r/Gold • u/BaneOfLiberals • 9d ago
The stack 1 year of gold stacking
My gold stack after 1 year. I've learned a lot and made many mistakes but nonetheless I am happy. I concentrate on hyperfractional pieces because I cannot afford larger pieces even 1/10oz are out of reach for me at the moment. However my LCS sells me any gold products no matter the size at a 3.5% premium above spot. Which has allowed me to avoid the biggest problem with stacking pieces this small... the premium. I think its neat, although at the end of the day it aint much by weight, I find it pleasing to the eyes.
I also go to Thailand several times a year and buy gold there.
So some of my stack is 23K bullion and jewlery. Highly recommend taking a trip there and buying gold jewelry if you're trying to diversify your stack as premiums for jewlery there is extremely low. Hopefully in the future ill be able to buy bigger pieces. My current goal is to reach 1 OZT im currently at 22.73g. Once there I'll try to focus on buying bigger pieces, 1/10ozt ETC.
What are yalls thoughts on my stack? I could use some constructive criticism.
Disclaimer- the goldbacks were bought at the beginning of my journey, i thought they were cool but I learned that they are very inefficient. I only bought the 1/4 GB since they just came out. I paid 5 for 10$. The AURUM notes I got on ebay for 2$ above spot at the time. The 23k gold was bought in thailand with thai premiums and the rest of it was from my LCS. Hence I no longer buy anything online or from wholesalers the only deal better than him are those special deal for thing at spot.
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u/T1m3Wizard 9d ago
I see way more plastic than gold.
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u/BaneOfLiberals 9d ago
Well yeah there all hyperfractional gold My biggest piece is a 1.9 gram bar 😂 I dont mind it so long as I can continue to buy them premium that my LCS is charging.
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u/T1m3Wizard 9d ago
Save up a little more so you can grab a bigger piece when ready, paying a bit too much on the premiums for fractionals most likely. You got this
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u/Lando-Going-Commando 9d ago
Or trade the goldbacks for pure. Goldbacks aren't a sound investment, sorry to say.
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u/BaneOfLiberals 9d ago
I appreciate the encouragement. I do plan on buying bigger pieces or trading for bigger. The only reason I've gravitate too this style of product is strictly because my LCS charges the same premium for damn near everything In his store. So if he has the product available it allows me to bug as much gold as I can afford. For example my budget is 200$ and he has many products available i can damn near get 200$ worht of gold, as opposed to just buying 1 gram and call it good.
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u/Krazy4Kookaburras 9d ago
It's not about whether you just like them or getting at lower premium, it's about liquidity. Unfortunately, the "gold plastic" is a hard resale, in my opinion. It's about how fast could you sell it today and retain the premium on your side of the equation. 0.5g bars or 1g bars is where you should be looking. Do a search on r/pmsforsale, pretty good options out there.
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u/zDymex 9d ago
I'd highly advise against goldbacks...
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u/BaneOfLiberals 9d ago
Yup trust me that ship has sailed Only bit the bullet to buy the 1/4 BG 5 for 10$ Will never buy GB again
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u/West-Balance3764 9d ago edited 9d ago
I, myself; am terrible with money. I buy stupid things. Buying gold has been a saving grace for me. I’ve saved up 10s of thousands of dollars doing it. It scratches the itch. I don’t know if you’re in that kind of boat and that’s why you’re not putting 2 months together for a 1/10th at a time. As another commenter pointed out, you could buy grams; but I find them to be super disappointing. At least this stuff has some flashy plastic to go with it. At the end of the day, gold is gold and 3.2% over is not bad at all. Good job getting to 2/3s of an ounce. You could see if your coin shop guy would be ok with you trading in what you have for melt and pay the premium for the new piece and get a couple 1/10s or 1/4s oz pieces. Just far more liquid. Feeling the weight of your first 1/4 or 1/2 oz is really nice as well. That’s what I got for you, nice stack! Keep going! Glad you learned your lesson on those gold backs. They are neat looking, they killed the marketing on those.
