Answers to common gold and silver questions
Why should I buy gold?
Gold has always been a safe haven for protecting one's wealth throughout history. Gold has always maintained its same value throughout history as well. Generally speaking, 1 ounce of gold will always be able to buy a nice business suit or a steer. Gold doesn't go up or down in value, fiat currencies (like the United States Dollar) change their value relative to gold. When you see gold going up in value what you are really seeing is the US Dollar going down in value because more dollars are in circulation. Gold has never and will never reach 0 because it is a real commodity. Gold takes physical work to be obtained. This can not be said about fiat currencies. When nations begin to monetize their national debt by printing money that IS NOT backed by anything the result will eventually be inflation and a possible collapse of the currency. This is why people buy gold - to protect their wealth and hedge against inflation.
Should I buy coins or bars?
It really doesn't matter from an investment standpoint. Coins are generally a bit more accepted as they are easier to handle and carry. If you are just getting started in gold and silver you may want to pick up some coins. If you have a lot more money to spend and are looking to get the most bang for your buck, and don't necessarily have a reason to use your metals anytime soon, bars may be the better choice for you. In general coins are a little bit easier to carry around and more readily accepted than gold bars, but this doesn't make gold bars any less valuable. Either form can always be melted down and minted into whatever form you want.
What is the difference between bullion and coins?
Bullion is the actual real worth of the gold or silver content in a coin, bar or any other form. Coins can be bullion coins, but they can also be collectors or numismatic coins. What this means is that the coin value is not always based solely on the actual metal content of the coin. Some coins with the same amount of gold can be priced entirely different. Bullion coins, for the most part, are the cheapest coins for the amount of gold or silver content you are getting. When you buy bullion you are not paying anything extra for collector value, pristine condition or anything else along these lines. When you buy bullion you are buying strictly for the actual metal value.
What is the difference between numismatic coins and bullion coins?
Numismatic coins are coins that are generally older and minted 100 or more years ago. For this reason many numismatic coins may hold a bit more collector value and may be priced a bit higher than straight bullion minted within the last few years. There are also many people who claim that certain United States coins minted pre-1933 (for example the $20 Saint Gauden or $20 Liberty) are non-confiscatable by the government and therefore better to own than newer coins. We do not generally hold this view as the government can pass whatever laws they want and things can change at any moment. If the government wants to get your gold, they will most likely find a way to get it. We recommend buying based on the actual gold or silver purity and not on collector or numismatic value.
Should I hold gold physically?
We think so. Until you hold your precious metals physically there is really nothing that guarantees that you are going to get your money back when you need it. Holding paper gold or ETFs is the equivalent of holding stocks and being a trader. Unless you are looking to make money by the ups and downs on the gold market we do not recommend these types of methods. When you buy and hold gold physically you are buying it not to make money and to be an investor, but you are buying it to protect your wealth and hedge against economic uncertainty. While the value of your gold may go up relative to the dollar when you hold physical gold, the main reason to hold physical gold is as an insurance policy. One of the main reasons to hold physical gold is for the sole purpose that it will never reach $0. Paper currencies, stocks and all these other investments have.
Why aren't your prices the spot price?
We run a for-profit business and naturally need to make a small profit on every sale. All gold companies take a commission and we are no different. We generally take a commission of 5-10% for each sale which we feel is a reasonable amount for both us and you. We also offer discounts on bulk purchases and occasionally will offer specials which much lower prices.
Can I store my gold with you?
Yes, but we would recommend your hold the gold yourself. You should be buying physical gold as something that is real and something that you can always come back to at any time when you need it. If we hold it for you that is one more step you have to take towards getting your gold when you may need it most. If, however, you do choose to have us hold your gold we charge $1/oz per month to hold your gold for you and you may get it shipped to you at anytime you choose.
Can I lock in a price and buy later?
No. The price of gold is always changing and it doesn't make sense for us to lock you in at a price only to have the price go up or down and have you decide not to buy. However, once you do decide to buy we will lock your order in at that current price and you will have a small time frame to get your payment over to us without having the price changed on you.
Will you buy back my coins?
Yes, but we will not buy them back at our current sell price. We generally will buy back coins close to the current spot price.
How long does it take to get my order?
Unlike most precious metal companies, we stock 100% of our metals. We will only sell you something that we have in stock and as a result you should receive it in less than a week. We will provide you with tracking info as soon as your shipment goes out (usually within 24 hours).
Should I sell stocks, bonds, CDs and other investments to buy gold?
That's a decision you will have to make based off your own research.
Can I add gold to my IRA or 401K?
Not with the gold you buy from us. We only sell physical gold and silver.
Do scratches, scuffs or blemishes affect the value of precious metals?
They can on certain types of coins like collectors and numismatics. We recommend buying gold and silver for the actual purity and content of the coin and not the appearance. Extra face value, looks and cosmetics on coins are not in the best interest for the serious gold purchaser who buys for maximum metal value.
Will you need my Social Security Number?
No, in fact, we don't need any ID from you and we hope to keep it this way. The idea of having to identify yourself for a purchase is quite strange in a free country.
Can the government take my gold?
While there are certain coins that many claim are currently less likely to be confiscated (pre-1933, numismatics, etc) the government can really pass whatever laws they choose and change the gold and silver game at any time. The government currently can not, but in the past they have confiscated gold. So we don't think you're ever 100% safe from the government with any coin.