Buy Physical Gold

Frequently Asked Questions

1. QUESTION:
   Would you sell these mutual funds to buy physical gold for your IRA?
   I have qty 76 OPGSX and qty 58 SGDAX.
   I'm thinking of selling them and buying physical Gold for my IRA. I don't have a place yet to buy the Gold, but am looking. Could anyone comment on their thoughts of this move.

   They are currently in a self directed IRA, so I have no problems with selling them.

   • ANSWER:
     That is risky right now. As you're propbably aware, Gold dropped huge yesterday. However, it's a bargain right now.

     I sold a mutual fund a few weeks ago and bought gold. And don't listen to the guys who say you have to pay 10% penalty for selling, etc. If you want gold in your IRA, buy a gold fund such as Fidelity Select Gold (FSAGX) or a gold exchange traded fund. it can stay in your IRA portfolio without incurring any penalties.

     Gold is risky right now, nobody knows which direction it will go. Personally, I think it will be good for the short term while the dollar stays weak. But keep a CLOSE eye on the market. As soon as the dollar shows signs of recovery, dump it quick.

     If you're unsure, don't do it. As I said, it's risky. The market is experiencing unprecedented turmoil, and not even Gold is a safe bet.

     Best of luck.

2. QUESTION:
   Where can I buy physical gold in Saginaw, Michigan?
   I want to buy at least ,000 worth of gold, but I want to pay the gold market price and no extra fees. Is there a way to buy and sell physical gold easily? I don't want the futures and I don't want to invest in a gold stock or ETF, I want real gold!!

   • ANSWER:
     Go to the Gold's Jewellery's shop they will be happy to sell you the Gold in the quantity you may wish at prevailing market price.

3. QUESTION:
   What is the best way to buy physical gold and silver?
   I am looking to buy small amounts of gold and silver on a regular basis as way to safe guard my income. So many places to choose from!

   • ANSWER:
     Hi Julie,

     I have researched this a lot and there are some trusted places online you can buy from. But first, in order for you to learn how and where to buy gold and silver I recommend you keep it simple. Only buy physical gold and silver bullion. Avoid numismatic coins because they have the highest mark up. Also avoid ETF's like GLD and SLV, holders of those contracts will eventually get burned.

     So basically it comes down to government and non-government issued coins/bars. I dislike the idea of being just the legal bearer of my gold so I went with non-government. It's all about the melt value here.

     Fractions of an ounce are often very over priced and come with a massive markup. e.g. The Perth Mint in Australia sells it's 1/10th oz .9999 pure gold coins for USD 4.37 (dated 6 October /2010). I looked further afield and came across other problems where the price per coin was competitive but you had to buy a set quantity. The company I buy from sells their product of equal if not superior quality for USD 1.74 for 1/10th oz. That's a massive difference! And with no minimum purchase.

     So I buy from a company called YOUnique. The reason is:

     - Gold and Silver products are manufactured by Argor-Heraeus Refinery Switzerland
     - LBMA accredited refinery (London Bullion Market Association)
     - Assayed to highest purity 999.9 fine
     - Assayed fine weight to 1/1000gram
     - Carries the Argor-Heraeus LBMA certified Melter Assayer Hallmark
     - Produced to highest quality of Swiss Refining
     - Privately issued non-legal tender accepted globally
     - Ability to set up a savings plan where you purchase grams on a regular basis (for as little as USD per month. )

     Please remember. Buying gold and silver is very simple but if done the wrong way you could end up with financially devastating results. So make sure you do it the right way. Do your due diligence and visit : http://goldsave.co/

4. QUESTION:
   is it possible to buy physical silver and gold ounces in the philippines?
   Does someone know if I can buy physical ounces (gold & silver) in the banks in the philippines, or silver bars?
   Thanks for advises!
   Thanks! But as I know Apmex is only shipping within the US, or did they change that?

   • ANSWER:
     If you have internet access, which it seems you do, then buy it here:

     http://www.apmex.com/Category/503/Silver.aspx

     I've made several purchases over several months w/o problem.

5. QUESTION:
   Where can I buy physical gold and/or silver in San Francisco Bay Area?
   I live in the bay and want to purchase gold/silver coins from a reputable company. I do not want to purchase online - I'd prefer to make the transaction in person. Any references?

   • ANSWER:
     Buying silver for spot price or dealer mark up is for suckers. There is a genius way to get your hands on silver by paying coin face-value. You can get your silver half dollars for 50 cents each on your own rather than buying them for 17 dollars each. I have been doing this for the past three years and it is how I am paying my tuition. Check out my blog http://findpreciousmetals.blogspot.com/

     The best part about this is anyone, anywhere can do it. It is not limited to any city.

6. QUESTION:
   Can you invest in gold without actually buying physical gold? Can you buy a "stock" on the price of gold?
   I know you can invest in gold companies but I want to know if you can buy a security that is always alued at the current market price of gold(or proportionnal to it).

   Thanks a lot

   • ANSWER:
     yes, it would be called gold index.

     Here is the wiki entry on them (& other ways to invest in gold):
     http://en.wikipedia.org/wiki/Gold_as_an_investment#Investment_vehicles

     Be careful if you actually invest - there are plenty of scams out there, so read some independent articles to get an idea of who the reliable players are.

