Comments on: I Bought a Gold Bar 1 Oz Pamp Suisse 999.9 Sealed Ounce for 630.00 Was It to Much?

By: Larry Powers

Larry Powers — Fri, 23 Jul 2010 16:40:37 +0000

No, you didn’t pay too much for it. When you buy physical gold, you also have to pay for the cost of making the individual ingot or coin that you bought, as well as the profit for the coin shop that sold you the gold. You paid about $30 above the “spot” price, which is pretty much standard for a gold bar (although, at that price, I would have bought a Canadian Maple Leaf, instead, but that’s just my personal preference).

Buying physical gold is the only way to go, in my opinion. Only when you hold it in your hot little hands do you know that you’ve got it. If it’s stored in some vault run by an ETF, you run the risk of “accounting irregularities” magically causing something you thought was yours to disappear.

At the moment, you’ll probably be able to sell your bar for about $10 – $20 LESS than the “spot” price. Again, you’ve got to allow the coin shop to make a profit.

Don’t worry, though. Everything about the financial situation of the US indicates that gold is going to rise in price, and probably pretty dramatically. So you’ll make your money back, when you get ready to sell.

By: lommylom

lommylom — Fri, 23 Jul 2010 15:48:57 +0000

if you bought it today – then yes, as an ounce of Gold trades under $600 today.

But for LT investment – its prob not a bad idea. As another poster noted, there are other options that are easier – IAU is one, so is GLD. They can both be bought and sold much more easily. Though mind you, nothing is as safe (if its in a good safe deposit box or something) as the actual metal. These ETFs aren’t actually gold mind you.

By: vegas_iwish

vegas_iwish — Fri, 23 Jul 2010 15:37:58 +0000

Yes. Do not buy physical gold. Buy IAU – an etf that trades like a stock & represents physical gold – or a gold mining stock. More liquid & cheaper transaction costs. You CAN get correct answers here.

By: Derrick

Derrick — Fri, 23 Jul 2010 15:11:38 +0000

You paid a little much for it, but it might be worth it down the road.

By: DDOD

DDOD — Fri, 23 Jul 2010 14:18:21 +0000

If you are hoping to get a correct answer, you are in the wrong place