I have visions of going into sleazy pawnshops, or buying from suspicious folk on the Internet. I'm a real newbie at this type of thing. Have any of you regulars had any experience at this? Beware. . .my spam detector is Y2k compliant. Thanks!

-- FM (vidprof@aol.com), March 10, 1999

Answers

I started buying coins April/May 1998. I found a small ad in the Wall Street Journal for Blanchard's. They are the biggest company in the US selling coins. They sell at very low margins. I have enjoyed bringing them up to speed on Y2K.

I bought lots of junk silver at 5% margin. Now it is closer to 50% margin.

If you get the Wall Street Journal, there are ads for coin dealers on pages A2&A3, as well as about page C11 (where ever they have the box labeled "cash prices" -- the last item on that list is the value of $1000 face value junk silver)

Some of the small ads now mention Y2K or "getting ready for 2000".

If you

-- gold and silver bug (bought some@Blanchard's.com), March 10, 1999.

FM: Let your fingers do the walking: check you yellow pages under coin dealers. That way, you can check out the shop, its locale, etc. Try to buy in Illinois, no sales tax. You pay just a bit over spot, no taxes, so a one oz eagle can run just about $300. Not a bad price at all. If you don't like the dealer, leave.

-- have q's (answer@here.com), March 10, 1999.

I've read that 1/10 oz. gold coins would be best for barter if things got really bad. More trades per oz. Not as good of a value as whole oz coins though. I've started to buy them and some junk silver. would love to hear other opinions on this.

-- A little worried to leave real address (call me@ paranoid.com), March 10, 1999.

I'm going to be driving through Illinois later this month, could you provide me with names and numbers of any dealers?? Thanks!

-- Diane (DDEsq2002@juno.com), March 10, 1999.

Well you're a bit late for the good prices on fractional coins 1/10, 1/4, and 1/2 ounce coins, but if you are a new person to gold try Ron Paul Coin at 1-800-982-7070 or Camino Coin of Burlingame, CA (same office, different desk) and ask for Burt Blumert.

I ahve never used Blanchard's but they have a spotless reputation.

Actually, go to http://the-moneychanger.com and read ALL of their texts for info on coins. That will teach you BUNCH of info, very important. I don't have my article on silver and gold at my website yet, I'll try to put that up there later today http://home.earthlink.net/~kenseger

After you read the stuff from The Moneychanger you'll be in much better shape. I have ordered stuff from The Moneychanger and they are fine and have a good reputation, but personally I like Burt's ordering system better.

-- Ken Seger (kenseger@earthlink.net), March 10, 1999.

A few more points. Any sales from out of your state and mailed to you should be sales tax free (so far).

Big question on gold and silver is this, what do you plan to do with it?

If you are planning to purchase goods and services during a crises, you might be really disappointed at the prices. During a crises the prices go WAY up do to the uncertianty factor. Interesting hisorical example, during the 1920's hyper inflation in Germany, one ounce of gold would buy more goods and services in London or Paris than in Berlin. Gary North's idea of staying out of the economy during a crises (just live off of your stockpile) and save precious metal for spending and rebuilding AFTER things settle down is good advice, ie. true money is a storehouse of value.

One big advantage of gold and silver is that it might be able to buy your freedom or purchase goods and services that you didn't think you would need, like an apendectomy, so putting some money into gold and silver AFTER you have purchased your survival supplies might be a good idea. I would guess that silver would be used for small common items, bread, ammo, gasoline, etc. and gold would be for big ticket items, guns, large propane tanks, surgery, etc.

As far as profit goes, you might find that extra supplies might be more profitable than gold and silver. The hazard to this is theft and confiscation (governments stockpile, subjects hoard) since gold and silver is easiesr to hide.

-- Ken Seger (kenseger@earthlink.net), March 10, 1999.

Ken, good thoughts. I had planned on using the gold to protect some assets, but thought I should purschase the smaller coins just incase I need to barter with them. Since I do have plenty of cash set aside, should I buy larger, say 1/2 or whole oz, coins and use the silver for barter? yours or any other thoughts would be welcome. thanks

-- Too Scared (call me@paranoid.com), March 10, 1999.

Ken; Talk about succinct! What a great quote: "governments stockpile, subjects hoard ". Thanks for that one and keep them coming.

-- Watchful (seethesea@msn.com), March 10, 1999.

I suggest you pay cash at local coin shops. NO paper trail, remember what happened in the 1930's with Gold confiscation....

-- (kozak@athenet.net), March 10, 1999.

