What type of gold coins would be good to purchase for financial protection, should the value of cash deteriorate? I'm sure the smaller the denomination the better, but I just don't know what's out there.

Is it accurate to assume that with the recent drop in the price of gold, that the price of gold coins also fell?

-- lou (lanny1@ix.netcom.com), August 01, 1999

Answers

Lou.....yes gold prices are down & so is the cost o coins.You need to buy gold Eagles.In my neck o the woods they are most sought ater!! The prices are as fOllows on closing on friday::New York spot::$256.90 an oz.As for coins 1 oz-$269.66.....1/2 oz-$136.70......1/4oz-$69.70 1/10 oz-$29.40.....You can see price is higher 4 coins. Thats the premium shoppes charge you. They need 2 make a little on each coin.

-- Richard (kingrz@webtv.net), August 01, 1999.

Lou....I $$$$ are a problem. Try the price o the Kruggerrands.Here they are the lowest priced coins

-- Richard (kingrz@webtv.net), August 01, 1999.

Lou,

You'll hear a lot about "confiscation" of gold from people trying to sell you pre-1934 US or foreign gold coins. It is true that the US government required people to turn in "pocket money" circulated gold coins in 1933 when public ownership of gold was outlawed here. I can't say for sure whether that sort of thing will happen again or not. If it does no one can say what will be open to confiscation this time around.

You will pay more for the metal in 'numismatic' or collector coins. If you want to become a coin collector, and educate yourself to the nuances that determine the value of numismatic coins, by all means go ahead. But if you don't do your homework well, you _will_ be taken advantage of somewhere along the way. And you will not get as much metal for the money as you will in bullion type coins.

If you are going to buy bullion coins, stick to American Eagles. The premium on them is low enough that the difference is not apt to matter much from Krugs to Maples to Eagles. If you think you will need the coins for barter it makes sense to get a variety of denominations. Eagles come in 1 ounce, 1/2 oz., 1/4 oz. and 1/10 oz. sizes, which reflects the amount of gold they contain and not actual weight. So do most of the other bullion coins. You should get one Canadian Maple Leaf, just because they're so pretty. You have to be really careful with them though- they are 24 karat .999 fine and very soft. Eagles and the other bullion coins are 22 karat.

The price of gold has a parallel effect on the price of bullion coins, but less so on numismatics. As the POG has gone down so has the price of bullion coins, but there is some premium for minting the coins and dealers have to make a profit too. Demand for bullion coins also has an effect on price- when supplies get slim (as 1/10 oz. Eagles did recently) the price goes up accordingly.

There are a number of reputable dealers around. If you are worried about paper trails or dealer records you will want to buy over the counter using cash. If you don't mind mail ordering coins you might save money. It is a good idea to check among several dealers to determine current prices at any rate. Most states charge sales taxes on coins, some do not. That might be a consideration for you also. I have used Dillon-Gage Metals in Dallas, TX for years and recommend them- 800-375-4653.

-- Lee (lplapin@hotmail.com), August 01, 1999.

Thank you for the info so far, as I am considering a "modest" purchase of presious metals as a hedge against monetary devaluation.

Would someone kindly also address the purchase of silver and platinum in comparison to gold, and whether one is preferable, or a combination is safer? Thank you in advance!!

-- Copycat (dobbie@coastalnet.com), August 01, 1999.

Lee..

Good answer!!!!!

-- Richard (kingrz@webtv.net), August 01, 1999.

http://www.patriottrading.com/ptg_gold_prices.html

I am not affiliated-- in anyway-- just a customer They have a Y2K Special

On the 1/10th (which we were shopping)-- for the price most people want for the same # of coins-- they threw in 20 1oz. Silver pieces.

Came highly reccomended- waiting for order this week to arrive.

-- skalkaho (anon@yahoo.com), August 01, 1999.

I just got a better price at AJPM.

-- Mara Wayne (MaraWAyne@aol.com), August 01, 1999.