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How to Buy Bullion (What to Ask and What to Own)
Quite a few articles have been written about the importance of owning Gold and other precious metals as a means of maintaining one’s wealth in the face of rampant money printing by the world’s Central Banks.
Today I’m going to share some ideas on how to actually buy bullion.
As far as precious metals go, you need to:
- Own actual Bullion
- Store it yourself (not in a bank)
I do not recommend owning a paper gold-based ETF because frankly the custodial risk is high (that is, there’s no telling if the Gold is even there or who would get it if the ETF is liquidated).
In comparison, physical bullion, stored outside a bank, is literally money in hand. You know where it is and you can find out what it’s worth. Compare that to a Gold ETF in which you’re hoping that the bank actually has the Gold and that it could actually send it to you if you requested (fat chance).
In terms of actual gold coins, there are three coins that comprise the bulk of the bullion market. They are Kruggerands, Canadian Maple Leafs, and American Gold Eagles. I’ve been told to avoid Maple Leafs by both a trader and a bullion dealer as they can easily be scratched which damages the gold and reduces the coin’s value.
In terms of silver, the easiest way to get it is via pre-1965 coins (often termed “junk” silver). You can also get silver one-ounce rounds (coin-like medallions) and 10-ounce bars. Or you can buy Silver Eagles coins.
I cannot tell you which dealer to go with, but look for someone who’s been dealing for years (not a newbie). You should always ask for references from the dealer (former clients you can talk to about their purchases/ experiences).
Some warning signs to avoid are dealers who try to store your bullion. Never, I repeat, never store your bullion with someone else. Always store it yourself. Also, be sure to talk to the dealer for some time and ask him or her numerous questions about the industry, the coins, etc. (feel free to test him or her on the information I’ve provided you with e.g. the three most liquid Gold coins, etc.). If they can answer everything you ask in a knowledgeable fashion, their references check out, and you verify everything they say with a 3rd party, you should be OK.
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Best Regards,
Graham Summers
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I would prefer to pay cash and pick up in person. Were I to buy metals, I certainly wouldn't trust APMEX or Kitco with my information. Patience, due diligence and anonymity would serve anyone well who is considering buying metals.
Why anyone would store with a firm that has JP Morgan as their Bank is beyond belief.
Yes, DosZap has it right. Buy it, pick it up in person and go home and hide it.
Spread it around for sure. Go for the best deal no matter what. The mass of information makes it almost impossible for TPTB to go picking on us small time accumulators. After all, the rash of boating accidents is proof that PM bugs are a careless bunch. There are much bigger fish out there who would yield a worthwhile capture of metals.
Even if the storage agency is of your religion, do not trust. Baptist Foundation of AZ. (they weren't storing that I know of but there are other examples that were).
Look for felony convictions of the principals.
Silver is sold in many forms, not just what Graham listed.
APMEX now has bullion storage, if you buy from them just take delivery.
And don't trust these bars. New fake gold from Australia, manufactured in China?
http://au.news.yahoo.com/latest/a/-/latest/15182799/counterfeit-aussie-g...
The answer is so simple I find it hard to believe I have not read it here so far. Find the biggest or oldest coin shop in your nearest city, and buy from them! You will start up a relationship with them that may come in handy in the future as well. In some/many cases you can buy anonymously, a big plus.
There ARE good gold suppliers (eg, tulving.com, apmex. com) on the Internet, but you cannot remain anonymous, and with Tulving, you have to buy 20 Gold Eagles at a pop (or roughly the equivalent in other gold he sells, like kilo bars).
I completely agree with holding physical gold bullion yourself. Be creative in hiding it, and you will be fine.
Everybody loves APMEX but can't afford the bulk buys needed to add to the stash... No longer!
Read the article and go to the new site exclusive to eBay. You can buy a single coin or junk silver or rolls.
Prices are updated every 10 minutes and sold for a fix over spot. Shipping appears to be $4.95 regardless of size of sale and a pittance for each additional item.
http://www.coinweek.com/bullion-report/apmex-bullion-center-debuts-on-ebay/
APMEX Bullion Center on eBay: http://www.ebay.com/Apmex
Bullion Education Center: http://www.ebay.com/bullion-education-center
Just a quick check tells me this is not a "good" deal. ASE 2012 - listed price AMPEX on Ebay $37.89 shipping $4.95 total $42.84 Provident Metals $35.71 shipping $5.95 total $41.61 same time, same product.
I like AMPEX, but rarely buy there. Too easy to beat their shipped price, even on "specials". Other than price, fine place.
However, I would rather pay less throughout the year than get a tin of popcorn at Christmas.
EXTRA:
Just for a laugh I did 20 ASEs in a mint tube.
AMPEX $757.87 plus $4.95 shipping equals $762.82
Provident Metals $705.40 plus $11.95 shipping equals $717.35
AMPEX is $45.47 higher with the new ebay "discount" shipping.
Sounds like bullshit to me. Again, I'll stick with cheaper prices.
If you're looking to buy gold and silver with online dealers I would suggest checking out www.goldshark.com. It's a cost comparison shopping site for gold and silver coins/bars. If your looking to locate local dealers check out www.coindealers.org, they have thousands of local dealers listed with maps and other information.
I read this article and can't believe someone would advise against the Gold Maple Leaf. I have always bought them and have zero problem with scratching. Remember you're buying the coins for the metal value not graded coins. A scratch on the coin should have no bearing on the value.
Have done many purchases and trades with Tulving. Sometimes they have offers for less than 10 ounces of gold. Never had issues with them or APMEX. Local coin shops can have issues with sales tax (in the USA, as I understand there is no VAT for gold but there is for silver in the EZ.)
Liberty Coin and Precious Metals in Del Mar, San Diego, is one of the best places to buy and sell Coins and Bars on the West Coast. Once you've dealt with them, you will no longer want to do business with the other dealers which might be more appropiately be refered to as barbarians