7. QUESTION:
   Is it advisable to buy physical gold now in India?
   With the gold price reducing these days is it advisable to buy physical god now? Will the gold Price rise again in future? I am new to all this and I am planning to invest some amount in physical gold. Is this the right time?I have facility of storage. Please advise

   • ANSWER:
     Physical gold is not advisible all over the world now. With crude and gold coming down and stock market going up only business you can do in gold is selling gold futures.

8. QUESTION:
   Where are the best places to buy physical gold bullion?
   Preferably the most reputable sources and with the lowest markup/commission.
   Thanks.

   • ANSWER:
     Some choices:

     http://www.bulliondirect.com

     http://www.monex.com

9. QUESTION:
   What is the best way to buy gold - etfs or physical gold? Also need info on ETFs...?
   I am strongly considering investing in gold. But from what I see on here some people on here recommend buying ETFs and some seem to think physical gold is at least okay. Also, is an ETF like a share of gold stock. Please tell me more about ETFs and how they are traded. For all of the above please provide sources and or your credentials below your answer.

   • ANSWER:
     Gold ETFs: you trade them like funds or stocks. Pros: fast trading, low premium over the actual gold value. Drawbacks: quality of the management matters, fees vary, you really need to read the prospectus (e.g. some ETFs lease gold to 3rd parties - i.e. the gold is physically not really there), it may not be backed 100% by gold but just 90%, etc.. it really depends -> prospectus and a lot of research. But, gold ETF is taxed as a mutual fund, which can result in slightly lower capital gain tax than physical gold..

     Physical gold: you pay a premium (usually -70 over spot with 1 ounce coins). But then, you also get the premium back (partly) when selling gold (even if you sell on ebay, you still get more than the spot price - check out http://www.goldprice.org/ebay-gold-prices/). Pros: You hold the physical and you know it's 100% there, in any type of meltdown. Govt doesn't need to know you have them or you sold them (purchases under ,000 or sales up to 25 ounces don't have to be reported) -> consider capital gains tax. If you buy from BBB A rated dealers you can be sure it's genuine. Drawbacks: you need a safe place (safe at home or safe deposit 0-300/year), shipping cost when buying online (-50). If you believe there may be a serious market crash (exchanges may be down and ETFs not tradeable), this is the better option.

     Allocated gold: this is a compromise between an ETF and physical gold. You are a partial owner of a standard 400oz gold bar. The total cost of gold ownership about the same or lower as ETFs. Gold is held as bailment, i.e. you really hold title to it. Only two companies offer this so far: BullionVault and GoldMoney. Pros 24/7/365 instant transactions, low cost, gold is 100% physically there unlike many ETFs. Drawbacks: possibly higher taxation than ETFs or coins..

     All in all, my favorite would be probably gold coins (and silver coins too > gold to silver ratio tends to get narrower in crisis times so silver may appreciate more if the dollar hits the fan, plus silver is much more practical - 1oz coin is worth only so you can actually effectively use it for daily transactions etc..) .. but that's my opinion. I'm very conservative and don't trust the management of most funds.

10. QUESTION:
    Is it easy to buy and sell physical gold?
    Like gold coins or bars.

    Also, is it easy to get scammed buying gold coins and bars.

    • ANSWER:
      No, it is NOT that easy to buy and sell physical gold unless there is a reputable coin dealer near you that will buy your coins/bars at a fair price. In the U.S. at least, there are not a huge amount of coin dealers to be found - you typically have to be near the larger metropolis areas to find them.

      Yes, it's easy to get scammed if you don't know current prices, and quality factors. It's important that you visually inspect coins and bars before purchasing them, because coins/bars that have scratches or manufacturing blemishes can be used against you when you go to sell them. A coin dealer can refuse to give you full price for a badly scratched coin (although they'll happily sell them at full price, to the unwary buyer).

      Also, beware of "rare" coins that were once mounted on jewelry, like on a necklace or bracelet. They can have nasty "mounting" scratches on the edges that make them almost scrap metal (albeit precious metal, but still, nowhere near what the coin would have been worth had it not been scratched by jewelry mounting process!).

      You might want to consider buying gold coins that have been "slabbed," (i.e., encased in hard plastic cases, with identifying numbers and grade marks provided by a professional grading service such as PCGS). This gives your coins a form of pedigree, almost like making it a registered security. And take photos of each coin you purchase, clearly showing the grade and ID number, so that in case somebody tries to "switch" coins on you at a dealer, you will have a back-up record of your actual inventory.

      Last but not least, be aware that dealers are not obligated to buy your coins or bars at all at any price, so even if gold shoots up to, say, 2000 dollars an ounce, dealers might just claim that they have enough gold, and will only offer you much less than 2000 an ounce.

11. QUESTION:
    Where to buy physical gold in singapore?

    • ANSWER:
      any shopping mall

12. QUESTION:
    Can we buy Gold as certificates in some reliable Indian institution rather than physical gold?

    • ANSWER:
      Yes, you can buy gold in demat form throug Gold Exchange Traded Funds. Some mutual funds are doing this (eg) UTI,Benchmark, Reliance,Kotak etc.,

      good luck
      pnkmurthy@yahoo.com
      http://www.geocities.com/pnkmurthy/lic.html

13. QUESTION:
    How do you sell physical silver bars if they reach 35.00 an once ? Who would be willing to buy ?
    I'm try to understand how buying physical gold or silver is a good investment if you can't sell it for more then you purchased it for ? and who would buy it anyways, as you would think no one would buy unitll the price comes down....?

