How to Buy from the Amazon.com of Gold Coins

I told you recently that I’ve been buying more American Gold Eagles, and a lot of you asked for specifics.

I’m happy to elaborate.

There are a number of ways to own gold. The best way is to own physical gold, and I like coins, which can be purchased from a number of reputable dealers.

The dealers I like personally are Kitco (www.kitco.com), Blanchard (www.blanchardgold.com), and JM Bullion (www.jmbullion.com). These firms offer a wide variety of newly minted coins, historical coins, and rare coins, as well as coins from different countries, such as American Gold Eagles, which are my favorite, South African Krugerrands, and Canadian Maple Leafs. You can choose from different weights, ranging from 1 oz. down to 1/10th oz. (and Kitco even offers 1/20th oz.).

They have great service, too. Buying gold is as easy as buying a book on Amazon.com. You can have your gold in hand in a few days. JM Bullion offers free shipping, while Kitco has a flat rate. Kitco is the only one that will ship gold internationally, so be aware of that.

Now let’s talk about prices…

They all offer good prices. You can judge that based on the % markup over the spot price of gold. You can get discounts for buying in bulk or paying with cash. There are occasional sales and special offers (including this week, on Black Friday). Kitco looks to have the best prices right now.

You can pay for your coins with credit cards at both Blanchard and JM Bullion, and JM Bullion has the added advantage of taking payment via Paypal although it charges a higher prices for coins paid for that way. With Kitco, you’ll open an account and fund it via bank wire, money order, or personal check.

Lowest price for 1-oz gold coin (11/23/15) Markup over spot (11/23/15) Payment options Shipping Ships internationally?
Kitco $1,106.00 3.63% Wire, check,  money order Flat rate Yes
Blanchard $1,109.25 3.93% Wire, check, credit card Free No
JM Bullion $1,109.40 3.94% Wire, check, credit card, PayPal Free No

Check out the FAQ page for each one or give them a call before buying:

Kitco:              https://online.kitco.com/help/faqs.html                                    1-877-775-4826

Blanchard:      https://www.blanchardgold.com/how-to/buy-gold-faq/           1-866-827-4314

JM Bullion:     http://www.jmbullion.com/faq/                                                 1-800-276-6508

Just to be clear, I am recommending these three because I like them and feel you will like doing business with them too. I do not receive any kind of compensation for naming them here.

If You Don’t Want to Own Gold Coins…

For some people, it’s impractical to own physical gold.

There are also a variety of ways to buy gold through ETFs or closed-end funds, including the SPDR Gold ETF (NYSEArca:GLD), which charges a 0.40% fee, and the iShares Gold Trust (NYSEArca:IAU), which charges a 0.25% fee. There are also two other stocks that I prefer, the Central Fund of Canada Ltd. (NYSE:CEF) and the Sprott Physical Gold Trust (NYSEArca:PHYS). PHYS is a big shareholder in CEF and is currently waging a war on CEF’s corporate governance practices up in Canada where both are located. CEF is a closed-end fund that owns about 2/3rd of its assets in gold and 1/3rd in silver and can often be bought at a discount to the spot price of gold and silver (it owns both), which is why I like it. Recently it was trading at nearly a 12% discount to net asset value. PHYS charges a 0.35% management fee and a 0.07% administration fee. U.S. individuals can elect long-term capital gains treatment on units held for more than one year.

By the way, I still do not recommend investing in gold mining shares. While they offer indirect exposure to gold, they also offer all of the headaches of investing in an operating company. Mining companies are as often a highly leveraged play on gold as a highly diluted play on their primary product. If you want to invest in gold, invest in gold.

In terms of allocation, I recommend that all investors allocate 15-20% of their portfolio to gold, whether physical or in a fund.

The message is simple: Own gold. Now.

8 Responses to “How to Buy from the Amazon.com of Gold Coins”

  1. I had very good prices and service from Schiff Gold which was Euro Pacific Precious Metals at the time. Their mark-up was 3.798 % on silver then. Shipping is free within the USA, at certain volumes. It was an extra charge to Canada. My delivery to Canada was a hassle perpetrated by jerk Canadian gestapo officials. Canadian sellers are gouging over 20% on silver currently, but no import or tax annoyances.

  2. Mr. Lewitt is doing those who aren’t familiar with how to buy gold a favor here.

    But one thing needs to be made clear.

    The ETFs aren’t all the same. Sprott’s PHYS holds its gold bullion at the Royal Canadian Mint in Ottawa and they audit it regularly. They hold gold and nothing but gold. As a small investor, you can redeem the shares for actual bullion and have it sent to you. Try that with GLD. Only the big boys can do it.

    And GLD’s custodian is none other than HSBC, a bank that has a rap sheet as long as your arm. Check out their money laundering for the Sinaloa drug cartel in Mexico and various terrorist states. It’s a criminal operation masquerading as a commercial bank.

    Without question, they’re one of the primary agents involved in the gold price suppression scheme. To the extent they hold “gold” at all, don’t be so sure it’s actual physical bullion.

