Friday, June 04, 2010

Peter Schiff: The wrong way to buy gold

The Duke talks about Goldline, a US gold coin seller. He is not impressed by their value for money:



Always check the spot price of gold before you pay for coins. Only deal with reputable dealers, hopefully whom a personal friend has recommended. You should be able to find gold coins for somewhere between 2-4% over the gold spot price, if you are not fussy about numismatic values or getting the 'latest' issues. (Though this must be tempered by the very high volatility in gold prices, at the moment.)

For instance, when buying UK sovereigns, if you want the 'latest' 2010 mintings, you will probably expect to pay more, but if going for something from 1964 or 1973, you should be in the 2-4% over gold spot range. (At least, in less volatile times.)

UK gold coin buyers should buy sovereigns. As these are still 'legal tender', they do not attract capital gains tax. Though do expect the Glorious Coalition to cut this escape route off from the horrors of being forced to use legal tender paper scrip.

Alas, because of this tax status, you will probably have to pay 'over the odds' at the moment, as every Jack Bull in England is buying sovereigns to try to avoid the Glorious Coalition's imminent rack-up in capital gains tax.

I hope all those conservative party voters out there are glad who they voted for.

17 comments:

Andrew said...

How would one go about buying gold sovereigns?

Jack Maturin said...

Try Baird and Co in the UK (I don't think they're anything to do with Goldline in the US, though confusingly their main website is goldline.co.uk).

However, beware at all times of being ripped off. You are on your own on this.

Also, buy Peter Schiff books, where he tells you how to go about being aware of possible problems.

Hopefully, when Schiff's own gold coin selling service gets off the ground, he'll ship internationally.

We'll see.

If he does, then that will become the number one place to buy gold coins from.

Jack Maturin said...

PS> Always check the gold spot price against the gold content in the coins. Unless you want numismatic rare precious Byzantine coins from the 8th century, just go for the gold content.

Though with sovereigns, beware of the capital gains tax sweetener pushing up the price, plus the huge volatility in gold prices at the moment, which means coin dealers must push their prices up to avoid risking being out of pocket.

Andrew said...

Great advice, much appreciated.

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