Buying gold

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Dan Grossman

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Jun 29, 2006
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I'm trying to think of a way to safeguard my savings against the US economy, and the US dollar, becoming any worse.

I've already pulled out of most investing activity, and I have more than $100,000 in some bank accounts, which isn't safe since it's above the FDIC insured amount.

I thought perhaps buying gold bars or coins would be a safe store of value I could convert back to dollars in the future.

Is this a good idea? Any advice on where I can read about risks and regulations involved?

What about trustworthy places to make the purchase?
 


Apmex.com is a good place to buy precious metals. But why not just take any amounts over 100K in a bank account and open an account at a NEW bank. That would seem much easier than worrying about the volatility of bid/ask prices in gold. It is as prone to fluctuations as the stock market.
 
I believe the 100K limit is on a per account basis. I think you can have multiple accounts at one bank. We were just looking into this also since we have some about the 100K threshold.

Just ask your local bank and see what they have to say. The problem with gold is that if it gets stolen, you'll have a hell of a time getting compensated back. I guess you could have insurance against it.

Personally, I'd look at real estate. Buy now while prices are low.
 
Dan Grossman said:
What about trustworthy places to make the purchase?
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local coin shops are one place you can start... if you're going to sink some serious cash into it there are brokers that deal in larger volumes...

you may want to check out buying some silver too, I like the mercury dimes and old liberty dollars myself...

btw, you can fit a lot of gold and silver in a large gun safe ;)
 
Wife and I just bought 5k from Midas Resources and are awaiting delivery right now. The referral came from a number of different true patriots and freedom fighters so came very trusted. They were excellent to deal with on the phone and very knowledgeable.
 
2nd for apmex (bought there many times). you can also find it on ebay... lemme know and i'll forward you to my phpbay site for buying gold and silver online ;)

I'd get gold and silver... not just 1 or the other. if the shit really hits the fan it will be easier to trade silver for goods since an oz of silver is kinda like a $20 bill where as an oz of gold is more like a grand.
 
The good thing about buying gold is that its a solid investment, as time goes on we will see gold easily rise to over $1,000 an ounce, well thats if we don't discover a magically well of gold that contains a quadrillion ounces that we can mine in the next few years.

Possible but highly unlikely haha.

So yes in my own personal opinion invest in Gold and other metals like Platinum, diamonds, and other shit.
 
directresponse said:
So what is someone with a million dollars supposed to do? Spread it out over 10 banks? I'd think this would be come a big pain after a certain point.
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CDARS (see my last post).

Loafy said:
I'd get gold and silver... not just 1 or the other. if the shit really hits the fan it will be easier to trade silver for goods since an oz of silver is kinda like a $20 bill where as an oz of gold is more like a grand.
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Don't overlook commodities in general. In prisons and POW camps, cigarettes have always been currency. So has booze. If you like wine, now might be time to stock your cellar, you can always trade wine for other goods if currency is weak.

Aequitas said:
The good thing about buying gold is that its a solid investment, as time goes on we will see gold easily rise to over $1,000 an ounce, well thats if we don't discover a magically well of gold that contains a quadrillion ounces that we can mine in the next few years.
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Gold is a good hedge, but you have to be careful too that you have smaller denominations for everyday transactions. That's where junk silver comes in handy. It's in small enough denominations to use for buying groceries.

Aequitas said:
So yes in my own personal opinion invest in Gold and other metals like Platinum, diamonds, and other shit.
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Tangible goods = :thumbsup:
 
SPIC (investment accounts) are insured up to 500k, per broker. FDIC 100k per account and more for various other account types.
 
Priority_Mail90 said:
SPIC (investment accounts) are insured up to 500k, per broker. FDIC 100k per account and more for various other account types.
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IRAs are insured up to $250K too...

but the problem is most people who have a checking and savings account at the same bank or multiple savings accounts at the same bank wrongly think that those accounts are insured separately for $100K each...
 
poto,

I just asked my wife since she is the one who actually checked on this. Its 100K / tax id / bank. Since we have numerous tax ids we're covered under that.

Also, you are covered up to 200K for a joint account / bank.

Let me know if you think this is incorrect. Thanks.
 
directresponse said:
Personally, I'd look at real estate. Buy now while prices are low.
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You're kidding right?

directresponse said:
Let me know if you think this is incorrect. Thanks.
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Sounds right. I mentioned it because I have more than $100,000 at a single bank, which is one of the several reasons I was looking for a place to put some money. The other is to keep the value even if the dollar drops, which is why I was looking at gold. It's not an investment, just a hedge against the buying power of cash dropping. Thanks for the advice so far.

Coincidentally, E*TRADE just mailed out (less than an hour ago) to their members reminding us their deposit account is FDIC insured up to $500,000.

[FONT=Arial, Helvetica, sans-serif]Dear Daniel Grossman,
Account number ending in: XXXX

[/FONT][FONT=Arial, Helvetica, sans-serif]Given all the recent news in the financial industry, we understand you might have some questions about how the cash in your E*TRADE Securities account is protected.

Rest assured that the uninvested cash in your Extended Insurance Sweep Deposit Account (ESDA) is automatically FDIC-insured up to $500,000—featuring up to 5X the coverage of FDIC basic insurance.

...snip...

1 With the ESDA sweep option, available cash balances in customers' brokerage accounts are automatically deposited in bank accounts at up to five depository institutions, with each of the five accounts insured by the FDIC for up to $100,000, resulting in total FDIC insurance coverage for cash in a customer's ESDA account of up to $500,000. [/FONT]
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As far as where to put the gold, I was thinking a safe deposit box at Wachovia, which seems to be a bank that will weather this. Bad idea?
 
directresponse said:
poto,

I just asked my wife since she is the one who actually checked on this. Its 100K / tax id / bank. Since we have numerous tax ids we're covered under that.

Also, you are covered up to 200K for a joint account / bank.

Let me know if you think this is incorrect. Thanks.
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correct, if you have separate tax ids or separate business accounts those are covered $100K each, as each one counts as a unique account holder in that case...

as for the joint accounts, that can get kinda tricky... I actually had to look that one up:
If both owners have equal rights to withdraw money from a joint account, each person's shares of all joint accounts at the same insured bank are added together and the total is insured up to $100,000.

If a couple has a joint checking account and a joint savings account at the same insured bank, each co-owner's shares of the two accounts are added together and insured up to $100,000, providing up to $200,000 in coverage for the couple's joint accounts.
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it's $100K per account for joint accounts, up to $200K if you have 2 or more joint accounts... but not $200K on a single joint account...
 
with proper account planning you can get fdic to 250k and I have heard of money markets with their own insurance up to 350k. you should be fine.
 
Dan Grossman said:
You're kidding right?
As far as where to put the gold, I was thinking a safe deposit box at Wachovia, which seems to be a bank that will weather this. Bad idea?
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Sounds like your making a big mistake, unless you are already aware of the cost of insurance of the physical gold, storage cost, dealer fees ( for buying and selling when you are ready to liquidate ).

Oh and verifying your gold is of the quality you are purchasing and not some scammed gold.

I mean, putting it into a bank vault still leaves you exposed to acts of god like earthquakes, hurricanes and so on.

Why don't you buy the ETF "GLD", which tracks gold if you really want to hedge.
 
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