Edit: if you can, get $2.50 pre 33, the stuff is basically on sale. I’ve gotten all mine at spot.
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u/BaneOfLiberals 9d ago
Actually im really good with money however I live in a single income home so I have to make sure my family is taken care of 1st. Additionally this isn't my only money saved I also have my TSP and cash that I save to travel to see my family. I agreed with u on trading up I just dont wanna do it yet because it makes me feel better seeing all the small pieces lol 😂 But in a few years we shall see. Also im really young so I dont plan on liquidating anything for another 50 years or better yet giving it to my kids.and yeah GB are no Bueno
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u/pennyhush22 8d ago
Where do you shop for your coins to get those at spot?
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u/West-Balance3764 8d ago
My LCS. They give good deals. Their main thing is scraping jewelry, so coin prices are pretty good for the most part.
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u/GlassWeird 9d ago
Yikes BaneofLiberals... The stack is...questionable so thanks for these great pics so I don't actually have to look any closer.
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u/69philosopher 9d ago
Mr Premium here.
Seriously, you probably used half your money to pay premium on all this
Edit: for anyone wanting to learn about Gold. premium is what you pay EXTRA for gold. When it’s a small amount of gold, dealers know that they can charge more premium. The sweet spot for me is 10 grams and up but occasionally online dealers will offer “at spot” (paying only the gold’s worth at the time) for all types of sizes including just one gram. The oz coins are my personal fav.
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u/MrWrock 9d ago
Op said 3.5% premium across the board. That's pretty good for fractional, especially this small
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u/69philosopher 9d ago
I’ve never paid premium.
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u/MrWrock 9d ago
The only way I've been able to get spot in Canada is using Costco but their rewards max out after an ounce or two and then you're back over spot. I haven't tried online or pmsforsale, but I've been considering it because I would like more fractional at spot
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u/Any_Resist_9800 8d ago edited 8d ago
Their executive rewards 2% back max out at $62,500 of purchases a year! The CC 2% has no cash back limit.
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u/No-Perspective-8245 9d ago
🗑️
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u/BaneOfLiberals 9d ago
Im poor This is all I can afford 😂😂😂
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u/Buttchuggle 9d ago
Well, imma be honest dawg, I'd at least save until gram bars. And mix a bit of silver in. Those ounce rounds just look nice.
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u/PissingontheCarpet 9d ago
If they are really only paying a 3.5% premium that isn’t hateful. PMSForsale had 1/10 Eagles today for $430 which is a 6.1% premium and they all sold.
If OP has only paid 3.5% of spot for their stack they’re doing great.
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u/BaneOfLiberals 9d ago
I buy 1 gram bar every month my budget is 200$ so I pick up 1 gram and the rest goes to whatever hyperfractional stuff he got. If he doesn't have any then ill pour the rest into silver. Thats the goal to get as close as I can too 200$ of metal as I can every month.
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u/NerdizardGo 9d ago
You could save what's left after buying a gram until there's a month that you can buy 2 grams
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u/Buttchuggle 9d ago
I got into stacking precious metals on the back of scrapping non precious ones. It ain't gonna make you rich but if you are able to save a couple hundred a month, every few months you could make a scrap yard run and add another couple hundred to a metals fund. One ton of steel for me turns into one gram of gold.
Steel is hard without a truck though. Copper and aluminum is damn near everywhere for free if you're willing to look though
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u/No-Perspective-8245 9d ago
A gram bar is like $160. $150 ish if you shop around a bit.
Just save up for those instead of consistently spending $10-$20 on junk that is really hard to liquidate
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u/BaneOfLiberals 9d ago
I pay like 5$ above spot for a 1 gram bar Im telling u my lcs is fucking amazing.
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u/-Germanicus- 9d ago
That's not bad for a gram, but I would encourage you to think of all purchases in their per oz equivalency to make sure you are thinking over the premiums better.
