I don’t have a lot of money, so my PM strategy thus far has been to save for long periods of time, then buy silver or gold in bulk in one shot to save on premiums and shipping. The downside of this strategy has been that I don’t buy as often as I would like, and it’s not always a good time to buy when I’m finally ready to trade some cash for precious metals. Another problem is that while I’m saving, it’s easier for me to dip into my cash savings, whereas I never touch my savings that are already converted to gold and silver. If I were better off financially, I would prefer to make a small purchases monthly, so buying precious metals would be more habitual.
Solution: Precious Metal Broker
To solve this problem, I’m thinking about trying a precious-metal broker. A precious-metal broker lets you purchase gold, by funding an account online, and stores the gold on your behalf. One benefit is that you don’t have to buy an entire once of gold at once, if you can’t afford it. You simply deposit as much as you can afford, and the corresponding fraction of gold is allocated to your account. In theory, you could deposit one dollar and own a dollar’s worth of gold. This doesn’t mean that they shave off a speck of gold and put it in a vault for you, but they do allocate a speck to you from a gold bar.
Some brokers also deliver physical gold, silver and other precious metals. So after you have allocated an entire bar’s worth of gold in your account, you can take delivery of the physical bar. My strategy will be to fund an account regularly and take physical delivery whenever I’ve allocated an entire bar of gold or silver.
The table below contains my findings so far. I will only add brokers that offer physical delivery. The fees are copied directly from respective sites at the time of this post
|Broker||Commissions||Delivery Fees||Metals Offered|
|Your metal purchase is based upon the prevailing gold gram, silver ounce, platinum gram or palladium gram buy rate, which is the metal’s current spot price plus a buy fee.The buy fee for a gold gram purchase ranges from 0.98% to 2.74% above the prevailing spot gold price, depending upon the size of the transaction. The buy fee for a silver purchase ranges from 1.99% to 4.24% above the prevailing spot silver price. For platinum the buy fee ranges from 2.19% to 4.67% and for palladium from 2.63% to 5.52%.||Fees will depend on location and bar type.||Gold, Silver, Platinum, Palladium|
|In normal use you will receive your money paid directly to your bank account after you sell.You can withdraw bars at any time. The fees vary according to the circumstances:
The fee for silver (whole bars only) is 10%.
BullionVault gold and silver are both VAT (sales tax) free – for as long as they are held in our vaults. Upon physical withdrawal gold remains exempt, but 20% VAT then applies on silver.
Minimum investment = 20 000 euros
Note: 1 oz bars are sold with 2.5% commission on top of the spot price.
Minimum investment = 25 000 euros
|Not Specified||Gold, Silver|