Buying Gold and Silver at a Discount

[coinbug]

Want to buy gold and silver at a nice discount? Say 9% off?

Canada's Central Fund - which holds gold and silver in bank vaults in Canada - is trading at a discount of around 9% to net asset value (CEF on NYSE, CEf.A and CEF.U TSE).

I've owned it for years; back in the day they'd email me its net asset value on Fridays after they'd calculated it. Now it's updated every day online. No third party risk - the bullion is segregated and unencumbered - no storage fees, easy to trade, and a discount (the discount shrinks when the PM market heats up and rises when its out of favor).

For pure plays on gold or silver there's GoldTrust and Silver Bullion Trust, currently at slightly lower discounts.

 

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[sgt tee]

I wanted to buy some gold but the price keeps going up the last week or so. I hate to jump in and then it will go back down to a 1200 level. I don't understand this game yet as I don't know the signs why gold increases?? I would like to read a good link to wise me up. Even if there is a good price on Gold outside of the USA, I would never buy. This is just me and if I have to suffer from this reasoning then I loose. But I believe, keep my money in the USA as much as possible. Again this is just my opinion, I don't want to start bad mouthing anyone or start something. I am here just asking why is gold gold is increasing like it is right now. A friendly PM will do if you can help me. I have been buying some silver bullion from the big names so I don't get burnt. Nothing big , I am a working man and a buck did not come easy for me, but know that I am retired I am comfortable and I thank God for his help. I just would like some better health!! All the money is worthless if you don't have good health. Have a great weekend guys and I am sorry if I stepped into this post and come off subject......Pete ( sgt. tee)

 

[jim4silver]

Want to buy gold and silver at a nice discount? Say 9% off?

Canada's Central Fund - which holds gold and silver in bank vaults in Canada - is trading at a discount of around 9% to net asset value (CEF on NYSE, CEf.A and CEF.U TSE).

I've owned it for years; back in the day they'd email me its net asset value on Fridays after they'd calculated it. Now it's updated every day online. No third party risk - the bullion is segregated and unencumbered - no storage fees, easy to trade, and a discount (the discount shrinks when the PM market heats up and rises when its out of favor).

For pure plays on gold or silver there's GoldTrust and Silver Bullion Trust, currently at slightly lower discounts.

I don't know anything specific about these funds/trusts, but for me the reason to buy and hold PM's is to have assets that are NOT paper and are held outside the financial system (in case of a systemic crash and such). If a person is afraid to hold the PMs at home, a safe deposit box would be better than holding them in some vault in some foreign country.

If a person wants to "play" in anything but physical ownership for PM's, there are better plays- such as 2x and 3x leveraged ETFs/ETNs that will go up or down at a faster rate than the metals themselves. I would not recommend these as a substitute for holding physical metals, but instead as a supplement to or possibly as a hedge.

I am considering some inverse ETF/ETN silver plays (they go up in value when silver goes down) once silver gets back near $20 or so to protect myself against any downside in the metals which would make the value of my physical go down. But as a hedge, I am talking maybe buying up to 5% of the total value of my physical stash in the inverse ETFs to hedge. The hope would be that such hedges would never gain in value which would only happen if the PM's are going up, which is what you want. Sort of like buying car insurance and hoping you never need to use it.

If someone tells me I own physical metal in some vault in a foreign country that does not make me feel as secure as knowing they are in my possession, but that is just me. I guess if there was some type of market meltdown a person could get on a plane and fly to the country that holds their metals, and kindly ask for them to be handed over (LOL).

Just my opinion.

Jim

 

[billjustbill]

Want to buy gold and silver at a nice discount? Say 9% off?

Canada's Central Fund - which holds gold and silver in bank vaults in Canada - is trading at a discount of around 9% to net asset value (CEF on NYSE, CEf.A and CEF.U TSE).

I've owned it for years; back in the day they'd email me its net asset value on Fridays after they'd calculated it. Now it's updated every day online. No third party risk - the bullion is segregated and unencumbered - no storage fees, easy to trade, and a discount (the discount shrinks when the PM market heats up and rises when its out of favor).

For pure plays on gold or silver there's GoldTrust and Silver Bullion Trust, currently at slightly lower discounts.

