Buying Gold/Silver Coins

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Re: Buying Gold/Silver Coins

Post by admin » Mon Jun 10, 2019 12:13 pm

some were able to find argentinans that had vacation properties, cars, etc in chile that were headed back to Argentina for various reasons. some even manged to do a pretty good 1 for 1 swap, house for house, car for car.

we also had an even bigger spike at that time of argentineans selling properties in chile, that would only sell for a bag full of u.s. dollar bills. they smuggled the dollars over the boarder, avoiding the tax authorities in argentina. especialy back when KFC (technically her initials are KFK, BUT KFC is funnier), had deployed dollar sniffing dogs at the boarders.

funny / sad story i heard about a friend of a friend. he was driving back Argentina, when his car caught on fire. it went up so fast all he could do was run. he had $10,000 u.s. in the car.

point is though, you don't hear a whole lot people promoting AR anymore. which kind of ironic, considering if you have none-argentinan income, it is way cheaper to live their now in many respects than it was back in the height of the expat promotion crap. somehow, they seem to always get that backwards.

I have been over there three times in the last 12 months for vacations, including taking the whole family (three cars, 22 people) we rented out an entire hotel except for one room last summer for like 250,000 pesos a night (not very big or very nice). the owner gave us the last room for free, and then she only had to take care of us. going to go over again if the ski season is good.
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Re: Buying Gold/Silver Coins

Post by ghibli » Mon Jun 10, 2019 12:22 pm

The problem with buying/selling gold or silver coins in chile - in addition to IVA - is that's there's essentially no market. Most dealers will only buy
chilean pesos so coins from other countries are almost unsellable. For the desperate-to-sell, premiums can run 30-40% or more.

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Re: Buying Gold/Silver Coins

Post by mem » Mon Jun 10, 2019 1:58 pm

ghibli wrote:
Mon Jun 10, 2019 12:22 pm
The problem with buying/selling gold or silver coins in chile - in addition to IVA - is that's there's essentially no market. Most dealers will only buy
chilean pesos so coins from other countries are almost unsellable. For the desperate-to-sell, premiums can run 30-40% or more.
When did you try do this? Where did you go? What dealers?

Not my experience over then last several years

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Re: Buying Gold/Silver Coins

Post by nwdiver » Mon Jun 10, 2019 2:51 pm

ghibli wrote:
Mon Jun 10, 2019 12:22 pm
The problem with buying/selling gold or silver coins in chile - in addition to IVA - is that's there's essentially no market. Most dealers will only buy
chilean pesos so coins from other countries are almost unsellable. For the desperate-to-sell, premiums can run 30-40% or more.
Yeh, dropped some leafs without a problem at par value......minus 2% for handling..........I would be a buyer at 20% premium....
It's all about the wine.

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Re: Buying Gold/Silver Coins

Post by mem » Mon Jun 10, 2019 3:16 pm

ghibli wrote:
Mon Jun 10, 2019 12:22 pm
The problem with buying/selling gold or silver coins in chile - in addition to IVA - is that's there's essentially no market. Most dealers will only buy
chilean pesos so coins from other countries are almost unsellable. For the desperate-to-sell, premiums can run 30-40% or more.
IVA is really a wash. If you buy it in Chile with IVA you sell it in Chile with IVA. Just like real estate.

Anyone "desperate-to-sell" should never have bought it in the first place. Don't punch above your weight, stick to cash or property if you don't have enough liquidity to avoid being desperate. Basically the same as anything you are selling. You should have a whole slew of other things you can sell off if need be...cash emergency cushion, equities, etc without ever needing to dip into long term savings

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Re: Buying Gold/Silver Coins

Post by eeuunikkeiexpat » Mon Jun 10, 2019 3:27 pm

Most persons here have more than one flag planted so to assume a 100% Chile-only question and answer may not 100% apply.

I've asked before but never received answer. What other countries besides say the US can one travel to to easily liquidate mainline non-Chile AU coins (Eagles, Maples, Roos, Phils, Krugs, etc.) at close to market prices?
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Re: Buying Gold/Silver Coins

Post by mem » Mon Jun 10, 2019 3:56 pm

eeuunikkeiexpat wrote:
Mon Jun 10, 2019 3:27 pm
Most persons here have more than one flag planted so to assume a 100% Chile-only question and answer may not 100% apply.

I've asked before but never received answer. What other countries besides say the US can one travel to to easily liquidate mainline non-Chile AU coins (Eagles, Maples, Roos, Phils, Krugs, etc.) at close to market prices?
Crossing a border with metals is highly inadvisable imho. What happens if you get a weon at the border who says the law be darned and just confiscates it? Not a thing you can do. Even less than 10k USD worth that is declared or not declared. Sure some people are successful with it, but lots get screwed. They get accused of "criminal activity" the goods are confiscated. Then no charges are filed but they don't get it back. You might hire a lawyer who will take more of your money to either get nothing back or some percentage back.

