Spot price and premiums

[hikingthehills]

So I’ve bought a little silver in the past, no serious money invested. I’d like to buy some gold. What is an industry standard and reasonable premium to pay over spot for gold or silver? What is the cost to store it remotely? I know premiums and volume are related, so let’s say your spending $4k on gold or silver.

For 2 coins find a place at home to store it. In the attic under insulation, take off a switch plate cover and store it there or go old school dig a hole by a tree or fence post in the backyard and store it in a mason jar inside of a couple gallon ziplock bags.

 

[Kman]

Two ounces, like Horsehat said is just a couple of coins, even if you bought two ounces as fractionals and put them in cases it doesn’t take up much space. (If you’re uncomfortable keeping it home for any reason, you can probably get a safe deposit box at the bank you deal with for just $25 a year).

I did look into a safety deposit box, you are right as it’s about $25 a year. I’ve placed the order and the bullion dealer is going to store it. As I add to it, I think it’ll be easier just to let them deal with it until I’m ready to cash it out one day. If the world collapses and I’m unable to get my cash from the dealer, I imagine I’ll have much bigger problems to deal with..

 

[Bypass]

Gone are the days of picking up a coin and biting it I guess. I don't trust anyone so no gold or silver for me. It's bad enough nowadays getting counterfeit bills much less plated precious metals.

 

[Klif]

Also when buying from sellers like JMBullion or Providence it makes a huge difference in the way you pay. It can vary between ACH/Check/Wire is the cheapest, next is Crypto and most expensive is PayPal or Credit Card. On a one ounce bar that can be the difference of $30.30 for ACH or $31.56 for PayPal or Credit Card. Doesn't sound like a lot but if you are buying 100 bars then it's a difference of $115.60 and would have bought you 3 or more additional bars. Also they charge postage and shipping.

If you can find a local Pawn Shop or Coin Shop that sells brand name bars or coins you can often get a cheaper price if you pay cash and most will forget about trying to charge you sales tax too. Whip out a credit card and they will probably put the stuff back under the counter since the cards cost about 3% and a cash charge per transaction so it eats up most profit.

I have a good relationship with a local seller and usually buy $500 or more at a time and get good prices plus he test everything with his "gun" and samples stuff with his touch stone.

Your mileage may vary.

If you are going in to buy gold, be careful of counterfeits. I wouldn't buy a double eagle that isn't in a holder from PCGS or NGC and even then I would check the slab number against the online site to make sure I wasn't buying a counterfeit coin in a counterfeit holder (China is that good that you really have to watch what you are doing)

 

[Kman]

Also when buying from sellers like JMBullion or Providence it makes a huge difference in the way you pay. It can vary between ACH/Check/Wire is the cheapest, next is Crypto and most expensive is PayPal or Credit Card. On a one ounce bar that can be the difference of $30.30 for ACH or $31.56 for PayPal or Credit Card. Doesn't sound like a lot but if you are buying 100 bars then it's a difference of $115.60 and would have bought you 3 or more additional bars. Also they charge postage and shipping.

If you can find a local Pawn Shop or Coin Shop that sells brand name bars or coins you can often get a cheaper price if you pay cash and most will forget about trying to charge you sales tax too. Whip out a credit card and they will probably put the stuff back under the counter since the cards cost about 3% and a cash charge per transaction so it eats up most profit.

I have a good relationship with a local seller and usually buy $500 or more at a time and get good prices plus he test everything with his "gun" and samples stuff with his touch stone.

Your mileage may vary.

If you are going in to buy gold, be careful of counterfeits. I wouldn't buy a double eagle that isn't in a holder from PCGS or NGC and even then I would check the slab number against the online site to make sure I wasn't buying a counterfeit coin in a counterfeit holder (China is that good that you really have to watch what you are doing)

Sending a bank certified check to get the lowest premium!

 

[joeabarno]

I’ve been looking at the bullion dealers mentioned. I just made the plunge and will use their on-site storage. The dealer I contacted said on-site storage is free. Maybe because I put an order in with them. I realize it’s cost averaging in the long run, so a monthly purchase is the way to go. I figure outside storage is best in case I need to liquidate it, I can get a check pretty quick and never have to handle it. Trying to downsize and make life less complicated.

If you don't hold it you don't own it. Most of the companies selling paper gold don't actually own the gold they are selling. You should always take delivery of your metals.

 

[Nuke And Juke]

Kman ...i hate to state the obvious but I hate the idea of them storing it for me. The adage of possession is 9/10 of the law, I hate the idea they have my money and my gold. And that some day...who exactly are "they" remains to be seen...

 

[Kman]

Kman ...i hate to state the obvious but I hate the idea of them storing it for me. The adage of possession is 9/10 of the law, I hate the idea they have my money and my gold. And that some day...who exactly are "they" remains to be seen...

I’ve thought about it long and hard. I plan on monthly purchases going forward, so I don’t want anything of that value at my house. Right now it will be kept at the Bullion dealer, but I’ve also looked at safety deposit boxes and they are fairly cheap and local.

 

[moosensquirrel]

If you don't hold it you don't own it. Most of the companies selling paper gold don't actually own the gold they are selling. You should always take delivery of your metals.

amen