Buying Gold Or Silver For The 1st Time?

With the increasing interest in diversifying out of dollars by buying PMs (Precious Metals), more new people are wanting to buy PMs. Unfortunately, all many of them have to go on are the ads on TV and in the magazines. For the most part, these are exactly the places where the new to PMs people should NOT be shopping. To help point them in the right direction, here is a short list of where to buy or where not to buy PMs. This is, of course, my own opinion and reasonable people may or may not agree. If anyone has different ideas, by all means post them here.

My list of how and where to buy or not buy PMs would be:

1) Never buy anything PM related from a TV ad, no matter how many
"operators are standing by" to take your call. TV ads are VERY
expensive and if you buy from these folks, you WILL be paying
for those ads and getting fewer ounces for your money because
of it.

2) Never buy PMs from a magazine ad. They are out of date by the
time you see them. PM prices change too quickly for them to
keep up. Also, ads are expensive and their customers will be
paying for them.

3) Never buy PMs or "limited editions" of gold or silver plated
items from a specialty mint. Most of these look nice but are
very low in real value. Anyone trying to sell these items will
find this out but it is better to know it BEFORE buying than
afterwards.

4) Never buy PMs on credit. If you have the money and can afford
to invest in something as volatile as PMs, fine. If not, then
save until you do.

5) Never buy PMs from any company that wants to send you an
"investor kit". These slick brochures cost real money to
produce, warehouse, and distribute. That money comes right
from YOUR pocket. Better to spend it on getting more ounces
and less paper.

6) Always check out any potential PM vendor by doing an on-line
search to see if there are any complaints about the company.
The better on-line PM vendors will almost always be complaint
free or very close to it.

7. Never buy "plated", "simulated", or "copies" of real coins unless
it is a cheap copy that you want as a keepsake. Otherwise, these
are cheap and practically worthless. A copy of a US double eagle
gold coin, for example, costs about $20 these days and has LESS
than $1 worth of gold plating on it.

8. Never buy from a vendor whose phone reps try to get you to buy
something other than what you want. Good service means satisfying
the customers' needs, not steering them into something that they
don't really want. It's YOUR money at stake here, so get what YOU
want and not just what someone else wants to sell to you.

9. Visit your local coin and pawn shops and create relationships
with any of them that seem good to you. Avoid any that use
high pressure sales tactics. A good local shop can be a real
asset to any PM or coin collector. Repeat customers are
valuable to any business and deserve good service. Patronize
any that give good service and have the products you want at
the price you need.

10. Visit any coin shows in your area. Lots of good deals can be
had there but you need to know what you are buying. Read all
the on-line and book info you can and learn before you shop.
Most vendors will be decent people but there are always a few
who are not. Knowing what fair prices are for the coins, bars,
or rounds that you want will be very helpful in getting a good
deal.

11. Good deals may also be found locally via Craig's List but be
cautious when dealing with strangers when you are carrying a
substantial sum of cash. Always meet in a public place. One
with video cameras and lots of people is better than one without
them. Check the items carefully to make sure they are authentic.
Most PM items have specific weights and physical dimensions. An
honest seller will not object to a potential buyer weighing,
measuring, or carefully examining the items for sale before
the purchase. Do your part by being careful with the coins
and wear some thin cotton gloves to protect them.

12. Never buy any PMs from a company that uses a nationally known
person as a shill. You are buying PMs here, not saying that you
approve of this or that person you've seen on TV or heard on the
radio. Besides... these folks get paid for their recommendations
and anyone who buys from these companies pays for this on top of
whatever they spend on the PMS they buy. In some cases, it is
quite a lot too.


I find that APMEX is a great source for the higher grade US 90% silver
coins, Provident is good for bars, rounds, and ASEs, and SilverTowne is
good for silver bars and rounds. I am sure that there are other vendors
out there that are also good. I haven't bought any gold yet so can't
comment on that.

Well, there you have the view from here. If anyone has a different
view or experience, please post.