If you bought them in Chile with IVA I think you would want to sell them in Chile with IVA.
Again I think of it like real estate. You buy it here, you sell it here.

If one really insists on crossing a border, at least make it a land border...not an airport. Which of course limits you to adjacent countries like Argentina, Peru, maybe Uruguay. I know in Uruguay there are stores that will buy/sell coins, same as Chile with the casa de cambios. I knew expats there in Montevideo that would buy/sell that way

Panama is another place in central america...but probably want to fly there.

If you want to roll fast and loose and fly out and we exclude north and south america. Switzerland or Andorra are the first places I would consider in Europe. After that in Asia, Singapore or Hong Kong.

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Re: Buying Gold/Silver Coins

Post by mem » Mon Jun 10, 2019 3:57 pm

Another thing that people do in Chile is they get friends to buy it somewhereelse that are already coming to visit Chile and they bring just a few coins. They do this repeatedly over months and years. Only engage with friends they trust. A few coins have a way better chance than dozens and dozens of big black holes on the xray machine
Sometimes they do the reverse and send it to friends else where and sell it (especially if they bought it elsewhere) to keep it apples to apples

Then of course there is a peer to peer market in Chile. People on this forum, expats, etc that trade amongst themselves when mutually beneficial

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Re: Buying Gold/Silver Coins

Post by eeuunikkeiexpat » Mon Jun 10, 2019 4:57 pm

Thanks for the posts mem.
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Re: Buying Gold/Silver Coins

Post by admin » Mon Jun 10, 2019 5:48 pm

O.k., you see the problem with all that? Takes us back to my original post.

Gold is touted as this "currency of last resort", traded throughout history, anywhere, anytime, no government controls it (ask the Jews in Europe how that worked out for them), bla, bla, bla.

Not in Chile. You got a handful of places that will even know how to deal with it. If they do, they will probably want a premium on it. They will only accept certain sorts of coins, or gold in certain forms. Try walking in off the street with a brick in to most of those places. how about $100,000 in Eagles? Hell, you probably need to make an appointment just to trade more than a few thousand dollars, because no one wants to keep that much cash on hand. Bank transfer? Well, thought it was suppose to be anywhere anytime, good as cash. sort of defeats that purpose.

Crossing the boarders with it in any significant quantity comes down to a question of are you feeling lucky. FYI, the airport is far safer place to have to openly declare coins, than getting caught at some boarder post in the middle of nowhere with no phone line for kilometers, simply due to all the monitoring that goes on at an airport everywhere. Boarders, everywhere, are lawless zones, by definition. In Latin America, you will probably just count yourself lucky to walk away from the boarder with your life, never mind the stupid gold coins you arrived at the board with.That is a whole different conversation, just don't do it.

Do you really want the crap sitting around your house? Armed robberies, where they put a gun to the head of the residents and force them to open their safes do happen here. A couple thousand in gold would be more than sufficient to make even the honest housekeeper or worker, start to question the definition of "honest"; or, their cousin, friend, uncle, whomever they had too much pisco with last weekend. Are you really sure you managed to hide it under the rose bush out back when no one was around? Can you trust your neighbor's dog not to turn it in to chew toy?

on, and on, and on.

Way too much hassle, risk, to possibly, someday, if you are at the right place at the right time when you buy, you might be able to convert it in to something that is worth more than you payed for it, if you are at the right place and the right time when you sell it.
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Re: Buying Gold/Silver Coins

Post by eeuunikkeiexpat » Mon Jun 10, 2019 8:04 pm

So yeah, everyone has an opinion (based on a sliding scale of objective reality or not), and everyone has a different situation and story, and so everyone must decide risk/reward just like every other investment or speculation whether a small 10% insurance hedge or less or much much more. One scenario may seem stupid to you but perhaps not for another. DYODD, TINSTAAFL, always amazes me the vehemence brought out when discussing a rock.
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Re: Buying Gold/Silver Coins

Post by admin » Wed Jun 12, 2019 3:00 pm

of course there is the whatever makes you sleep well at night.

so that auction came in right in the middle at $59,420 u.s. or a gain of 271% , not bad.

the parcel sold for 11 million, but at the tail end of the auction. think there was like 10 bidders in total left and only 3 bidders for that property. but provided an extremely ruff estimate of property prices. I was kind of suprised there was more than one bidder at all. rural properties south of the bio bio can be really thin for action.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
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