How To Buy Gold
Let's make this short. You don't need a lecture on the miserable state of the irredeemable U.S. dollar and the fact it doesn't come anywhere close to the dollar that was established by the Continental Congress on July 6th, 1785. That dollar was a coin containing 371.25 grains of silver. The present paper "dollar" is only an IOU. (Actually, an "IOU-nothing!") How that sorry transition occurred (and why we let it!) is a subject for another day.
So - how do you swap your flimsy paper money for gold? The short answer - - go to a coin shop that deals in bullion gold and silver coins and buy some! Everybody ought to have a Krugerrand in his/her sock drawer, and maybe some U.S. Silver Eagles under the sweaters or underwear. If that doesn't sound secure we have some tips on hiding valuables at the end of this discussion.
If you don't have a reliable coin dealer in your town, or you find his prices are higher than those offered elsewhere, connect with one of the several reputable dealers on the Internet. One of these is DON STOTT in Colorado. Don has been in precious metals for some thirty years and he has an unblemished reputation. It couldn't be simpler to deal with him. You call his toll-free number, tell him what you want, and he'll lock in the price and give you a confirmation number. You mail him a check, and - after the check clears - your order will be on its way fully insured and registered. One caveat; Don no longer accepts orders under 100 ounces of silver or 10 ounces of gold. Check him out at www.coloradogold.com .
Another reliable source for gold and silver coins is www.apmex.com. We are acquainted with several people who have been doing business with this firm for years. They work in the customary way with the customer placing an order via the web site. APMEX confirms immediately. The customer sends a check and and as soon as it arrives and clears the order is shipped, insured, via the postal service.
Our advice is to study the market to get a handle on price fluctuations. Try always to buy on the dips. Prices are constantly changing in the spot market and these are reflected at major dealers' web sites.
Where to keep your new acquisition? Locked up somewhere, perhaps with your other valuables in a well-concealed lockbox or stout safe. For plenty of other ideas check these web sites:
http://www.homesecurityguru.com/safes If these aren't enough just Google some more.
How to sell? Simple. Just contact your dealer. He's a dealer, remember...he sells and buys! He sells retail and buys wholesale. He's entitled to make a little something on each transaction.
Unless you are knowledgeable about rare coins don't buy rarities. Stick with the popular bullion coins that contain 1 troy ounce of gold or silver. And don't think of them as an investment. They are a store of value and unit of measure, two of the three attributes honest money must have, the other being medium of exchange. "Unit of measure" means 480 grains of pure gold to the troy ounce. No more, no less. "Store of value" means that an ounce of gold will almost always buy a good suit and nice accessories. It bought a nice outfit in Philadelphia in the late 18th century and will still trade for a very nice suit, plus shirt, tie, shoes and underwear.
However, gold and silver are not media of exchange. They are the good money that the bad money, the present irredeemable paper money, drove into hiding. From the looks of things today we may soon be hearing talk of underpinning the dollar with gold. It would be nice to see the dollar gain some respectability again!
December 19, 2007
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