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Kitco Pool Accounts

Texas2StepTexas2Step Posts: 10
in Precious Metals
I'm new to the boards and am looking for some information regarding the Kitco Precious Metals Pool Accounts. In trying to buy either silver or gold locally, it is difficult to find and if I do find some I have to pay a premium over the current spot price.

Has anyone used the Kitco Pool Accounts and if so what is your opinion? Is there anything that I need to know to avoid pitfalls.

Thanks!image

Comments

  • GoldbullyGoldbully Posts: 17,457 ✭✭✭✭✭


    << <i>I'm new to the boards and am looking for some information regarding the Kitco Precious Metals Pool Accounts. In trying to buy either silver or gold locally, it is difficult to find and if I do find some I have to pay a premium over the current spot price.

    Has anyone used the Kitco Pool Accounts and if so what is your opinion? Is there anything that I need to know to avoid pitfalls.

    Thanks!image >>



    No I haven't, but welcome to the forum!!!

    image
  • DorkGirlDorkGirl Posts: 9,994 ✭✭✭
    image

    I have never used a paper account. I like the shiny stuff right here in my hand.imageimage
    Becky
  • mhammermanmhammerman Posts: 3,769 ✭✭✭
    Listen to Dorkette, twostep. The participation in the pool accound does not give you the right nor the expectation that it will ever be physical metal in your hands, it's simply a pool of money that people buy into at a certain rate and sell at a certain rate. That rate is tied to paper metal or metal that is not metal, just a piece of paper. The recent scenario is that there is a paper price and a physical price and you have seen this in the kitco pool price and the price for physical at local shops, on ebay, on heritage auction prices, there is a pretty good spread. For example, one oz of kitco pool may be 760 but if you try to buy the same oz in physical you will likely pay spot plus a 60 or 70 dollar premium. That is the spread between physical and paper right now. That may change or it may get to be even more of a spread. If you read the kitco disclaimer for the pool accounts you will see that you don't own any metal nor should you expect any, it's just paper. If you go to your shop or a show or to one of the auctions then you should expect to pay a premium...no, they are not ripping you off (though the actual premium is a little negotiable) that is the live market as it exists today. There is a very complicated story about why it is this way but just accept that for now, it is. In times of a flood would you rather have a certificate for a boat or a boat? So, it depends on your strategy; if you are buying gold to save for a rainy day then the kitco pool is not for you but if you are just playing for profits then maybe the pool is a good place to try. It should be noted that if you buy the physical at kitco then you still have to pay shipping and insurance and it is pretty stiff so you might just check with your dealer and see if maybe it is worth paying him a few extra dollars, your dealer might actually be a cheaper way for you to get the metal in your hands.

    Get your metal in your hands and put it away for safe keeping seems to be the mantra for this little group but there are some that like to play with paper; what ever suits you but don't expect kitco pool account to result in you getting metal in your hands.

    Edited to add: WELCOME!
  • BloodManBloodMan Posts: 1,833 ✭✭✭✭✭
    Kico pool accounts were discussed several months ago. There is a nice desciption by derryb

    Link
  • Texas2StepTexas2Step Posts: 10
    mhammerman-
    Thanks for the great explanation.

    BloodMan-
    Can't seem to get the link to work?
  • BloodManBloodMan Posts: 1,833 ✭✭✭✭✭
    Try copying the address below into your browser.

    http://forums.collectors.com/messageview.cfm?catid=42&threadid=649560
  • 57loaded57loaded Posts: 4,967 ✭✭✭
    i think the biggest "worry" would be a delivery in a white hot market where you have everyone wanting to sell and take out physical.....imho

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