Trip to the gold store today

[gmerkt]

I visited two gold stores today. No shortage of customers. One store had eleven walk-in customers sitting around waiting to be served. There are three counter employees at this store, I've never observed a transaction that was very fast. Buyers like to look, sellers take more paperwork. They don't sell anything I can't live without, and I hate wasting any portion of what's left of my life waiting around. So I left and went to a second store I've patronized over the years. In that store, no waiting. But I got a bit lucky because in the ten minutes I was there, three customers came in behind me.

The owner of store no. 2 said they couldn't keep any gold in stock. They had a few odds and ends but regular bullion coins and bars he is selling on an order basis. The two gold stores I visit are always busy these days.

Crowded stores with eager bullion customers doesn't auger well for the US Dollar. It shows a lack of faith residing in at least part of the populace. I read stories online that say retail interest in buying bullion is low. I haven't seen this lately in my limited perspective. My experience is the opposite around here.

Don't get any ideas of trying to boost a gold store. One time when I was in store no. 2, I asked if they minded if I carried concealed while I was on their premises. They said it was okay to come in armed and concealed. They then said they were already armed, and showed me four different places where they had guns concealed.

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[Certaindeaf]

I visited two gold stores today. No shortage of customers. One store had eleven walk-in customers sitting around waiting to be served. There are three counter employees at this store, I've never observed a transaction that was very fast. Buyers like to look, sellers take more paperwork. They don't sell anything I can't live without, and I hate wasting any portion of what's left of my life waiting around. So I left and went to a second store I've patronized over the years. In that store, no waiting. But I got a bit lucky because in the ten minutes I was there, three customers came in behind me.

The owner of store no. 2 said they couldn't keep any gold in stock. They had a few odds and ends but regular bullion coins and bars he is selling on an order basis. The two gold stores I visit are always busy these days.

Crowded stores with eager bullion customers doesn't auger well for the US Dollar. It shows a lack of faith residing in at least part of the populace. I read stories online that say retail interest in buying bullion is low. I haven't seen this lately in my limited perspective. My experience is the opposite around here.

Don't get any ideas of trying to boost a gold store. One time when I was in store no. 2, I asked if they minded if I carried concealed while I was on their premises. They said it was okay to come in armed and concealed. They then said they were already armed, and showed me four different places where they had guns concealed.

How's their gimp?




Lool

 

[Cavedweller]

They then said they were already armed, and showed me four different places where they had guns concealed.

Sounds like a real smart thing to do.

 

[gmerkt]

Sounds like a real smart thing to do.

Both of these places also have locks on the front door, they buzz you in after they check you out through the glass. I guess if they see three guys out there in black hoodies and crowbars in hand, the door delay will buy them a bit more time.

 

[gmerkt]

I've never observed a transaction that was very fast. Buyers like to look, sellers take more paperwork.

What I see a lot of at store no. 1 are people who go in but don't know what they want. They might be first time buyers. They might've just awakened to the idea of owning precious metals. So they want to look at this and that, within the scope of what's available, anyway, these days. They probably ask about other stuff that they've heard about but don't see on offer. This is a major cause of customer congestion.

A seasoned buyer of PM typically already knows in advance exactly what they want.

Some people buy PM online. My long time pal in NM buys this way. Because gold stores in his area are few and far between. The few dealers of such things near him don't tend to have competitive prices. So he orders online. If the order is sizeable enough, the shipping cost is included.

My inclination is not to buy online. I want to see what I'm getting in advance. If it requires that I place an order locally that I have to go back and pick up later, that still gives me the chance to see it before I sign for it.

One thing I am reluctant to do is buy from a small seller on ebay or similar online site. A large, accredited dealer, maybe (and some do sell on ebay). A private, small seller, never. Too many fakes, possible grading issues, problems that an amateur seller many not be knowledgeable about. I have bought a few things of lesser value from reliable online sources but these are outlier purchases, not routine.

 

[arakboss]

Costco is selling gold bars. Not sure what current price is.

https://www.costco.com/1-oz-gold-bar-pamp-suisse-lady-fortuna-veriscan-new-in-assay.product.4000186760.html

 

[Bacchus]

Currently $2040.68 at Silver Gold Bull, by credit card, and $1962.40 by wire transfer or check.

Silver Gold Bull dealer price


Spot price at Kitko $1856.90 today

Kitko spot prices


I did some research on this a while back. Some of the online bullion dealers I had a favorable impression of (without having actually bought from them) included:

Silver Gold Bull

GoldDealer

JM Bullion

SD Bullion

BGASC

Gainesville Coins

My "favorable impression" doesn't mean I am endorsing them, you have to do your own due diligence. And I expect there are plenty of other dealers out there who are worth your business. I can't find my notes, this is from memory, and this was several years ago. Sometimes I research things in advance to be prepared for the day I have to act quickly.

YMMV. Caveat Emptor. My comments aren't worth anything! But maybe this is a good starting point.

