I can honestly….and humbly say I’ve made mistakes during the buying process. I made mistakes early from a lack of knowledge and planning. Many of you are new to precious metals and I commend you for making one of the wisest monetary decisions you will ever make. We are living history as we watch central banks worldwide devalue their respected currencies to a place of worthlessness. You can do little to change such foolish behavior, but you can take the proactive nature of owning silver and gold, here is how.
Trading currency for real money is not complicated. The process, if calculated, should take less than 10 minutes and with little or no anxiety. Making your first silver, or gold, purchase need not be complex, confusing or stressful. Today I will provide two little nuggets that will make even the most inexperienced metal buyer sound proficient the first time buying PM.
We must remember that each party – buyer and seller – has a goal. Your goal is to trade dollars (or whatever your currency is) for real money all while not being ripped off. The seller’s goal is to sell the most profitable metal that benefits their bottom line the most, very simple.
This next sentence or two is very important so please read them carefully. We are not coin collectors. We care nothing about a coin’s rarity, proof, history, shine, glow, etc. Our goal is to buy silver, or gold, cheaply as possible and as close to “spot price” as possible.
This is where most “newbies” fall off. The tendency is for new precious metal buyers to find themselves easily swayed especially when they say, to the PM seller, the worst words possible; “I am new to silver and gold” or “what metal do you recommend”. Nothing, and I mean nothing, has the potential to sabotage your gallant effort like the sentence above.
Let’s backup here a second. Isn’t it your cash we are talking about spending? Isn’t this your future, your family’s financial stake and your hard-earned effort that brings you to this point? Why would we scatter your tokens, aka dollars, across a stranger’s counter all while hoping they honor your best interest? No way, we cannot entrust something so important to a commissioned salesperson, sorry.
I realize many good, and reputable, PM brokers work within our industry today but is it worth chancing? By the way, feel free to email TPS for a short list of PM sellers I’m 100% confident will look after your best interest.
WHAT TO SAY:
Regardless if buying from a coin shop or over the phone, you must decide what you’re buying and how much BEFORE INITIATING CONTACT. I recommend new bullion coins, rounds or junk silver since they offer the lowest “premium” over current spot price. First, ask the person selling PM for the current spot price. Next, ask the sales representative which silver, or gold, they offer closest to “spot” and I’ll bet the answer will be one of the three aforementioned.
I want to encourage you to try this at your local coin shop, soon. Start small maybe with an ounce or two of silver, this will allow you to become comfortable with purchasing PMs while not spending a boatload of cash. Remember, inventories fluctuate each day and so does the precious metal market. You can save money buying in person especially with small orders (no shipping costs) but larger orders make online purchasing the most cost effective.
For the record, I buy PM both online and in person. I love the interaction and feel the necessity of supporting my local coin shops since they are more than willing to quickly trade metal back to cash if necessary.
SEND OVER YOUR PM QUESTIONS OR COMMENTS ANYTIME. WE WOULD LOVE TO HEAR WHAT YOU’RE BUYING AND HOW…. SO CONTACT ME RIGHT HERE.
QUESTION: I want to first say “thanks” for what you do at the TPS. I’ve been buying silver bullion for over a year and from a online bullion broker you recommended (Miles Franklin), each order arrived on time and as promised. My question relates to the equity we have in our home and buying more PM. Even with the housing correction we still have over $100,000 equity and owe slightly over $100k. Your chapter on real estate (Why Silver & Gold Will Go Higher) makes me believe the remaining equity in our home will decline further. If so, do you recommend capturing remaining equity, via a refinance, then use the proceeds to buy more PM? We don’t really want to sell our home but hate the idea of losing more wealth. Thanks in advance for your reply.
TPS Reply: Thank you for reading my site, and book. Your question is one each person holding wealth in real estate must ask since I’m convinced residential real estate will further decline. Your wisdom led you to buy silver and your prudence tells you to buy more. The question is should you borrow from your home’s equity (or sale) in order to add to your PM arsenal? No one can answer this question better than you but let me offer what I would do under such a scenario. I would only refi (in order to buy more PM) if my new fixed rate payment remained the same. Can you execute a “cash out” refi without raising your payment? Can you easily afford the new payment even if your household income declines (household incomes are declining and this trend is likely to continue).
I’m always hesitant to leverage something as volatile as silver but I completely agree that declining equity is exactly the same as wealth loss. Most folks fail to correlate the two and this is why 40% of the wealth in the US disappeared over the last few years. With that said, I recommend you… and all other readers, to do whatever is necessary to amass as much PM as possible, but wisely. It does no good to turn around and sell 20 ounces of silver bullion each month just to cover a mortgage payment.