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The Importance of Owning Your Own Bullion
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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Some nice prices over at Texas Precious Metals
I'm diversifying my stack of silver Maples, Philharmonics and Britannias.
Time to get me some 1 oz silver spiny anteaters:
http://www.buysilvercoins.org.uk/2013/03/spiny-anteater.html
this summer guy : has he ever made a prediction that has come true on his ZH posts ?
Texas moves to restore its physical gold from the Federal Reserve
http://economicrisis.com/texas-moves-to-repatriate-its-gold-from-the-federal-reserve/2731
I really like the Perth Mint Tamper-Proof Certicard packed bullion. Does look fairly genuine, no? Maybe not the best option for USA but here in Asia its a very popular choice. comes in all sorts of sizes (ounce, 10 ounces etc)
http://tinypic.com/view.php?pic=6z92yu&s=7
Update 3-24-13 -- A friend had asked "how do you buy gold" and I did a write-up for him, and for your benefit also. I have quite a bit of experience.
With the continued shenanigans in the EU and Cyprus, including the threat of direct theft from insured bank accounts, well just about anything goes.
This article is how I buy Precious Metals (PM)
http://oahutrading.blogspot.com/2012/10/how-i-buy-gold-silver-platinum.html
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Gold, Silver?
Yes, both are a good store of value. Paper ETFs are only as good as the promises backing them, therefore they are Garbage.
However, just like any other thing that stores value well, it becomes a target for every higher governmental power that wants it from you or wishes to exercise full control of the wealth of its common citizens. And I say 'common' because that's what most of us are. Whether we are flipping burgers, or we own the burger joint, we are not connected up to the political machinery that runs things. Therefore we don't enjoy the same liberties.
Your gold and silver will not be safe, and it seems everyone is forgetting that the governments the world over are tracking your wealth. They will know how much you have and where you have it. In the United states, they can pass any law that they want. They simply tuck it away in a larger bill, and suddenly you wake up one morning to find out that you are in violation of some law, or your formerly legal activity will be in violation.
It seems these things are already being forgotten:
http://abcnews.go.com/Business/gold-coin-dealers-decry-tax-law/story?id=...
You can trust Gold and silver somewhat, but don't put your full trust in these things. Be balanced and don't be overconfident.
I wipe my ass with toilet tissue but trade stocks for huge and growing profits! I pay my day-to-day bills NOT with a "stack" but with funny little pieces of encrypted paper and most others around me do thre same. We have some precious metals now versus a boatload before the top in 2011 - the sale at $1,835 and the purchase of the SPY in the $118 range was a great switch. Now I am beginning to sell my stocks (worthless paper) to add to my bullion position but praying that we never see $3,500 Au because we don't want to be around when the 3,500 USD's buys only one ounce of gold. I can now buy two tinfoil hats instead of one with my SPY profits while the stackers continue to whine.
God Bless America.
Eff you arrogant prick
beyond escaping the gravitational pull of the $4Q+ NWO holographic Economic Deathstar
take physical delivery of metal to expose COMEX manipulation
I see too many dangers trying own buillion unless you are extremely wealthy and trust the custodian.
Let's say you put $500k in buillion and you buy it from a reputable dealer. Do you have it shipped and store it yourself? Okay, let's say you do. Do you trust the owner of the facility? Why? Do you have it shipped directly to storage? By whom? Do you trust the shipper?
If you leave it with the dealer for storage how do you get to it when you need it? If I live in Atlanta and the dealer is in NY how do I get to it in an emergency? What if the government orders all gold in storage seized?
Okay, let's say I have it shipped locally. How? UHaul, railroad, FedEx? When it gets here where do I put it? Storage locker, local vault, a warehouse? And store it in what? A trunk? A safe? Do you put a safe in your home and lock it up and risk being robbed? Anything mobile can be moved by anyone and anything cemented and secure can quickly become inaccessible. Moving it will raise suspicions and mark my words ... people will know you have gold. You and your family will always be at risk.
I see no way to safely buy and securely store a large amount of gold buillion that is convenient and safe if the SHTF.