Diane: We've worked with Waukegan Coin and Supply at 1417 N. Lewis Ave in Waukegan,IL, which is about 10? mi south of the WI/Il border near the lake. Their # is (847) 623-0445. Say you buy 10 ounces at a bit over $3000. Wouln't you rather walk out of the shop with it in your pocket than fretting over mail delivery? To me, 3G's is *a lot* of hard earned money! Figure the savings on the tax, at say, 6.25%. The shop in Waukegan is rather odd, be prepared. A man-bastion where they still smoke indoors! The big guy's got quite a cough! BTW, the store is in the middle of a 50's shopping strip. The price over spot is the same whether you buy 1 or 1/10 oz. Doesn't make sense to buy 1/10. Gold should be bought, IMHO, as an investment. A vehicle to park your money, not as a barter item. Good luck. Where're you heading?

-- have q's (answer@here.com), March 10, 1999.

FM,

There are several large, reputable dealers located in states which will save your having to pay sales tax on your heavy metal. My own long-time favorite is Dillon-Gage Metals in Dallas, TX (800-375- 4653). Investment advisor Mark Skousen mentioned them to me- see most any of his books for other reputable dealers (he mentions Camino and Blanchard too if I recall) As always, shop around a bit and make a small purchase or two first to feel things out so you'll have confidence in the dealer.

Good luck and thanks for the contributions to the forum. Hope this helps.

-- nobody (nobody@home.org), March 10, 1999.

Could use www.e-gold.com
Can accumulate gold,silver,platinum,palladium credits for $, DM, SwFr, etc., at close to market price, then have coins or bullion shipped to you when you get that amount into your account.

-- A (A@AisA.com), March 10, 1999.

Have q's - Is that info about same price over spot for whole or fractionals recent?!?! Perhaps his margin over spot is huge but traditionally, and even worse recently, the margin over spot increases as you go to the smaller fractionals, drastically, like say 2x or 3x. Now that the US mint is rationing coins it should get worse.

Note: traditionally the lowest premium in ounce or near one ounce has been the Kruggerand 1 oz. and the Austria-Hungary 100 Corona. In fractionals the British Soveriegn, the Colubian peso, and Swiss or French Francs have had the lowest premium. That's just tradition, in today's market anything goes.

-- Ken Seger (kenseger@earthlink.net), March 10, 1999.

Ken: Pretty recent as in 2 mos. ago. *If* I recall right, he charges $28 over spot, whether whole oz or part of an oz. I'd have to look it up from home. So $28 over for one whole oz. 10 1/10 ounces would be $28 X 10, or $280. To clarify, 28 Georges Per coin. Does that help?

-- have q's (answer@here.com), March 10, 1999.

$28 per ounce over spot is about right for a retail in small amounts, like say single coins, but that is great for fractionals. For mailorder purchases of say 20+ or 40+ ounces it would be a bit high, two months ago.

I seriously doubt that he can hold that small a premium in today's market unless he does it as a loss leader to build traffic.

A LOT has changed in the gold and silver market in the last two months, understatement!

I think it was British Prime Minister Harold Wilson that said, "In politics, two weeks is a very long time." I think we can paraphrase that to the gold market quite nicely. In the future I think we'll be able to say, "In banking, two hours is a very long time.", unfortunately.

P.S. I did put up my 1988 text on silver on my website.

-- Ken Seger (KENSEGER@EARTHLINK.NET), March 10, 1999.

I bought $3k of 1 oz. gold Maple Leaves from Monex in November by phone. Very reliable and reputable company. I got my gold after I sent them a check, within 2 weeks, sealed and registered mail.

http://www.monex.com/

If you decide to go with Monex after researching them, I would appreciate greatly that you give my name as reference and deal with the agent I dealt with, as I stand to profit from it; they reward one gold coin to customers who refer someone who buys ;-) So email me if you're interested, my address is real. Reward or no, I was completely satisfied with Monex.

-- Chris (catsy@pond.com), March 10, 1999.

Oh BTW, I paid $12 over spot for my gold.

-- Chris (catsy@pond.com), March 10, 1999.

Monex is the best by far. 1-800-949-4653 extension 2630 Sales person is Antoinette Diaz. Tell her Mike Kessler referred you please. Their web site is MONEX Spot plus 3% commission plus mail costs. Best deal that I have found. I have lost over $2000.00 trying to find the best deal. Do not buy from a coin shop or you too will waste dollars.

May GODS Will Be Done

Mike

-- flierdude (mkessler0101@sprynet.com), March 10, 1999.

Here I felt like a cheap car salesman by sneaking up my plug and tried to be tactful about it...shame on me ;-)

-- Chris (catsy@pond.com), March 10, 1999.