be wildly different numbers.) (2) It was interesting to me that you suggested coins as the entry point because buying the etf gld (one of your other recs) seems WAY EASIER. My assumption is you encourage the former rather than the latter because it's "outside of the system" and thus less subject to seizure by governments, creditors, etc. Do I have that right?
What about silver? Is it not underpriced relative to gold, at least based on historical relationships?
Thanks for the question! I'm aware of the potential for silver and the fact that according to its historical value ratio it looks undervalued relative to gold. As I mentioned in my podcast, I stick to gold because it is the purest monetary metal. That does not mean silver is not a great way to save, nor does it mean I don't like silver. It is just my preference based on the time I have to keep up with it. Here is a link to someone who has an expert opinion on your question: Keith Weiner of Monetary Metals and Co. The article will guide you to some specific commentary and a specific outlook. Good luck, you are on the right track.
https://monetary-metals.com/silver-little-known-indicator/
Jim, it seems like dealer price relative to spot price is much more favorable on bars relative to coins, especially as the bar sizes get to 10 ounces and higher. Are there disadvantages of bars relative to coins and higher ounces relative to lower ounces, e.g., when it comes to resale? Is the best strategy on these gold sites to sort to find whatever item is closest to spot value?
When one buys/sells physical gold, is there any kind of registration process with the government, as there is with buying a firearm? Or is it more akin to buying a watch, where you pay for it, get a receipt and that's the end of it? What prompts this question is one of confiscation by government, court, creditor, etc.
PS I asked ChatGPT4, and it tells me that in the USA:
"buying and selling physical gold is more similar to buying a watch, where you pay for it, get a receipt, and that's the end of it. Generally, there is no registration process involved in buying or selling physical gold, and ownership of physical gold is not typically tracked by the government."