Always Take Physical Delivery of Purchased Precious Metals!
For those of you who know me, especially if you know me well, my most oft quoted numismatic statement is, "Never, ever buy coins off of television!" My second most oft quoted numismatic statement is "When purchasing bullion, always take physical delivery!" Sorry folks but holding precious metals, that includes coins, on paper is just plain foolish. If you want any precious metals to be part of your IRA, make that the IRA of a safe deposit box at the bank or your own immobile vault! Never hold it on paper!
Why? Check out this story: www.coinweek.com/bullion-report/merit-gold-silver-longer-accepting-bullion-orders/ . I am certain this is just one of many such stories coming. And it is not the first time this has happened. To my knowledge, precious metal pushers have been scamming people out of their hard earned money forever, especially since the early 1980s, again in the early 1990s and apparently now it is going to start up again. Every time there is a run up of values in precious metals it has been followed by a crash where prices settle back where they were or even lower than they were before parts of the run up. It has not been so obvious this time around and it may never again fall much below where it is now but, it is much lower than the record prices were just a short time ago. Plenty of people have lost lots of money and now some are beginning to lose it all that was on paper. Some have made money as well but they usually know what they are doing and are often those who sell it on paper and then disappear!
I am just trying to share fair warning. Do not let history repeat itself with you being the victim this time!
(This is the opinion of the author and not necessarily that of the ANA, its officers, its governors or its employees)
Comments
Mike
Level 7
I never buy coins on t.v. unless there graded and my books are next to me. You see were I live they never heard of collecting coins. No shows, one store nasty overpriced man who sells more cleaning chemicals than coins. And I'm disabled. I do not buy paper stocks so I am limited. But I have put a wonderful collection together over twenty plus years. You see you find a way. I did and I love it. I have developed a relationship over the years with certain sellers. Some major companies with excellent reputations and many other ways. Believe me it is possible. Besides alot of counterfeits are found at shows. Thank you for your information.
user_7180
Level 5
Very true argument. It is unfortunately close to the same argument for owning stocks. It is your money in someone else's hands and all you are holding is a paper statement. The market drops and poof your money is gone.
Mike Ellis
Level 4
See my next blog for even more "fun." Not really fun at all. I was being fececious. Mike
user_9998
Level 5
That's like buying a hot dog at a fair and asking someone to hold onto it for the day! Pointless (and wasted money)!
CERGRADER
Level 5
Great advice!!!! Holding on paper is unwise. Buying coins from television is not a good idea. Thank you, Mike. You backed my position with an argument I had with someone.