Posted 01 Jan 2005
HOW TO BUY GOLD
How To Buy Gold Or Silver A rather innocent question. Not all too surprisingly I receive this question all the time. I buy gold and do not sell it. Through some trial and error along with a lot of research I hope to be able to provide you with a very helpful answer to this question.
How to buy gold is a very simple question but if done incorrectly then the results can be financially devastating. It is extremely important to learn how to buy gold from trusted and reputable sources in safe and secure transactions.
At all times and in all circumstances gold remains money. Therefore, gold belongs in your portfolio at all times and in all circumstances.
While gold is a tangible asset and physical element, making it extremely transparent, the gold market is particularly murky with many shady characters lurking around. Thus, when looking at how to buy gold you have two primary methods.
PERSONAL PHYSICAL POSSESSION
This can be done by buying gold coins or buying gold bars and immediately taking physical delivery. The ideal way to purchase in this manner is in person with cash. There are many reputable bullion dealers throughout the world. You can open up the phone book or go down to the local pawnshop. This is an easy way to find a place to buy gold.
I recommend everyone have at least some physical gold or silver bullion in their immediate possession. Like extra food you never know when it may come in handy but will be extremely grateful should you need the gold or silver. Often being prepared helps calm the conscience.
Storing the bullion yourself will not cost anything but remember that you may misplace it, have it stolen, etc. Therefore, many of my readers want to know where to buy gold in amounts of $50,000 or more where they do not take physical possession.
I take all of my readers time, attention and trust extremely seriously. I feel a poignant heightened sense of trust when some of my readers want to buy several millions dollars worth of gold and so answering their questions of how to buy gold bears down with a weighty responsibility.
THIRD-PARTY PHYSICAL POSSESSION
A way you can answer the question of how to buy gold is by having a third party take physical delivery. However, this can be a very tricky area and you may unwittingly subject your valuable asset to unnecessary risks if you are naive.
If a third party takes delivery then the gold is either encumbered or unencumbered. If the gold is encumbered then the gold is subject to counter-party risk and I highly recommend avoiding counter-party risk with your precious gold or silver. If the gold is unencumbered, meaning subject to physical delivery at any time and not subject to the financial ability of the storage entity, then it is subject only to performance risk.
There are many untrustworthy agents which purport to help you answer the question of how to buy gold but really sell you paper gold which is a form of fool's gold.
GOLDMONEY - A TRUSTED AGENT
Nevertheless, a trusted third party, like GoldMoney, is a viable option when you delve into answering the question of how to buy gold. GoldMoney is the only firm I have thoroughly researched.
Many reputable financial professionals recommend GoldMoney including including billionaire Eric Sprott, John Embry, Mike 'Mish' Shedlock, Doug Casey, Peter Schiff, Michael Maloney and myself. There are many reasons in the fine print for this consensus from respected experts and I have detailed them here and also in the following video:
BEWARE OF SHADY CHARACTERS
There are many unscrupulous rogues attempting answer your query about how to buy gold in a way that will unjustly enrich themselves at your expense. For example, in TheStreet.tv video in the upper left the host recommends using the GLD ETF.
I have thoroughly reviewed the prospectus and for those individuals desiring to own physical gold and because of the problem with the GLD and SLV ETFs therefore I HIGHLY RECOMMEND NOT BUYING THE GLD ETF.
There are other more complicated ways to answer the question of how to buy gold. Many of these options include some type of paper instrument such as a futures contract, warehouse receipt, etc. I recommend staying away from these unncessarily complex instruments even if through perceived reputable firms.
The reason is mainly because when you buy gold through these instruments then counter-party risk may be present along with restrictions on demanding delivery of bullion. For example: The NYMEX has significant restrictions which can significantly delay delivery and the TOCOM now allows 'paper gold' to settle futures contracts on physical gold contracts.
CONCLUSION
For answering the question of how to buy gold I recommend keeping it simple. Engage in buying gold coins or buying gold bars and taking physical delivery. For larger amounts consider trusted and secure third-party firms like GoldMoney. Avoid shady characters, like the GLD or SLV ETFs, NYMEX, TOCOM, etc. where the contracts are complex and difficult to understand and may result in your gold or paper gold may be impreganted with counter-party risk.
When you decide on how to buy gold I hope these suggestions are valuable. Holding a gold coin you own in the palm of your hand ignites a gold lust that has lain dormant in most humans for almost 80 years. I hope these suggestions assist you in safely, securely and confidently taking physical possession of the 'sweat of the sun'.
If you have any other questions about how to buy gold or silver then please contract me.