    Bottom line: I think you can trust Sprott. I don’t think you can trust HSBC as far as you can shotput them.

    AVOID GLD! It isn’t an investment in “gold.”

  3. Michael,
    In the USA it’s predicted that in the next market crash 100 trillion out of 225 trillion of financial wealth will get wiped out – this will reduce the amount of dollars and because of this shortage the USA dollar will be King as its volume decreases in the economy – gold will therefore not be the alternative currency and it’s value will go down in relation to the now scarce dollar whose value will increase due to deflation (less dollars due to many dollars being written off).
    Anyways this us the opinion of other gurus other than yourself – are you more right?

  4. I understand your line of thinking, but there’s a critical flaw in it.

    You imagine what controls the price of gold is the strength or weakness of the dollar. Yes and no. Does dollar strength usually mean a weak gold price? Yeah, but only in a more or less normal set of circumstances where people have confidence in the system and markets are still open and functioning. It’s by no means a linear or even consistently inverse relationship. Just look at what’s happened in the past in times of crisis.

    Ask yourself what happens after 40% of financial … paper … “wealth” gets wiped out or is on the way to being wiped out?

    Ya think the Fed might be keen on reliquifying the system? Or do you imagine they’ll just sit back and let nature takes its course as the bubble bursts, commerce is reduced to trading for essentials, and a whole helluva lot of people who’ve been wiped out come lookin’ for scalps … while the politicians scream for more QE, negative rates, and even a true helicopter drop of money directly on the plebes?

    Not since the depression of 1920-21 has the Fed stepped back and done nothing. I would suggest that a money conjuring binge would be just the “solution” they fall back on. As stupidly counterproductive and disastrous as that would be, it’s all they’ve got.

    Yes, in times of financial chaos, only the most trusted paper assets will likely be in demand. The dollar and Treasury obligations would still be the go to safe haven assets at that point.

    But what about gold? It will be bought as a safe haven store of wealth too.

    But there’s a confounding variable.

    It’d probably be sold at first by those having to raise cash.

    That selling would be offset by buying from those seeking the security of an asset that has no counterparty risk. Who would be the dominant force? Dunno? But, witness what happened in 2008. Gold got sold down hard. Why? Because gold can be readily sold to raise cash when illiquid securities can’t be.

    And then it shot up as the Fed went off the monetary reservation to save the bank’s bacon.

    I say gold would “probably” be sold, because, unlike back in 2008, gold’s been in a 4 year bear market. It’s not like institutions who’d be doing the selling are loaded up with gold or sitting on cap gains on what gold they do have.

    This may be a revelation to you, but when the issue is safety … preservation of capital … the dollar and gold can and do go up together. I suspect that’s what’ll happen after a possible initial bout of gold weakness that lasts just long enough for fire-sale phase of the panic to pass and the Fed to announce their plans to rain money on the system … and maybe even break off a little cheddar for us little people, not just the banks.

    Yes, the dollar would be in great demand as liquidity dried up, so the purchasing power of the dollar would likely rise quite dramatically over a short period of time and stay there for a short period of time.

    But the clownbuck is just another paper promise and when … not if … it’s inflated to oblivion to counter the deflationary effects of a financial meltdown, what do you think will happen to its purchasing power? It’ll plummet. It’s already terminal. It just hasn’t been finished off yet. And won’t be for a while longer.

    That said, there will be an inflection point where people will become keen to buy real things with their clownies … like non-perishable food, staples, land, commodities, etc. … and gold. It’s happened hundreds of times before throughout history. It’ll happen again. it’s not like this is a new phenomenon.

    Bottom line: Short term, following a financial meltdown, the dollar, especially in physical cash form, will be in great demand and its purchasing power will rise. But “money”/currency in the bank and the stock market, and in bonds will be at risk of going poof. That’s when people want out of financial assets and into gold the most.

    And you know what? While you were snoozing, the gold in the west has been leased out and sold off by official holders. That’s kept a cap on price and drained supply.

    When you want it, and you will, there won’t be any to be had at any dollar price.

    You see, some things have actual value and utility … gold and silver, land, food, energy, consumer staples, things like cars and appliances. And others don’t, like paper promises and electronic computer entries that depend on confidence for their worth to be realized. Once confidence is gone, and it would be in a financial meltdown, we’ll see which class of assets people want to hold … real or virtual.

    It won’t be the dollar … for long.

  5. Leslie, I’m no expert… but with the Chinese Yuan becoming the International Reserve Currency next year, I don’t the dollar will be king… if anything all those exported dollars will be coming home. My imagination would say prices would have to increase because of the over abundance of dollars, but value would go down. The fear here is a wipe out of all those with fixed incomes and retirement funds in USD. This inflation would probably be accounted for by a hike in interest rates causing more defaults in mortgages and loans. Gold and Silver (and other hard assets) float with value. I think that is why many experts from Peter Schiff to Michael recommend having 10-20% in your portfolio.

    Then again, maybe nothing happens. Call it insurance. At least you have a pretty coin to look at.

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