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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (62832)	1/22/2001 11:54:24 AM
From: long-gone	Respond to of 116756

Questions About Buying And Selling Gold - Part Two Hugh Sprunt Monday January 2, 2001 This installment is the second in of a three-part article began last week about the basics of buying and selling gold and gold coins. If you're interested in buying an amount of gold materially less than 100 ounces (or if you simply want to buy coins, not bullion), you should go to a long-established reputable national coin dealer and buy one or more lots (perhaps 10-20 coins each) of a well-known gold coin that is sold for only a small percentage over the value of the gold it contains. The U.S., Canada, South Africa, and other countries have produced such coins. Such coins are known as "bullion" coins since they have no value other than gold in the form of a coin (that is, they have no numismatic value - the price you pay is not increased due to the "rarity" of the type of gold coin itself). It would be a very good idea to shop around - check out several major national dealers. There should not be a major difference in the prices they are offering for the same type of bullion coin (a few percent at most). You can often see quotes (a price for buyers and separate price for sellers, the difference being the so-called "bid-ask" spread) for several kinds of gold coins in the newspapers. These newspapers usually also publish the "spot" (current) price of gold bullion itself on various commodity exchanges which will allow you to easily determine the premium you would be paying for the bullion coin. I would avoid coins with a significant premium over the price of the gold contained in the coin ("rare" coins) unless you have developed expertise in the rare coin market. Bullion-type gold coins containing an ounce of gold will usually sell at a somewhat lower price per ounce than bullion coins containing a fraction of an ounce of gold. There are some relatively common bullion-type gold coins that contain somewhat more than an ounce of pure gold (the Mexican 50 peso gold coin is a good example) and some that contain somewhat less than an ounce of pure gold. I would ask the coin dealer the same questions above that you would pose to the commodity broker above, except that in the case of a coin dealer, the more usual course is to take delivery of and store the coins yourself. That is, if you were planning on buying 20 of Z type coin for X dollars, take delivery, hold them a while, and then sell them back to the same dealer (see below) when the price of gold (closely related to the price of the coin, obviously) is unchanged, ask the dealer how much less money would you receive on the sale compared to how much you paid on the purchase. The difference (decrease) is the net cost of one purchase and sale of the 20 coins and, all other things being equal, you of course want to have this decrease be as small as possible. The decrease will typically be several percent of your purchase price for the 20 coin lot. Obviously the price of gold (and gold coins) goes up and down -- the purpose of asking these questions is to help you gain an understanding of the costs of buying once and selling once (usually called a "round turn") isolated from any money you might have made (or lost) due to a change in price of the gold coin or the gold bullion itself. The coins you buy from a dealer would likely come to you via registered mail or some other "safe" method of delivery (unless you buy from a suitable local dealer from whom you can pick them up directly). You need to store your coins in a safe place, a place that also will not expose YOU to significant personal risk. A safety deposit box is a reasonable place to store your coins, though other locations may be suitable as well. Depending on where the coins are stored, you might be interested in obtaining insurance coverage on them of various kinds (theft, destruction, mysterious disappearance, etc.), though such insurance, even if obtainable, can be fairly costly. This concludes Part II of this three-part article on buying and selling gold and gold coins. Part III will appear next week. CAUTION: This article is intended to provide accurate information regarding the subject matters covered. However, it is distributed with the understanding that neither the author nor the publisher is engaged in rendering legal, tax, financial, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought in the context of the individual's particular situation and overall circumstances. Since each individual's overall tax situation is unique, a tax strategy that turns out to be appropriate for one individual is often totally unsuitable for someone else. No significant transaction with potential tax ramifications should be undertaken without consulting one's individual tax advisor about its specifics. Taxing authorities in states that have an income tax enforce statutes whose rules and requirements often differ significantly from those of the Federal government's Internal Revenue Service. ©/Copyright by Hugh Sprunt, January 2001 All Rights Reserved; Offered On A One-Time Non-Exclusive Basis Buy gold from the largest and most respected dealer in rare coins and precious metals in the United States. Visit Blanchard, and get your FREE investment guide! Read Buying Gold, Part I newsmax.com

