Metal

You know the offers on TV and Radio selling gold and silver? Don’t ever buy from them. You don’t need a “kit” to buy silver or gold. You just need a dealer who sells them.

Gold is the safest precious metal to buy. Bar none. You should buy 1oz Canadian Maple Leafs, American Silver Eagles, and anything else minted by a major country. Why? Because there is so much risk for someone tampering with them or forging them. The small premium you pay is nothing compared to the security you have of a major country backing the authenticity of the coin.

Silver is the most explosive metal to buy. It’s much more volatile, but the consensus among most investors is that it has more upside potential due either to current suppression, many industrial uses, and very low price (compared with gold). You can invest in silver in many ways, including 90% silver US coinage, Maple Leafs, American Eagles, other nationally minted coins, and interestingly, limited-release semi-numismatic coins. These coins are priced about $1 dollar higher than normal because they have a unique, limited release print. You’ll find the Australian Perth Mint, Canadian Royal Mint, the Fijian mint,  and many others have special animals printed on coins. These are equally as safe as the major coins, but have often risen above the other similar coins due to their rarity and beauty.

Where should you get them?

1) Your local dealer – When you buy from your dealer, you do two things for yourself: 1) you keep a local guy in business who will buy back your silver and gold should you ever need/want to sell it, 2) you usually pay less with him than anywhere else. That should be plenty of motivation for you. PLUS you’ll never worry about “accidents” with shipping.

2) Online stores – Online stores are great for the efficiency of being able to buy whenever you want and get a wide variety of coins. I favor BrotherJohnF‘s method of buying semi-numismatic limited release bullion from international mints, and you can’t always get those at your local dealer. These coins are limited mintage and beautiful, yet they are sold most of the time for only $1 or $2 more than normal bullion. The Canadian Moose and Cougar are both great buys right now. It’s a Maple Leaf with a beautiful animal instead of a leaf on the back. These tend to accrue a significant numismatic premium, without taking the numismatic risk.

While your dealer may be good to get Gold/Silver Eagles and Maple Leafs, as well as junk silver, the online stores might have some of these unique items that the dealer doesn’t have in stock.

  • Provident Metals – I like Provident the most because they allow you to send in checks, they have very low prices, and a low shipping rate. You will have to wait longer to get your metal through a check order with Provident. But patience is an asset, not a liability.
  • Gainesville Coins – One of my favorite shops because they consistently have low prices on the types of metal that I want. Gainesville sends the goods quickly and discretely. I’ve never regretted a purchase with them. Gainesville doesn’t take checks, though. But if you like something that Provident is sold out on, this is the place to go.
  • APMEX – The grand-daddy of all metals websites. I like them, but they are often more expensive with premiums and shipping, though they have a wider selection.

3) Ebay – If you want to work your butt off for hours every day searching for the earliest possible listings that are at or near spot, be my guest. But you should probably get a job if you have that much time. The other places are usually better.

4) Your Local (American) Bank – No one talks about this much. But you can go to your bank right now and get small rounds of 25% nickel and 75% copper for below spot price. This are called nickels. And remember, the Treasury is planning to change the composition of the nickel and penny next year.

 ~

As always, if you have any other suggestions, let me know. I’m always curious to find a better deal out there!

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2 Responses to “Metal”

  1. Grim May 20, 2012 at 4:56 am #

    You do realise Apmex is owned by JP Morgan….

    • jakobarjoseph May 20, 2012 at 5:54 am #

      APMEX has never been my favorite, because shipping is so expensive. But what I’ve heard is that APMEX uses JP Morgan as their banker, not that JPM owns APMEX. But if you have any info, I’m open to hearing it.

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