Need Recommendations Buy Scrap Gold or Gold Bullions for Investments?

Im going to be buying a substancial amount of physical gold this week and am not an expert. I friend of mine told me I should buy scrap then sell it to a refiner and others tell me to just buy the bars or bullion. Do we have any gold experts here who can tell me the best route to take?

Coins if you can find 'em. Good luck, though.

Originally posted by anachryon
Coins if you can find 'em. Good luck, though.

I have a source locally here who has in stock. My friend is telling me to buy scrap and sell to refiners. Im not sure which way to go.

I would suggest staying away from scrap. In all areas, scrap may be mixed with other metals. It's a losing proposition. Most of the time, if I am not mistaken, the gold is of substandard value anyway. If it were worth that much, whomever had it would recycle it in the first place.
You are paying a flat rate for gold and various mixed metals, and if you score a batch of real slag, you will loose out.
If you are going to buy, buy bullion at low price.
If I am not mistaken gold has fluctuated between 700 and 900. It's expected to go way up in 2009.

Something else to remember, along the line of ATS commentary. If an ounce of gold is .999% pure, that .001 % is a tracer metal, able to show county of origin, and even the particular area it came from. Different tracer metals are used to identify country, refinery, etc.


[edit on 15/11/2008 by reticledc]

Originally posted by reticledc
I would suggest staying away from scrap. In all areas, scrap may be mixed with other metals. It's a losing proposition. Most of the time, if I am not mistaken, the gold is of substandard value anyway. If it were worth that much, whomever had it would recycle it in the first place.
If you are going to buy, buy bullion at low price.
If I am not mistaken gold has fluctuated between 700 and 900. It's expected to go way up in 2009.

Something else to remember, along the line of ATS commentary. If an ounce of gold is .999% pure, that .001 % is a tracer metal, able to show county of origin, and even the particular area it came from. Different tracer metals are used to identify country, refinery, etc.

See my argument is gold is gold. Gold has intrinsic value. I guess my issue is if you buy coins you can sell to investors or refiners to get money where as scrap for the most part you can just sell to refiners. I understand the difference between the difference Kts and % of each in gold but refiners can separate. Im leaning towards buying coins and not scrap but just needed to know if there was a disadvantage.

My friend tells me you can go to pawn shops and get scraps for crack money then turn around and sell it to refiners. Im confused grrrr

reply to post by mybigunit


Coins, perhaps a bar too. It's all about resale and who will buy it. There is a premium on everything you will buy, ie it will be above the current price by a percentage amount. But if you going to spend big then bars have the lowest premium but are harder to sell.
If you have loads of money get some silver too.

Originally posted by beefeater
reply to post by mybigunit

 

Coins, perhaps a bar too. It's all about resale and who will buy it. There is a premium on everything you will buy, ie it will be above the current price by a percentage amount. But if you going to spend big then bars have the lowest premium but are harder to sell.
If you have loads of money get some silver too.

Yeah Im buying silver too. So buy coins? What about scrap gold is there an advantage in buying scrap and selling to refiners or is scrap hard to get sold?

What do you mean by scrap gold?
Computer parts, crappy gold plated jewelry?
If you have enough money you could get a bar, coins and scrap, spread your "bet" so to speak.

www.taxfreegold.co.uk...
you will see what i mean by the premium.

[edit on 15-11-2008 by beefeater]

Originally posted by beefeater
What do you mean by scrap gold?
Computer parts, crappy gold plated jewelry?
If you have enough money you could get a bar, coins and scrap, spread your "bet" so to speak.

