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Minyan Mailbag: Buying Bullion

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The gold coin auction ends Saturday!

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Be sure to participate in the Minyanville/Ruby Peck Foundation gold coin auction to invest in a piece of history and a child's future.

Hi Laurie,

I was told to buy Comex approved silver bars but
this article seems to say the opposite. It seems like these coin salesman promote coins and high commissions. What is your take on the way to buy bullion?

Thanks,

Minyan Ted

Hi Ted,

I guess the writer is very concerned about confiscation, judging by his desire to head to Switzerland to "hide" his silver coins. I am not. Professor Reamer had a good storage place over there if I remember correctly.

One should take silver bars at spot plus a few percent versus paying outrageous premiums for coins, anytime. He makes a valid point about the size of the bars one would hold in their possession. Let me describe how I might (hypothetically) have physical silver that was safely stored, but not in a bank vault (NOT ADVICE). I would have all different size bars from 1kilo (32 ounces) to 25 kilo bars.

In Sydney, one can get 100 oz bars, 200 oz bars, 5 kilo bars (160 oz) , 500 oz bars, 1000 oz bars. One should go for the "mixed bag" approach and spread the size around. Sure, a 25kg bar is a heavy bugger to carry around, but they make great doorstops! Just make sure you have a reputable stamp on it like Johnson Matthey, Matthey Garrett, Australian Bullion Co, Perth Mint, Engelhardt, etc. whereby they are as good as cash to a bullion dealer. I don't know how it works in the USA so I can only go off what I know down here.

The writer's contention that you will have to deal with coin dealers to buy/sell silver is, for me here in Australia, a preposterously false claim. In Sydney there are at least 3 bullion dealers within 10 minute's stroll of my apartment, where one can walk in and pay cash for, or get cash for, gold and silver bars at close to spot. Any transaction that is less than AUD $10,000 cash is non reportable to Austrac. Therefore, one can hand over the cash and just "walk out" with the metal, no names, no receipt, gone. Untraceable. Untaxable. Governments hate that!

The Government will have no say in who or when I may sell any silver or at what price, contrary to the writer's claims. Confiscation will only work against you if one is silly enough to declare it -- in 1933 many people held their bullion, contrary to the Law. I would never suggest breaking the law but they're never gonna get an ounce off me! (Well, under threat of death, maybe, I would declare that single 1 kilo bar that I own!) When that stuff happens a very liquid "black market" is created, as per USA after 1933.

FYI - www.ausbullion.com ABC are not coin dealers and I know them very well.

Coins are nice to look at but, IMO, definitely not worth the premium they attract, and no, you won't get the premium back when you sell -- it's a very wide bid-offer spread.

Just my opinion as usual Ted (and things may be very different in the U.S.) but I am yet to hear of ANY bullion dealer (bars like ABC above) in Manhattan, let alone New York State.

Best regards,

Laurie

Positions in gold and silver

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