    • ANSWER:
      You can sell your bars at any time. All you have to do is either take them into a dealer or send them to an online dealer. But you are missing the point of silver and gold buying. Silver and gold are not investments.

      Gold and silver is money and a store of value. It is the "Currency of last resort" as Greenspan has stated many times through the years. Gold doesnt pay interest, dividends, doesnt restate earnings, has no lawyers, accountants, CEOs or CFOs lying to you on television. Gold doesnt ask for bailouts, doesnt go Bankrupt and cannot cook its books. Gold cant be debased or printed at the will of a company or governmetnt and holds its purchasing power.

      Gold sits there as a store of value, is labor intensive, and a one ounce coin will not split into a bunch of half ounce coins at the direction of the "Pin Striped Bandits" on Wall Street. Also Gold is the ONLY asset class in the last ten years to increase in value and retain every dollar of its purchasing power.

      Can gold go down? Yes. However that would mean that all essential goods and services must fall as well. Gold is and acts more like an insurance policy. You are insuring that something in your portfolio can never go to [FAQ-ANSWER].00. All paper assets have the ability to go to [FAQ-ANSWER].00. This is what you are insuring against.

      As Alan Greenspan former Chairman of the Federal Reserve said ....

      "In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold (from 1933 to 1975). If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

      This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." Allen Greenspan 1966

      I buy gold and silver at ANY price and hold it for the long term. I bought silver last week for .00 an ounce. You have to understand that there is a paper price and a physical price for silver and gold. Over the long term silver and gold go up in dollars. The exception to silver is if you look at the chart from 1980 to today. Silver is down but the situation was totally different back then. In 1980 because of the Hunt Brothers silver was in a bubble and that bubble burst when the Federal Reserve began to raise interest rates to 22%. In addition there was 95% more silver then there is today. The fundamentals are a lot different today and favor the silver markets long term. When you want to sell your bars contact me and we will talk.

14. QUESTION:
    what is cheap method to buy physical gold in india?

    • ANSWER:
      Cheapest means to get physical gold is to go to reputed jewellers where there is a buy back guarantee.

15. QUESTION:
    Is there a website where I can buy 1 gram of physical Gold bar for the actual price it cost?
    I see that 1 gram of gold cost .73 per gram and websites like Amazon, etc are charging and up; why? To make a bigger profit? Charge more for the package? Is there a website the will charge me .73 for gram of Gold and not and up?

    • ANSWER:
      there isn't, the actual price per gram in the gold ufficial spot is referring to the 400 oz bullion. To obtain a 1 gram bullion from a 13 kilos bullion is required a processing which obviously has some costs.
      Even if you purchase it at its very actual spot price, then, you'll have to charge the package or custody price....plus commission fees, taxes, and so on...

16. QUESTION:
    where to buy gold and silver?
    where is the best place to buy physical gold and silver at near market value in the uk? i mean in ounces and such to, not jewelery. im in the northwest and the only place i can find is ebay, but the price is crazy compared to the market values!and help is appreciated, thanks guys!

    • ANSWER:
      http://www.bullionvault.com/ http://www.taxfreegold.co.uk www.goldline.co.uk

17. QUESTION:
    Where to buy physical gold in US?
    not jewelery

    • ANSWER:

18. QUESTION:
    is it advisable to buy gold mutual fund rather than physical gold?

    • ANSWER:
      It depends on the reason for the investment.

      If you want to earn money based on the price of golds going up, Buy a mutual fund that buys shares in producing companies, this gives you the best leverage on increasing gold price.

      But if you think the monetary system is in crises and is going to end ( not too likely right now) buy physical gold in the form of 99.99% pure one ounce coins, Like Canada Maple leaf, or others that are internationally recognized.

      They will not go up as much as stock, but in a monetary meltdown, you have real wealth.

      Gold ETF,s are mutual funds based on holding bullion, they will go up, unleveraged minus, holding costs, if there is a run on the fund, you mighht not be able to access your money

      NEVER BUY GOLD THAT IS NOT INTERNATIONALY Recognized, Gold bars or coins that are not accepted as to purity, are junk.

      I buy Gold mutual Funds, I own 0,000 worth right now, But I do Have 1 (one) 1 ounce Canadian Maple Leaf Coin, Because I like the Romance of owning a peice of the EARTH'S SOUL.

19. QUESTION:
    Where can I buy physical gold and silver (e.g. bullions, coins) in Asia ?

    • ANSWER:
      Try a mint

20. QUESTION:
    How do I go about buying physical gold and who is the most trustworthy?
    what about buying and selling costs, and is resold at a profit, are capital gains due?

    • ANSWER:
      The best prices are at kitco.com where they also buy and sell bullion and coins. Allamericangold.com is another good source of US pre-1933 gold coins.

      To report the capital gains, you would need paperwork showing the purchase and sale prices,etc.