 

[Alexx1401]

While back when I decided I wanted to try some metal I checked prices and went to JM. They had some local places they mentioned. One was real close to me but seemed never to be open.
So tried ordering from JM. Ever since they send me a lot of e-mails of course. Weekly they have something on "sale". To them sale means less per OZ over melt price. This seems to be the way any of these places make money. Since all of the ones I have looked at buy from you at melt price for stuff that is not "collectable" for some reason, they make a buck off charging over melt to send it to you. So every time I have some extra cash I wait till JM has something at the best over melt price. As long as you buy min of $200 they ship free. So far has been going great. Never a problem. The one thing to watch for is make sure you have a way to safely get the delivery. So for what its worth? Been real happy with them, JM.
Wife was at first not thrilled with me doing this. I told her the money left sitting in the bank was losing value so why not? I may end up losing on the metal too but, its never going to be worth nothing.

 

[Bacchus]

I may end up losing on the metal too but, its never going to be worth nothing.

That's how I see it, not as a wealth investment from appreciation (although that can happen too), but as a wealth preservation: it will never be worthless. If FJB and his cronies succeed in doing away with all money except digital money (CBDC) that the Fed controls (and link earnings to social requirements and obedience to the government) at least I would have gold.

 

[Certaindeaf]

.money left sitting in the bank was losing value so why not? I may end up losing on the metal too but, its never going to be worth nothing.

Short-term CD'S are around 6% right now.

 

[Alexx1401]

Short-term CD'S are around 6% right now.

Bank has a few times offered some of those. Inflation is a LOT more than that no matter what "stat" the cheerleaders try to put out daily. That is the only reason I have not bothered with them. Almost $6 a gallon for gas here now. I often wonder how long before we start seeing massive amounts of people filing for bankruptcy here. Has to be a hell of a lot of them living on credit if they were barely making it before. Yet still can't find people to take open jobs.

 

[gmerkt]

Those gold bars at Costco have been slightly overpriced at $2K. You can buy the same thing at a local coin dealer in this area for $1,900 plus a bit more. But people think, "It's Costco, therefore it MUST be a good deal." Not always, you should be a careful shopper at Costco.

Gold has been stalled in the $2K +/- area for a long time, so I've been waiting for a significant dip to add to my stack. I've been thinking for some time, $1,700 +/- is closer to a fair value, not low, not at a peak. So a few days ago, I was reading an analysis by some tech guy in commodities, he was saying that fair value was $1,700 in his opinion. So by accident my gut feeling (for a change) was in line with somebody else's idea. So am I gonna gamble and wait for $1,700 or will I be tempted by the current range in the $1,800's?

I have to say, now that I can get 5% or more for my CD's, my yen (pun intended) to stack more gold has waned. The income from those deposits will yield some cash that can then be spent on a bit more gold. BUT: I'm happy to have what I already own.

Some of the online bullion dealers I had a favorable impression of

If you're gonna buy online and stick with reputable dealers, you can add these to your list:

APMEX

Bullion Exchanges

Liberty Coin

The past couple of years, I've been buying a 10 oz. silver bar once in a while online from one or the other of these guys. The purchase just gets lost in the monthly credit card bill. But the last silver I bought was a 20 coin roll of American Silver Eagle one oz. coins. From a local dealer. Because the horrible premium on these coins of not long ago has gone away! The generic silver round was $24, the ASE was $27-something! Way down from not too long ago when people went nuts and the price of the ASE was in the upper Thirties! Insane.

The thing about US Mint bullion coins is this. They command a recognition premium. Which is worth something in a liquidation situation of an emergent nature. However, in normal times, you typically won't get that premium back in redemption. Someone wiser than myself said, over time, that premium just disappears. You're left with a piece of silver, that's it. It may take longer or less longer but it will go away.

 

[Bacchus]

APMEX is probably the big name in bullion stores, but I didn't include them in my list a few years ago because I felt they were significantly more expensive, as I recall.

Good news about silver eagles no longer being sold at a gigantic premium, I didn't know that.

Have you looked at "junk silver" at all?

 

[Bacchus]

A couple of useful videos about "junk silver":

Junk Silver Explained

Is Junk Silver Making a Comeback?

Junk silver (aka "constitutional silver") refers to the pre-1965 silver coins (dollars, half dollars, quarters, dimes) that were 90% silver by weight. Silver weight is referenced in troy ounces, not the much more common avoirdupois ounces.

These coins have silver content proportional to their face values, so a dollar of "junk silver" will have the same amount of silver regardless of whether you have ten dimes, four quarters, one silver dollar, or a half dollar and two quarters, etc. Very convenient!

The common factor is $1.40 face value of junk silver will have one troy ounce of silver. Inversely, $1.00 face value of junk silver will have ~ 0.714 troy ounces of silver.

For a long time junk silver had one of the lowest premiums to purchase of any silver. A year ago, six months ago (I don't know when, I wasn't tracking it) the premiums went way up, where you were paying maybe $15 or $20 for $10 worth of silver? Not sure, I didn't buy any. But now apparently the premiums have come down.

So, if you are interested in buying silver, this might be a much better time than a year ago; but I am certainly no expert. I never bought junk silver but I am still interested.

