On Converting Savings to Gold

[NathanTurner]

Hello,

I'm ashamed to say, but I have had very little experience with economics; and while I'm trying to correct that now, I realize that the only way to protect what little assets I have in this troubled economy is to act now. The problem is that every time I try to research the topic of buying gold, I'm plagued with "information paralysis." Essentially this is what I want to do: I have a decent and growing savings account, and I would like to take the money in this account and buy gold bullion for local (and secure) storage. In other words, I want to keep the gold myself. Would it be possible for me to have my local bank arrange for me to buy this bullion, or would I have to go to a reputable gold dealer, or somewhere else entirely? I would understand if I were in the market to buy gold coins; but I'm wanting to buy thousands of dollars of gold for long term storage, and I'm just not sure how to get the process started. My inexperience makes me hesitant to act on my own without sound advice from those who know better than I.

Thanks for your time.

 

[Dr.3D]

Well, I've never heard of any bank setting up a transaction to buy gold. Banks now days don't know what gold or silver is. You have to buy from a dealer. IMO, silver is a much better deal than gold but it is up to you what you do. Check the price of silver 7 months ago versus the price of gold 7 months ago and you will see, dollar for dollar spent on the silver had greater gains than spent on the gold.

First try to find a local dealer.... coin shop... and see what they have to offer. If you can't find anything local then going on line and looking around is the next best bet.

This thread my be of interest:
http://www.ronpaulforums.com/showthread.php?t=130258

 

[Johnny Crab]

I've found this gentlemen to be both full of information and honest in trading:
http://the-moneychanger.com/entry.phtml

He's even had his own battles with the fiat-pushers:
http://the-moneychanger.com/articles_files/dangerous.phtml

 

[jonahtrainer]

Well, I've never heard of any bank setting up a transaction to buy gold. Banks now days don't know what gold or silver is.

Oh, they know what gold is. I should tell you a story sometime about a client who tried to buy a 400oz gold bar ...

There are a couple points you should know about buying precious metals.

1. Make sure you have allocated storage
2. Make sure you purchase actual gold; not a lead bar spray painted gold (chain of integrity and chain of custody)
3. Make sure you deal with a reputable counter-party or have the transaction guaranteed by one

For gold purchases I recommend two companies:
1. Apmex for in your possession
2. GoldMoney for in a bailee's possession

I noticed Apmex has had some unusual activity (they put a message on their home page) so, being prudent as they are, they have limited their order size. Hopefully 'This Is It' is not upon us; otherwise the precious metals will not be for sale at any price and you will be too late. I think you still have some time .... but I would stop procrastinating. I would also have a mixture of gold and silver from both sources.

Hope that helps

 

[Dr.3D]

Oh, they know what gold is. I should tell you a story sometime about a client who tried to buy a 400oz gold bar ...

What I was referring to is that you can't normally withdraw or deposit gold at a bank. In a time long long ago, that was what a bank was for.

 

[shocker315]

Hello,

I'm ashamed to say, but I have had very little experience with economics; and while I'm trying to correct that now, I realize that the only way to protect what little assets I have in this troubled economy is to act now. The problem is that every time I try to research the topic of buying gold, I'm plagued with "information paralysis." Essentially this is what I want to do: I have a decent and growing savings account, and I would like to take the money in this account and buy gold bullion for local (and secure) storage. In other words, I want to keep the gold myself. Would it be possible for me to have my local bank arrange for me to buy this bullion, or would I have to go to a reputable gold dealer, or somewhere else entirely? I would understand if I were in the market to buy gold coins; but I'm wanting to buy thousands of dollars of gold for long term storage, and I'm just not sure how to get the process started. My inexperience makes me hesitant to act on my own without sound advice from those who know better than I.

Thanks for your time.

If you would like a simple way of obtaining bullion here is a good site.

http://www.bulliondirect.com/catalog/

Simply check out their catalog. You may pay slightly more that what you could get by bargin hunting or trading. But if your goal is to simply buy/hold and accumulate bullion for the long haul, this is a very simple way (without getting totally ripped off). They can hold it for you or they can have it sent to your residence for you to store yourself. Once you start reading through this website and others like it you will start to understand more complex aspects, and when you feel comfortable you can trade with others online to get better deals and/or try to make shorter term profits. This website also has a forum where you can ask newbie questions. Hope that helps.