To: long-gone who wrote (62832)	1/22/2001 11:54:25 AM
From: long-gone	Respond to of 116756

Questions About Buying And Selling Gold - Part Two Hugh Sprunt Monday January 2, 2001 This installment is the second in of a three-part article began last week about the basics of buying and selling gold and gold coins. If you're interested in buying an amount of gold materially less than 100 ounces (or if you simply want to buy coins, not bullion), you should go to a long-established reputable national coin dealer and buy one or more lots (perhaps 10-20 coins each) of a well-known gold coin that is sold for only a small percentage over the value of the gold it contains. The U.S., Canada, South Africa, and other countries have produced such coins. Such coins are known as "bullion" coins since they have no value other than gold in the form of a coin (that is, they have no numismatic value - the price you pay is not increased due to the "rarity" of the type of gold coin itself). It would be a very good idea to shop around - check out several major national dealers. There should not be a major difference in the prices they are offering for the same type of bullion coin (a few percent at most). You can often see quotes (a price for buyers and separate price for sellers, the difference being the so-called "bid-ask" spread) for several kinds of gold coins in the newspapers. These newspapers usually also publish the "spot" (current) price of gold bullion itself on various commodity exchanges which will allow you to easily determine the premium you would be paying for the bullion coin. I would avoid coins with a significant premium over the price of the gold contained in the coin ("rare" coins) unless you have developed expertise in the rare coin market. Bullion-type gold coins containing an ounce of gold will usually sell at a somewhat lower price per ounce than bullion coins containing a fraction of an ounce of gold. There are some relatively common bullion-type gold coins that contain somewhat more than an ounce of pure gold (the Mexican 50 peso gold coin is a good example) and some that contain somewhat less than an ounce of pure gold. I would ask the coin dealer the same questions above that you would pose to the commodity broker above, except that in the case of a coin dealer, the more usual course is to take delivery of and store the coins yourself. That is, if you were planning on buying 20 of Z type coin for X dollars, take delivery, hold them a while, and then sell them back to the same dealer (see below) when the price of gold (closely related to the price of the coin, obviously) is unchanged, ask the dealer how much less money would you receive on the sale compared to how much you paid on the purchase. The difference (decrease) is the net cost of one purchase and sale of the 20 coins and, all other things being equal, you of course want to have this decrease be as small as possible. The decrease will typically be several percent of your purchase price for the 20 coin lot. Obviously the price of gold (and gold coins) goes up and down -- the purpose of asking these questions is to help you gain an understanding of the costs of buying once and selling once (usually called a "round turn") isolated from any money you might have made (or lost) due to a change in price of the gold coin or the gold bullion itself. The coins you buy from a dealer would likely come to you via registered mail or some other "safe" method of delivery (unless you buy from a suitable local dealer from whom you can pick them up directly). You need to store your coins in a safe place, a place that also will not expose YOU to significant personal risk. A safety deposit box is a reasonable place to store your coins, though other locations may be suitable as well. Depending on where the coins are stored, you might be interested in obtaining insurance coverage on them of various kinds (theft, destruction, mysterious disappearance, etc.), though such insurance, even if obtainable, can be fairly costly. This concludes Part II of this three-part article on buying and selling gold and gold coins. Part III will appear next week. CAUTION: This article is intended to provide accurate information regarding the subject matters covered. However, it is distributed with the understanding that neither the author nor the publisher is engaged in rendering legal, tax, financial, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought in the context of the individual's particular situation and overall circumstances. Since each individual's overall tax situation is unique, a tax strategy that turns out to be appropriate for one individual is often totally unsuitable for someone else. No significant transaction with potential tax ramifications should be undertaken without consulting one's individual tax advisor about its specifics. Taxing authorities in states that have an income tax enforce statutes whose rules and requirements often differ significantly from those of the Federal government's Internal Revenue Service. ©/Copyright by Hugh Sprunt, January 2001 All Rights Reserved; Offered On A One-Time Non-Exclusive Basis Buy gold from the largest and most respected dealer in rare coins and precious metals in the United States. Visit Blanchard, and get your FREE investment guide! Read Buying Gold, Part I newsmax.com

