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How can I convert 500 large into gold?

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posted on Jan, 3 2008 @ 09:43 AM
I while back I received an inheritance from my grandfather. I have 500k of paper money sitting in the bank. I am scared to death that he value is going to continue to drop outpacing the interest that am getting on it.
How can I go about converting this large sum into gold and what the heck dp I do with it when it arrives??
Also, will a large conversion as this draw suspicion from the Feds?

posted on Jan, 3 2008 @ 09:47 AM
I've used these guys before.
They seem to be able to handle large orders, and they have some good info, too.

You might want to consider diversifying some of that cash, though, and not put it all into gold.

posted on Jan, 3 2008 @ 09:52 AM
Okay so apparently after a little more research I have found that it is legal to own gold but once you own it you can not broker any deals with it other than to barter according the the bill passed by Gerald Ford

this is the law that Gerald Ford amended

In an attempt to address the causes and effects of the Great Depression, Executive Order 6102 was signed on April 5, 1933 by U.S. President Franklin D. Roosevelt. It prohibited the "hoarding" of privately held gold coins and bullion in the United States. The Order was given under the auspices of the Trading with the Enemy Act of 1917, as recently amended. The government required holders of significant quantities of gold to sell their gold at the prevailing price of $20.67 per ounce.


Below is the amendment made by Gerald Ford

Pub.L. 93-373

The limitation on gold ownership in the U.S. was repealed after President Gerald Ford signed a bill legalizing private ownership of gold coins, bars and certificates by an act of Congress codified in Pub.L. 93-373 [1] [2] which went into effect December 31, 1974. P.L. 93-373 does not repeal the Gold Clause Resolution of 1933, which makes unlawful any contracts which specify payment in a fixed amount of money or a fixed amount of gold. That is, contracts are unenforceable if they use gold monetarily rather than as a commodity of trade.

So I guess it is doable but again there are caveats

again I apologize to any and all that read my initial post stating that Gold was illegal to own.. it is not well srt of


[edit on 1/3/2008 by geocom]

Mod Edit: External Source Tags – Please Review This Link.

[edit on 4-1-2008 by Jbird]

posted on Jan, 3 2008 @ 09:54 AM
reply to post by subject x
I have some in stock already and to be honest I'm having serious doubt about that money too the way things are looking. Just listening to C2C the other night it was all doom and gloom for 2008.

Thanks for the link, Ill check them out.

posted on Jan, 3 2008 @ 09:55 AM
If I am not mistaken,
you can turn your 500k into gold

Gold is an asset, obviously,
but buying gold does not HAVE TO BE literal...

You can buy gold contracts, and it is the SAME THING as owning
the gold... there is no NEED to have it,
unless you think there will be a worldwide economic breakdown,
which, if there is, GOLD will be WORTHLESS and CHICKENS
will become the new currency.

It is smart to buy gold now- despite the high price,
it is probably going much higher.

But do not take delivery.

Delivery will COST you money,
and there is a cost to keeping it (storing and protecting it)...

Also, if you ever chose to sell it, HAVING THE GOLD
and needing to deliver it to a buyer will be costly and a REAL PAIN.

Buy gold contracts.

To do this, google a local or major commodities broker- most big stock firms have a division.

It's just like buying stock- the PAPER is what is valuable,
not the "piece" of the company you bought...
same with gold...


PS If you buy 500k in gold contracts, no the Feds will not notice.

If you buy Kruggerands in the amount of a half-million and get them
FedExed.... yes, I think they are more aware of that sort of thing.

posted on Jan, 3 2008 @ 09:59 AM

I disagree that 500k in 100's cash is 4 duffle bags.

You can get a half million in 100s into a single briefcase-
it's only 50 stacks of 10k bundles, and that can be arranged
in a briefcase with ease... 4 duffel bags of 100s
in a few million- like 3 to 4 at least.

