xepherys

I'm thinking about investing in precious metals and would like some insight from anyone else who actively does or has done this or who has experience or knowledge of such investments.

Currently, to start out, I'm thinking of investing in 1oz. silver bullion minted by Banc Suisse or 1oz. palladium Pamp Suisse. I'd like to start with gold, but I'm starting this as a bare bones investment item. I have a 401(k) that is actively being invested in ($440/mont combined employee/employer), but I find I have a hard time with a simple savings account. I'd like to use metals as a forced investment option that CAN be converted back to cash if needed, but not as simply as walking up to an ATM. I also plan to diversify a little bit with other secure investments such as US Treasury Bonds. However, metals is a strong interest to me, and something I know little about.

Are there brick and mortar businesses where you can walk in and make a purchase? Without a minimum purchase requirement? There's one company, http://onlygold.com/, who is based out of Phoenix, but they seem to only deal online and in bulk (10 oz. or more). I'd like to pick up an ounce of palladium every month (market allowing) or ounce of gold every couple (or several ounces of silver here and there). I prefer bullion to coin. I prefer it minted/guaranteed in Swiss funds (still not 100% sure how this differs), though I may be interested at some point in US Gold Eagles. The Banc Suisse and Pamp Suisse bars interest me most both from an investment standpoint as well as an enjoyment standpoint.

Other questions would be... I know that 999.9 gold is usually left in it's mint case to protect it's value and quality (not gold value, I understand). What about silver and platinum? Is there any specific downside to handling them? I mean, the bulk would stay put, but it's hard to resist the urge to have a bar of gold or platinum in your hand. I know, it's silly... what can I say? I'm silly sometimes!

What would be some good measures for an entry-level investor looking to move into this market? Thanks!

martinguerre

there's a gold thread here...but i'll say this again. platinum has more industrial use than gold. if you're looking for protection against currency failure, platinum is more likely to hold value as an industrial necessity. gold, to my mind, is just another currency. it's traded enough that the market strongly effects pricing....not instrinsic value as a substance.

__________________
For God so loved creation, that God sent God's only Son that whosoever believed should not perish, but have everlasting life.

-John 3:16

xepherys

Yes, I like palladium specifically due to its usefulness (and previous value spikes). Gold, however, seems to be the "forever currency". It's been precious since the beginning of recorded history, and it seems as if it always will be. I mean, that's good backing. I looked at a couple of threads, but none seemed to address my specific questions/concerns. Thanks for the input, martinguerre.

eribrav

My favorite gold dealer is Hannes Tulving. His Internet website is at Tulving.com

I don't think he or any other web dealer is going to be much help to you. They're selling with minimum quantities that are much greater than what you are looking to purchase. You need to find someone local who will deal in the kind of quantity you are looking for.

My preference has been bullion coins. I own Eagles in silver and gold, Canadian Maple leafs, and just got my first Chinese panda. I think the most beautiful coins in my collection are the silver Eagles and gold pandas. There's lots of different ways you can enjoy your precious metals. I disagree with favoring platinum because of its industrial use. If there really were a currency collapse, the industrial demand would plunge, and you would be back to valueing it like other PM's.

xepherys

I'm not sure I agree... if the US economy collapses, how would that effect the industrial demand in SE Asia, where metals are used the most for manufacturing (electronics)?

eribrav

If the US economy collapses there will be no end demand for all those electronics. The US is still the consumption engine that drives the world's economy.

Rodney

Here are two fairly serious Phoenix-area dealers in precious metal bars and bullion coins that I got from gold.org:

American Precious Metals Inc.
4040 E. Camelback Road
#101
Phoenix
AZ 85018-2735
Tel: +1 602 840 5500
Fax: +1 602 957 1671
http://www.apmaz.com/

Certified Mint Inc
3550 N Central Ave
Suite #1407
Phoenix
AZ 85012
United States
Tel: 800-528-1380 (Toll-free)
Fax: +1 602 234 2499
www.cmi-gold-silver.com

Also, here is a list of certified Arizona dealers for the Gold and Silver Eagles produced by the U.S. Mint. Most coin shops which deal in bullion coins also deal in small bars. They may or may not do palladium. But check 'em out. These are almost certainly brick and mortar businesses.

