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Buying physical gold

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  • 27-01-2017 1:33pm
    #1
    Dgriff
    Registered Users Posts: 56 ✭✭


    Hi

    When buying physical gold what percent premium should I expect to pay on top of the price of the gold? Thanks.
    Tagged:


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    #2
    27cyrix
    Registered Users Posts: 115 ✭✭27cyrix


    Dgriff wrote: »
    Hi

    When buying physical gold what percent premium should I expect to pay on top of the price of the gold? Thanks.

    If you buy gold coins(1 oz coin or sovereign). I'd say under 5% excluding shipping.


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    #3
    irish_investr
    Registered Users Posts: 49 ✭irish_investr


    Well lets check, taking the 7 goldshops I surveyed for my site in november and pricing a standard 1z coin (gold eagle or maple or krugerrand)

    Gold price today, sunday 2018-01-29: $1190 = €1112

    Irish Gold Bullion 7.28%
    Celtic Gold 5.67%
    Gold Core 7.91%
    Gold Bank 6.65%
    Assay no prices on web
    Merrion Gold no prices on web
    National Gold no prices on web

    There are many other shops where you can get gold, I surveyed these 7 because I was specifically looking for shops with an established business or presence in Ireland.

    Remember this is just the premium to buy. Expect to lose at least as much again if/when the time comes to sell.


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    #4
    newacc2015
    Closed Accounts Posts: 2,379 ✭✭✭newacc2015


    Why would you not buy a gold ETF? The premium on physical good prices is quite low about 0.5% and the management fee is tiny. You dont have to worry about insurance, theft etc. Plus it is highly liquid


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    #5
    irish_investr
    Registered Users Posts: 49 ✭irish_investr


    Many people ("Gold bugs") consider physical gold/silver to be a form of last-resort insurance.  Some anticipate a collapse of the financial system and a situation where it might prove impossible to sell shares, or get meaningful currency from the sale. Some worry about an "electro magnetic pulse" or other shock to the technological infrastructure that keeps track of who owns what. And others just like to have something they can hold in their hand :)


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    #6
    YossiA
    Registered Users Posts: 46 ✭YossiA


    Hi irish_investr, I have been buying krugerrands from Merrion Gold, they were just over 5%, could have paid less if I was buying several coins.


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    #7
    irish_investr
    Registered Users Posts: 49 ✭irish_investr


    For those interested in physical metals - how about a bullion ETF? I think I found an interesting one, and might write some more about it. Its a US+Canada listed closed-end fund called Central Fund of Canada. The fund is 60% gold 40% silver, bullion, audited, and all above board as far as I can see. The best part is the discount - the CEF is trading at a 7.5% discount. Closed-end funds often trade at discount or premium, nothing unusual about that. Anyway, just thought I'd throw it in there. Disclaimer - I own some shares of it.
    two other funds investing in bullion, which are audited:
    SPDR Gold Shares ETF (ticker GLD)
    Sprott Physical Gold Trust (ticker PHYS)
    I actually did a research on bullion funds, the three above were the ones that lived up to my requirements. The others were either too obscure, too low liquidity, or I just didn't like the smell of 'em :)


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