My opinion... sure is a way to use math to confirm it.


posted on Jan, 3 2008 @ 10:01 AM

Originally posted by geocom
If you live in the U.S. it is illegal to own (stockpile gold) GEO

I didn't know this. I wonder if there is a dollar amount as a limit.
I know all about the flat dollar, and I don't want another piece of paper telling me that I own the gold I want the actual gold.
I wonder if it would be safer to open an account in Europe somewhere and convert it into Euros?

posted on Jan, 3 2008 @ 10:09 AM
reply to post by HighDefinitionFilms

Yep sorry for the misquote you are correct a 5" Halliburton "Zero" (that's the name) will hold exactly 1 million dollars so again I mis stated and apologize

I mean in twenties but even that may be a stretch

well I guess I am a man who can admit he is wrong


[edit on 1/3/2008 by geocom]

[edit on 1/3/2008 by geocom]

posted on Jan, 3 2008 @ 10:13 AM
reply to post by HighDefinitionFilms
What scares me is having a piece of paper saying I own all this gold. What If it hits the fan one day and I go to cash in and there is no gold left (possibly never was) there to give me?
Oh and I do own a mess of chickens, geese, 4 goats, 2 cows and 3 horses...typical O'l McDonald situation now...

Ps: who is that on your avatar? she looks like Selma Hiyek


posted on Jan, 3 2008 @ 10:51 AM
I have 15% in gold bullion (American Gold Eagles) on-hand and that's the max I would recommend converting. If the Dollar collapses you want some real money around, but the Dollar will recover in one form or another making your stacks of paper worth something again.

posted on Jan, 3 2008 @ 11:25 AM
Don't Hate Rats:

The avatar is my wife-
she is Indian, while Selma is Mexican I think,
but I see the resemblence.



posted on Jan, 3 2008 @ 11:52 AM

Originally posted by apc
I have 15% in gold bullion (American Gold Eagles) on-hand and that's the max I would recommend converting. If the Dollar collapses you want some real money around, but the Dollar will recover in one form or another making your stacks of paper worth something again.

If I can ask you, wher did you buy the Bullion from? and are you holding it?
And how do you see the dollar rebounding? Maybe if we got rid of the feeral reserve and went back to the gold standard. I heard that the Federal reserve can be bought out for 450 billion.

What are your views on the power of the Euro? do you think it would be a wise conversion?

posted on Jan, 3 2008 @ 11:55 AM

Originally posted by HighDefinitionFilms

Don't Hate Rats:

The avatar is my wife-
she is Indian, while Selma is Mexican I think,
but I see the resemblence.



Selma is half Mexican and half Indian.
Your wife does resemble her alot.

posted on Jan, 3 2008 @ 12:08 PM
reply to post by Dont Hate Rats

Er, personally I would advise you to get a financial advisor who invests it for you based on your personal risk preferences.

Depending on your age, it could vary.

From annuities (which don't get the respect they deserve) to high risk mutual funds, there are hundreds of ways to make your money grow.

Buying Gold just as it hit the all time high .. no such a good choice. I would have converted to Euros a few months ago though, if I had substantial money anyways.

posted on Jan, 3 2008 @ 12:19 PM
500k and you want to buy gold? You ought to think about how to secure your future and retirement and buy some land and a house a nice reliable vehicle things like that and invest. If the economy ever fell so low that paper money was worthless and there is a recession believe me your gold will be worthless.

In a dog eat dog world what good is gold to barter for goods when the guy your bartering from is in need of other supplies besides gold? Think about that. You walk in there and say hey ill trade you a gold coin for that hunting rifle, No sorry I am in need of flour, sugar and salt you got any of that? What I am driving at here, is that gold means squat piss in the survival world. Gold should be the most worthless of the metals even though it's rare. Lead is probably worth more then gold in the survival world and that is no joke.


posted on Jan, 3 2008 @ 12:31 PM
reply to post by Dont Hate Rats

I don't even try to understand the dynamics of currency trading so I can't comment on the Euro.

Yes my gold is in coin (American Gold Eagles - exchanged anywhere without question) secured in a bank box with a little at home. I purchased some from Blanchard but most from a local precious metals dealer.

The Dollar will never be worth zero. If it tanks and the entire economy collapses along with it, it won't be permanent. We may experience rapid inflation or whatnot, but things always stabilize and at that time either the Dollar will recover or, and what I see being more likely, it will be easily exchanged for Ameros.

