How To Buy Gold & Silver


Gold Bars

How To Buy Gold

The desire to buy GOLD is not hard to understand; compared to other valuable substances, there is precious little gold in the world. And with its undeniably brilliant sheen and deep, rich tones, it's also easy to understand the appeal of owning gold as a tangible, physical investment. At its best as an investment, gold is both physical and very liquid (it can be bought and sold fluidly). But you can buy gold in different forms, and these forms tend to differ in their liquidity. Gold is a hot item for several reasons right now.  First of all, currency in most Nations and the US are in serious trouble. The stock market is falling and Real Estate is in the tank. It will take quite a while for various Governments to solve the financial crisis and gold is a perfect place holder for wealth.

Silver BarsHow To Buy Silver

The safest way to get silver is to buy from a local dealer, with "cash on the barrel".  Get cash from your bank.  If you plan to spend more than $5000 at once, order your cash from the teller a week in advance.  If you withdraw more than $10,000, be prepared to fill out the CTR or "Cash Transaction Report" Federal form which asks for your social security number and occupation.  In the meantime, locate various coin dealers that publish price quotes on the internet.  For a start, Go Here!

Take cash to a local dealer, negotiate heavily on price; & show the dealer various price quotes from other dealers on the internet!  If your local dealer cannot fill your order at a reasonable price (within 1% of the lowest prices), then drive to another dealer, or break up your order, and order online from your sources.

Remember, coin dealers are the "working rich".  They take the risk of having a coin shop, which can be robbed, to make money, by serving you.  Most are very honest, and earn their commissions.  Many have had guns pointed in their face.  They are our industry's heros.  Treat them with respect; and don't waste their time.

If you want to acquire a large amount of physical bullion, it will take a long time and a lot of work. Most Dealers only have a fraction of personal holdings and have to broker the deal for large quantities.  

Understand the difference between a price "indication" and a price "lock".  An indication is only a guess on what the price may be.  A "lock" means you are committed to buy at that price, and you have struck a deal, and cannot back out.  Be aware of the potential risk to bullion dealers who will give you a price lock, before they get your money, in a bull market.  (That is a standard business practice.)  Unless they are buying on the futures markets when they take your order with their own excess cash, or unless they have more metal than they want, then bull market conditions can eventually bankrupt them, if that is their standard business practice, and if their order volume is high enough.

This is why it is so important to do a cash for metal purchase in person.  It protects both you and your dealer.

The two largest dealers in the United States are Johnson Matthey, a silver refiner, and Amark who is Johnson Matthey's largest dealer.

Johnson Matthey has "run short" of silver several times in the last few years, where delivery times increased substantially, up to 6-8 weeks, and Johnson Matthey does not take orders from the public.

If you live outside the United States, it may be much more difficult for you to find silver.  You might want to think about traveling to the U.S. to buy silver, and fly it back with you, or have it shipped.

Do not let yourself be confused by the flow of silver at your local coin shop.  In many cases, coin shops buy more silver from the public that continues to sell.  The coin shop must then "dump" this silver to another, larger dealer, or the refiners, like Johnson Matthey, who are the biggest buyers in the industry, the buyers of last resort.

It must be this way, given the market structure.  The silver mines produce about 700 million ounces of silver, and industry demands about 950 million ounces of silver annually.  The difference is largely met by "recycled" silver, about 200 million ounces per year.  In other words, investors are selling silver to the coin shops that ends up at the refinery.

Don't let your investment opportunity to buy silver go up in smoke, because if you don't act, it literally will.

And unless you end up with silver in your hands, you don't own silver at all.  Phantom silver, or a promise to pay silver, is not the same thing, and I hope you don't realize it when the promise to pay silver also goes up in smoke.

Some if the information has been borrowed from so we want to be sure to give them credit. I don't have time to ask their permission but was impressed by the plane language by the author Joson Hommel.

Thank you!

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