Buying physicals...

Discussion in 'Commodity Futures' started by TheGoonior, May 2, 2011.

  1. I know that owning a metal ETF (SLV, GLD) only gives you exposure to the underlyingf price swings, but is not the same thing as owning the metal. I also know that if you wanted, you could take delivery on the physical contract, but those contracts are too rich for my blood, so here's a few questions:

    1) What are some reputable online dealers for silver/gold? I prefer to be able to purchase in smaller increments (coins, 1oz bars, etc). One blog I read listed ApMex as an example. Can you also get stuff directly from the US mint?

    2) What can you expect to pay for the privilege of owning the actual metal? I know you'll pay a premium, but what should you expect from a reputable dealer?

    Thanks much for your input.
    (and if there's already a good thread on this, please point me in that direction).
  2. I buy from Apmex, although their prices are getting a little higher. I used to pay .49 over spot with apmex, now its going to cost you at least $1.89 over spot and thats only if you buy over 500 oz. The mint overcharges when they actually have silver/gold coins to sell.

    You could check with sunshine minting too, I think you can get a good deal with them,but you have to buy a minimum amount. Back when silver was trading at $10, they were requiring you to buy about $6,000 worth of silver if I remember right. They could be alot more expensive now.

    Apmex is the least hassle though, but remember to just buy secondary silver will pay a premium for american eagles...better to just buy the silver for the silver.
  3. I use Kitco, ScotiaMocatta, and a local dealer.
  4. If you want to buy gold, going through a dealer for small amounts will cost a premium. If I wanted to be long GOLD, I'd buy a futures contract. If I wanted to take delivery of gold, I would not roll the contract in the futures market, I would take delivery. You can buy gold this way in many sizes.
  5. Depending on the amount you want to buy, you could consider putting up a craigslist ad to buy gold. Always buy it in a public place for safety. You could get a discount to spot that way. Then just keep it in a safety deposit box.
  6. If you do that your not buying pure gold. You either buying 58% or 75% gold. Then you have to pay someone to smelt the gold. Not a bad idea if you know what your doing. A lot of people go to "gold parties" and sell their gold jewelry for deep discounts.
  7. What could go "wrong" there? :confused: :p
  8. Man, you couldn't pay me enough to try and buy gold off of Craigslist. There have been enough problems with people just trying to sell used furniture let alone metals.

    Home invasions are a very real concern I believe for many gold and silver holders/hoarders if the current trajectory continues for awhile longer. Not altogether unlike all the theft of copper, but just wait until the crooks start targeting people who are known to have precious metals.

    I'd be worried that they get their hands on customer lists from those various dealers and find their targets.

    Can you see how third world all of this is becoming?

    (Edit: I should also mention that if the doomsday scenario were to unfold and metals holders start actually paying for everyday goods with their product, you can bet that an underground network will figure out real quickly who has a stash).
  9. Crispy


    forget the rest
    #10     May 3, 2011