Author Topic: How do you hold your gold?  (Read 5042 times)

militaryincome

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How do you hold your gold?
« on: September 25, 2012, 10:57:15 PM »
Disclaimer: I am NOT trying to make another discussion on the validity of investing in gold or other commodities.
I am hoping someone who owns gold could share how they do it.

All the reccomendations I have seen advise physically holding gold. I found a way to get a sate deposit box for free here:
https://www.chase.com/online/military/military-personal.htm
I found other banks/credit unions that charege $20 a year, which is cheaper than I thought it would be.

What I want to know is, where and how do you buy and sell gold? I'm under the assumption you have to pay a premium when buying, and sell it at a discount. What company gives the best rates?

It seems like buying gold through an ETF would be much easier. From what I have seen, GLD is the most popular, with an expense ratio of .40%. However, IAU, with an expense ratio of .25%, seems like a better option.

I'm only considering investing about $5,000.
Any advice on gold ETFs or experiences with gold would be greatly appreciated!

focusaurus

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Re: How do you hold your gold?
« Reply #1 on: September 25, 2012, 11:18:41 PM »
I used the Vanguard ETF "GLD" "SPDR GOLD TRUST GOLD SHARES". I don't know a lot about the various ways to invest in and/or own physical gold, though. All I can say is it is way up since I bought batches at $107 and $122 and it's currently at $170.

AdrianM

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Re: How do you hold your gold?
« Reply #2 on: September 26, 2012, 12:55:27 AM »
OK if you are going to buy gold and are asking about storage then I'll presume physical.

You want to split it up between locations so that its not a case of all eggs in one basket.

Do you own a good safe?

How good is your OpSec? try to keep you mouth shut and if you can't then spread disinformation on where you store it.

I dislike bank vaults because of bank holidays, that said midnight gardening is always a challenge.

So where can get tricky but there are private vaults around both in the states and overseas
http://www.bullionvault.com/ if you go the private route then check if it is allocated storage or pool.



 


Pete914

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Re: How do you hold your gold?
« Reply #3 on: September 26, 2012, 03:31:58 AM »
I follow a permanent portfolio type strategy and currently hold the GLD index.    You can also use the IAU.  I plan on moving to physical gold in the near future.  I will use a safe deposit box, as you mentioned they are pretty affordable if you hold an account with the bank (although it depends on size).  I don't see much downside to using a bank, they are pretty unlikely to be robbed for their safe deposit boxes (think of the time involved with opening and clearing all of them).  In the unlikely event that there is some huge financial crash and banks put a freeze on accounts, I would be willing to bet you can still access your box.  I think it is pointless to try and get involved in some complicated storing mechanism unless you are holding more than would fit in the largest safe deposit boxes.

www.goldmart.com is where most people that I know do their buying.  If you buy bars, there is very little premium over spot price.  If you buy bullion coins, there will be a premium anywhere from $30-70 depending on the coin.  They also have free shipping for large orders ($7500 or more).

Coins:
Pros: Will sell for over spot, can be used as actual currency in a disaster (ie, a gold eagle is US currency with face value of $50), typically easier to cash in/sell, many people deal/collect them.  The most liquid coin is the American Gold Eagle, followed by either the American Buffalo or Canadian Maple Leaf
Cons: Higher premium, more small pieces to store

Bars:
Pros: Very little premium over spot, some have some pretty intricate patterns and look very sharp
Cons: Harder to unload/sell, zero value beyond the metal itself

Kriegsspiel

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Re: How do you hold your gold?
« Reply #4 on: September 26, 2012, 08:00:37 AM »
http://crawlingroad.com/blog/2009/10/13/permanent-portfolio-25-gold-allocation-faq/

That is the FAQ from the PP forum at gyroscopicinvesting.com.  He has his mail-order golf businesses in it, I checked them out and they look legit.  Other than that, you can see US Mint American Eagle dealer database on the US Mint site: http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=lookup

For ETFs, I am using IAU.  I'm slowly moving into a PP strategy.