To: long-gone who wrote (62832)	1/22/2001 11:54:25 AM
From: long-gone	Read Replies (1) \| Respond to of 116756

Questions About Buying And Selling Gold - Part Two Hugh Sprunt Monday January 2, 2001 This installment is the second in of a three-part article began last week about the basics of buying and selling gold and gold coins. If you're interested in buying an amount of gold materially less than 100 ounces (or if you simply want to buy coins, not bullion), you should go to a long-established reputable national coin dealer and buy one or more lots (perhaps 10-20 coins each) of a well-known gold coin that is sold for only a small percentage over the value of the gold it contains. The U.S., Canada, South Africa, and other countries have produced such coins. Such coins are known as "bullion" coins since they have no value other than gold in the form of a coin (that is, they have no numismatic value - the price you pay is not increased due to the "rarity" of the type of gold coin itself). It would be a very good idea to shop around - check out several major national dealers. There should not be a major difference in the prices they are offering for the same type of bullion coin (a few percent at most). You can often see quotes (a price for buyers and separate price for sellers, the difference being the so-called "bid-ask" spread) for several kinds of gold coins in the newspapers. These newspapers usually also publish the "spot" (current) price of gold bullion itself on various commodity exchanges which will allow you to easily determine the premium you would be paying for the bullion coin. I would avoid coins with a significant premium over the price of the gold contained in the coin ("rare" coins) unless you have developed expertise in the rare coin market. Bullion-type gold coins containing an ounce of gold will usually sell at a somewhat lower price per ounce than bullion coins containing a fraction of an ounce of gold. There are some relatively common bullion-type gold coins that contain somewhat more than an ounce of pure gold (the Mexican 50 peso gold coin is a good example) and some that contain somewhat less than an ounce of pure gold. I would ask the coin dealer the same questions above that you would pose to the commodity broker above, except that in the case of a coin dealer, the more usual course is to take delivery of and store the coins yourself. That is, if you were planning on buying 20 of Z type coin for X dollars, take delivery, hold them a while, and then sell them back to the same dealer (see below) when the price of gold (closely related to the price of the coin, obviously) is unchanged, ask the dealer how much less money would you receive on the sale compared to how much you paid on the purchase. The difference (decrease) is the net cost of one purchase and sale of the 20 coins and, all other things being equal, you of course want to have this decrease be as small as possible. The decrease will typically be several percent of your purchase price for the 20 coin lot. Obviously the price of gold (and gold coins) goes up and down -- the purpose of asking these questions is to help you gain an understanding of the costs of buying once and selling once (usually called a "round turn") isolated from any money you might have made (or lost) due to a change in price of the gold coin or the gold bullion itself. The coins you buy from a dealer would likely come to you via registered mail or some other "safe" method of delivery (unless you buy from a suitable local dealer from whom you can pick them up directly). You need to store your coins in a safe place, a place that also will not expose YOU to significant personal risk. A safety deposit box is a reasonable place to store your coins, though other locations may be suitable as well. Depending on where the coins are stored, you might be interested in obtaining insurance coverage on them of various kinds (theft, destruction, mysterious disappearance, etc.), though such insurance, even if obtainable, can be fairly costly. This concludes Part II of this three-part article on buying and selling gold and gold coins. Part III will appear next week. CAUTION: This article is intended to provide accurate information regarding the subject matters covered. However, it is distributed with the understanding that neither the author nor the publisher is engaged in rendering legal, tax, financial, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought in the context of the individual's particular situation and overall circumstances. Since each individual's overall tax situation is unique, a tax strategy that turns out to be appropriate for one individual is often totally unsuitable for someone else. No significant transaction with potential tax ramifications should be undertaken without consulting one's individual tax advisor about its specifics. Taxing authorities in states that have an income tax enforce statutes whose rules and requirements often differ significantly from those of the Federal government's Internal Revenue Service. ©/Copyright by Hugh Sprunt, January 2001 All Rights Reserved; Offered On A One-Time Non-Exclusive Basis Buy gold from the largest and most respected dealer in rare coins and precious metals in the United States. Visit Blanchard, and get your FREE investment guide! Read Buying Gold, Part I newsmax.com