New too gold purchases

[Blitz86]

I would like to start by apologizing for all my bad questions lol, I'd like to start buying gold weekly,bi weekly, or monthly. I don't plan on spending it or trying to sell it back for a while, hopefully 10 plus years. Does it make sense to buy the 1 gram bars weekly or just wait and use my 400 budget on 1 big purchase. I have did some research and it looks like the return rate on the small ones is pretty bad but couldn't I smelt them all together in ten years ? Is that dumb ? I'm 33 now and I've become debt free and I would like to start investing some more money into my future. 

[blindguy]

As you are also in the states why don't you start out with 1/10 ounce gold American eagles or gold panda's from China. I buy both of these at or near melt. I also buy only NGC or PCGS graded coins to cut down on fake coins. Jim

[Blitz86]

American eagles it is, can you direct me to a place where I can buy them ? 

[KitboyE17]

The smaller the weight, the higher the premium. I don’t recommend 1g bars - start at 5g if you want to buy bars. Or, start at 1/10 coins (Maples, Eagles etc). There is a market for flipping smaller weight gold as this is an affordable entry price but you need to buy as close to spot in order to max your return  hence why 1g is a bad choice.

Alternatively, if stacking gold for the very long term as you state above then consider buying less frequently, amass your spend and buy 1/2oz or 1oz coins or bars. 

As you are in the US you have some excellent online stores 

SD Bullion

APMEX

Gold and Silver .com

to name a few. Also consider their vaulting options if you are purely into wealth preservation. 

But whatever you do - have fun and enjoy! 

[Stu]

Congrats on being debt, by no means a dumb move. Stacking gold with disposable income is a good move imho. As said before, better to save and buy 1/10oz up. 1/4oz is the sweet spot for Fractionals. 

[Nick1368]

yes try to save your money for a longer period of time so that you can buy a bigger piece of gold each time  and pay less premium.

also stay as close to spot price as you possibly can and avoid any high premium coins.

 

[BackyardBullion]

Fractional gold always has a higher premium, so money to be saved  by waiting, good luck whatever course of action you take!

[Downs523]

I agree with waiting to buy slightly larger pieces, however paying a higher premium for fractional gold will be recouped when you come to sell...

[KitboyE17]

1 hour ago, Downs523 said:

I agree with waiting to buy slightly larger pieces, however paying a higher premium for fractional gold will be recouped when you come to sell...

But remember- the lower the premium - the high the profit when you flip (assuming gold increases in price when you come to sell). It’s very important to get the closest to spot possible on lower fractionals.  I have picked up some excellently priced 1/10 and 5g gold here on the forum so keep a look out 👍🏻

[DoubleEagle]

It says you live in LA. You can go to CNI and buy over the counter. They are at 525 W Manchester Blvd
Inglewood, CA 90301. They have a website at www.golddealer.com. They have the best prices. I have been there when I once lived in California.

[blindguy]

9 hours ago, Blitz86 said:

American eagles it is, can you direct me to a place where I can buy them ? 

You can call me at 605-381-4625 and I can walk you through the auctions I buy from.  Jim

[mr1030]

Also consider that in California, if you spend over $1500, you don't have to pay sales tax.  It's a very good reason to save your monthly budget until you can make a larger purchase.  And although it's becoming harder to find them, there are a couple of online bullion dealers that are still not collecting sales tax for online purchases.

[blindguy]

1 hour ago, mr1030 said:

Also consider that in California, if you spend over $1500, you don't have to pay sales tax.  It's a very good reason to save your monthly budget until you can make a larger purchase.  And although it's becoming harder to find them, there are a couple of online bullion dealers that are still not collecting sales tax for online purchases.

We do not have sale tax on coins and bullion in South Dakota. What is your tax on bullion in California?  We also have no state income tax in South Dakota.  Jim

[mr1030]

On 09/11/2019 at 08:18, blindguy said:

We do not have sale tax on coins and bullion in South Dakota. What is your tax on bullion in California?  We also have no state income tax in South Dakota.  Jim

9.5% in Los Angeles County (combined state and county tax).  But local cities can impose an additional sales tax up to a total combined maximum allowed by the state  of 10.25%.  If the purchase is over $1500, then there is no sales tax.  And that exemption only applies to gold and silver.  Platinum and Palladium are still taxed.

[RacerCool]

On 08/11/2019 at 19:01, Blitz86 said:

I would like to start by apologizing for all my bad questions lol, I'd like to start buying gold weekly,bi weekly, or monthly. I don't plan on spending it or trying to sell it back for a while, hopefully 10 plus years. Does it make sense to buy the 1 gram bars weekly or just wait and use my 400 budget on 1 big purchase. I have did some research and it looks like the return rate on the small ones is pretty bad but couldn't I smelt them all together in ten years ? Is that dumb ? I'm 33 now and I've become debt free and I would like to start investing some more money into my future. 

With that budget my personal preference would be to buy any $5 gold half eagle you find at a low % over spot price. These days many of them can be had for around $400 or less. Each one has about 1/4 ounce of gold and they're generally a good bargain considering gold/dollar. 

Not only do you have all the historical circulated ones from the late 1700s to the late 1920s, but also all the non-circulating commemorative ones the they've made since the 1980s.