Gold prices

Discussion in 'Stock Market' started by Bern80, Aug 23, 2011.

  1. Bern80
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    Bern80 Gold Member

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    I've been watching the escalating price of gold and kind of shopping around. I was just curious, is it typical that it is always going to be priced well above the market rate? I was looking at the new e-bay section for example. They have a 2.5 gram gold bar for $193. That would be $77.20 per gram. I believe the market price for gold is by the troy oz. and there are 31.10 grams per troy oz. The current market price is $1870 per troy ounce I believe or $60 a gram. Did I mess something up there or is that just the way the gold market is?
     
  2. Paulie
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    Paulie Platinum Member

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    It's a typical premium in the physical gold market.
     
  3. Bern80
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    Bern80 Gold Member

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    Are there vehicles for buying at closer to market values?
     
  4. Paulie
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    Paulie Platinum Member

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    I doubt it. The market knows what it will bear for physical metals. You could shop around with dealers and see who's got the lowest premiums, or see what kind of bids you can get on ebay.

    The reason there's a premium is that there's really no good substitute for physical ownership of your metals. If you're just looking to trade then buy the GLD at market price. But for holding longer term it's more preferable to take physical ownership, so it comes at a premium.
     
  5. uscitizen
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    uscitizen Senior Member

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    Gold eagles sell for more than the OZ mkt price for gold as well.
    first hit I got on google was 1919.00 per 1 OZ eagle.
    :) That is what all my gold is in.

    I paid about 550.00 :D
     
  6. Bern80
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    Bern80 Gold Member

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  7. uscitizen
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    uscitizen Senior Member

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    I would not buy gold now unless I was planning on making small gains over the short term.
    Gold will not go a lot higher for a while and may well drop some, but not a lot.

    I bought mine back shortly before it all started falling apart.

    You know when the right though the Mret and real estate would just keep zooming up and the economy was solid.
    I saw what was coming and liquidated all my stocks for a nice profit and invested in a private purchase of gold.
    My assets are now in my farm, my gold and some secure slow growth investments.
    And of course my greatest asset, my good looks.
     
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  8. Ernie S.
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    Ernie S. Platinum Member

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    If you buy large quantities, the premium goes way down.
    DO NOT BUY from someone on ebay!
    Find a local jeweler, pawn shop or coin dealer and shop them for a decent premium. The most I've ever paid for gold, platinum or silver is spot plus 3%.
    If at all possible, deal in cash in sub $10,000 increments. Create no paper trail.
     
  9. Ernie S.
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    Ernie S. Platinum Member

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  10. uscitizen
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    uscitizen Senior Member

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    Yep lots of gold clad coins out there too.
     

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