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The Best Way to Buy Gold
As investment consultants, we consistently encounter the same reaction when telling investors they should own
physical precious metals in a certain portion of their portfolios. "You mean buying shares in mining companies,
not owning the actual metal, right?"
While this reaction, due to a 20-year precious metals bear market, is not surprising (and is, in fact, quite bullish
from a contrary perspective), it also highlights that actually buying physical gold, silver or platinum still seems
daunting to most investors.
What all investors should know is that buying mining company shares represents a leveraged speculation on the trend
of precious metals prices; physical metals themselves constitute the ultimate protection against government-created
inflation and the resulting decay in your dollar savings.
As a full service investment firm, ours [Euro Pacific Capital] offers many ways to gain precious metals exposure.
When it comes to the purchase of physical gold, silver or platinum, however, one investment stands out: the Perth Mint
Certificate Program.
Here's how the Perth Mint Certificate Program (PMCP) answers the concerns most investors have about buying physical
precious metals:
Fair pricing
Perhaps the biggest obstacle that prevents most people from buying physical metals is the question: how do I know I'm
getting the best price? Well, this is a fair, if unnecessary, question. Do you go down to the local coin dealer and just
take his marked-up rate? If you do, can you trust this stranger to deliver at the agreed upon price if the market moves
substantially in the interim? While most such dealers, I'm sure, deal honestly, it is my understanding from investors
that this problem does indeed exist.
How about the familiar-named gold brokerages or internet dealers? Should you have to shop around? And when searching
for various dealers, do investors remember to factor the cost of shipping into the price? Can investors fight the urge,
as some brokerages will recommend, to buy precious metals using leverage? Such margin-type financing, in our opinion,
is poor advice and defeats the very purpose of buying physical metal in the first place: to hold the ultimate physical
financial security. Even worse, some commodity firms encouraged individuals to trade futures contract or buy options
on futures contracts. Such activities are highly speculative and should not be confused with legitimate gold ownership.
In actuality, pricing should be the least of a gold buyer's concerns; the market for metals is open nearly round the clock
and there's only one price that matters - that of the spot market. There's no reason, in my opinion, to pay any other
price.
Under the Perth Mint Certificate Program, investors purchase metals at the Perth Mint spot market ask WITH NO MARK-UP. The only
costs investors need to know about are, as with any quality investment, completely transparent: this program charges a
2.25% service fee applies to non-model state residents and retirement accounts (3% service fee applies to model state** residents) and a $50 certificate fee.
A $.25/oz surcharge applies on all unallocated silver PMCP buy orders. A 1.25% service fee applies to liquidations.
Factor in the next feature we'll discuss, the program's eye-opener regarding storage, and knowledgeable investors quickly
realize why the PMCP is so attractive.
Storage
Here is the big additional cost to owning gold that many investors don't consider prior to buying or, if they do, is the
concern that keeps them from purchasing physical gold: what do I do with the stuff once I buy it?
Should one lease a safe deposit box? Increasingly, banks don't want precious metals in their vaults. Indeed, many now
prohibit the storage of gold in such boxes thanks to Patriot Act disclosure requirements, so you probably couldn't even
store gold this way if you tried.
Certainly, the annual fees many bullion banks charge are prohibitive. And how do you know these facilities are not
loaning out your gold once you deposit it with them?
Do you purchase a safe, dig a hole in your backyard and take the risk of self-storage?
Here's where the PMCP delivers its knockout punch: FREE STORAGE.
That's right: choose this program's unallocated bullion option and you can store your metal at the Mint for free
indefinitely. This feature is particularly attractive for silver buyers because this metal is so much more bulky than
gold.
Security
We've heard investors groan, "Oh, I don't trust that those certificate programs actually have the gold on hand." The PMCP,
however, is not like any other certificate program. Here's why:
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It is important to note that The Perth Mint buys precious metal when you buy from it and sells when you sell to it on
a 1:1 basis - all holdings, whether they be allocated or unallocated, are therefore 100% backed. How can the Mint offer
such a remarkable program? Perth's is a functioning mint. It saves money in its day-to-day operations by having this
excess metal on hand and, therefore, not being forced at any particular time to lease metal from the market.
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Unlike the U.S. Government, which has confiscated gold from its citizens once and many fear may do so again in a time of
financial panic, Australia has no such history. Indeed, it could not afford to do so because the mining industry is too
vital a component of the Australian economy to disrupt in such a manner; this nation could ill afford to cause investors
to lose faith in the security of gold.
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Your Perth Mint account is fully guaranteed by the AAA-rated Government of Western Australia, who is further insured by
Lloyds of London, making the Perth Mint the only government backed bullion storage facility in the world!
Simplicity
Why do so many investors tend to shun physical precious metals and invest in gold and silver through shares in the
mining companies? In our experience, it seems to be a matter of convenience; log into your online investment account
or call your stockbroker and the purchase of shares can be completed in minutes.
Here, too, the Perth Mint Certificate Program answers the challenge - the program's short, 2-page application couldn't
be simpler just complete that form, send it in and wire funds. That's it - placing your trade is then as simple as
buying a stock: just call to tell your representative when to pull the trigger.
Transferability
Although the program's certificates are non-negotiable (for investor protection), they are transferable. For a simple
administrative fee of $50, an owner can change title of these certificates at any time.
In conclusion, although we at Euro Pacific Capital are the exclusive dealers in all 49 states* of the Perth Mint
Certificate Program, we do offer an entire range of precious metals alternatives to our investors. When it comes to
the purchase of physical metals, however, this program trumps all others. Transparent pricing, safety, low cost -
these features and more represent why we believe the Perth Mint Certificate Program represents the best way to invest
directly in precious metals.
*currently the PMCP is not offered in the state of AZ
For more information, contact Danielle Psarras or Matthew Psarras at 800-993-8350.
**Model States:
AZ, CA, CO, GA, ID, IN, IA, ME, MN, MS, MO, MT, NE, NV, NH, NM, NC, ND, OR, UT, WA
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Deposits with the Perth Mint are not insured by the Securities Investors Protection Corp. (SIPC)
Disclaimer: Euro Pacific Capital, Inc. does not guarantee the accuracy, validity, timelessness, completeness or suitability of any information or data made available to you on this site. We disclaim all warranties, express or implied, including, but not limited to, warranties of title, non-infringement, merchantability or fitness for a particular purpose. Neither Euro Pacific Capital, Inc. nor its subsidiaries will be laible for any damages or injuries arising out of your use of any such information or data, including without limitation, damages relating to any (I) error, omission, interruption, delay in operation or transmission, (ii) computer virus, (iii) failure or defect in any communication facilities, hardware or software, (iv) theft and destrcution or unauthorized access to, alteration of, or use of information, whether resulting in whole or in part from neglligence or otherwise. The use of this web site is at your own risk.
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