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Why and How to Buy Bullion... Plus Where to Store It
In terms of storing your wealth or preparing for what’s to come, I think everyone should have SOME gold and silver bullion on hand.
How much you purchase is up to you. But you should have several months’ worth of expenses in gold and silver bullion. Why Gold and Silver? Because if the banks are closed or if paper money is worthless, you don’t want to be walking around with an ounce of gold (worth $1k+) to buy groceries. Instead, you will want some precious metals of smaller denomination to purchase/ barter with, hence the need for some silver.
Buy some of both now. I cannot tell you which broker to use, but whoever you work with, make sure that YOU store the gold/silver yourself (more on this in a moment) and that you buy bullion that is liquid enough that you can buy or sell it quickly.
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). The bullion dealer I spoke to prices them at 50 cents over spot. However, you can also get silver one-ounce rounds (coin-like medallions) and 10-ounce bars, both of which can be bought at 95 cents over spot. You can buy Silver Eagles coins at $2.50 over spot, though the premium higher.
Again, 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 eg 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.
In terms of storing your bullion, you can store it in a safe deposit box or buy a decent home safe from Target or Wal-Mart (or a specific safe store). If you go the safe deposit box route, make sure it’s with a bank that has as little exposure to derivatives as possible.
Personally, I distrust safe deposit boxes because part of the reason for having gold or silver on hand is in case there’s a run on the banks or a bank holiday is declared. So I like the idea of having at least some bullion in a personal safe somewhere. You can get a decent safe for anywhere between $100 and $1,000. Both Target and Wal-Mart sell decent models for $50-$300.
On a side note DO NOT tell people about your bullion stash OR your safe. Trust virtually NO ONE with this information except your closest loved ones (and I mean CLOSEST).
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Best Regards,
Graham Summers
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Oh you kid!
American Gold eagles have other metals alloyed with the Au, so do Kruggerands. Maple leafs are nothing but Au.
$1679/oz right now, am I reading that right?
Futures price.Paper makes no noise when dropped.
Watch the spot fix.If many learned commentors are correct, there is about
to be a dramatic bifurcation between them.Banks have to take delivery to
cover corzined allocated PM accounts.
Nothing new in this article. I just wasted 10 min of my life reading it. :-(
It's your own problem.
You could have cut your losses early, skipped the entire article or at least refrained from posting useless comments (more wasted time and no value for anyone; BTW you could have rated the article instead - that would have sufficed!).
10min? You don't read fast...
/and english ain't my first language.
Where do I get a dilapidated boat?
Try North Jersey
we few, we happy few, we band of silver holders . . .
You stackers are defeatists, praying for Armageddon. Meanwhile, others are making huge profits from you.
But I suppose that is the mantra of all who feel marginalized.
Maple Leafs purest (why they may "scratch", LOL)
NEVER pay the "premium" for coins (which are less pure).
Wikipedia
Gold Eagle
Gross weight: 1.0909 troy oz (33.930 g)
The Eagle weighs more than a Maple. Same amount of gold.
buy gold. buy silver. there i just saved you a fucking subscription.
Yeah, really... shaddup already, Graham Summers, your story is way past its due date.
The three coins mentioned (and also Philharmonics) are worth a premium (compared to gold bars) because they do not have to be assayed. The purity of these particular coins doesn't matter because they each contain the same amount of gold; the only difference is the amount of additional alloy. So, for example, a Gold Eagle and a comparable Gold Maple Leaf have the same amount of gold in them. The Gold Eagle has a bit higher total weight because it has some extra metal alloy in it to give it more durability, sacrificing some of its aesthetic beauty compared to the maple leaf. Coins aren't going to get damaged if they are stored properly, and a tiny scratch that doesn't alter the weight of the coin isn't going to be significant, as long as the coin remains in "uncirculated" condition.
Basically, you can't go wrong purchasing Maple Leafs, Gold Eagles, Krugerrands or Philharmonics provided you don't overpay, and don't buy counterfeits.
As for storage, under no circumstances should these EVER be put in a safe deposit box. The contents of those boxes are at risk of legal confiscation, not just if the bank has a problem, but also if you have creditors. Just as a judgment creditor can find out if you have a bank account, they can find out if you have a safety deposit box and can seize the contents and have the sheriff/marshall auction them to satisfy your debts to them. STORE YOUR OWN SOMEWHERE SAFE, NOT IN A BANK, EVER!
'The three coins mentioned (and also Philharmonics) are worth a premium (compared to gold bars) because they do not have to be assayed.'
Ding-ding-ding. That was the point of the article - getting forms of PM's that are easily transferable, especially for lower amounts. You can reasonably trust a coin, especially junk silver, over a bar that needs to be assayed.
Use bars for storing wealth. Use coins for buying things (in an emergency). I prefer coins because it gets rid of half the hassle if and when I need to sell.
Gold down below $1700 again...not exactly the support I was looking for.
Dennis Gartman says he expects a sharp decline:
http://www.planbeconomics.com/2012/11/02/gartman-sharp-break-in-gold-is-...
No it isn't, but the things mentioned have not occurred either. This is a monetary deflationary move downward which will continue downward if one president is elected. And move upwards toward the sky if the other one is elected. And notice how I don't tell which is which.
Why does Every Single Photo of a gold-storage facility look like a rat's nest?
so bizarre.
a person with a collection of fine china and silverware will display it in an attractive cabinet with nice little accent lights. china and silverware costs a few thou; cabinet costs a few thou.
it's thanksgiving -- people come over for dinner. you dis-hoard some stuff from the cabinet, then re-hoard and re-inventory it in the cabinet later.
but a monetary authority does it all different.
for the bankster, the china and silverware (ok, gold) costs BILLIONS; but it's stored on some crappy pallets made from reclaimed 2-by-4s for a few hundred bucks and stored in a dirty ugly room with dungeon lights.
wtf??
hey! rich guys! guess what! you have No. Freekin. Sense. Of. Style.
you're an embarrassment.
really. take a little pride. have you never even heard of crown molding?
step up. hire an interior designer. and some carpenters. or cabinet makers. hell, even the steel-frame storage racks at the bigbox hardware stores put your dumpy-ass shit to shame.
you remind me of my cousin jim-bob. you've probably seen him on Pawn Dawgz. or on Storage Locker Kingz.
and while you're at it, commission fisker or somebody to make you a nice-looking set of forklifts. for all that moving-around that you (used to) do.
damn.
you'd think it's just a bunch of gold-plated tungsten junk you got piled up in those nasty buffalo-bill lotion-in-the-basket spider holes of yours. even your meth-and-coke hooker mistresses have nicer digs than your tons-o-precious.
gross.
not that anybody's judging your taste in meth-and-coke hooker mistresses. it's about the tasteless trailer-park chic you've cultivated in your no-daylight taj mahals.
Q: how do you know if your 400 ozt bar came from the real vault?
A: it's still got the layer of sewage-film patina all over it.
dumpy-ass gold storage facility
Would you display your open check book or a stack of $10 bills in a display cabinet? Doubt it. Because gold is money, too, it is not displayed either.
that was a good answer.