Basics

So, enough of the political stuff for a while.  Maybe I should answer a few commonly asked questions, such as, “How do I go about buying gold or silver?”  Answer:  It’s ever so simple!  Just call us, and tell us what you want.  We buy it for you, lock in the price, and give you a ’trade number,’ which means the price is locked in.  You send us a check, it takes five working days to clear, and we then ship to you, usually by registered, insured mail.  It’s that simple.

“Why is there a $25 ’small order charge’ for orders under 500 oz of silver or 10 oz of gold?  Answer: Because the order is packed and shipped from a Brinks warehouse in Salt Lake City, and their charges are high enough, so that our supplier (A-Mark) figures they can’t break even on small orders, unless they add that charge.

“What is the advantage of Gold and Silver Eagles over other coins or bars?”  Answer:  While we think that you should get the most gold and silver for the least dollars, Gold and Silver Eagles are the highest.  One reason, is that Eagles have a dollar denomination on them, and you can play games with that.  Example:  I sold one of my Mercedes to a client for $7,000.  He paid me in Gold Eagles which were $1,000 each at the time, but they have $50 on them.  He then, could have gone to the local county clerk, and paid sales tax on $350, (7 Gold $50 Eagles), rather than on $7,000.  Get the point?  Other than that, I’ll take the Credit Suisse gold and hundred ounce silver bars.

“Why don’t other outfits put prices on their websites?”  Answer:  I think it is because they want you to call them, so they can get your phone number and endlessly try to sell you numismatics or some other thing, on which they may make a lot of money or commission.  Once they have your phone number, be prepared to get endless phone calls from hungry sales people!  We never call anyone.  You want something?  Call us.

“Why shouldn’t I buy from the companies which advertise on TV, rather than you?”  Answer: Who do you think pays for the $20 million a year advertising budget of one of the advertisers?  You would.  I love Glenn Beck, but most of his gold advertisers have an “F” rating from the Better Business Bureau.  Google one of the TV advertisers, and you will find a whole slew of outraged former customers.  We don’t spend a penny in advertising, because we won’t need to.  We’re just fine with word of mouth, plus the hundreds of thousands who read my columns.

“Why can’t I buy anything at the ’spot’ price?”  Answer:  The ’spot’ price of gold is at the mine.  The ’spot’ price of corn is at the farmer’s field.  The ’spot’ price of anything, is at its place of origin, in an un-manufactured, un-transported, un-distributed, state.  Gold must be milled, smelted, manufactured, transported, and distributed.  No one can buy anything at the ’spot’ price.

“Why are Gold and Silver Eagles more expensive than other items?”  Answer:  Some minters are more efficient than others.  Is the U.S. government efficient in anything?

“Aren’t ’bags’ of U.S. silver coins a bargain?”  Answer:  Yes, but only slightly, on a per ounce basis.  Each ’bag’ has 715 ounces of silver in it, but they weigh 56 pounds, and are difficult to heft, and store.  What’s the point?  You think you’ll barter with a U.S. silver dime or quarter?  I don’t think so.  How much silver is in a pre-1964 quarter?  You don’t know?  Neither does anyone else! (It’s .18084 of an ounce). Super markets, gas stations, and lumber yards have to pay their bills in dollars, not silver quarters.  You can’t wire or write checks in silver, so you can’t pay with silver.  You can’t pay with a CD, or share of stock either.  You have to cash in the CD, sell the stock, or silver and gold to get the dollars, or whatever currency is in existence, to buy what you want.  Gold and silver with good hallmarks, which is what we sell, can be turned into dollars very quickly.  Pre 1964 U.S. silver coins have no weight in silver on them, as opposed to a one ounce coin or bar.

“Why not buy numismatics?”  Answer:  Because when it comes down to it, it will mean how many ounces do you have, not how old, or in what condition it is.  Rare coins, unless they are professionally graded, are only worth their weight in gold or silver.  If they are graded, they are sold retail, and bought wholesale, which is a 40% difference.  Our coins can be sold at less than a 2% difference!

“A coin dealer told me that non-numismatics can be confiscated, like they were in 1933.  Is this true?”  Answer:  These guys are a bunch of used car salesmen, in my opinion.  Roosevelt did NOT confiscate gold in 1933.  He issued an Executive Order, telling everyone to turn in their gold, but it was never enforced.  Some turned theirs in, and probably most didn’t.  No one ever had their gold confiscated, and no one was ever fined.  If it was all confiscated, how come these guys still have it to sell???

“Where should I store my gold and silver?”  Answer:  Where no one would think of looking, to put it briefly.  Not in your bureau drawer, that’s for sure.  Get a gun safe for $1500 maybe, or even a safe deposit box in a bank.  Bury it in the basement, hide it in the attic, or whatever.  If you buy a gun safe, which I strongly advise, borrow someone else’s pickup, and pay cash for it. Then, no one will know where it’s going.

“Will prices keep going up?”  Answer:  Do you think the prices of milk, lumber, furniture, cars, or magazines will go down?  How can anything ’go down’ in dollar prices, other than real estate, which has not reached bottom yet, I don’t think.  Stott’s law states that “The more of anything there is, the less they will be worth.”  This applies to the trillions of dollars than are being placed into circulation every year.  The more dollars there are, the less they will buy, so the prices of things, in dollars, euros, yen, pesos, or what have you, will go up.  Same with precious metals, only probably more so.  Why?  Because every day, more and more people are converting their un-backed dollars into gold and silver, to protect themselves.  There is a finite amount of gold and silver, and the greater the demand, the less will be available, so their prices will go ever higher, which is simply a market action.  I think that eventually, there will be such a huge demand for gold and silver, that you’ll be able to sell it on street corners like drugs, so high will its prices be.

“Will the dollar collapse?”  No one knows when, but in history, no un-backed paper money has ever survived.  I think the euro will go first, but there is no shortage of trees to make paper money, or no shortage of corrupt politicians to spend wildly and irresponsibly.  The dollar might be around for a long time, but I don’t know.  All I do know, is that I don’t want dollars.  I want gold and silver.  The economic systems in the entire world, are based on monopoly like, paper, un-backed, paper scrip, which has no value at all, other than from ’legal tender’ laws.  Gold and silver have been real money throughout history, and are self backed.  No government needs to back them.  They are value in themselves, and in all currencies.