Hi Len, I read in your blog that you recommend APMEX for buying precious metals. I’ve saved money to buy some bullion and I’m ready to invest! I’m just having trouble researching how to sell my gold and silver when the time comes. Can you shed some light because Google isn’t helping. Thanks for the great writing. — Julie S.
Before I get to your question, Julie, I want to make sure that you’re not buying bullion as an investment. Instead, you should be buying precious metals as wealth insurance for protecting the wealth you already have. Hopefully, you’ll never have to cash-out your insurance prematurely. Ideally, you’d want to pass it on to your heirs. But if you do, you can usually sell gold and silver at the very same places where you buy it, whether it’s a larger precious metals dealer like APMEX or Kitco, or a local coin shop. By the way, you should check out my detailed post on how to buy and sell gold and silver. Thanks for your question.
Len, Great site and excellent articles. I’ve recently been doing much research in getting my household finances in order and stumbled upon your site. That led me to your more-detailed articles on preparing for a potential economic collapse. Regarding silver, would it be wise to buy government-issued coins like American Silver Eagles? Or is it better to buy generic silver rounds that aren’t government issued? It seems that you’re able to purchase the non-government issued rounds for a lower price than the government issued coins due to popularity and higher quality, but both have the same silver value. Do you think this will make a difference after the reset? — Steven H. Billing II
Steven, that’s a great question! Of course, ultimately, it’s all up to you. However, here is a very quick primer. When it comes to buying gold and silver, there are two basic choices: bullion (coins and bars) and numismatic (collectable) coins. I think bullion makes the most sense for folks looking at gold and silver strictly as wealth insurance, if only because collectable coins come with higher premiums.
When it comes to silver bullion, I only buy one-ounce American Silver Eagles, mainly because they’re recognizable around the world and, therefore, should always be easy to trade for goods and services or exchange for currency. That’s not to say Silver Maple Leafs and Chinese Pandas aren’t equally good choices; they are. I’m just partial to Silver Eagles because I live in the US. As you point out, the drawback of government-issued coins is that they typically have slightly higher premiums than generic silver rounds.
Now, do I think the silver rounds will be seen as less valuable than government-issued coins after the reset? I don’t know, and I’m not willing to find out — which is why, when it comes to bullion coins, I only buy Silver Eagles. But looking into my crystal ball, my guess is that the generic rounds may be slightly less desirable post-reset, but in the end, they will still spend the same as their government-issued cousins because, after all is said and done, an ounce of genuine silver is an ounce of genuine silver — regardless of who minted the coin.
If you have a burning question for yours truly, send it to: Len@LenPenzo.com — and please be sure to put “Mailbag” in the subject line. Thanks!
Photo Credit: gajman
I would add one thing to the response to Steven, the quality of the gold and silver alloy is much poorer in collectible coins. My father produces blanks for both the US mint and several collectible mints and I worked in the factory for several summers through college. The collectible coins come in the protective case because you would easily rub the stamp off (both gold and silver are very soft). If you are buying for metal content this should not matter unless of course the stamp gets rub offed and no one believes you about the content.
The Canadian Maple leaf is actually a recognized $5.00 face value legal tender coin. The U.S. one only $1.00. I was actually surprised when I found this out. Maybe someone reading this can tell me if that really makes one a better purchase then the other?
The biggest problem with metals is storage. Safety deposit boxes are often hard to find and expensive. Plus when you need to get to your coins in a meltdown situation… will it be accessible? Could you be subject to disclosing what’s in there one day. The secondary gold sellers offer secure storage and their own guarantee of accessibility, but look for hidden fees. Some have a yearly account fee ($100.00) on top of a 1 or 2% storage fee. Even fees to do a yearly audit on your metal. It winds up being like a mutual fund stealing 2 or 3% of your value every year.
It’s really not that hard to fathom a Cyprus situation coming in the next 1-5 years here. (A Bail in instead of a bail out). I think all the doomsday nut’s may finally have their day soon to a degree at least. It is a good idea to be a little ahead of the game if you can, but don’t go overboard.
Paul N., Sometimes you can get a free safety deposit box at a bank where you deal. If your bank doesn’t offer one, shop around for a free box at other banks. Here Wells Fargo gives a free safety deposit box. Their hours are short, they’re closed Saturday, Sunday and Holidays, so we use another bank for most things. But if you have money you aren’t going to touch for a while, like a car fund, this is a great thing to put in a bank where you get a free box in exchange. Commerce Bank will give you a free safety deposit bank for a year, then they want to charge. A husband / wife could have one spouse get a free box for a year, and then have the other spouse get a free box for the next year (they will give you the same box) so you get two free years of a safety deposit bank this way.
For me, “Junk” silver is best – the same look as U.S .coins struck today out of base metal and thus widely recognized. In a crisis, I believe they will remain valued above their face value, but otherwise will be accepted as money, directly in local commerce.
MOST IMPORTANT: Do NOT store these coins anywhere but directly in your own possession. Everybody’s situation is different and we are each left to our own devices how to do that.
Yes … agree, Dave. I should have mentioned junk silver; it is an excellent choice.
I was too focused on Steven’s indecision between the currently-offered government bullion coins and private rounds. 😀
I agree, store metals only directly in your own possession. That is the only way a person will know they’re safe. Personally, I purchased a very nice fireproof safe. It is bolted to my floor and I have a lot of confidence in it. Additionally, a person could try other things, such as “can of soup” safes, or “book safes”. I’ve even heard of people making a capsule out of PVC pipe and burying it in their yard.
But, ultimately, I would not trust my precious metals in any bank safety deposit boxes, and definitely not in the “secure storage” offered by some metals dealers.
Jason,
Contemporary metal detectors can penetrate quite far into the earth and detect non-ferrous metal inside plastic containers. Better to use steel pipe, which shields coins inside from metal detectors. Ferrous metal junk is found everywhere.
Grandfather,
I hadn’t considered that. You’re absolutely right. Personally, I think one of the smartest precautions a person can take in storing their precious metals is as simple as not storing everything in one place.
Be careful with safe deposit boxes. Review the terms and conditions in detail. The banks are generally NOT responsible for the contents. Unlikely that they will be stolen, but fire, contents lost, access issues….
Situation 9/20/24: How to sell your gold?
Don’t.
Correct!