Buying Gold on a Budget Part 2

This is the second part of how to buy gold on a budget.

Look for gold that is affordable or at least within a budget. Most of us cannot buy the gold bars we see on television, but we can get our hands on gold coins, specifically American Gold Eagles.

The American Gold Eagle is a great investment and although it is still expensive at around $1,000 per coin, they do offer a viable way of purchasing gold. Finding them is very easy and just a click away. There are a number of them currently on eBay. However, I prefer to buy my coins at a local store or from APMEX.com or Austin Rare Coins.com. I have purchased coins from both and have been very happy with their service and product.

Another common option is the Gold Canadian Maple Leaf. Like the American Gold Eagle, the Maple Leaf is easily found and offers a convenient way of purchasing gold.

If you are interested in historical coins there are many shipwreck recovered coins available. Personally I have never purchased such coins as my knowledge is limited. These coins offer both a historical and tangible option, but they requiring a vast knowledge. It is critical to be well rehearsed in historical coins and the grading system of coins. Other wise, the danger of being "taken" increases.

Gold coins allow the average person to invest in coins, that's why FDR scooped them up. So take advantage, put some money back and get into the world of gold coins.

How to Buy Gold on a Budget: Part I

Okay so everyone is saying buy gold, but show of hands if you have $1,000 sitting around the house for just one troy ounce?

That's what I thought, if you did you would be reading a high priced, subscription site instead of this free one. So, this leaves us with a pressing question; How to Buy Gold on a Budget?

The answer is found in discipline. As Americans we have been trained to become consumers of all things. We buy, eat, drink and consume like an army of red ants. That doesn't have to change when dealing with gold, it just needs to be altered.

First, let's address the impulse buying that haunts so many of us. Instead of grabbing the 32" LCD television, think about it. Downgrade a few hundred dollars and get something smaller. Right there a consumer can save/refocus a few hundred backs. That takes a potential gold investor to almost 1/4 of the way to buying gold.

Now add that to the other impulse items we buy and bingo; there's the money to purchase on American Gold Eagle. Changing from an impulse to a smart consumer is a beneficial and smart move. Look at this way, you are still consuming but instead of a product that will some day be tossed aside, you have consumed an investment.

Secondly, set up a plan to purchase gold at specific intervals through out the year. Target a plan where some form of gold will purchased at X time. Doing this will require discipline, but will allow for a gold portfolio to slowly build.

Economic Numbers are Ugly.

The Wall Street Journal printed an op ed piece from Mortimer Zuckerman, concerning the real numbers on unemployment. Folks, looking at this article, it's ugly, really, really ugly.

The underlying numbers point towards a continued downward economic spiral. From the underpaid to part-time workers to those suffering from hour cuts, it is clear this recession is showing little signs of letting up despite two, yes, two stimulus packages from the federal government.

Businesses remain in pure retraction mood, looking for survival instead of expansion. The outlook for the near future appears to be more of the same. Even President Obama is now adjusting his statements, declaring unemployment may continue climbing.


What President Obama seems unwilling to acknowledge the stimulus package as noted by Zuckerman, has mostly been used for programs that created nothing. They have funded such things as medicaid and other social programs. Add in the money packaged to the states and what we have is a stimulus that has cost the American taxpayer billions and will eventually result in higher taxes on exactly those needed to solve the recession; the wealthy and business.

Predicting the direction of economies can make a fool of the intelligent. However, all signs are pointing towards rougher waters and that is a scary thought.

Invite to Ehow

Along with this blog I have written a number of articles pertaining to gold on eHow. The purpose of those articles is to demonstrate in very simple words how to invest in gold or the benefits of investing in gold. I also have a number of articles concerning silver and how to invest.

I wanted to invite you over to check them out, along with this blog. Also, when over on eHow, considering joining up and start writing. There is some residual income at eHow or do like I do, use the profits from eHow to roll into gold and silver. With using a pay pal account, it makes for a great forced savings account and allows for the money to quickly build.

Buying Gold on a Budget

People always say, I can't afford to invest in gold; that's for the rich folks. The fact is gold is for everyone, but it's true gold is costly. But, not so costly that the average person is blocked out. All it takes is some personal budgeting and proper money handling.

First, itemize your spending. Look at what is going out and what is coming in. Decide if some of the out money can be transferred into a gold fund. By doing this it won't take long to build a money fund capable of buying gold.

Second. most Americans are investors correct? So, if you are fortunate enough to have a few stocks on the upside, roll over some profits and put them into a gold fund. This can also work for a stock over-performing.

Third, buy one American Gold Eagle at a time. The Gold Eagle is a great gold bullion option and is easy to purchase. Yes, it is costly, but worth it.

Lastly, physical gold is not the only option. Get an account at Sharebuilder.com or some other online investment firm and begin investing in a gold ETF. This is a great way to invest in gold, without the high cost of physical gold.

Great Article

Check this out, from Liberty Pen.

Recession Continues to Loom

Folks here are the facts; the recession continues and the economy is struggling. Unemployment reached a 25 year high in June and there's really no end in sight. Despite the talk of a recovery, one needs only to look around; businesses are in a holding pattern. There is no growth now or in the near future. Critical economic segments such as real estate and resort/gaming industry are floundering.

Housing (apartments) prices in Manhattan dropped nearly 50 percent. Saying well that's New York, not so fast. In Dayton OH, prices dropped nearly 4 percent in the last year, while foreclosures are up 10 percent. There is little doubt the real estate market remains staggered.

The gaming/resort business has been crippled by the downward tick of the economy and it doesn't appear to be changing.

The American dollar has been mostly down, a signal that the investment world is loosing trust in it. Foreign investors have been shying away from US Bonds and in essence the American dollar. The reason is the rapid growth of deficit spending, that has put on the world on notice.

Most if not all signals continue pointing to a staggered economy. Keep moving towards gold and silver and keep a sharp on eye on this ever changing situation.

Be Prepared for Temp Drop in Gold

Not a lot of time today. Something to keep in mind is to start stockpiling some extra cash. There is some chatter that gold price will take a big drop, so be ready. There really is no reason to believe any drop will have a long shelf life. In fact all the signals point towards the continued rise in gold prices. However, if there is a drop have some cash on hand and jump into gold.