So I’ve been thinking about hedging some of my stock investments with some precious metals, I’m currently leaning towards Platinum coins in case anyone has any input on that.
For tax purposes it appears the best coin to buy would be the American Eagle, so I think I’m ready to go for it but what route is the safest?
There is only 1 coin dealer in my area and the stock isn’t the impressive, so how safe is it to invest in metals through online sites?
If you believe in the metal you might consider investing in producers instead of the metal itself–mining stocks, e.g.
Coins and bullion are both alternatives; in general there is a cost of getting bullion assayed (at purchase and sale), and stored.
Online coin purchases from established and reputable dealers are safe; you are going to pay a premium over the bullion price. I personally would not buy coins from Joe Blow.
Another option in an ETF that focuses on precious metals. ETFs are like mutual funds that trade on major exchanges. (i make no recommendation on whether to do this or not).
but it is a whole lot cooler to hold a platinum coin in your hand.
Can’t you buy precious metal securities so you don’t actually have to stash the bullion somewhere? Seems like doing that through a reputable brokerage would be a lot simpler than coin collecting.
Or an asset allocation fund that holds precious metals as part of the fund as a hedge. The fund I’m holding in my IRA is a fund like that, mostly stocks (both domestic and international) but with a small amount of various bonds and some precious metals as well.
Yeah, pretty much it’s safe to buy online, as long as the dealership has a pretty long track record. I can offer an opinion on any you may choose, as I"m in this business(but don’t want your business–nothing personal). I’d be glad to opine through email.
I’m more curious as to why you want to buy platinum now that it’s $1800/ounce, when it never occurred to you when it was $300-800 just a few years ago.
I’ve been asset-allocating in a “gold and precious metals” mutual fund since the late '80s. It has paid off phenomenally. If you’re looking to start now, I doubt that its value will continue to rise as dramatically as in the past . . . but of course you never know. That’s why I continue to buy more every month.
I also have a collection of certified vintage coins which I buy through online auctions . . . for the simple joy of owning something not just valuable, but beautiful.
If you just want a few platinum eagles, what about eBay? I would think the commodity status with lots of sellers running auctions would give you a pretty efficient price.
As long as the seller has good feedback, you should be fine.
I look at the race for President and see that the war in Iraq will continue, meaning deficit spending is not going away and the value of the US dollar will continue to drop. Plus what I read about the metal on wikipedia…
You do realize that everyone else in the paltinum game knows that too, right?
Efficent markets and all that.
Actually, the dollar has strengthened a bit recently, particularly against the Euro, and there are some opinions out there that it will do so more in the coming months. Which is not entirely good.