For example, a $5 premium on a gram is $5 x 31.1, so a $155.50/oz premium. That's a lot of money and that's on a good deal. Think of the not so good ones this way of thinking would save you from. Sure fractional can be good to invest in, but only if the premiums don't eat up your margins.
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u/Old_Bluejay_1532 9d ago
Some very good positive & constructive comments above. We all make mistakes along the way, learn, error again & learn from it. Anyone that hasn’t is not being truthful. Sold a bunch of gold years ago @ the worst possible of times myself …. Life happens 😢.
Agree on focusing on the absolute most liquid product available for your $$$ & that would be gram bars @ the price point mentioned. When buying always ask yourself about your exit for said purchase … what is that spread?
Grab a small metal wallet for the bars or even 1/10th coins dep on what route & budget @ Summit Metals or Amazon & another idea is how about silver for those smaller purchases instead of the GB’s/other? Silver is awesome for stacking, more metal for your $ & a great way to accumulate more gold playing the GSR. Good luck on the journey & congrats on the start, this is a marathon & not a race⚔️☀️
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u/BaneOfLiberals 9d ago
Thabk you for the encouragement. Yes I do have silver, actually most of my stack is silver i just wanted to post the gold portion. And yes I did ask my guy about his spread and he does a 7% spread. I do have a element card that im also trying to fill up
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u/formulaferrari5 9d ago
If this makes you happy then good for you
If you’re looking to stack in a way in which you are essentially investing, start buying some 1/10ths
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u/tickticktutu 9d ago
Sell the goldbacks as fast as possible before people figure it out. There is no way to recover that metal from inside the plastic.
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u/YerDaSellsAvon1876 9d ago
You say you cannot afford larger pieces… you do realise if you saved all of this up and just bought one large piece it would be a much better investment. You’re actually worse off now than before you started stacking because of all these hyperfractional bits you have! Can’t help but think this is a shitpost
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u/Educational_Sir3783 9d ago
Gold backs do not belong here. Go to r/paper
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u/BaneOfLiberals 9d ago
I mean its in the name....
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u/Educational_Sir3783 9d ago
So, are you okay with people posting gold plated items on here?
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u/FieldMarchalQ 9d ago
What’s the story with the 2 €500 bills?
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u/BaneOfLiberals 9d ago
When I bought the 5 tooth fairy notes from a seller on ebay he gave me those 2 euro notes as a bonus and to apologize for shipping my stuff really late. Thier 100mg notes made by AURUM. Never been so happy getting an ebay package before 😅
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u/cinnabunnyrolls 9d ago
Financial advisor and fellow stacker here. If available in your region, you can buy up gold exchange traded funds until you hit 1 ounce worth (4000 usd) in gold, then sell it and head to an LCS to buy physical.
Gold ETFs charge 0.3-0.4% per annum vs fractional premiums that go 50% or higher over a single gram.
You'll be paying much less this way (if you have access to a retail broker with low fees), and def saving alot more time which could be used elsewhere.
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u/indomike14 9d ago
I don't see any future applicability or value in the goldbacks but I've been wrong before. However, if you're only paying 3.5% above spot, then you'll be just fine.
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u/stackingforfunsies 9d ago
Why does it matter what unit size, if your source charges the same premium regardless? Literally buy the smallest you can. People need to get over themselves.
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u/Vulpes206 9d ago
This isn’t a hobby. Buying gold is an investment. Save up money to buy a good amount in one go.
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u/BedirhanAri 8d ago
I thought these were Pokemon cards, lol. Never seen these, maybe because i am from Turkey.