21. QUESTION:
    How do I buy gold ?
    I want to take some excess money and buy physical gold to hold.

    • ANSWER:
      If you want to hold the gold in your hand. Go to a coin shop and you can buy coins or gold Bars. Or stock GLD.real gold.
      This is a good web page to look at http://www.monex.com/prods/gold.html

22. QUESTION:
    I have 90 grand in a 401k and I want to take it all out and buy physical gold and silver.?
    Without quitting my job, what is the most I can walk away with after taxes and penelties? Is there an IRA I can roll this over into that will allow me to my physical metals? (not ETS or stocks)

    Thanks in advance for any good information provided.
    I just read a book called "Crash Proof" by Peter Schiff and took a "Crash Course" on the internet. (http://www.chrismartenson.com/crashcourse) and I am concerned about the value of the dollar. I've watched Schiff for years and a few years back he was laughed at for his ideas. Now that they're all actually happining, he's gaining a lot more credibility. The "Crash Course" was created by a PhD in Economics and his thoughts paralell Schiffs. The possibility of a dollar crash seems very real to me after watching and reading this information.
    I meant to write ETF's, not ETS. oops

    I've given thumbs up to all answers so far because they are sincere and though I don't agree with some of them, I appreciate the time you all spent writing them. I wish you would at least check out the site I referenced. It's very well done. I'm sorry I can only choose one best answer, but I am very concerned about a dollar crash and in this event even my money market won't be safe. Good luck to you all.

    • ANSWER:
      i think you have the right idea. there are gold ira's. goldline.com has more information on them. you may not be able to withdraw your 401k at all due to the policies of the company. i say if you can't move your money they reallocate them to the most inflation proof mode available in the fund. then dollar cost average gold and silver either in bullion you hold or in a gold IRA. i think a dollar crash is coming also

23. QUESTION:
    is it possible to buy gold or silver coins from a bank, or can i buy(physical) Precious metals in general?

    • ANSWER:
      You won't want to keep precious metals at your own house, because to insure them will cost a lot. My parents bought £20,000 worth of silver from here: http://www.bullionvault.com/

      The company keeps it in it's own vault at a small fee, but if you want you can get it delivered to you, but you will have to buy a whole bullion block. I don't know if you can buy "pure" gold and silver coins from the bank. I've never heard of them doing that.

24. QUESTION:
    How to buy gold for investment in US?
    I see a number of 'bullion' companies but the charges are way above the spot rate. If someone were to buy couple of 100 grams of physical gold for investment, how can one do that without paying too much premium?

    I know there are some Exchange Traded Funds too that track the price of gold, but off late commodity tracking funds have come under lot of fire.

    Any ideas?

    • ANSWER:
      Go to a local coin dealer. He or she will probably have anything you want at a reasonable premium to spot.

25. QUESTION:
    what is the difference between buying gold on the stock exchange and buying physical gold?

    • ANSWER:
      Since years people have been buying gold the traditional way in the form of jewellery or gold biscuits and coins. Then the natural question that will come to ones mind will be why should I buy gold through gold ETF units in demat (electronic) format. Taking the delivery of gold ETF units in demat format over physical gold comes with its own advantages like:
      1. In case of gold ETF’s the person need not worry about the purity and quality of the gold. This aspect is taken care of by the stock exchange and the other regulators. There is no impurity risk of any sort in buying gold ETF’s. The gold ETF mutual fund invests in standard gold bullion (99.5% purity).
      2. Since the investor is not taking physical delivery he need not worry about storing physical gold at a safe place. Imagine that if you go on accumulating one gram of physical gold every month; after 16 years you will have almost 200 grams of physical gold to take care of. If you keep this gold at home, it’s bound to give you sleepless nights. But since in gold ETF’s the physical delivery aspect is taken care of; you can enjoy sound sleep at night and leave the worry of guarding your gold to the mutual fund AMC.
      3. Also you need not spend money on gold insurance and bank locker rent as there is no physical delivery of gold involved.
      4. You can buy gold ETF units at the market price. Normally if you buy gold coins or biscuits from banks or jewellers; their prices are different from each other. Also some banks normally charge a premium of 3-5% over the market price of gold. So the gold ETF pricing is very transparent.
      5. Similarly when you sell gold ETF units you can sell them at the current market price. There are no cutting charges or making charges or there is no discount to market price at the time of selling the gold ETF units. This ensures that you get a fair price for your gold at the time of selling. Also there are ready buyers available through the exchange for your gold at any given point of time. So this ensures adequate liquidity and you can sell your gold ETF units at any point of time without any loss of value or very little loss of value. Banks normally don’t buy back gold sold by them. Jewellers do buy back gold but at a discount to the market price.
      6. With gold ETF’s at a time you can buy as low as 1 gram of gold or half a gram of gold at a time. If you buy gold in the form of coins or biscuits you may have to buy a minimum of 5 grams of gold at a time. Buying half a gram of gold through gold ETF every month is within the reach of common man; but buying 5 grams of physical gold every month may not be within the reach of everyone. So the low entry point offered by gold ETF’s is definitely an advantage as compared to physical gold.
      7. If the value of your physical gold goes above a certain level (presently Rs 15 lakhs) then you are liable to pay wealth tax. But investing in gold through gold ETF’s does not attract any wealth tax.
      8. If you buy physical gold and hold it for less than 36 months and sell it; you are liable to pay short term capital gains tax. But in case of gold ETF’s if the person holds the gold ETF units for more than 12 months then he has to pay long term capital gains tax. So from tax point of view also gold ETF’s have an edge over physical gold.
      So you see buying gold through gold ETF’s rather than traditional ways (jewellery or gold coins and biscuits) has lot of advantages.

