Posts by dustyridge87

John Rodriguez5 said:What do you mean by "too much of a massive investment all at once"? Yeah, losing 5-18% immediately is brutal, but nobody in their right mind buys 1g pieces. To me, anything under an ounce is a waste. A bar like that costs $2833 and the spread is 3%, which is totally fine. Plus, you buy gold for the long haul. If you hold for 10 years, expecting a 100% gain is realistic, so that little spread becomes basically nothing.

Dollar-cost averaging is a powerhouse strategy. If you can set aside $667 every single month to invest, then trying to buy a full ounce upfront would require four months' worth of capital in advance, which completely defeats the whole point of periodic buying.

Is it standard practice to DCA into gold every few months? Because if that's the case, just disregard my previous point. In your view, is picking up a 10g bar every month a solid move?

stormyraven68 said:did you check the pricing on the larger bars?

There’s an 8% spread on the 10-gram pieces, a 5% difference for the 100-gram ones, and it drops to 4% once you hit the 500-gram mark. Let’s say I decide to go with the 10-gramers—since dropping a massive chunk of cash on the bigger bars all at once feels like a bit much for me right now—we’re still talking about needing at least a 10% price surge just to see a measly 2% profit. Gold would have to rally back to those peak levels we saw way back in 2013 just to break even.

I don't know, man. Taking a position and instantly losing 5% to 18% of your purchasing power feels like a losing game from the jump. Honestly, the thought of looking at silver spreads makes my head spin, especially when you factor in how volatile the price is and then tack on the sales tax.

Are these actually standard margins for precious metals?

I’m struggling to wrap my head around this— https://www.goldbar.com/1-gram-gold-bar —the retail price is sitting at $25, but the buyback offer is only about $20. Does that mean I won't see a single cent of profit unless gold prices jump by at least 20%? That sounds completely absurd to me, so I must be missing something obvious here. Can someone please enlighten me?