good post, if your dealer wants more than about a $20 premium on a Kruger rand or Maple Leaf (two of the most popular) go elsewhere. I have also bought and sold gold and silver on ebay.

Years ago I bought Kruggerands from Blanchard and Company after seeing a nice ad they ran in the wall street journal..They sent them insured and when I sold back to them years later, I sent them the coins via registerd mail retrun receipt requested plus insured them...costs for buyingselling and for insurance were peanuts.....(Registered mail goes into a sealed pouch and stays there until delivered, FYI).  Kruggerands are one ounce coins..you can check gold prices daily int eh wall street journal..the buy/sell spread should be very little different than the stated price..maybe a percent or two.. tddearlereealer on

Blanchard quoted me a price and said they'd hold the coins until they got my certified check a few days later..then they shipped the coins....They gave me a sell price years later when I sold and when they got the coins they me a cashier's check..

Personally, I'd avoid small dealers...probably most are good, but you never know.

 I do not know anythign about buying bullion.

Regards,

Bob 

 

 

Hi, Twinlabs.  I second the above posts.  I've heard good things about Blanchard, though never had any dealings with them.  Most of the physical gold (coins) I have I bought long ago - from a couple of good companies, none of which are still in business, to my knowledge (at least not under the same name as way back then).

The only bullion I ever owned was a 5 oz bar I bought from Merril Lynch, back in early 1975.  Yes, the big brokerage firm actually sold small bars to small investors back then - at a considerable markup, of course.  It was not long after the US had legalized gold sales, and I was not only one of their first buyers (at the local Pensacola Florida office at least) but the first ever to actually take delivery of my little gold bar.  I remember the brokers and assistants in the office crowded around to see the event when I came in to pick it up.  I sold it thorugh a coin dealer in the early '80's (logging a decent profit despite getting a good haircut both on the buy and sell sides ;-)

Twin, unless you are talking really huge sums, I'd probably forgo the bullion if I were you.  Consider sticking with coins - Kruggerands, or Maple Leafs, or the current US Gold Eagles - much easier to both buy and sell.  DO take delivery or have them send them to you rather than leaving them with a dealer or any third party for storage - otherwise you might as well just buy the GLD (gold ETF) IMO. 

Just my 2 cents.

MWL

Hi folks

Thanks for the responses. I've talked with a friend who uses Blanchard. They seem pretty expensive. I located a website in California who appears to be cheaper including shipping and insurance. I haven't asked about sales tax. My friend says to stick with the Buffalo coins because they are purer (?) than Eagles or Maples (.999 vs. .990).

What should the spread be between the actual gold price per ounce and what the dealers sell it for? I've seen spreads higher than $20/ounce 

Look for a specialty shop that is large and deals primarily in bullion and coins, not stamps and other collectibles. The smaller the shop the bigger the premium. And don't be afraid to buy on ebay. There are thousands of transactions every year there with bullion. 

twinlabs:

My friend says to stick with the Buffalo coins because they are purer (?) than Eagles or Maples (.999 vs. .990).

Actually, it makes no difference. Both 50.00 eagles and 50.00 buffalos contain exactly the same amount of gold, i.e., 1 troy ounce. Eagles add an alloy to strengthen the gold, which is a soft metal. Look for the number of troy ounces (or grams, i.e., 1 troy ounce = 31.1034768 grams) on a coin or bar, and stick with the more commonly traded coins and bars.

I've purchased both from brokers/dealers and from eBay. I prefer eBay because the prices are generally lower and the shipping much faster. There are many reputable dealers on eBay, just check the feedback and go with a seller who does a large volume and who has good feedback.

Let me add that I, as MWL mentioned, also hold part of my gold allocation in ETFs for convenience, i.e., GLD and IAU. I personally think it is better to directly hold gold in a safe or safe deposit box, although it takes a bit more effort.

Dan