Scrap is like broken necklaces, gold rings, gold trinkets and crap like that. Then taking it to a refiner and selling it to them. My theory is that would limit my future buyers of my gold to just refiners where as if I buy coins I can sell to investors. The refiners then melt down the gold and use it for themselves. But it limits my future buyers to just refiners where as coins I can sell to investors and or refiners.

japan helped their banking system out about a decade+ ago.
they ended up with horrible deflation.

my point is - if deflation wins, gold will not appreciate.
as such, i would suggest coins - they have both material value in
case inflation accelerates and historical that which will be preserved
even in deflationary times, to a degree.

just my 2 cents.

sure but ,correct me if i am wrong, you will not get full price for the gold in your scrap because it requires further refining. and refiners might only take large quantities of scrap. Coins on the other hand you can sell in little bits over time or in one big load. A bar is hard to chop up if you only want to sell a bit of it.
shops 'might' even take gold coins if the shtf.

kkkk

Right certain golds have a higher value

One of the best in the world is Cloggeu from Wales very small mine since the Romans,

all the Royal Rings etc are made from this its very pure...

But realistically if you are personally buying it, does not matter too much if its not a Coin.

You can get cheap ASSAY testers in the Uk a form of Acid for each grade...and if you buy scrap just file a bit to make sure not plated and test it.

1 once of gold scrap of 18ct is practically the same as 1 ounce of gold already stamped or assayed, the scrap is slightly cheaper but when you sell it you will get less for it as the dealer will have to melt it all down and assay/mark it himself.

Same chicken as such different feathers.

Have possession of the gold, don't put some it in a vault somewhere else like Switzerland etc, if a major war breaks out, or that bank/company like we have seen goes bust you might loose it all!

Like many many Jewish people in the Last Depression!!!!

Best have the physical thing and keep it in a safe deposit box in your local bank... safe, close, easy to get quickly and you can go and stroke it!!!

Best really to get bars or coins, don't get the scrap unless you have done it before or try testing first....have experience of this, otherwise could end up with 70% lead and 30% gold lol.

The S.African gold stamps are very much liked as again good quality....

If ordering from abroad don't get anything that's not world famous on the assay mark first, get a transit delivery shipping garuntee...

Lastly Gold FUTURES is not gold, its a bit of paper, have the stuff in your hands and store it safely and locally like said,

Kind Regards,

Elf

[edit on 15-11-2008 by MischeviousElf]

reply to post by eventHorizon


agreed coins are 'more likely' to retain a value as they are collectible. usually..

The thing is that people with 'scrap' gold like jewelery, hierlooms etc are selling them for crap money, nowhere near what the actual gold value woud be.
Seen those ads on TV??

In these trying times people are looking for instant money,they have needs and don't have access to refining etc, so they have to settle for what they can get.
I'm sure there's a huge market for making money from peoples desperation.

Sorry to be the downer in this thread, but that exactly the reason your contact said it's a good market to buy scrap.
The way the economy is going, those with little are liquifying what they have, just to get by.
Nothing against you as a person, just saying as an investment I can see what your advisor was getting at.

Buy low, sell high.

Originally posted by earthchild
The thing is that people with 'scrap' gold like jewelery, hierlooms etc are selling them for crap money, nowhere near what the actual gold value woud be.
Seen those ads on TV??

In these trying times people are looking for instant money,they have needs and don't have access to refining etc, so they have to settle for what they can get.
I'm sure there's a huge market for making money from peoples desperation.

Sorry to be the downer in this thread, but that exactly the reason your contact said it's a good market to buy scrap.
The way the economy is going, those with little are liquifying what they have, just to get by.
Nothing against you as a person, just saying as an investment I can see what your advisor was getting at.

Buy low, sell high.

Correct this is why he is saying to buy scrap. My fears is when it comes time to sell it I just want to be sure there is a buyer there to buy it from. So maybe scrap is the way to go I just want to be sure there is a buyer on the other end. My thought process tells me it would be easier to sell coins when the time comes but maybe Im wrong.

reply to post by MischeviousElf


Thanks for the post. We actually have a friend who does this for a living so she tests and knows how to test. But trust is the key word and I dont want to go to sell it one day and find out it is 30% gold 70% lead With that being said I can buy scrap for cheap and Im going to hold it for a year or two when the shtf. I just want to be sure I have a buyer on the other end and to me it would be easier to sell coins. Maybe Im wrong.

Ok well I think Ill buy some of both. Ill buy some scrap and some coins. I dont think Ill buy the bars. Ill buy more coins than I do scraps.