wearmanyhats

American Eagles, one ounce gold coins minted by the U.S. Mint are very difficult to get.  Part of the problem is demand; the other issue is that the Mint has said that there is some kind of production problems.  As a result, buying Eagles in a coins shop means putting your name on a list and waiting until some come in.

What if you are unwilling to wait for the gold to come in? After all, you are left to the whims of the market at that point?  Should you consider gold bars or simply go with putting it in a brokerage account and then into the ETF of GLD?

There are good reasons to physically own gold , just as there are times when you should own ETF’s.  Keeping gold and silver on hand is important.  So when you make a decision to buy, you need to know what to buy if you can’t get your hands on the best.

First, know that American Eagles command the highest cash in value.  But others will at least bring you spot price when you go to get your money back.  All kinds of other countries make gold coins, so if you go for another country’s gold coins, make sure the coin is looking pristine.  Don’t buy it if it has any chinks or dinks.

Second, make sure you take it home in some kind of covering.  A hard plastic covering is woth the dollar it might cost. If you get lucky, the coin shop dealer will throw that covering in for the purchase.  Be sure you are getting one troy ounce for what you are buying.  Ask what the price of gold is when you are buying.

Go for the coins.  Bars are not as much in demand as coins, so get ready for the premium prices you will have to pay for them.  Call around to local dealers and get price quotes.  Be prepared that shops are having shortages in gold. And from the foot traffic that I have seen in coin shops lately, the demand for gold is very high.  These bull runs in metals do not happen for decades so when it does, coin dealers need to make money.  And make money they will.

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