I try to keep my life simple. My two ways of buying PM's at a discount come from doing two things that have low risk and "Low Overhead". On a given two day weekend, my wife and I spend about what it takes to go to the movies to do it.

1. Go over to the "Garage Sales" Forum to see and learn how to buy all the precious metals before going to your local/county garage sales. It's a real adrenalin rush, too. Other than finding and buying gold and silver at "Discounts" up to 95%", you can't get much cheaper unless you find them laying on/in the ground.... Unless your profits are way up there at times. I remember sending in some gold jewelry and a lot of Sterling jewelry and tableware to a refiner. I spent $250 in buying it and I got back a check for $2,003.00!!! I guess that makes a discount called "FREE"?

2. Even if you don't find gold and silver every weekend or every several months, you can find copper wire, copper tableware, and even brass. I try to buy, and do buy, those items at least at 50% of what they'll bring at the local scrap yards. By doing that, then you can take your money and your profits and go to any of the PM dealers you'll read about on this and other Treasure Net Forums. Buying from a firm with a good history, or even a neighbor, you will feel confident that you are getting what you pay for. Spending $100 to buy brass and copper, then selling it for at least $200 means you are paying half price for your PM's. I'll take a 50% discount on PM's any day!

For the last 4 years, this works for me here in Central Texas.

Bill

 

[coinbug]

If a person wants to "play" in anything but physical ownership for PM's, there are better plays- such as 2x and 3x leveraged ETFs/ETNs that will go up or down at a faster rate than the metals themselves. I would not recommend these as a substitute for holding physical metals, but instead as a supplement to or possibly as a hedge.

I am considering some inverse ETF/ETN silver plays (they go up in value when silver goes down) once silver gets back near $20 or so to protect myself against any downside in the metals which would make the value of my physical go down. But as a hedge, I am talking maybe buying up to 5% of the total value of my physical stash in the inverse ETFs to hedge. The hope would be that such hedges would never gain in value which would only happen if the PM's are going up, which is what you want. Sort of like buying car insurance and hoping you never need to use it.
Jim

I'm not sure that leveraged inverse funds are the best way to hedge. They're designed for short-term trading. Buying puts would probably give you better protection at a lower cost.

Having pms in a foreign bank vault may be a safer bet for Americans than having it in a domestic bank vault, but the reason I like Central Fund is that there's no third-party risk: the gold has been delivered, it's segregated, and unencumbered. I think a financial meltdown may be coming, fueled by derivative losses, and pm funds that don't hold the actual metal may prove to be worthless - as will many other financial entities, of course - but Central Fund is pretty much bullet-proof barring a complete infrastructure meltdown, in which case you'd be better off holding boxes of ammo in your basement.

 

[pepperj]

I try to keep my life simple. My two ways of buying PM's at a discount come from doing two things that have low risk and "Low Overhead". On a given two day weekend, my wife and I spend about what it takes to go to the movies to do it.

1. Go over to the "Garage Sales" Forum to see and learn how to buy all the precious metals before going to your local/county garage sales. It's a real adrenalin rush, too. Other than finding and buying gold and silver at "Discounts" up to 95%", you can't get much cheaper unless you find them laying on/in the ground.... Unless your profits are way up there at times. I remember sending in some gold jewelry and a lot of Sterling jewelry and tableware to a refiner. I spent $250 in buying it and I got back a check for $2,003.00!!! I guess that makes a discount called "FREE"?

2. Even if you don't find gold and silver every weekend or every several months, you can find copper wire, copper tableware, and even brass. I try to buy, and do buy, those items at least at 50% of what they'll bring at the local scrap yards. By doing that, then you can take your money and your profits and go to any of the PM dealers you'll read about on this and other Treasure Net Forums. Buying from a firm with a good history, or even a neighbor, you will feel confident that you are getting what you pay for. Spending $100 to buy brass and copper, then selling it for at least $200 means you are paying half price for your PM's. I'll take a 50% discount on PM's any day!

For the last 4 years, this works for me here in Central Texas.

Bill

It sounds too easy Bill to do that, it's out of the box so to say. But it's the best discount that anybody will ever get and a fairly easy one at that.

The lure of PM's is everybody's want-eye candy-to do scrap of any sort well it's below most folk and they wouldn't do it.