People who are putting their money into gold are taking much more risk than those of use who have stores of cash, ammo, toilet paper and canned food.
Psquared
If you can afford to buy $500k in bullion, you can afford some very very nice safes to store it in - you could (and should) also afford to buy some very very nice firearms to protect the same with.
The lesson taught over and over and over again here at ZeroHedge Universtiy is, if you don't hold it in YOUR hand, you DON'T own it.
Witness a very recent story here on ZH, "Dutch ABN To Halt Physical Gold Delivery"
http://www.zerohedge.com/news/2013-03-24/another-gold-shortage-abn-halt-physical-gold-delivery
If you have any doubts about this, please forward your $500k to me and I'll store your gold in my safes for a nominal fee.
Sincerely, your agent in Lagos Nigeria.
That is pretty funny.
$500,000 is like about 300 GAEs (at the current price).
You need a U-Haul?????
LOL
$500k of gold is about 18 lbs of the stuff. If you can't figure out how to safely store/hide/protect 18 lbs of a shiny metal maybe you should just give it up and stick with the TP. The TP, canned food and ammo might be pretty good stuff for barter, eating and taking a dump but if someone can afford $500k of stuff... the quantity of ammo, TP and canned food might be slightly overwhelming.
I'm sure you can think of more excuses if you put your mind to it. Bury it under your rose bushes or under a the dog crap pile in your yard. Or maybe you can buy nice safe euros and play cypriot suicide instead.
Maples have the highest gold content of any of the mentioned coins, which might explain the easier scratching. You get far more for your currency with Maples. Maples are the prudent choice, IMO.
Also, the Maples available now are 2012, at the earliest, showing that there is virtually no gold left in storage.
personaly i find the engraving of the woman on the other side of your canadian maple offensive and do not want her likeness anywhere near my money!!!
Incorrect, maples have exactly the same 1 troy ounce of gold, but they do not have alloying elements. The Eagle uses 3% silver, and 5.33% copper as alloys to make a stronger coin.
On the other hand, Maples are not going to be clinking around in your pocket. So scratching is not an issue. The value is the gold, not the numismatic value.
Say, isn't there a guy named Black that keeps saying I should keep my gold overseas?
There are a few out there that say that but they must be writing for someone else, I don't have the resources to do such a thing... I had to sell off my properties in argentina and hong kong just to keep my yacht gassed up ready to go.
Ol Simon, good guy...but do you trust Hong Kong, or Singapore, Or Switzerland, well compared to the Drone King anyway?
I pity (but not much) you morons who can't figure out what to do with a gold coin in a SHTF scenario. No, you won't want to trade a gold coin for a one-time loaf of bread, but you might want to trade it for a supply of freeze dried. Or you might want to trade it for part-ownership in a bakery! This nation is headed for disaster. If you didn't figure that out yesterday, you don't have a prayer. If you believe the one-time loaf of bread will be your biggest problem, if that's your time horizon, you haven't much chance. Fortunately for many of you idiots, survival will be random, which means I may have to put up with some of you morons even after SHTF. Until then, keep 'em coming. It's good to know there are will be dead morons walking to take advantage of.
100 items to dissapear first in a societal collapse.
http://www.thepowerhour.com/news/items_disappearfirst.htm
thanks, very usefull list - fine with razer blades but short on goats
about number 3. - Portable Toilets
you really dont need nr. 3 for nr. 2, just a showel and a portable ass
This is fabulous! Thank you :)
Shared on FB so maybe if they do not believe it could happen, they will at least consider how miserable they'd be if they are wrong in all their arrogance.
Unless Hussein Obama, Cass Sunstein, Peter Orszag, Gyorgy Schwartz, and the other neo-marxists in our midst attempt a violent coup, there's unlikely to be a societal collapse, IMO. More likely - the neo-marxist cabal continues its subtle war against the private sector through financial coercion and dramatic raising of prices for electricity, healthcare, and food.
Kind of like Stalin's starving of the Ukraine approach. That seems the most likely war that the neo-marxist cabal is going to continue waging.