 

[jonahtrainer]

What I was referring to is that you can't normally withdraw or deposit gold at a bank. In a time long long ago, that was what a bank was for.

Originally, banks derived business from two functions: transactions/storage and lending. The two businesses were strictly segregated. There was an unusual case in the English Common Law which allowed for the mingling of the two functions which is be definition Embezzlement. Mischief was worked in the law. A good book on the history is The Case Against the Fed by Rothbard.

GoldMoney has returned, updated using 21st century technology, to this tradition and is strictly a transaction/storage service.

 

[Dr.3D]

Originally, banks derived business from two functions: transactions/storage and lending. The two businesses were strictly segregated. There was an unusual case in the English Common Law which allowed for the mingling of the two functions which is be definition Embezzlement. Mischief was worked in the law. A good book on the history is The Case Against the Fed by Rothbard.

GoldMoney has returned, updated using 21st century technology, to this tradition and is strictly a transaction/storage service.

Just go back 130 years and you could go to a bank and deposit your gold with them for safe keeping. Try that now without using a safe deposit box.

 

[JSutter]

Do your homework and find reputable local or online dealers

When you say "local allocated storage" do not put your metals in a safe deposit box. Have them where you can access them day or night, weekends, and holidays

Don't put all your eggs in one basket. Buy gold, silver, copper, and other commodities

Don't put 100% of your money into commodities. diversify, diversify, diversify

Use your head, if it sounds or looks too good to be true it probably is

 

[cien750hp]

Do your homework and find reputable local or online dealers

When you say "local allocated storage" do not put your metals in a safe deposit box. Have them where you can access them day or night, weekends, and holidays

Don't put all your eggs in one basket. Buy gold, silver, copper, and other commodities

Don't put 100% of your money into commodities. diversify, diversify, diversify

Use your head, if it sounds or looks too good to be true it probably is

when sutter says don't put them into a safe deposit box, i think he means don't put all of it. Split it up. Maybe half in a safe deposit box, some in a safe at home, some in random places around your house. Maybe less in your safe deposit box. Really its just what you feel comfortable with or when you may need your metals.

 

[Leroy_Jenkems]

I've found this gentlemen to be both full of information and honest in trading:
http://the-moneychanger.com/entry.phtml

He's even had his own battles with the fiat-pushers:
http://the-moneychanger.com/articles_files/dangerous.phtml

Wow, that's a hell of a story he has about the IRS Hell he went through.

 

[JRegs85]

Hello,

I'm ashamed to say, but I have had very little experience with economics; and while I'm trying to correct that now, I realize that the only way to protect what little assets I have in this troubled economy is to act now. The problem is that every time I try to research the topic of buying gold, I'm plagued with "information paralysis." Essentially this is what I want to do: I have a decent and growing savings account, and I would like to take the money in this account and buy gold bullion for local (and secure) storage. In other words, I want to keep the gold myself. Would it be possible for me to have my local bank arrange for me to buy this bullion, or would I have to go to a reputable gold dealer, or somewhere else entirely? I would understand if I were in the market to buy gold coins; but I'm wanting to buy thousands of dollars of gold for long term storage, and I'm just not sure how to get the process started. My inexperience makes me hesitant to act on my own without sound advice from those who know better than I.

Thanks for your time.

You might not want to convert your entire life savings into gold. Something around 40% or even 50% is decent, but if gold takes a big plunge in the next few months you're screwed.

 

[jack555]

I am new like you but I have learned alot.

First off go to goldismoney.info


Now here are my recommendations. I would buy some 90% dimes in a bag (like 100-1000 face value). Bulliondirect is sold out of mercury dimes last I checked but apmex has them if you buy 1000 worth I believe. A $100 bag of face from bulliondirect would not be bad but I want dimes so that if you ever need silver in small amounts for daily transactions you have them. The smaller the size of silver/gold the better in my opinion (ex: I prefer 1/10 oz pieces of gold over 1 oz of gold. However you pay a bigger premium).

Now I would also probably buy something like 10-100 oz of Silver American Eagles (some people might say more).

