<< <i>Good point ... but you keep forgetting one major expense in owning physical....what are the insurance premiums per $100K, $200k and so on? Most home-owner policies don't even cover bullion over $1k........ >>
If you can make your "bullion" the semi-collectible type you can probably get cheaper insurance via one of the coin insurance firms (ie $1000 per year to insure $200K to $300K). This would mean having mint state $20's, maybe proof AGE's, and similar bullionesque items that carry 10-30% premiums. That said, I've never really talked to one of the insurers over this issue. A few safe deposit boxes scattered throughout several towns in your area would also provide relatively cheap security for $150-$300/yr.
If you're a member of the ANA you can get coin insurance through Hugh Wood Inc. The one I signed up for covers safe deposit boxes but I seem to remember another option which covers non-SDB holdings. As RR said if you have coins with a numismatic value on top of the bullion value -- which is pretty much any pre-1933 US gold coin -- you should be covered.
"Men who had never shown any ability to make or increase fortunes for themselves abounded in brilliant plans for creating and increasing wealth for the country at large." Fiat Money Inflation in France, Andrew Dickson White (1912)
<< <i>Before we sold that gold bullion collection for a customer a year and a half ago, I went to see it. He had roughly 3,800 ounces of gold bars on display in his living room......... . He also had a pretty darn good security system! . TD >>
"Inspiration exists, but it has to find you working" Pablo Picasso
Keep in mind that YOU agreed to the terms and conditions of the 401(k) provider when YOU signed up for THEIR plan. Complaining after the fact is like those people who got ARMs and didn't realize their payments could go up over time.
Same with the folks who may have had pool accounts at Kitco. There is all sorts of fine print to consider. Just like buying a car or getting a mortgage on a house, or opening a stock trading account. Did everyone read it and consider potential outcomes? My guess is 'no'.
And if it gets really deep over there, would it really matter if it was allocated or unallocated metal? Taken to an exteme, if they (Kitco) were violating some type of statute(s), and I am not saying they did, what makes you think that a 100 oz bar with serial number P123456 didn't have three or four names associated with it?
Numismatist. 54 year member ANA. Former ANA Senior Authenticator. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and ANA Lifetime Achievement Award 2020. Also won the PNG's Robert Friedberg Award for "The Enigmatic Lincoln Cents of 1922," Available now from Whitman or Amazon.
My Kitco pool account remains intact. While I have cashed in my holdings, I will purchase again once Kitco resolves this issue. Pool account can and has been a money maker when used properly.
Sounds like they have a good supporter in the Royal Canadien Mint!
TD
Numismatist. 54 year member ANA. Former ANA Senior Authenticator. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and ANA Lifetime Achievement Award 2020. Also won the PNG's Robert Friedberg Award for "The Enigmatic Lincoln Cents of 1922," Available now from Whitman or Amazon.
Maybe gold is becoming too popular in Canada like it is in the US. An attempt to take down the price? Why identify kitco and Carmen International only and not name any of the remaining 125 outfits that have been charged?
I sure don't understand the tax system this was supposed to beat.
As I understand the story, it starts when a private citizen sells scrap to Kitco.
Kitco pays them, and includes a sales tax that the private citizen is then supposed to give to the provincial government.
The provincial government then rebates the sales tax to Kitco.
The breakdown is that the private citizen is not giving the tax to the province. Kitco is somehow being blamed for this.
Is this a fair assessment of the situation? If not, please explain it to me.
TD
Numismatist. 54 year member ANA. Former ANA Senior Authenticator. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and ANA Lifetime Achievement Award 2020. Also won the PNG's Robert Friedberg Award for "The Enigmatic Lincoln Cents of 1922," Available now from Whitman or Amazon.
Comments
<< <i>Good point ... but you keep forgetting one major expense in owning physical....what are the insurance premiums per $100K, $200k and so on? Most home-owner policies don't even cover bullion over $1k........ >>
If you can make your "bullion" the semi-collectible type you can probably get cheaper insurance via one of the coin insurance firms (ie $1000 per year to insure $200K to $300K).
This would mean having mint state $20's, maybe proof AGE's, and similar bullionesque items that carry 10-30% premiums. That said, I've never really talked to one of the insurers
over this issue. A few safe deposit boxes scattered throughout several towns in your area would also provide relatively cheap security for $150-$300/yr.
roadrunner
<< <i>Before we sold that gold bullion collection for a customer a year and a half ago, I went to see it. He had roughly 3,800 ounces of gold bars on display in his living room.........
.
He also had a pretty darn good security system!
.
TD >>
"Inspiration exists, but it has to find you working" Pablo Picasso
Keep in mind that YOU agreed to the terms and conditions of the 401(k) provider when YOU signed up for THEIR plan. Complaining after the fact is like those people who got ARMs and didn't realize their payments could go up over time.
Same with the folks who may have had pool accounts at Kitco. There is all sorts of fine print to consider. Just like buying a car or getting a mortgage on a house, or opening a stock trading account. Did everyone read it and consider potential outcomes? My guess is 'no'.
And if it gets really deep over there, would it really matter if it was allocated or unallocated metal? Taken to an exteme, if they (Kitco) were violating some type of statute(s), and I am not saying they did, what makes you think that a 100 oz bar with serial number P123456 didn't have three or four names associated with it?
Velocity, Not Valuation Defines A Bubble.
linky
Sounds like they have a good supporter in the Royal Canadien Mint!
TD
Velocity, Not Valuation Defines A Bubble.
As I understand the story, it starts when a private citizen sells scrap to Kitco.
Kitco pays them, and includes a sales tax that the private citizen is then supposed to give to the provincial government.
The provincial government then rebates the sales tax to Kitco.
The breakdown is that the private citizen is not giving the tax to the province. Kitco is somehow being blamed for this.
Is this a fair assessment of the situation? If not, please explain it to me.
TD
The website does not list sample rates. I guess it would depend on your answers (i.e., value, where is it stored, do you have a safe, etc.).