The "societal collapse" will be around the heads of all those not connected to government in a powerful way. Government has exempted themselves from it as did their Soviet mentors, in their "green zones" which you will not be allowed to traverse without permission and cavity searches.
The "subtle war" you speak of is not "subtle" at all, just unreported upon by those who benefit from it. Go figure.
They used to be satisfied with a percentage of the financial wealth but they have now decided, that they want it all and your children too.
Most useful list, thanks...I see I missed a few (dozen) ....
I bought Silver earlier this year (additional stacking) which left two thirds of my metals money for some additional thinking.
Bought Gold with the rest...Today.....KangaRoos.
A 2 year supply of non perishable food will cost a lot less than gold or silver and be more useful. Given that everyone needs to eat, would you rather have 800 pounds of rice, wheat, and beans or some gold? Gold is only good for rebuilding afterwards. A bottle of good whiskey is an excellent barter good that will buy Damn near anything. Get some food and booze stored, then worry about PM.
Or, to phrase it the Zero Hedge way.............
Rice and beans, Bitchez!
If you want to know what people actually need and want in a crisis, read the book " The Cellist of Sarajevo "
Wine is fine but whiskey's quicker
I just got home with a thousand bucks worth of long-term groceries. Because today is "no-tax sunday," I saved $40. When the lean-years come, I intend to remain a fat ass.
Where are all the haters?
they're resting because it is tiring
..yes resting...and pining for the fjords
This makes no sense. In the event of breakdown of society and banking to the extent that you can't access or use your gold or dollars, you can bet that folks won't be trading with something as impractical as lumps of gold. Nor will will anyone be able to reliable assay it.
Instead of this very long shot bet, if you really believe you need this, it makes far more economic sense to invest in FAKE gold coins. They will have effectively the same value, and are MUCH cheaper to buy now.
Governments have the fake gold market cornered dude.
Precious metal hording is not about having something with which to barter when tshtf, it is about transporting your wealth through the dark times to when stability returns. Yes you should also have food and ammo and toilet paper and anything else that will become difficult to find or make yourself, but that is primarily so you *don't* have to trade away your wealth for basic necessities.
gopher your an idiot
gold jewbux?
What would we do with Graham?
I like Silver over gold right now. The Gold:Silver ratio is very high right now. Either gold is overvalued, or silver is WAY undervalued.......perhaps a bit of each
The ratio isn't that high -- I've noticed they have been holding it under 60 for quite some time now.
"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."
Somebody just really doesn't get it. An ounce of gold is an ounce of gold. Really. If you're paying a "collectible" premium, you're a dumbass.
"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."
Somebody just really doesn't get it. An ounce of gold is an ounce of gold. Really. If you're paying a "collectible" premium, you're a dumbass.
I can confirm the article is correct. I once sold fifty one-ounce gold maple leafs to a coin shop. They looked at every single one to see if there was a scratch or mark. Why? The coin shop was paying spot + a small bonus. But if the coins were scratched, I wasn't going to get the top price.
You may say that's stupid. And I agree with you, one ounce of AU is one ounce of AU. But we're talking about bullion traders and experiences in the field -- if they can come up with some bullshit reason to shave a few dollars off the transaction, they will. And the article is correct, a scratched maple leaf will at least open the door to some dealers trying this BS.
I have maple leaf coins in tubes. They were taken out to inspect when they were purchased and then have stayed put ever since. I was warned about the scratching issue but I have my reasons for owning maple leaves. To each his own.
may be canadian maple leafs have more gold, hence softer than the tungsten mixed american eagles. what a bunch of crap.
and what about the krugerrand having less gold but more copper in it or where is the 999 wiener philharmoniker?
cheap researched article
Eagles are 22k (91.5% gold, 8.5% Cu and Ag), maples are 24k (99.99% gold).
A one ounce gold coin is a one ounce gold coin regardless of the purity.
What he's trying to say is an Eagle and a Maple both contain one troy oz. of gold. The Maple is pure whereas the Eagle has the above mentioned elements to add durability. If you hold an example of each coin, the Eagle will be both larger and heavier than the Maple.
But what I forgot to say is Maples are more pretty and sparkly when held under a bright lights.
:o)