Here Are Some Rules to Follow When Buying Physical Gold


If you’re interested in physical gold, I recommend you invest in small gold bars. You can buy them in a wide range of weights and you can buy small gold bars or ingots for as little as 1 percent over the price of gold. Words: 760

Lorimer Wilson, editor of, provides below further reformatted and edited [..] excerpts from <strong>Larry Edelson’s ( original article* for the sake of clarity and brevity to ensure a fast and easy read. He goes on to say:

Right now, there are 94 accredited manufacturers of small gold bars that produce a staggering 400 different gold bars among them and, for what its worth, I am particularly partial to Engelhard, Johnson Matthey, and PAMP.

5 Rules When Buying Gold

Rule #1. Don’t store your gold with the dealer you bought it from

Why? Because too many of them have gone bankrupt over the years and, as the price of gold continues to skyrocket, you’ll likely see more bankruptcies, not less, down the road. In gold bull markets, the buying frenzy seems to attract the least prudent and least ethical players to the bullion industry.

Rule #2. Take possession of your gold using one of these alternatives

Why? Because when you purchase physical gold, the farther you remove your bullion — legally and physically — from the dealer, the safer it is from the claims of that dealer’s creditors.

Alternative A: Cash & Carry
In terms of getting what you paid for, buying your gold and taking it with you is the ultimate solution. You go to your dealer, inspect what you’re buying, make your purchase, and walk out the door with your gold in hand.

Alternative B: Consignment Method
The dealer sends the bullion to you for your inspection and then you send the money. It’s a great choice and gives you plenty of leverage. If you can find a dealer to go for it, you’re golden. Just have them send the metal to you and then you respond with a check the minute you’re satisfied you’ve got what you were promised.

Alternative C: Sight Drafts
You make an arrangement with your bank to act as an intermediary between you and the gold dealer. The dealer sends the gold to the bank. The bank then holds it for your inspection. When you give the OK, the bank issues a cashier’s check and you take possession of the metal.

Rule #3. Use a major, independent depository to safeguard your gold

Rule #4. Use non-fungible storage

Why? Because when you put your gold in non-fungible storage, it means it’s stored in your name and it’s not pooled with bullion from other customers. This keeps your gold nice and tidy — and it’s really the best way to go. However, just because your dealer says your bullion is non-fungible and completely segregated doesn’t necessarily make it so and even if your metal is segregated, that doesn’t mean the segregation agreement will automatically stand up in court. The best way to make sure is to have your attorney review the firm’s paperwork. Either way, always specify that you want non-fungible storage. It may cost a bit more, but it’s worth every penny.

Rule #5. Consider offshore purchases and storage

If you’ve spent any time reading my thoughts here … you know I don’t trust gold dealers, politicians and government bureaucrats – and there are also bankers I don’t trust. There is one approach I especially like and that is the Gold Certificate Program at the Perth Mint of Australia because it is/has:

1. The world’s only government-guaranteed certificate program

2. Insured by Lloyd’s of London at the Perth Mint’s expense

3. Low minimum purchase requirements of $10,000 to get started

4. Segregated storage available

5. Storage in a government vault, not a foreign bank

6. Gold, silver, platinum and palladium available — in coin or bullion

7. Permitted in Individual Retirement Accounts (IRAs)

What happens when you want your gold? Just present your certificate by mail or in person to the Perth Mint, pay any related charges, and then tell them where you want your gold shipped. It’s simple and easy.

* (Uncommon Wisdom is a free daily investment newsletter from Weiss Research analysts offering the latest investing news and financial insights for the stock market, precious metals, natural resources, Asian and South American markets.)

Editor’s Note:
– The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
Permission to reprint in whole or in part is gladly granted, provided full credit is given.


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