American Bullion & Coin Company 2710 North Steves Boulevard Suite 16 Flagstaff, AZ 86004 (800) 8979817 or (520) 5270047

Bullion & Coin Exchange 340 West University, Suite 31 Mesa, AZ 85201 (480) 4610963

Certified Mint 3550 North Central Avenue Suite 705 Phoenix, AZ 85012 (800) 7552382 or (602) 2342300

Coin & Stamp Gallery 4216 West Dunlap Avenue Phoenix, AZ 85051 (800) 9495888 or (602) 2422885

Valley Coin & Stamp Co. 10632 North Scottsdale Road Scottsdale, AZ 85254 (480) 9943325

Swiss America Trading 14455 North Hayden Road Suite 226 Scottsdale, AZ 85260 (480) 4433050

Daranyi & Company 422 North 5th Ave. Tucson, AZ 85705 (520) 6234711

Arizona Stamp & Coin 4668 E. Speedway Blvd. Tucson, AZ 85712 (520)
7951594

I have no idea. I invested in bullion coins, which contain other metals and thus are fairly hard.

I would recommend handling the precious metal a bit for fun when you buy it -- and then put it in a safe deposit box or home lockbox that is kept well hidden. And leave it there. Precious metals left around the house, especially when their presence is known to others, can vanish.

You say you want an incentive to save? Okay: whenever you buy a new bar, handle it a bit; then put it in the box and leave it there. So you only get to handle the metal when you've saved up for a new piece. Frankly, people who spend a lot of time playing with precious metal tend to be a bit on the weird side. Spend some time in any coin/bullion dealer's shop, and you'll see what I mean. I don't know if they were weird to start with, or if fixating on the metal made them weird. But I've met some guys who are practically lisping about "me precious," if you know what I mean.

Well, the lockbox of course. Also, look into alternative forms of investment silver and see if you like them better. For example, many dealers sell bags of "bulk silver" coins -- U.S. silver coins from the '50s and early '60s with no numismatic value. If you're worried about "hurting" the silver, this is one way to go. These are tough coins which have circulated. And who knows, you might get a few Ben Franklin 50 cent pieces or Mercury dimes in the stash. Those are fun and, if you truly need to play with the silver, can be incorporated into jewelry.

Edit -- also, I would look at the larger dealers, even the web dealers; some may be all right with small purchases like yours. One California dealer I know, www.golddealer.com, doesn't seem to have a minimum. The reason I say this is that prices at smaller dealers for bullion and bullion coins might be higher than at the large national dealers. Gold products move down through wholesalers and distributors to low-level dealers, just like any other product. The more hands the gold passes through before it gets to him, the more premium over spot price that the dealer must charge. So your storefront dealer's price for a gold eagle may be, say, $10 or more higher than the price of some big dealers who buy directly from the U.S. Mint and the big precious metals companies.

arch13

I have to concure with Martin.
I will add however, that if you are thinking of this as an investment, think twice.
I know that precious metals have been in the news lately, but look at it this way: By the time your broker or the news is talking about it, it old news to those in the know on wall street.
In inner circles on wall street, gold was being purchased back in July, and now what's availible is what those people are dumping back into the market now that the mainstream is getting gold fever.

__________________
Seen on an employer evaluation:

"The wheel is turning but the hamsters dead"
____________________________
Is arch13 really a porn diety ? find out after the film at 11.
-Nanofever

xepherys

Of course... and I know that missing out on the $400/ounce gold prices is a bummer. But this isn't something that struck me due to news... it's just that only recently have I had the means by which to make such investments.