Storage and Insurance Options
Once you have made a purchase you will need to figure out how you would like to store your gold and silver. There are a few options that you will need to consider, all have their advantages and disadvantages.
Bank Safe Deposit Box
These are the most commonly chosen spots by our customers. Where you choose will depend on how many ounces you own, cost of storage and where you feel the most comfortable.
Bank Safe Deposit Box
The bank safe deposit box is a very popular option. It comes with a monthly service fee depending on the size of the box you need and is accessible only during bank hours (disadvantages). However many people feel that banks are the safest place to store your precious metals (advantage). If you are concerned about an economic collapse then a bank would not be a great place to store your metals as they could become impossible to get to. However if you are not concerned with a collapse at all, this may be your best option as it is very secure.
There are private depositories all around the country, operated by small to large companies. Brinks is the most popular and secure, but will be very costly per month. But for customers with many ounces (10,000 +) this is usually the best bet. Again you will only have access during business hours. Some cities have small safe deposit box companies that you can work with, that are secure and can be very reasonably priced. You will need to do your own search in your town to find out if this option is available to you.
This is the most popular choice among our customers as the cost is free and the access is not limited in any way. It is the least secure option as the metals will mostly likely not be guarded 24/7. However you can usually add your precious metals onto your home owner’s insurance policy to give yourself added protection. If you are considering a home safe, we recommend that you use a floor safe or a large heavy gun safe that bolts to the floor. The little safes that you can buy at warehouse wholesalers are not a safe option as any thief will be able to grab it and go.
Some of our customers choose to hide their metals around the house or buried in the yard. We have heard of customers burying silver in PVC pipes with caps on the ends two feet underground. We have also heard of customers removing floor boards or the bottoms of cupboards and hiding metals underneath. If it can’t be found it can’t be stolen. It is cheap and as long as you feel comfortable and can find them, it can be a good option. Try to think of the pitfalls of any location that you choose before hiding them there.
All of these options pose some risks, so it is going to come down to where you feel comfortable about keeping your precious metals investments.
Selling Precious Metals
There will come a time when you are ready to sell your gold and silver and there are a few options available to you. You can sell to a local dealer that runs a brick and mortar location, you can find an online dealer, you can try your luck with eBay or craigslist, or you can sell the products back to the company that you bought them from.
Selling Gold and Silver Online
Selling gold and silver online is an easy process that has a few steps to complete. First you will need to find an online dealer, and then ensure that the bid prices for your products are to your liking. Then you will need to ship them to the dealer insured because you will be responsible for them if they are lost. Once the dealer receives the products they will lock in the price with you (they may have done this on the phone call with you before you shipped) and send you a check in the mail. Pretty simple and usually yields the highest bid prices.
Selling Gold and Silver Locally
This is a very fast and easy way to get cash in hand for your gold and silver. All that you need to do is drive to the local coin dealer with your products, get a bid price and leave with a check. Before you do this make sure that you are comfortable with what your products are worth to ensure that you will not be lowballed. Brick and mortar locations typically have higher costs of operation and therefore tend to pay less for products than online companies.
Do not under any circumstances sell your gold and silver coins and bars to a “We Buy Gold” store. These companies pay anywhere between $.45 to $.70 on the dollar for gold and silver. Pawn shops work in the same manner so you will most likely get the best price from a local coin dealer.
Selling on eBay or Craigslist
Many customers will attempt to sell their gold and silver on eBay or Craigslist in order to maximize their sell price. Be careful when you do this to make sure you are comfortable with the buyer. Securing funds and your safety should be at the forefront of your mind. Sometimes you can get more for your items selling them this way, but there are downfalls.
Bid Prices Using Spot Gold or Silver
All gold and silver bullion coins and bars will be priced based on the spot price of the metal at the time of sale. The dealer will use the spot price to calculate a bid price at the very moment you are going to lock them in. For example, if the spot price of gold is $1,500 per ounce and you have a 1 oz. gold bar the bid price might be spot minus $1 ($1,499), whereas if you have a 1 oz. gold eagle the bid price might be spot plus $27 ($1,527). It will depend on the dealer and what products you have as to what you will get for you products, so do your research before you sell!
As always if you have any questions please give us a call or shoot us an email, we are always ready to help in any way that we can.