I just wrote about what Peter Schiff has to say on the topic yet in his new book Bull Moves In Bear Markets.
In a previous post, I said that I thought the best way to invest in precious metals was to go through GoldMoney (read what I had to say about GoldMoney here). However, I realize this choice may not be the best for everyone all the time. There might be some reason that you’d prefer to hold physical gold, for example. So in this post I’ll consider the basic ways to invest in gold and silver for those who live in North America (I’ll look at other parts of the world in a future post). I’ll cover some of the top metals dealers and their basics so you can get purchasing your metals right away.
***Unfortunately there have been serious backlogs throughout 2008 and into 2009 now, so expect to wait a good 3-4 weeks for delivery.***
Located in Canada
Border Gold (Surrey, BC and Blaine, WA) – Been around since 1968, this independent market-maker buys, sells and stores for Canadian and American customers as well as customers overseas. Transactions and records are all kept in Canada. Non-Canadian citizens can arrange for storage in Canada as well. Prices tend to be a bit cheaper than Kitco. The owner, Michael L. Levy, publishes frequent commentary on the gold markets from his website. They’re even open on Saturdays from 9:00-3:30 Pacific ST. They do not accept personal checks or credit cards. Customer service is great: they respond quickly by email.
Current price of Gold Maple Leaf 1oz.: $951.14 (CAD)
1-888-312-2288 ext. 7
Kitco (Montreal, QC and Rouses Point, NY) – Established in 1977, Kitco is much larger and engages in a wider range of metals business than dealers like Border Gold that basically just buy and sell metals. Kitco supplies sheet, wire, grain and Rhodium to jewelry manufacturers as well as refining metals for the dental industry (your gold tooth, maybe). They’re partnered with GoldMoney, too, so you can buy and sell goldgrams from their website if you already have an account with GoldMoney. Kitco also runs a forum where you can discuss all things precious metal, and has a section of their website devoted to live updates on news from the industry. It’s really a one-stop-shop for precious metals. They do not accept personal checks or credit cards as payment.
Current price of Gold Maple Leaf 1oz.: $956.65 (CAD)
no email: use website contact form
Located in the U.S.
Monex Precious Metals (Newport Beach, CA) – Founded in 1967, Monex buys and sells gold, silver, platinum and palladium (as do Kitco and Border Gold too). Sells Vienna Philharmonics as well as 90% and 40% silver coin bags. Monex will also give you a loan for up to 80% of your purchase through the Monex Credit Company! Metals purchased are registered in your legal name, and not held through Monex, so your investment won’t depend on Monex or any other corporation’s financial condition. They take payments in bank wire and personal or bank checks (sent overnight delivery). Their trading hours run from 5:30am to 4:30pm Pacific ST. Monex also offers several free subscriptions, reports and commentary on the markets from their website.
Current price of Gold Maple Leaf 1oz.: $923.90 (USD)
Apmex (Edmond, OK) – American Precious Metals Exchange is a more recently established and growing online dealer that buys and sells much more than the standard menu of gold, silver, platinum and palladium, although it has all the standard selections from the U.S. and Canadian mints there as well. Apmex also sells antique and rare coins, old stock certificates, civil war tokens and other tokens and medals. They do not offer pooled accounts. Minimum order is $50.00 per transaction, regardless of the purchase, and there are discounts on orders above $25,000. Cancellation of orders costs $35.00. To place an order, you must first open a free account with Apmex which will allow you to track your order. Aside from fees for shipping and insurance, there are no additional or hidden fees or commissions: the price you see is the price you get. Payments must be sent within 24 hours and received within 5 business days of the transaction, and credit card info is required in order to lock in the order price. In addition to the usual forms of payment (bank wire, bank checks, etc.) they will also accept credit card payments!
Current price of Gold Maple Leaf 1oz.: $921.55 (USD)
1-800-375-9006 (M-F, 7:30-4 Central ST)
(405) 330-4222 (local number)
California Numismatic Investments (Inglewood, CA) – Since 1956, their Los Angeles store has been a famous coin and bullion exchange. CNI does not use commissioned salespeople, so you don’t have to worry about feeling pressured into buying. You can order your gold by phone too. They take payments by bank wire (fastest), cashier’s checks, money orders – and they even take personal checks (held for 3 weeks). Orders require a signature before delivery and are packaged so as to not reveal what the shipment is. They’re also partnered with the Delaware Depository Service Company (in Wilmington) so that you can store your gold off-premises if you wish (this option for larger investments only).
Current price of US American Eagle 1oz.: $927.00 (USD)
Do you use any other dealer, not listed here, that you would recommend to others? Comments, tips or feedback on your experience with any of these dealers that you’d like to share?
Investing in gold, silver and other metals by buying them directly through dealers like these has the advantage that it allows you to partake in the commodity sector without having to research and worry about the intricate details of commodity trading and futures. And like real estate, there is something comforting about owning tangible assets – your ounce of gold isn’t going to go bankrupt, and although its “price” might seem to go up and down on the markets (themselves denominated in fiat currencies), your ounce doesn’t slowly erode away on you. There is a finite amount of gold in the world. When you have a piece of it, you have a store of real value. In a future post I’ll look more closely at the options for storing your metals.Related Posts
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