I am looking to invest between 10% and 15% of my wealth in gold. What is the best way to do this? Is it buying gold coins or gold bars? What are the easiest coins to cash out (Eagle, Buffalo, Maple Leaf, Krugerrand, Nugget, Philharmonic, etc) if I need to liquidate the gold?
Inflation is certainly a concern however Gold recently went through an inflationary period and may not keep up with the next one, you may consider another tangible asset to use as a hedge against inflation. As for diversification 5% would make a better number than 10 to 15 %. At 10% you are already over weighted according to traditional financial planning
The stock market is the best protection against inflation. It is also, by far, the best long term investment. Always has been. Always will be. Invest. Hold. Reap the reward.
Unfortunately, you guys want to debate what percentage of your portfolio should be in precious metals, but you do not know my personal financial situation or goals. I would appreciate if people posting would answer the question asked versus going on a tangent.
If you are looking for advice you’d be better off consulting a professional, you won’t get what you are looking for here, and be sure the advice you get is from a fiduciary it might cost you some money, but you’ll know it is unbiased.
@ Sinclair... you are right I do not know your personal situation or your goals.... I do know traditional financial planning models and that is what I pointed you towards.... I only pointed you that way after I answered the question about gold. I asked why you were doing it, you responded inflation and diversification, I answered the inflation and diversification question.
Honestly Anyone who asks which different type of gold coins are the easiest to cash out in the case of a liquidity need, probably should not be investing that money in tangible assets.... But to answer your question further so you don't get your panties in a wad, the smaller the denomination the easier to liquidate
@Dadillac I think bullion might be the easiest to liquidate because coin always carries a premium but bars or ingots can be sold at market rates les a broker fee. Not to contradict but that is the info I have received from trusted sources.
I’ve had a few transactions with coins, buying and selling, and it’s been easy to find a merchant that just charges a 1% fee. No experience with bullion. One merchant commented that a couple coins had minor scratches, but paid full spot, so just keep them wrapped or in coin tubes.
Leafs, Buffaloes, Eagles and Krug’s - all 1 oz and all were bought and sold with no problem.
Actually used a few 1/10 oz coins as payment/tips for girls in the past when gold was ~$6-700/ oz. Reactions were amazing, then I got the crazy idea that the girls probably lost or traded them for weed, so stopped doing that!
@25.... you are probably right.... I don't deal with many people buying gold that are thinking in an emergency which one of these choices is the easiest to liquidate, lol. Most people buy the gold stocks or ETF's instead of the actual gold.
Anything that is government issued like the eagles and the maple leaves are more secure I believe and more likely to be real gold and not sub par metals with gold coating. It is a federal crime to counterfeit government issued coins. Counterfeiting Rounds and bullion are still a crime but not as serious.
The cheapest way is using a gold etf, but still there are far better ways to invest than 10-15% of your portfolio in gold if you’re looking for protection.
Ladder your conservative allocations to hedge with other instruments like inflation protected securities which are backed by government bonds. Less volatile for hedging and more likely to protect. Also, good old cash as part of your protection is probably going to be better than gold. There just aren’t as many uses for gold as a metal, so to justify it as a currency and a hedge against inflation is a risky asset when there are far superior alternatives to gold.
Included in my brother's estate was a substantial assortment of gold coins. Kruger rands, American Double Eagles, British sovereigns, and Canadian Maple Leafs. When I sold the coins the Maple Leafs sold at the smallest discount to spot gold prices of all the coins in the collection. The Maple Leafs are the purest gold bullion coins currently available in the market - five 9s fine i.e. 99.999% purity.
I can't tell you the premium that would be paid upon purchasing Maple Leafs. Maple Leafs are available in sizes ranging from one tenth of an ounce up to one full ounce.
The Kruger rands and British sovereigns sold at a much larger discount to the spot gold price than did the Maple Leafs. The double eagles were not bullion coins; they were commercial $20 strikes for general circulation from various years in the late 19th and early 20th centuries (none were numismatic rarities).
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Honestly Anyone who asks which different type of gold coins are the easiest to cash out in the case of a liquidity need, probably should not be investing that money in tangible assets.... But to answer your question further so you don't get your panties in a wad, the smaller the denomination the easier to liquidate
Leafs, Buffaloes, Eagles and Krug’s - all 1 oz and all were bought and sold with no problem.
Actually used a few 1/10 oz coins as payment/tips for girls in the past when gold was ~$6-700/ oz. Reactions were amazing, then I got the crazy idea that the girls probably lost or traded them for weed, so stopped doing that!
Ladder your conservative allocations to hedge with other instruments like inflation protected securities which are backed by government bonds. Less volatile for hedging and more likely to protect. Also, good old cash as part of your protection is probably going to be better than gold. There just aren’t as many uses for gold as a metal, so to justify it as a currency and a hedge against inflation is a risky asset when there are far superior alternatives to gold.
you can't go wrong with Bitcoin.
I can't tell you the premium that would be paid upon purchasing Maple Leafs. Maple Leafs are available in sizes ranging from one tenth of an ounce up to one full ounce.
The Kruger rands and British sovereigns sold at a much larger discount to the spot gold price than did the Maple Leafs. The double eagles were not bullion coins; they were commercial $20 strikes for general circulation from various years in the late 19th and early 20th centuries (none were numismatic rarities).