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  #1  
Old 10-15-2008, 11:50 AM
Cartooniverse Cartooniverse is offline
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I want to purchase $ 10 Million in gold. Can I ?

The New York State Megamillions was $ 25 million last week. Got me thinkin'.

I win. After taxes, lump sum, etc., I've got at least $ 10 million. Bank? Too risky these days. Offshore? Whiff of illegal or sneaky. Geneva? They're in as bad shape as we are.

Gold ! That's the ticket. I want to put it all into gold.

Can I? Are there limitations on how much gold bullion an individual person may own? Am I allowed to bury it in the back yard of my childhood friend's parent's house in Pennsylvania, or do I have to store it in Fort Knox?

Cartooniverse
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  #2  
Old 10-15-2008, 12:11 PM
Pimms o' clock Pimms o' clock is offline
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Yes, you can.

If you do take delivery of gold then be aware you will immediately be reducing its value as the London Bullion Market (and others) have a standard for wholesale gold delivery (where you will get the best prices when you want to get rid of your gold in a few years time having seen its value reduce by 75%) that you will no longer be able to meet easily if you've been storing the gold under your mattress.

See here.

For further information see your friendly gold dealer who can procure the gold for you.

A better idea might be krugerrands for what it's worth.
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  #3  
Old 10-15-2008, 12:17 PM
sweeteviljesus sweeteviljesus is offline
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You can buy all the gold you want and store it anywhere you want. WRT to burying it, you might run into problems with an HOA or something, although burying $10 million in gold would do a lot to increase the property value. Buying gold is probably not the best idea, BTW. Gold is at historic highs right now. Stocks, OTOH, are cheap. I wouldn't put my money into any one thing, personally. Diversity, diversity, diversity.

Rob
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  #4  
Old 10-15-2008, 12:57 PM
Cartooniverse Cartooniverse is offline
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Quote:
Originally Posted by Pimms o' clock View Post
A better idea might be krugerrands for what it's worth.
Aren't krugerrands gold ? What's the difference between krugerrands and bullion?
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  #5  
Old 10-15-2008, 01:27 PM
Pimms o' clock Pimms o' clock is offline
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Quote:
Originally Posted by Cartooniverse View Post
Aren't krugerrands gold ? What's the difference between krugerrands and bullion?
They're better suited to Mad Max-type scenarios, which is presumably why you'd want to physically have the gold in the first place, amiwrite?
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  #6  
Old 10-15-2008, 02:20 PM
Merijeek Merijeek is offline
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Quote:
Originally Posted by Pimms o' clock View Post
They're better suited to Mad Max-type scenarios, which is presumably why you'd want to physically have the gold in the first place, amiwrite?
Why? Portability?

-Joe
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  #7  
Old 10-15-2008, 02:51 PM
YamatoTwinkie YamatoTwinkie is offline
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Originally Posted by Merijeek View Post
Why? Portability?

-Joe
I assume portablility and ease of divisibility. Much easier to pay with a gold coin than chop/melt off a portion of a gold brick.
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  #8  
Old 10-15-2008, 02:53 PM
Johnny L.A. Johnny L.A. is offline
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Quote:
Originally Posted by Cartooniverse View Post
Aren't krugerrands gold ? What's the difference between krugerrands and bullion?
Krugerrands are one-ounce gold coins. Bullion are those little cubes you put in hot water and make soup out of.
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  #9  
Old 10-15-2008, 03:00 PM
Little Nemo Little Nemo is online now
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If my calculations are right, your $10,000,000 chunk of gold would be a cube with sides about ten and a half inches long.
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  #10  
Old 10-15-2008, 03:36 PM
Dewey Finn Dewey Finn is offline
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Quote:
Originally Posted by Cartooniverse View Post
Are there limitations on how much gold bullion an individual person may own? Am I allowed to bury it in the back yard of my childhood friend's parent's house in Pennsylvania, or do I have to store it in Fort Knox?
As far as I know, there are no legal limitations in the US on private ownership of gold. There are practical considerations, however, such as finding a secure place to store it. And that much gold is going to be heavy so you might need to strengthen the floor.
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  #11  
Old 10-15-2008, 03:46 PM
Huerta88 Huerta88 is offline
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By my calculations that money would buy about 808.6 pounds of gold (at $848/Troy oz.).
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  #12  
Old 10-15-2008, 04:49 PM
Pimms o' clock Pimms o' clock is offline
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Quote:
Originally Posted by YamatoTwinkie View Post
I assume portablility and ease of divisibility. Much easier to pay with a gold coin than chop/melt off a portion of a gold brick.
What he said. Plus more people know how to tell if a krugerrand is legit...
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  #13  
Old 10-15-2008, 05:07 PM
Fear Itself Fear Itself is offline
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Quote:
Originally Posted by Huerta88 View Post
By my calculations that money would buy about 808.6 pounds of gold (at $848/Troy oz.).
Or about 10.65 cubic feet of gold, at a density of 19.3 grams per cubic centimeter. It would fit under your bed.
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  #14  
Old 10-15-2008, 06:51 PM
samclem samclem is offline
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Whether you choose to buy 1 ounce gold coins such as the American Gold Eagle, the Canadian Maple Leaf, the South African Krugerrand, the Chinese Panda, ad nauseum, you are basically getting an ounce of physical gold for about as cheap as you can purchase it. You can also buy 1 ounce gold bars, 10 ounce gold bars for about the same premium. The buy/sell spreads on these items, in the US, is in the same general ballpark---you will have to pay, currently, about a 8-9% premium above the intrinsic value of the gold content. If you go to sell today at the same price, you'll get between 1-4% OVER the intrinsic value of the gold. These premiums are always subject to change, depending on supply and demand. Currently, the demand exceeds the supply by about 1000%(and this isn't hyperbole)

These items are pretty liquid day in and day out, unless you live in a small town in rural Nebraska(for example). If you live in or around a major city, they're incredibly liquid. If you're savvy enough to deal by mail(which isn't as dangerous as it sounds), they're liquid from anywhere in the world.