26. QUESTION:
    Why buy gold and silver?
    I read blogs saying "buy physical gold and silver" as cash is depreciated. I have been trying to understand why for a few days. If the currency is hugely devaluated maybe I should buy lots of packets of rice, pasta, sugar, canned food etc????? surely it trades better in the worst case scenario than gold?

    • ANSWER:

27. QUESTION:
    Buying physical gold?
    I want to buy a small amount of gold as close to market price as possible, several ounces at most. I want to actually have physical custody of it as well. Where would I go to make such a purchase? I live in a medium sized city ~500k pop.

    • ANSWER:
      It might be easier to buy government issued coins. http://www.usmint.gov/mint_programs/

28. QUESTION:
    buying physical gold and silver?
    i know its important to own physical gold,silver or both these days..but i am a new-bee.i have alot of questions.

    1.i want to buy real physical gold and silver not on paper,,is this a good site to buy themwww.gainesvillecoins.com

    2.difference between bullion,perth mint,modern coins pre 1933 and any other if there any

    3.should i buy bars or coins or it doesn't matter and the important thing is how many oz of each u have.

    4.this is probably the most stupidest question of all.. how do i sell it or covert into cash when i think its profitable.. where do i sell it..online?,bank?

    • ANSWER:

29. QUESTION:
    Buying physical gold and silver?
    i know its important to own physical gold,silver or both these days..but i am a new-bee.i have alot of questions.

    1.i want to buy real physical gold and silver not on paper,,is this a good site to buy themwww.gainesvillecoins.com

    2.difference between bullion,perth mint,modern coins pre 1933 and any other if there any

    3.should i buy bars or coins or it doesn't matter and the important thing is how many oz of each u have.

    4.this is probably the most stupidest question of all.. how do i sell it or covert into cash when i think its profitable.. where do i sell it..online?,bank?

    • ANSWER:
      nice idea
      i do it too, i invest in gold because it's a good promising investment better than stocks,bond and time deposit

30. QUESTION:
    Should I buy Gold now?
    I am a big fan of Gold investment. I invested in Gold in 2006 and again 2008. The returns are decent.
    In 2009, I was silent due to my career turbulence, just like many others.
    Now, Gold hit 00+. I bought at a rate of 0 in 2008. I am afraid of investing more. At the same time, I am wondering I miss my investment opportunity if I don't buy now as some projections I am seeing is 00 a ounce.
    (I am not asking if I need to buy physical gold. I always buy physical, but this time, I am going to buy ETFs).
    Is this a right time to buy gold or Gold ETF? Are you anticipating any corrections?

    • ANSWER:
      I would wait for a pullback before buying Gold ETF. Don't be afraid to invest in Gold...just have an exit strategy of some type. If it pulls back -5% or -10% or whatever loss you feel unconformable with ....get out of the position. You can always buy it back latter.

      Gold is a commodity like any other commodity. Just watch the price movement after you buy.

      Gold is up over 200% in last 5 years....S&P 500 is at 0% (including the latest Bull rally off the March 2009 lows). It's hard to make the case that's it's been a bad investment over the last 5 years.

31. QUESTION:
    Tax implications with buying and then selling physical gold?
    Hi,

    I am not very good at understanding how / when you pay tax, hope someone can help me out here.

    I live in California. Lets say I buy physical gold (the american eagle coins) for the purpose of saving and the seller does not charge me tax on it.

    1. I am assuming I still have to pay the tax on it, How and when will I pay the tex on it (in my tax returns) ?

    2. When I sell them, and if there is an increase in my total amount received from the amount i paid to buy, will I have to pay tax for that? how and when?

    3. When selling, if I receive an amount above ,000, will there be some other tax filing I will have to do myself? please also tell me when I will have to do that, is it a part of the tax returns filing?

    quite frankly, considering all these taxes, purchasing physical gold is not seeming very appealing, however im really not an expert on this, maybe i am missing some crucial information.

    detailed answers highly appreciated

    thankyou

    • ANSWER:

32. QUESTION:
    Buying physical gold coins?
    In uncertain economic times when people are turning to gold for safety, I can't help but feel that the ultimate in safety would be physically possessing your gold rather than "your" gold simply being a few bytes on a computer somewhere that indicate that some gold in a distant land belongs to you.

    What would be the disadvantage of buying coins like this (or bullion if you're RICH!)...

    http://www.mint.ca/store/buy/gold_coins-cat120004

    These are from the Canadian mint because I'm in Canada, but I assume the US has similar coins.
    Edit:

    Scratch my comment about bullion - any size bullion bar is clearly out of my reach - I'm interested in the disadvantages of gold coins.

    One disadvantage for some people would be finding somewhere to safely keep it. No problem there, I've got a good hiding spot.