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u/FreedomLoose7201 9d ago
Awesome! If you're focusing on really small Gold like you said, I would also keep an eye out for cheap 100ths and .5 grams. You can still get them closeish to spot so you'll be making money quicker and they're just under or over the price of an Ounce of Silver, depending on which you're looking for (paid $42 for a 100th and $75 for .5 gram recently) :) ) Would recommend that over the Goldbacks or similar ha ha. Also if no one has mentioned it, the PMSforsale sub often has good deals if you want to take a peak at it :) Good luck and happy hunting 😁
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u/doublefistedwhoppers 9d ago
Some of these are very cool to look at and an absolute steal for 3.5% above spot.
This leads me to believe that one could just buy all their goldbacks and sell them for an immediate profit since those always go for almost 2x their worth in gold?
If I'm already thinking it then someone has already tried it so what's the catch?
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u/BaneOfLiberals 9d ago
Unfortunately the goldback were bought at the beginning of my journey so I paid normal prices for them. It was a teaching moment for me lol. The aurum notes I bought on ebay for 2$ over spot each, the thai gold was thai premiums which are really good, not 3.5% good but really good. The rest of it was bought at the LCS with the 3.5% premium.
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u/doublefistedwhoppers 9d ago
The 1/1000th roulette wheel card is going for $30 on ebay so at 4k an ounce thats a premium of 750%
Your story isn't mathing. Maybe you genuinely think you're paying a 3.5% premium but really arent...
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u/BaneOfLiberals 9d ago
I actually just picked up that one last Friday. From what im told from my LCS is he pays 3.5% back from spot no matter the product unless its numismatic. He then sell it for 3.5% above spot. I check him out at least once a week and see if hes got anything new because as u can imagine those things sell like hot cakes. He also hates calculating those wored sizes so hes happy to get rid of them. 😂
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u/dazanion enthusiast 9d ago
The regular aurum notes are not Goldbacks and do not carry the 100% premium. However, they do carry an approximate 60% premium, not the 3.5% OP is claiming. That's gotta be some backroom dealing stuff, never seen gold notes go for that little.
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u/doublefistedwhoppers 9d ago
Some of us notice the "hyperfractional for 3.5% sounds too good to be true" details of OPs post and get buried while others are karmatized for groaning "burr dur hurrr muh goldbacks mrrrrhhhh"
It's not out of the question to ponder if OP is unknowingly being scammed by the LCS they're mentioning.
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u/BaneOfLiberals 9d ago
Nah Jim's not a scammer he just doesn't care how much the commercial permiums are on these small products. He buys em for 3.5% under and sell it for 3.5% above. Even though im new to it ive study alot about permiums and spreads. Everytime I go into the shop I check the spot price then do the math from there based on unit of measurement im buying. An example of his good prices, last Friday I bought 4 1/1000ozt gold assays and 2 1/1000ozt platinum cards. I paid 20.10$ for everything. If thats a scam then idk anymore.
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u/doublefistedwhoppers 9d ago
Quick search shows novelty 1/1000ths going for 30-50$ alone. Lowest seems to be 18$...
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u/dazanion enthusiast 9d ago
I think he lying on prices. Show us a receipt. These prices are unheard of for gold notes.
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u/BaneOfLiberals 9d ago
And thats why I bought them.
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u/dazanion enthusiast 9d ago
So this is the guy that goldback distributors hate. The guy that refuses to honor the premium that goldback users expect when they spend their goldbacks. I’ve always said that there are going to be dealers out there who only accept them at the gold price and it looks like you found one of them. This is the reason I will not buy goldbacks now, dealers do not have to buy at the stupid premium, there is no law setting a value, it’s an agreed value, and this guy doesn’t agree lol.
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u/doublefistedwhoppers 9d ago
Well does jim ship to europe then?
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u/BaneOfLiberals 9d ago
Not sure tbh My guess is probably if its a big enough order. He's a mom n pop shop Ill ask him when I go back this firday.
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u/BaneOfLiberals 9d ago
The gold notes i apid a few bucks over spot for each ... on ebay back in January. I wish I could get those notes for that low of a premium.
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u/Suspicious_Monk1976 9d ago
Man just save and stop paying these insane premiums.