Buying/Selling Gold and Silver in Colombia (Barranquilla and Medellin)

Tony 112311 wrote:

Hi,
I am interested in the topic, can you share your contact with me pertaining to the Gold sellers.

Most people get ripped off royally, commonly buying at too high a price because they have gold fever rather than researching the market properly, then they hunt for suckers to buy their expensive gold at an even higher price - it's a rip off game for most, but very profitable for people who know what they're doing, especially the ones selling gold to suckers.

Fred wrote:

the hard part - Knowing when the price is going to rise and fall, and that's complex like crazy.

Fly in the ointment, low level private dealers are blown by the wind and always get offered low sell prices (and usually high buy prices) because the big boys don't care about little fish so, if they're going to do a deal that small, they want to make it worth the time = Rubbish price.

The conclusion - Small scale trading is a mug's game.

USA stock market investors have historically had a similar problem -- they buy and sell at the wrong times.

They jump on stocks that have already gone way up, only to see stagnation or a dive.

They bail on stocks that have significantly dipped, losing out on profits when the stocks rebound to historical or new and higher levels.

This is the explanation for why most people fail to match or beat the broad-market averages.  Other reasons include churning -- which is buying and selling too often -- and the related mistake of paying too much in broker commissions.

I opened a brokerage account with Interactive Brokers this year, one of the few USA-based brokers that welcome Expat accounts in the FATCA Era.  My buy or sell commissions usually average about a dollar a trade, regardless of the number of shares.  Actually, I have rarely been a seller since (a) the market has been on a long bull run and (b) selling stocks owned less than a year triggers excess capital-gains tax owed to the IRS.

For gold, I keep a small part of my portfolio in an exchange-traded fund that covers a range of precious-metals companies.

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Most unsophisticated investors sit in too much cash on the sidelines for too long, waiting for a bottoming-out .. and thereby missing out on the biggest up-days in the market.

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Good job, Fred in warning people off gold speculation and "the mug's game."

cccmedia

Lpdiver wrote:

I highly doubt it is really worth the risk taking them to Colombia.... We did make a connection in a jewelry store in El Centro in Medellin and I purchased a 10 peso gold coin and a nice gold chain and medallion style holder to hold the coin. It was all cloak and dagger drama....

So we returned the next day and picked up the coin and chain and left very carefully taking great care to listen to the route that he told us to take out of the El Centro and then we went a very different route....I am thinking that the hassle of selling would outweigh the possible extra gains.

The next question you need to decide, LP, is this... Do I want to do cloak and dagger with its associated risks .. or do I want to safely dispose of my inheritance and collect the proceeds in a secure manner?

The answer will direct your next steps.

cccmedia

Lpdiver wrote:

So all that said; how do you think authorities would react if the found I was entering with a gold coin. In the above case the face value of the coin is 10 Colombian pesos; but, would they value it at a different level say two grand due to the value of the gold?

Nobody can predict what someone in authority in Colombia will do under circumstances as described.

Assume the worst-case scenario... they'll decide to confiscate as much as they think they can get away with, on some unpredictable pretext .. and you'll never see any confiscated coins again.

cccmedia

Lpdiver wrote:

I am sure one of my nieces or nephews or their lovers would sell me to the highest bidder in a heartbeat....

Is this a typo or a trust issue?

@cccmedia  It is not a typo; but rather, an accurate assessment in my opinion. My wife has had a ring stolen twice. Once in Medellin and once in Tampa. In one case it had to be a family member and in the other a relative of a close friend. In both of these cases it was a matter of somebody having to have taken a great deal of time to dig around and locate the items and then leave the scene of the crime looking undisturbed.

I have no idea why my wife would take a very expensive ring to Medellin on a vacation, maybe she wanted to show it off a bit (although that is not her normal style)?

The moral of the story in my mind is that maybe it is not the greatest idea to have nice things in Colombia.

As to a niece of nephew selling me off that is a bit cynical perhaps; but, poor poor people take extreme measures sometimes. We help where we can in cases of education or true health emergencies; but, the cola is long. We seldom go out to eat with less than 10-15 people with us. It is hard to say no to someone for whom a simple mall restaurant meal is a rare treat.

Yeah, I know I am replying to a two year comment, lol. But, they situation is still true.

lpd

@goldkartel where can I buy pure silver, coins in particular?

Alternative to buying and storing

gold coins and bars in Colombia.

No matter how many nephews, nieces and in-laws

I had in some Colombian city, I would never buy and

store gold coins at my place.

Sure, buying physical-gold ETF's might theoretically

cut into one's potential profit.

But with ETF's you never have to worry about

three big guys with 'armas' knocking on your door

at 3 a.m. hunting for your precious metals.

cccmedia