Fractional Gold Coins Worthwhile?

Discussion in 'Money, Investing & Precious Metals' started by SurvivalNut, Mar 28, 2010.

  1. SurvivalNut

    SurvivalNut Retired Army

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    My preps are reaching a decent level across the board and I have been putting up about $100 (market value) in junk silver coin per month since the first of the year.

    I have about 4 years worth of Non-Hybrid seed saved and have a decent amount of Barter Skills and am working on more.

    Ready to move up a notch. My question is, are fractional gold coins really worth it so far as the extra premium paid or are they more of a numismatic collector novelty (per value)?

    My gut feeling is since I am fairly well prepared, then 1 ounce are a better move than fractionals, but would like to hear your opinion.

    The purchasing of gold coinage is more for prep than investment. I am not going to sock away a huge amount. Just looking at it as an alternate means of portable wealth to transport in case of need.
     
    Last edited: Mar 29, 2010
  2. pdx210

    pdx210 Well-Known Member

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    i would go fractional or if possible a mix
     

  3. greaseman

    greaseman Well-Known Member

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    fractional gold

    You pose an excellent question. To me, it comes down to what you feel is right for your family. I don't think there is a one size fits all answer.

    I constantly check prices of gold coins, and the fractional prices do command a higher premium. I looked at 1oz gold eagles today at less than $50 over spot. But the 1/10th oz worked out to $166 over spot. quite a variable.

    My favorite strategy has been to buy junk silver. The variety of coinage available makes keeping a good ammount of coins for sale or trade much easier. I buy from a local coin dealer, and pay in cash. The dealer gives me the lowest premium price he can, as he know's I'll be back. No real record of the purchase, and I'm a happy camper.

    Everyone works out a strategy that works best for them. But for me, it's primarily silver.
     
  4. pdx210

    pdx210 Well-Known Member

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    i purchased silver mostly silver eagles and bullion coins in all 5000 Oz or so. i stopped buying when the price broke 10.00 Oz on eagles
     
  5. HoppeEL4

    HoppeEL4 Member

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    I lean towards having some variety. Junk silver in differing size is really good, but also some fractional gold would be good. Silver, since the value is less than gold, to me, can be used a lot more readily for smaller purchases and needs, but if you have some fractional gold, this gives you something extra to bring up your ability to work in larger numbers without depleting all of your silver.

    I have not done it yet, but was told not to invest too much.
     
  6. TheAnt

    TheAnt Aesops Ant (not Aunt)

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    I couldnt justify the premium at this point on fractional gold. I cant really justify paying the premium on silver at this point. Unless you have substantial wealth that you need to protect I would just suggest buying any multitude of every day things that you may need SHTF. Its also worth keeping in mind that as the economy goes to crap folks will start selling lots of good stuff for cheap to get cash. Liquidity is not necessarily a bad thing. If you are dead set on buying gold I would buy whatever has the lowest premiums over spot with a preference toward smaller denominations.
     
  7. BillS

    BillS Well-Known Member

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    I bought some junk silver coins for about 6% over the spot price and that included the credit card surcharge. I bought them here:

    90% SILVER Coins | Buy Mercury Dimes Online | $1 Face

    My wife and I took a loan from her 401k. We bought prepping supplies and put the rest into in a gold account at bullionvault.com. Yes, I know the downside of not having physical gold. I like having it there because the gold is easy to sell. I'm more concerned with having enough money to live on in case my wife loses her job or my self-employment work dries up. In the meantime, gold is up by about $250 an ounce since I bought it in June.

    At some point I'll have to transition into physical gold. I could buy other things but we live in a townhouse condo and we only have so much space so our excess savings will go into gold coins. I can't see buying 10,000 rounds of ammo. I wouldn't have room for 2,000 rolls of toilet paper either.
     
  8. Immolatus

    Immolatus Just getting started. Always.

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    I'd say if its purely investment, then you go for the 1 oz. If its more towards SHTF scenarios, then fractionals might be better, because 1 oz is too much and there will be the problem with making change. youll just have to accept that you'll be paying a huge premium on it. Try your local dealer, ours will sometimes give you fractional at the same price if they dont have more 1 oz coins, which happens sometimes when theyre really busy. Which is all the time.

    If its a mix, then get both.
     
  9. HoppeEL4

    HoppeEL4 Member

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    BillS, space to store things is something we are concerned about too. We live on a 9 acre farm, but the house is small, the garage was split in half to make it into a small bedroom and that other half a laundry room, then we just have a small pump house and a rinky dink metal shed (hardly sturdy and secure to hold off someone trying to potentially take what we have). The half of the garage left will just be wall to wall to ceiling storage.

    If we decide to use the pumphouse, we will need to repair or replace the door, it is old and does not lock. At least the pumphouse is made of brick, but the door is old wood....

    Having the silver and other bartering items will be the key when lack of storage prevents you from fully being able to stock up.
     
  10. BillS

    BillS Well-Known Member

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    To me, the million dollar question is, "How long will the collapse take once it starts?"
    Are we looking at a sudden collapse of the dollar on one day and a complete SHTF world a month later?
    Or are we looking at a series of economic and political shocks over a period of a two or three years?
    If I knew that the final stage of the collapse would occur on November 29, 2011 I'd certainly change my spending patterns. I'd buy two of those 64 gig iPads and copy as many of my DVDs to them as possible. I'd go out to eat at nice restaurants about 4 or 5 nights a week. Might even take a nice vacation while we still could. Maybe I'd lease a brand new Cadillac Escalade!
     
  11. CulexPipiens

    CulexPipiens Still waiting for the zombies.

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    That is indeed the question. If we all knew when this would be easy! or at least easier.

    However if you are following good practices it really shouldn't matter. You'll have stuff on hand that you would use regardless of when it happens. Historically PMs increase in value so if you buy into them you'll be able to preserve some wealth.
     
  12. jaden

    jaden New Member

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    Gold coins are coins by mints in the USA, canada and other countries which are not for circulation but for collecting or as an investment. Buying a gold coin is the easiest way to own some gold.

    tampa gold