SD Bullion junk silver

Current Kitco silver spot price is just over $22 per troy ounce.

For me, the attraction of junk silver is that is easy to buy it in much smaller dollar amounts than gold, and the coins can be more easily used for barter if it comes to that. You wouldn't want to buy a loaf of bread from a neighbor with a 1/10 oz gold coin that cost you about $200. A silver dime would be worth, spot price, 0.10/1.40 = 0.0714 troy ounces, X $22/tr oz = $1.57. Somebody check my math. To buy you will pay more than spot, the seller will add a premium.

Silver takes much more room to store than gold for an equal amount of cost, so if you are buying thousands of dollars worth storage will be a consideration.

If anybody has more accurate information, please jump in and inform us. There are bound to be plenty of people on this forum more knowledgeable about this than me. I'm here to learn.

Edited to add: the above info is pertinent to 90% junk silver, but there is also such thing as 40% junk silver (half dollars 1965 to 1970?) and other lower percentages, so if you buy this online pay attention to the silver percentage.

 

[Alexx1401]

A couple of useful videos about "junk silver":

Junk Silver Explained

Is Junk Silver Making a Comeback?

Junk silver (aka "constitutional silver") refers to the pre-1965 silver coins (dollars, half dollars, quarters, dimes) that were 90% silver by weight. Silver weight is referenced in troy ounces, not the much more common avoirdupois ounces.

These coins have silver content proportional to their face values, so a dollar of "junk silver" will have the same amount of silver regardless of whether you have ten dimes, four quarters, one silver dollar, or a half dollar and two quarters, etc. Very convenient!

The common factor is $1.40 face value of junk silver will have one troy ounce of silver. Inversely, $1.00 face value of junk silver will have ~ 0.714 troy ounces of silver.

For a long time junk silver had one of the lowest premiums to purchase of any silver. A year ago, six months ago (I don't know when, I wasn't tracking it) the premiums went way up, where you were paying maybe $15 or $20 for $10 worth of silver? Not sure, I didn't buy any. But now apparently the premiums have come down.

So, if you are interested in buying silver, this might be a much better time than a year ago; but I am certainly no expert. I never bought junk silver but I am still interested.

SD Bullion junk silver

Current Kitco silver spot price is just over $22 per troy ounce.

For me, the attraction of junk silver is that is easy to buy it in much smaller dollar amounts than gold, and the coins can be more easily used for barter if it comes to that. You wouldn't want to buy a loaf of bread from a neighbor with a 1/10 oz gold coin that cost you about $200. A silver dime would be worth, spot price, 0.10/1.40 = 0.0714 troy ounces, X $22/tr oz = $1.57. Somebody check my math. To buy you will pay more than spot, the seller will add a premium.

Silver takes much more room to store than gold for an equal amount of cost, so if you are buying thousands of dollars worth storage will be a consideration.

If anybody has more accurate information, please jump in and inform us. There are bound to be plenty of people on this forum more knowledgeable about this than me. I'm here to learn.

When I first decided to start buying some metal what I kept hearing from those buying coins is they were afraid the gov would once again take the stuff. Like they did when they decided we could no longer own gold. To me this did not make much sense as when that law was passed they went after people owning gold coins and gold bullion. So if they went after silver seems they would just do the same again to me? In any case I started with silver for the same reason. Figured 1oz chunks would be FAR easier to deal with if I need to use some. Its gotten to the point I will have to start doing something to store it if I keep buying. Maybe tell the kids "if we die suddenly make sure you dig up this tree here"
The place I buy from often has something for $2.50 an ounce over melt with free ship if you buy $200. So that is what I keep buying. Looked many times at the gold in 1gram bars but the premium over melt always keeps me from doing it. Am thinking about just waiting a while between buys now and buy some 1oz gold. Place often has those for $50 over melt. They of course are FAR easier to store/ hide.

 

[Bacchus]

make sure you dig up this tree here

I'd be afraid to do that, I'd be digging it up every year to see if it was still there.

Or, just give them the Lon-Lat coordinates. Reward the one with the best navigational skills.

You ever think about planting rebar rods into the ground in case anyone comes around with a metal detector? Should keep them busy. Drive the rods under a tree stump to see if they will dig your tree stump out for you.

 

[.45's and .38's]

I thought I was getting a good deal when I bought some at high 1600 and under 1750.

I passed on selling some when it went up to 2,074 OZ

Gonna play the waiting game

 

[Bacchus]

I hope you're talking gold and not silver.

But gold is at 1844 today, so you've got a profit.

 

[.45's and .38's]

Yes gold buffalo and Rand refinery bars

 

[Bacchus]

I visited one of the online bullion stores and did a rough estimate on $10 face value of junk silver. I calculate they want 40% over spot, with shipping costs. That still seems like a lot to me, but maybe 40% is "much lower" than the premiums of a year ago. I can't find historical junk silver prices online, just historical spot silver prices. On the other hand, for me this would be a purchase for insurance (not guaranteed to work) in the case of a societal breakdown, not a traditional investment. I'll think about it.