As to whether gold is currently high, who knows. Is the DOW at today's level "LOW?" I personally doubt it, for the short run. You might see it 25% lower within a month. Or not.

Obviously, everyone who didn't buy gold just 3-7 years ago at $300-450 missed the boat. There are people who bought gold at $800 US in January of 1980. Today, they can make about 8% on their 28-year investment. Hmmmmm......wanna figure out my annual rate of return????
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  #15  
Old 10-15-2008, 08:08 PM
MikeS MikeS is offline
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Quote:
Originally Posted by Johnny L.A. View Post
Krugerrands are one-ounce gold coins. Bullion are those little cubes you put in hot water and make soup out of.
No, that's bouillon. Bullion is precious metal.
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  #16  
Old 10-15-2008, 08:44 PM
Duke of Rat Duke of Rat is offline
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Quote:
Originally Posted by Fear Itself
Or about 10.65 cubic feet of gold, at a density of 19.3 grams per cubic centimeter. It would fit under your bed
Gold weighs 1206 lbs/ cu ft, the $10,000,000 chunk is only about .6711 cu ft. Hard to imagine.
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  #17  
Old 10-15-2008, 09:49 PM
Johnny L.A. Johnny L.A. is offline
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Quote:
Originally Posted by MikeS View Post
No, that's bouillon. Bullion is precious metal.
I was making a reference to Three Kings where a character confuses bouillon and bullion.
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  #18  
Old 10-15-2008, 10:51 PM
Fear Itself Fear Itself is offline
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Quote:
Originally Posted by Duke of Rat View Post
Gold weighs 1206 lbs/ cu ft, the $10,000,000 chunk is only about .6711 cu ft. Hard to imagine.
I stand corrected. Must have dropped a decimal point there somewhere.
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  #19  
Old 10-16-2008, 01:23 AM
bluezooky bluezooky is offline
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The late Kerry Packer was Australia's richest man when $5.4 million worth of gold bars, and a Vegemite jar full of gold nuggets was stolen from his safe and never recovered, no doubt there are people out there with a bit put away.
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  #20  
Old 10-16-2008, 04:02 AM
ajfrod ajfrod is offline
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Gold ETF

Quote:
Originally Posted by Cartooniverse View Post
The New York State Megamillions was $ 25 million last week. Got me thinkin'.

I win. After taxes, lump sum, etc., I've got at least $ 10 million. Bank? Too risky these days. Offshore? Whiff of illegal or sneaky. Geneva? They're in as bad shape as we are.

Gold ! That's the ticket. I want to put it all into gold.

Can I? Are there limitations on how much gold bullion an individual person may own? Am I allowed to bury it in the back yard of my childhood friend's parent's house in Pennsylvania, or do I have to store it in Fort Knox?

Cartooniverse
I would suggest you buy a gold etf. It is safer to keep, and you can sell it on the market. There is one on the nyse with symbol GLD
Thanks
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  #21  
Old 10-16-2008, 09:44 PM
Cartooniverse Cartooniverse is offline
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What is an etf ?
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  #22  
Old 10-16-2008, 09:51 PM
Sunspace Sunspace is offline
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Quote:
Originally Posted by Cartooniverse View Post
What is an etf ?
ETF = Exchange-Traded Fund. I don't know much more about them than that.
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  #23  
Old 10-17-2008, 01:23 AM
Rhythmdvl Rhythmdvl is offline
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You could help in out this awsome thread.
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  #24  
Old 10-17-2008, 07:33 AM
R. P. McMurphy R. P. McMurphy is offline
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Quote:
Originally Posted by Cartooniverse View Post
The New York State Megamillions was $ 25 million last week. Got me thinkin'.

I win. After taxes, lump sum, etc., I've got at least $ 10 million. Bank? Too risky these days. Offshore? Whiff of illegal or sneaky. Geneva? They're in as bad shape as we are.

Gold ! That's the ticket. I want to put it all into gold.

Can I? Are there limitations on how much gold bullion an individual person may own? Am I allowed to bury it in the back yard of my childhood friend's parent's house in Pennsylvania, or do I have to store it in Fort Knox?

Cartooniverse
Just a quick nitpick. If you take the lump sum you will get about 1/2, or say $12.5 million payout. Then the Federal, state and local taxes will strip away about half of that so you are well below the expected $10 million.
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  #25  
Old 10-17-2008, 05:21 PM
Cartooniverse Cartooniverse is offline
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Understood. It was just an example, since I thought of this O.P. when I saw what the jackpot was.
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  #26  
Old 10-17-2008, 10:54 PM
Cyberhwk Cyberhwk is offline
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Quote:
Originally Posted by Johnny L.A. View Post
I was making a reference to Three Kings where a character confuses bouillon and bullion.
"You mean the stuff you put in water to make soup?"
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