However, most important after the silver dimes is just buy as many ozes of gold as you can. Have some 1/10 oz on hand too but if you have a lot of money I would spend it mostly on 1 oz gold. This is based on this new thread I created yesterday where most recommend gold being a better store of wealth than silver. However silver may be a better investment. who knows

http://goldismoney.info/forums/showthread.php?t=250596




Also remember food and water is more valuable than either gold and silver. Figure out a way to store some of both.


Also if you dont have a gun you might want to buy one and a lot of ammo for self protection.


Good luck! If you need more advice specifically on what and where to buy email me at [email protected] I also know some places to get good deals but small amounts



also- 2 great sites are apmex.com and bulliondirect. You will not get duped from either website.

online silver eagles run about 1.50-3 over spot and gold runs probly 30-70 over spot.


Make sure any local dealers dont rip you off. Also if you buy local it gets rid of a paper trail.

 

[SevenEyedJeff]

I would check out monex.com. I've ordered my bulk gold and silver over the phone from them several times, and never had a problem. They are a large company and trusted, plus they are great for ordering in bulk. I would order from them again if I didn't have over 40% of my savings in metals already. Make sure to find a safe secure facility to store them in, a safe deposit box might work, but remember FDR confiscated gold and silver in 1933, so I wouldn't put it past our government minions from doing it again. Good luck.

 

[AceNZ]

I would understand if I were in the market to buy gold coins; but I'm wanting to buy thousands of dollars of gold for long term storage, and I'm just not sure how to get the process started.

Why do you think that you can't use gold coins for thousands of dollars of long-term storage? One tube of ten gold coins is about 1 inch tall and worth about US$10,000.

 

[davver]

APMEX was my favorite dealer, but they have run low on a lot of inventory (especially silver). There is a growing shortage of physical, but you can still find it places.

 

[Allen72289]

I would purchase a coin sorter from http://www.ryedalecoin.com and sort out the copper pennies as a hedge.

You double your money while using a familiar currency as a hedge.

Because some recommend having some fed notes in your egg basket because of familiarity.

I would rather have 95% copper u.s. currency than toilet paper.

Food and water will be most important.

Second, medicine.

 

[buffalokid777]

I would purchase a coin sorter from http://www.ryedalecoin.com and sort out the copper pennies as a hedge.

You double your money while using a familiar currency as a hedge.

Because some recommend having some fed notes in your egg basket because of familiarity.

I would rather have 95% copper u.s. currency than toilet paper.

Food and water will be most important.

Second, medicine.

Thank you for the link, I have heard of the sorters, and they were available, but did not know where to purchase one!

Thank You again for the link

 

[NathanTurner]

Thanks for all the responses; with the added information in the links and reading other posts in this forum, I'm no longer burdened with that "information paralysis" I had earlier. I think the simplicity itself is deceiving: gold and silver are commodities that are bought and sold at the current market's closing price; the price paid for each should be as close to spot as possible; and it's best to protect one's assets by diverse investing. I think instead of making a mad rush on gold, I'll start small with silver and continue my study on economics in general, and the precious metal market in particular until I have a firm grip on the concepts that dictate the rise and fall of each commodity.

As to the previous poster who said I should look into purchasing a firearm: I already have three. A .22 rifle with Yellowjacket cartridges that I use for target practice; a 20 gauge shotgun capable of holding 5 shells at a time (looking into getting a rifled barrel and scope for slugs), and an older 10 gauge. I think that one does more damage to the one shooting it than anything else from the damned recoil effect.

Thanks again for all the information and links!

 

[Zippyjuan]

Be sure to keep enough money in cash to be able to meet several months expenses should something happen to you and you could not work. many financial planners suggest at least six to eight months worth of your expenses in a fairly liquid account. Gold may be slow to liquidate if you had an emergency.

I personally would not buy something like gold online. I would rather trade my money directly in person for it. No risks of being taken or have it disappear in transit. You can actually see what you are getting.

As for the copper content on pennies, it would be illegal for anyone to melt them down for the copper content (the mint has been doing this though) so a penny saved (even if it was copper) would still be worth a penny fifty years from now. Not a great return.