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Where to buy Silver in Houston? \u00a0Should I even consider buying silver coins locally or should I buy them with an online company?\u00a0 These are all questions that gold and silver investors should ask.<\/p>\n
There are many advantages to buying gold coins in Houston from a local company.\u00a0 First, an investor can save money by avoiding the shipping and insurance charges.\u00a0 These charges are usually $20-$55 per order depending on the company.\u00a0 Second, when you as an investor buy gold from a local company, you can examine the merchandise, pay for it, and the transaction is done.\u00a0 You don\u2019t have to monitor the online payment, wait for the shipment, and worry about the shipment coming while you are not home.\u00a0 Third, you as a buyer of gold in Houston get to form a relationship with an individual and company who can help you sell the gold when the time comes and also give you advice on exiting the gold market.<\/p>\n
Should you buy gold coins from a coin shop in Houston?\u00a0 Unfortunately there are far to many disadvantages to buying gold from a coin shop.\u00a0 First, most coins shops have very uncompetitive prices.\u00a0 On average my company is between 2-7% cheaper than most coin shops in Houston.\u00a0 Second, in many cases there is a complete disregard for investor privacy.\u00a0 Silver and gold dealers are required by law to obtain an investor first and last name and nothing more.\u00a0 However, many coin shops in Houston require that you show your drivers license and in many cases they will keep a copy on file.\u00a0 Finally, most coins shops don\u2019t have firm understanding of economics and as a result their recommendations on which gold to buy is often not based on the most important and relevant information.<\/p>\n
Should you buy silver numismatic coins in Houston?\u00a0 There are three major reasons why silver numismatic coins will be a bad investment over the next decade.\u00a0 First, one of the main reasons investors consider buying silver numismatic coins is they have been told that they can\u2019t be confiscated by the federal government.\u00a0 Most investors believe this because of Roosevelt\u2019s confiscation of gold in the 1930\u2019s.\u00a0 However, this simply isn\u2019t true.\u00a0 In 1933, the United States was on the gold standard, which meant that every dollar in circulation was backed by physical gold.\u00a0 This meant that FDR could not simply print money in order to finance his massive spending and this is why FDR ended up confiscating gold.\u00a0 He could not inflate the dollar until he controlled the value of the gold.\u00a0 It is important to note here that the US government held 68.2% of the world\u2019s supply of gold at the time.\u00a0 Once Roosevelt made gold ownership illegal, he immediately raised the price of gold to $35 an ounce.\u00a0 This immediately devalued the dollar by 40% over night.\u00a0 This is truly the reason why Franklin Delano Roosevelt confiscated gold.\u00a0 Therefore FDR would not confiscate gold or silver today because the Fed now has the ability to inflate the money supply without controlling the gold supply.\u00a0 Second the Government is also to not likely confiscate gold or silver in order to gain extra funds when they could confiscate the $7.3 Trillion rapped up in retirement accounts today, which they already regulate and control in many ways.<\/p>\n
The second reason investor consider buying silver numismatic coins in Houston is because they believe that they have to report purchase of gold and silver bullion to the government, but not for numismatics.\u00a0 Once again, this simply isn\u2019t true.\u00a0 Neither numismatic coins nor bullion require any reporting when they are bought and it is only when silver is sold back to a dealer in excess of 1000oz or in gold in excess of 25oz at a time that a dealer has to report anything to the government.<\/p>\n
The final reason investors consider buying silver numismatic coins in Houston is because they believe that numismatic coins will outperform regular bullion.\u00a0 However, when an investor examines all the factors this is quite unlikely.\u00a0 First, if the price of silver or gold goes up will numismatic coins or bullion perform better?\u00a0 Let\u2019s say for example, silver goes up 177% from $18 to $50, then a one-ounce numismatic collectible coin valued at $100 is likely to go up by only 32% to $132. The collectible coin will go up based on the silver it contains, but there\u2019s no reason to think the numismatic premium will increase too. On the other hand the same $100 in bullion is now worth $277, a difference of 145%!<\/p>\n
Numismatic coins owe their value above the silver cost exclusively to their rareness and collectability.\u00a0 Historically, during times of economic hardship these types of purchases do very poorly because the demand for them drop and as a result the premium over the price of gold or silver charged goes down.\u00a0 So in some cases it is possible to see the price of silver and gold go up and the value of numismatic gold and silver coins go down!<\/p>\n
A salesman might have a chart showing the performance of \u201crare\/collectible\/numismatic coins\u201d against \u201cregular\/bullion coins.\u201d Of course, the chart shows the numismatics performing much better. But these graphs inevitably track particular rare coins, which are cherry-picked with the benefit of hindsight. For every one rare coin that outperforms, there could be ten to twenty that severely underperform. Only afterward would you know which coin you should have bought. Additionally performance charts often omit the dealer\u2019s high markups and markdowns that would more than wipe out the alleged profits for retail investors.\u00a0 In the end, investing in numismatic coins is far inferior to bullion.<\/p>\n","protected":false},"excerpt":{"rendered":"
Where to buy Silver in Houston? \u00a0Should I even consider buying silver coins locally or should I buy them with an online company?\u00a0 These are all questions that gold and silver investors should ask. \u00a0Advantages of Buying Silver in Houston … Continue reading