    Edit2:
    Thanks for the answers so far. I should have been more clear, the scenario I am considering hedging against is a drastic decline in the value of the US dollar, the USD losing its reserve status and anarchy ensuing. I have plenty of extremely liquid assets for if the economy actually turns around long term, which I think is laughable given the fundamentals of the US economy right now, but I hope that's the way it goes. If gold were to go to k - k per oz, and it turned out to be a good place to have some money, I was just wondering about the dis/advantages of physically possessing coins. It sound like the primary one is finding a safe spot to keep them. That is not a big problem for me at all. Thanks for the answers so far, some very good points!

    • ANSWER:
      The disadvantages I know of, aside from the risk of theft or loss, are:

      Not knowing what you're doing. You need to research the price history of scarce and rare gold coins to see how these prices have moved in relation to rising and falling bullion values. In certain cases, the numismatic value of some coins has risen faster than gold has. In others, it has risen along with gold, which is to say, no change in numismatic value at all. And in some cases, numismatic values have fallen while gold moved up. Why would this happen? Because collecting is often done with discretionary money, and in tough economic times, there is a shortage of discretionary spending. Values on many collectible items have fallen over the last four years. So, you really need to do your research before buying.

      Secondly, there is the risk of governments placing severe restrictions on the ownership of gold - it was never illegal, as is often misstated - as the US did from April 1933 to December 1974. People were allowed to keep 0 face value in gold coin, and businesses that needed gold were allowed to possess gold bars. Anything else was to be surrendered at a fixed price at about , which the government turned into a large profit when they fixed the price at . The stated purpose of the act was to forbid hoarding, but of course, the real purpose was seizure to help bail itself out.

      I do agree with you about paper gold. Those who claim it's safe cannot prove to my satisfaction that some chicanery can't wipe out everybody who is in such a scheme. If there is a true world panic and all those people with paper gold demand their physical gold, who is going to get it for them?

33. QUESTION:
    How do I go about investing in gold?
    Do I buy shares in a mining company? Or do I buy physical gold?

    • ANSWER:
      There are 4 options:

      1. physical gold
      2. Mining company shares (or bonds!)
      3. precious metals ETFs
      4. e-gold
      Visit this site

      http://free-gold-investing-info.blogspot.com/

      To get free tips from Wall Street Professionals and receive reports, charts and strategies on investing in gold.

34. QUESTION:
    what's all this talk about buying gold and silver and how and where do I buy these?
    Do I buy these in physical form? I don't really want that. It does not appeal to me. Are these for sale as a stock? I'd rather buy these in non-physical forms. I still don't get the whole thing about buying silver and buying gold? Who uses these anyway? Well gold is for luxury items, isn't it? Silver is for what exactly again?

    • ANSWER:
      Buy the SLV - silver, and GLD - gold eft's. Silver, as well as gold is an excellent conductor of electricity. So both of these are used in small amounts in your computer, as well as other electonic equipment. Silver is also used in film.

      The only reason you don't have gold or silver wiring (as opposed to copper), in your home, is because it is too expensive.

35. QUESTION:
    Where are the reputable dealers for buying and selling physical gold and silver?
    I'm interested in investing in gold and/or silver coins and bars to preserve the value of my money at this time. Who and where are the most reputable dealers??

    • ANSWER:
      You might find some well known ones, at the following URLs:

      www.usagold.com
      www.apmex.com
      www.coinresource/directory
      /gold.htm
      www.gold.org
      www.golddealer.com
      www.taxfreegold.co.uk
      www.mjpm.com
      www.nwtmintbullion.com
      http://miningstocks.com/bullion
      http://goldprice.org

36. QUESTION:
    Why are stupid people buying physical gold and silver coins ? ?
    they are so stupid

    • ANSWER:
      Some people concern themselves with preparing for the future.

      In saner times, what you are describing would be known simply as "saving."

37. QUESTION:
    How Do I Buy Gold....?
    How can I buy gold. I would like to buy gold but not actually physical gold so maybe a certificate. And I don't think gold company stocks cause that's just investing in a mining company. But what are the ways in buying it?

    • ANSWER:
      Buy ticker GLD or IAU.

      Cheap, easy, safe.

      No other option comes close now that these ETF's exist for the small investor.

38. QUESTION:
    Can we buy gold bars in the US, and if so where?
    I know that in 1933 FDR stole everyone's gold and replaced it "fiat" federal reserve notes. But what I don't know is if it is legal to purchase gold bars of unlimited quantity today in the US. I know you can buy and own gold bullion coins but what about bars of gold. I have heard many stories about this but I have yet to find any concrete evidence that it is legal to buy and own gold bars in unlimited quantity. I am talking about walking into a place of business putting down money and walking out with physical bars of gold. I don't think you can do that... Am I wrong?

    • ANSWER:
      Executive Order #6102 by Roosevelt prohibiting the ownership of gold was repealed by Congress codified in Public Law 93-373 [1] in 1974, so yes you can own gold bars.

      You can buy bars in weights of 100 oz., 10 oz., 5 oz or 1 oz. You can buy coins in 1oz., 1/2 oz., 1/10 oz. etc. If I were you, I'd stick with the bars as they sell at a premium less than the coins do. For example a 1 oz. Gold American Eagle coin at Kitco costs 6.38 while a 1 oz. gold bar costs 2.60 -- .78 less then the coin.

