5 Reasons Not To Own Buy Gold Coins

79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
edited May 2016 in About Gold


OK OK - so many misstatements made in the above video. The guy must live under a rock not to know about 0.9999 pure Canadian Maple Leaves (1/20oz to 1oz).

He is selling Karatbars. An interesting concept, granted. But did you notice the cost of a 1g Karatbar? USD $65. That's a 60% markup over current spot of appoximately USD $40/g.

Yet another reason why BitGold is the smartest and most useful way to own gold.

Comments

  • GLDGLD Posts: 49 Copper ✭✭
    Well he does make some valid points, however the credit cards style are not tamper proof, and because they’re likely to be a low volume seller most people will not even recognize them. In NA Canadian/American gold coins (or rounds) will probably be the best known and thus more trade friendly. Perhaps even the bitGold 10g cubes. The thing is, one needs to know the diameter, thickness and weight of the product, whatever it is, to verify it’s not fake. So .... people might insist you pull that 1g wafer out of its packaging .... Which just negated your supposed “credit card proof” system. Might as well just buy one of the many 1g wafers available. In fact, those gold 1g wafers carry a hefty premium ..... often $250/oz CAD over spot ! I have priced out coins, rounds, wafers and Bitgold cubes ..... the cubes without a doubt, in my area, are the best deal for raw gold under 1 oz (31.1g) weight. Apparently the eBay BitGold cubes might even be a better deal.

    The Sunshine mint's own products also have a verifiable mark you can use a decoder on to check if its “VALID”. They have this on their entire gold and silver products.

    Anyway i believe silver rounds/coins will be your best transportable “emergency” currency. Just as with gold, the diameter, thickness and weight is needed to fully verify but silver also has a “slightly” magnetic property .... an extra, easily verified property to help bleep out fakes. This combined with the fact silver will likely always be valued from 1/60th to 1/20th the value of gold will make it a more useful “emergency” currency (especially If you believe gold is going to $7000-$10,000us/oz).
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @GLD

    All valid points, except the weight. Tungsten filled gold-coated coins might pass the size, thickness, weight criteria. Then you need to screen for quality of the engraving and quality of its "ring tone". I have posted and commented several times on this issue. Then again tungsten-filled 1g bars might be difficult to make.

    If I were going to go with 1g bars, my choice would be the Valcambi CombiBars (also high premium).
  • GLDGLD Posts: 49 Copper ✭✭
    79Au197 said:

    @GLD

    All valid points, except the weight. Tungsten filled gold-coated coins might pass the size, thickness, weight criteria. .........).

    Yes, your right. I did hear about a tungsten filled "bricks" being discovered a few years ago but i don't believe its been used in the 1 oz or less coin size. I think the process to 'fake it' with tungsten to too difficult in the smaller sizes, and anything NON tungsten based would be thicker/thinner or off in weight.

    Silver can be tested chemically as well, can gold? But then who wants to disfigure their bullion to verify it. My 'in pocket' gold holdings are small and any i have are BitGold or other major sellers.

    But to be sure, gold makes me nervous this way and would never buy from anyone but a large, proven dealer. i am more confident with silver and have limited myself to only about 6 different types and brands. I can even do the ping test (sound) and verify each because i have sample of everything i buy.

    But you have "tickled" my paranoia ..... i have been somewhat complacent with my last few purchases. I must check!

  • zulu1520zulu1520 Posts: 294 Bronze ✭✭✭
    He does bring up some good points. If gold reaches 10,000 an oz you probably will need to exchange it for fiat for it to be useful. Beside the maple the american buffalo also meets the .9999 specification. You would be surprised how many people have never held real gold bullion. I know my first coin was my first time. He talks about the premium on a gold coin but the product he's promoting has a 60% mark up. He acts like the karat card couldn't be counterfeited, if a large number of people start buying these cards, there will be someone who will counterfeit them. All gold can be confiscated with the presidents power from the 410 ozers to the half grams.
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @zulu1520

    They can only confiscate it if they can find it.
  • jmr5djmr5d Posts: 218 Bronze ✭✭✭
    Basically a sales pitch for an MLM scheme. It's an interesting product idea, reminds me of another wallet-friendly gold product I ran across recently:


    http://www.peakprosperity.com/podcast/84359/new-way-hold-gold


    I think I might like it better, just because the whole thing is bullion and you can actually get your hands on it, etc. I think it still runs at a pretty high premium though, and any form of bullion that carries a large premium is not really of that much interest to me... :smile:
  • rohanibuang61rohanibuang61 Posts: 2,379 Gold ✭✭✭✭✭
Sign In or Register to comment.