With the amount you're talking about however I would be more comfortable investing in real estate and land. You want hard assets for sure, but gold is too unpredictable with poor growth average to have a significant percentage in. As long as the purchase is made wisely, which is especially easy given the current housing market, real estate is almost never a bad investment when purchased with cash.

but yeah you should sit down with your accountant or other professional. Get multiple opinions, too. Some of those guys may be college graduates, but they're still idiots.

[edit on 3-1-2008 by apc]

posted on Jan, 3 2008 @ 12:49 PM
one way would be buying that Gold ETF on the NYSE.

say in increments of $20k per order, presently "GLD" is trading @ $85.37
last week it was in the $60s-70s

purchase maybe $100k over time
& that should help you preserve enough cash (USD/reserve notes)
to keep paying the increased taxes your going to pay on the land/
farm retreat you'll be living at while you ride-out this decade long descent into a 3rd world society.

your present banking status of that lump sum is a losing proposition,
what with CDs at 5% but 'Real' inflation running at 11% =
leaves you with 6% less buying power every day

start building a GDX or GLD shares portfilio pronto,
to help keep ahead of dollar depreciation & inflation...
then find a property which is 'deflating' ...(getting cheaper)

[edit on 3-1-2008 by St Udio]

posted on Jan, 3 2008 @ 02:03 PM
I inherited a similar amount 3 years ago. I made the following decisions:

30 percent in gold.
2 percent silver.
5 percent in credit union funds
Some cash I keep for emergencies.
The rest in stock

The results over the past three years has been: doubled investment in gold, silver barely moved, 17+ percent (~5% over three years) in credit union, and 65% increase in stock.

My reasoning -

PHYSICAL (not paper) gold is accessible if the poop really hits the fan and stocks and paper money are worthless. Paper gold depends on you being able to collect from those who hold the physical, and if the poop hits the fan, and those companies go out of business, you have one thing - paper. Like I said, good luck getting the money if things go South. Physical is the way to go. I also have used usagold, and when I was ordering my gold the woman helping me said they just sent someone in Alaska a million in gold - so 500K in gold is very doable. Kitco is a great place to do a bit of research on gold, silver, and other metals.

Silver is a fun investment and has the potential to outpace gold. When that may happen is anybody’s guess. Plus, I like silver - and it may be easier to "spend" a 10 or 20 dollar coin than it is an $800 coin if needed.

Credit union MM's - very safe return on investment. 5% is not much, but is is nice.

Stock - Unless the US enters a long-term depression, the right stocks will always remain a safe investment and provide a nice return if the correct stocks are purchased. When dividends are issued you can ether reinvest the money (DRIP account) or get the $ to live on. Invest in the right stocks and your 500 or even 300K investment will allow you to live a bit better or allow you to retire earlier if you reinvest. A recession MAY drop your stocks total worth, but will most likely not result in anything drastic. That is, of course, if you invest in companies that everyone still will require no matter what the economy is like. People still need drugs, electricity, and the like. The only thing with stock is that you have to be patient and not panic - it is not fun loosing thousands in a day
, and it makes one want to sell everything, but it always comes back (hopefully!)

Cash on hand - Always nice to have. Plus, if the economy goes to poo, you can use it to start fires with.

posted on Jan, 3 2008 @ 04:34 PM
I'm going to have to agree with some of the others- silver and land may be worth investing in as well. Land will always have value, and silver has potential. Don't put all your eggs in one basket.

EDIT: Get whatever precious metals in coins. If the world ends tomorrow, you probably shouldn't try to buy milk with a 1kg bullion bar.


[edit on 3-1-2008 by DeusEx]

posted on Jan, 3 2008 @ 06:11 PM
As has been said already, it may not be wise to have all that money in gold. Nobody knows what is round the corner, and with gold being so high at the moment it could start to fall any day now.

I totaly agree that its better to have physical things. What good is your 500k piece of paper when you need to buy something costing somewhat less?

I would suggest buying things that you need now. Its ok having SOME gold as a backup but things that will be usefull may be worth more than their weight in gold.

If its just the problems in the US your worried about you might want to invest in another currency. However the problems from the US are impacting over here in Europe.

Nobody here is an expert, so maybe go see one. Hell push the boat out, go see as many as you like but remember its your money and dont let them bully you into doing whats best for them or their company.

Whatever you decide to do i hope it doesn't come down to a time when you have to use it, because if it does were all screwed.

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