      There are several places you can buy them. I recommend www.kitco.com. You can also try www.monex.com.

39. QUESTION:
    Investing in physical gold and silver?
    I'm starting to buy gold and silver now to prepare for hyperinflation. I sometimes see "Troy ounce" What's the difference between ounce and troy ounce? Is one more pure than the other?
    how many ounces are in a gram?
    how many ounces are in a gram?
    how much ounces in a grain?
    how much ounces in a grain?

    • ANSWER:
      The troy ounce is heavier than the typical grocery store (avoirdupois) ounce used in the USA. When you purchase a 1 ounce silver or gold coin, you are receiving a "troy" ounce.

      1 Troy ounce = 31.1034768 grams

      1 grain = 0.00208333 ounces (Troy)

      1 gram = 0.0321507466 troy ounces

40. QUESTION:
    Capital gain tax on physical gold?
    I think that people are supposed to pay a capital gain tax on physical gold, but how can the IRS track it?
    For instance if my grandfather gives me gold that I sell, I don't even know how much gain I made on the sale.
    If I buy gold coins in a shop, do they give me a tax form to fill out so that I can pay capital gain taxes?

    • ANSWER:
      Physical gold really can't be tracked.

      If you buy gold coins in a shop they will not give you a tax form to fill out to pay capital gains.

      It would be interesting to see on a tax return though. Especially if you were showing a capital loss on the sale of physical gold.

41. QUESTION:
    What are the Pro's and Con's of buying physical silver/gold?

    • ANSWER:
      Advantages:
      Full value of asset (unlike mining stocks or other proxies)
      Would be liquid and useful in extremely dire economic times

      Disadvantages:
      Commissions
      Delivery charges
      Need secure place to store
      Not as liquid as other methods under normal conditions

      I like GLD which is an ETF - you can buy and sell it like a stock and it is backed 100% by real gold. No storage, no delivery, low commission and very liquid.

42. QUESTION:
    Has anyone been buying or considering physical gold & silver?
    just trying to get an opinion on owning& possesing physical gold and silver as an investment

    • ANSWER:
      I buy silver bullion and coins, but right now I am holding off, because in my opinion it is overvalued. I don't buy gold, but it is in the same situation. As with any investment buy low, sell high. Right now precious metals are high.

43. QUESTION:
    Where am I able to find small portions of gold for sale?
    I would like to buy gold but only like 0-500 worth and would like to have the option for smaller amounts also. I do not want a redeemable certificate but physical gold in my hand. I live in South Jersey, if you know a store/shop or website please let me know.

    • ANSWER:
      Ebay is a good place to buy. Just be careful and do not bid too high. Look for 1/10 ounce coins or 1 gr bars. 1gr bars are about each currently. 1/10 coins about 8-3 each.

44. QUESTION:
    why physical gold is sold higher than the quoted price in USA, In Pakistan it is sold at the quoted price.?
    Today gold price is quoted at 87 but if you want to buy a gold bar, its price is 30, the same gold bar is available in Pakistan at 87, why is it a different.

    • ANSWER:
      Prices vary with the physical delivery point. The quoted price of gold is between the big boys of the market. They never really take physical delivery. The gold just moves on the record books of holding houses such as the Federal Reserve in New York. If you want physical delivery then the gold needs to be checked to insure its weight and quality (karat) and then move by armed guards.

45. QUESTION:
    how can i buy gold. or silver.?
    i have got some money which i have worked. and now i want to spend it on some thing like buying Gold or Silver and then later on sell it back expensive. when i say Gold or Silver i mean like physical Gold or Silver. i have tried to buy some foreign currencies and then sell it back but i didn't make much profit. it was in pence's even. so i want to do some business like this i am young and i like to be a successful business man like owning a shop or be a shopkeeper but Business like what i have explained ,
    please help me if you can . Thank you very with all my soul and body in advance.

    • ANSWER:
      My opinion is that now is NOT the time to be buying gold and silver. Both of those have run up very far in price and I think are very risky right now. Silver's price dropped significantly today and I think that might be the start of the bubble popping. I think you are more likely to lose money than gain money buying either gold or silver at this time.

      If you want to take that risk, you might want to consider buying ETF shares that track the price of gold (e.g. GLD) or silver (e.g. SLV) rather than buying physical gold or silver. If you take the physical metal, you have to store it and then deliver it when you sell it. GLD and SLV trade like stocks so you don't have any of the hassles of physical delivery of the metals.

46. QUESTION:
    How can I get started investing in physical gold and silver?
    I'm 15 and would like to start investing in gold and silver because the dollar seems to keep going down and down and I think it would be wise to get started now. I have a couple of silver dollars from 1803 but I would like to get gold and silver bullion coins and when I have enough money start buying the bars. I do not wish to buy online so would going to different coin shops be ok??
    Thank You=]

    • ANSWER:
      Buying from coin dealers, is a good way to go. That's where I buy my Krugerrands. Tho I buy my Morgan silver dollars from ebay. It's hard to make much money buying the physical metals. Each coin dealer has to mark these up to make any money. And then when you sell them back, they buy at a discount.

