Loading ...What are your preferences for buying physical gold?
I am doing research on the process, and google has 10000 ways to do it. Most of my investment is through a 401K, and have paper gold/silver like CEF. But is there a preferred way to buy physical gold. I don’t know if I have a preference if it is stored for me or take possession. I live in the US. Any thoughts or recommendations on how to start the process? TIA
I just walk in to my local coin dealer and trade some fiat for some Maple Leafs.
Then bury it . I keep one in my pocket as a reminder though .
Thanks Fully, sounds like the way to go 🙂
Just a slight technical clarification that I presume you know. CEF is not paper gold & silver but actual physical in a trust. Unlike GLD and other ETF’s that are just paper gold and or silver. Fully’s suggestion is the most common and logical way. If you are talking large amounts and don’t want to pay the exorbitant premiums (especially silver) you could open a futures account buy a contract (I believe some of the exchanges may have a mini size contract) pay in full and take delivery. If you are good at timing and buy a decline you may eliminate premiums?
Thx Chartmaster, think you turned me on to CEF a while ago. I realize it’s better than paper since its in a trust, but still not in my possession. Not talking large amounts by any means. Thanks for your input.
Bury it? That’s ironic. From ore deposit to discovery, extraction, refining, minting, distribution and back into the earth again!
Some day someone with a metal detector will find it and call it the Orangeville Horde.
First educate yourself – I’d suggest start with reading Mike Maloney’s “Guide to Investing in Gold and Silver” cover to cover.
You need to decide for yourself your REASON for getting into the metals space (insurance or a quick buck – or perhaps both).
If you’re going to enter the physical space I’d suggest first of all only use $ you don’t need for 5-7 years or more – it’s going to be a wild ride and you don’t want to let it buck you off – lots of tears. Develop some entry and exit targets and a PLAN for you personally based on your research – write it down. Have a plan for volume (silver) and storage – if big $$ involved and uncomfortable with local storage, at least plan to keep some close by for quick access. Again, an emotional rollercoaster and if you don’t have a plan to stick to…. Others here can speak to dealing with remote (allocated) storage.
FWIW online, I’ve dealt successfully with Kitco, GoldandSilver.com and a local shop (recently ventured into the local secondary market). YMMV.
Get a reliable reference for a coin or bullion dealer from a friend or someone you trust – shop around, introduce yourself – those can be valuable relationships. If you can find out locally what people are paying on the private market – you want to pay somewhere between that and the crazy premiums you see on the net (apmex). At this point (and this is just me), I’m buying low premium bars & rounds. If you see the spot market settle down for a time, consider some higher premium product. IMO Silver is still on sale at GSR of 80. Build that position first at low premiums. Don’t panic if you see silver spot get cut over 25% – Refer to your PLAN. Watch the GSR that is one of the key tells as to whether greed (historically low GSR) or fear (higher GSR) is the psychology in the metals market. In the early stages of this bull, premiums will be large and disparate between products, you’ll also know your in the greed phase when the premiums start getting compressed (lower GSR’s). These notes are just from my short duration of experience and study so take it FWIW. Others here have decades more experience having ridden through the 70’s and 2000’s rollercoaster already. GL FISCH. Um you might also consider ditching Google for Duck Duck Go for more ‘objective’ search results. Goog gets paid big $$$ for what you see on page 1-2.