Kitco Pool Accounts

cars

Anyone here that messes with this care to give me some info? I'd like to play around with it but couldn't find much info as to how it works. From what I understand, You purchase what ever you like to hold, Ag, Au, pd, pt etc... You get it for a Small premium but don't get physical possession of the metals. You have the option of taking delivery if you wish for a fee/premium.

You can buy at any time & Sell at anytime?

Lets Say I wanted to purchase 250 oz @ $10/oz, the next day it jumps to $12/oz. I can then sell at that price & take my $500 profit, Take physical delivery of the 250 oz or sell & put that money into a Pool account to purchase again when price drops or to purchase something else. Is there anywhere near how it works? Excuse my ignorance. I like physical metal but would like to be able to play with it short term and that's just not possible with physical.

carew4me

you got it. there is a buy and a sell price, so Kitco makes there money on the spread.

Taking physical delivery is a profit killer but its there if you want it.
So lets say you bought in today at $14.36 and you get cold feet so you want to sell.
Kitco will buy back at $14.12, they take .24c an ounce.

Lets say you want SAEs instead, they will add $4.39 to each ounce to send you Eagles (they want to discourage from doing this)

Pool accounts are about buying paper ounces and watching the "buy back" price offered by Kitco rise above your purchase price.

If you dont want to strictly make money on the movement of the spot price, I would avoid. Other than that its work great.
Many people will buy 100 ounces, sell 100 ounces back and use the profit (hopefully) to buy physical on their own.

cars

Sounds exactly like what I want. I would never take physical delivery at their prices. I just want to bank a few bucks (hopefully) and have a little fun in the process.

coynclecter

bulliondirect.com has a similar program, I think Perth mint does too. Id check out all the costs/price spreads of each to see which one is best.

57loaded

i'd dask over to bulliondirect b4 jumping into a kitco pool

derryb

Kitco pool account is perfect for playing the daily ups and downs in PMs. Been doing it for a few years. The "spread" is the difference between their buy and sell prices and it's where they make their commission. It's like an online brokerage account for PMs. Works great. When you sell, they will hold your funds in yout "cash" account until you make your next purchase or you can tell them to just send you a check. Not as secure as holding physical metal, but comes in real handy to make quick buys and sells. Since market is always going up and down there is some easy money to be made. I wouldn't recommend using the pool account to acquire physical metal. Just buy that outright at the cheapest source you can find (apmex, tulving, even ebay with cashback). I highly recommend the pool account for anyone who wants to have instant access to trading PMs. You can trade 24-7 online or deal with them over the phone during business hours. PM markets operate most of the time with a short shutdown Friday evening until Sunday evening. Even though price doesn't change during this period you can still buy and sell. I do recommend you place your sell orders over the phone so that your funds are quickly made available in your account enabling you to immediately jump into another metal. Made a bundle last year jumping between silver and paladium.

hiijacker

Umm, for a pure paper play, wouldn't you be better off trading SLV or GLD stock?

carew4me

<< <i>Umm, for a pure paper play, wouldn't you be better off trading SLV or GLD stock? >>



Depends on the amount and frequency of buying. Maybe you dont have a brokerage acount?
Trades in/out at $8 per can be deflating.

Kitco (and others) allow you to acquire papper ounces very simply and with just the spread as cost.

If I wanted to increase my paper holdings by 20 ounces a pop, or buy and sell to take advantage of
volatile spot movements, the pools are great.

Otherwise the pools would have collapsed after the ETFs came about.

derryb

<< <i>Umm, for a pure paper play, wouldn't you be better off trading SLV or GLD stock? >>



kitco pool held in canada. In event of US confiscation SLV and GLD are sitting ducks. Also, there are rumors that SLV and GLD don't have enough metal to back outstanding shares. This is OK if you are not last in line to cash in. If you're gonna own paper PMs, do it outside of US.