      Gold & silver is not a very good investment, since they pay no dividends, or interest. What your doing here is speculating, that the precious metals will continue to go up. Personally I think the metals are in a bubble here.

      I've made much more money on my mutual funds, than I've ever made on my Kruggerands, and Morgan's.

47. QUESTION:
    How to buy gold to survive hyerinflation?
    Should I buy physical coins to keep in my house, keep it in vaults through sites like GoldMoney.com or buy gold stocks such as GLD?

    Would gold stocks become worthless if the dollar collapsed? Can gold in vaults in other countries such as switzerland be trusted? What about someone breaking into your house and stealing your gold coins?
    Just so everyone knows, whether you agree with me or not, I'm going on the assumption that we will have hyperinflation and a possible collapse of the dollar. Better to be safe than sorry.

    I live in a tiny 1 bedroom apartment, so I don't have a very good place to hide gold coins. Do you still think it's the best bet? Or should I trust other country's vaults like in switzerland?

    If the dollar collapse is a possible result, would investing in GLD the gold stock be a bad idea?

    Does anyone recommend a way to invest in gold overseas in a vault such as GoldMoney.com? Or does anyone have any experience with that?

    • ANSWER:
      Gold historically has been a decent hedge against inflation. Unless your market timing is very good it's not likely to increase much in purchasing power. But it's not likely to lose its purchasing power either in the case of the dollar collapsing.

      GLD should be safe unless society collapses to the stone age or London is nuked (the gold behind GLD is kept in vaults there). You could always buy a small safe from Staples or something, fill that up with coins and then purchase the rest in GLD.

      I'm not buying gold myself, but I am starting to hedge against a possible dollar collapse. I'm slowly increasing my holdings in US companies with foreign income, foreign companies and commodity companies. The Motley Fool had a good article a few days ago that largely mirrors my thinking:

48. QUESTION:
    Where to buy gold bullion?
    I live in a fair sized city in Ontario, Canada... about 70,000 people. Would there be a store in my city that sells gold? I don't want to buy it online. What kind of store am I looking for? Coin dealerships or pawn shops maybe? You can't get it at the bank can you? Or do they only sell it directly in larger cities like Toronto?

    I don't want collector's coins, I just want pure gold as close to market value as possible. (I know there is going to be a vendor markup.)

    I already own a gold ETF but I would like to own a little bit of physical gold.

    Also anything I should look for to avoid being ripped off?
    Would buying an equal $ amount of silver be as good a choice as buying gold? It's certainly cheaper so I could buy a lot more of it.

    • ANSWER:
      if you can get to Toronto, you should be able to find a pure precious metals dealer there, i don't see why not. better at such a dealer than at a coin or pawn shop, i would think. i can't get metals at any bank here in the US, so i would think it would also be the same in Canada.

      i live in NYC, so i go to a major dealer here called MTB. i buy Krugerrands for spot plus a variable premium and commission. i can't avoid paying over spot, but i think i'd pay the same or more if i mail ordered, and at least i get the satisfaction of taking it home with me.

      your idea of buying silver is a good one, considering that the current gold/silver ratio is 56, which is much higher than the historical ratio of between 15 and 20, which means that silver may be considerably undervalued with more upside potential going forward. right now i'm buying more American Silver Eagles and Canadian Maple Leafs than i would normally (i also have 100- and 10-ounce bars which come at much lower premiums), with the idea of riding the ratio down from 56 to a point where it would be profitable to trade my silver for gold.

      for the ASEs and CMLs i pay spot plus a to premium and commission. the bars only cost me 25-50 cents extra per ounce. i actually prefer the CMLs because they have a C face value vs. US for ASEs, although what practical difference this will make if/when our paper currencies turn to dust may be none at all, since silver is still silver.

      i don't have any metals ETFs myself and prefer to stay away from them. i feel there is always a risk, however slight, of corporate incompetence and malfeasance by the ETF issuer. the metals they account for may not actually exist. an ETF share is also a form of debenture, and if it were to go under, you would still only be a general creditor.

      (btw, i don't know where one of the posters gets the idea that your coins have to be pristine. some of the silver i've bought from MTB is tarnished, and they'll buy it back for as much as any of my "pristine" silver. they handle them all like handling bulk grains, anyway...)

49. QUESTION:
    Does anyone buy gold as a commodity? I'm thinking about buying gold so I can have some sort of tangible wealth?
    I just like the Idea of having something physical that is worth something. What is your experience with gold investing?

    • ANSWER:
      Gold is a very safe investment, so while you won't exactly get rich from it, it's unlikely that you will lose a lot of money with it... and while the value might drop, it's overall worth goes up when the dollar goes down. Read up about gold investing on this website: http://www.goldintomoney.com/precious-metals/bullionvault-is-the-easiest-way-to-buy-sell-and-trade-real-gold

50. QUESTION:
    Any ideas about how to invest in gold? I don't trust the ads on TV.?
    Should I buy physical gold such as gold coins, or are there stocks that specialize in precious metals?

    • ANSWER:
      Now is not the time to buy gold. Buy low, sell high. But, if you must then try GLD.
      http://finance.yahoo.com/q?s=gld

      I suggest you by a total stock market ETF. Vanguard is my ETF company of choice.