your guide to buying silver

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Why you should invest in Silver and how to do it. It talkes about how to buy silver, where to buy silver: Recommended dealers. How to store Silver, top 3 safes for your home, Top 5 unconventional Silver storage methods & final thoughts for Silver investors.

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Page 1: Your Guide to Buying Silver
Page 2: Your Guide to Buying Silver

Copyright © 2014 by Weiss Research

Published By: Weiss Research

Publication Date: March 2014

Weiss Research

15430 Endeavour Drive, Jupiter, FL 33478

Client Services: 800-291-8545

Our mission is to empower investors and consumers with unbiased information and advice

to protect their savings, build their wealth, and prosper in good times or bad.

All rights are reserved. Permission to reprint materials is expressly prohibited without the prior written

consent of Weiss Research. The accuracy of the data used is deemed reliable but not guaranteed. There’s

no assurance the past performance of these, or any other recommendation, will be repeated in the future.

Page 3: Your Guide to Buying Silver

Your Guide to Buying Silver: Why You

Should Invest in Silver and How to do It

Most of us spend the better part of our lives working and planning for the future. We scrimp. We

save. We defer present consumption for our future good.

But what most Americans fail to realize is that all of the money we've earned and saved over the

years is itself not reliable. By the time we choose to use it, it has lost value. And we have not

only been cheated out of a part of our past but we have also been robbed of present and future

benefits.

And what's worse, is it's happening right under our noses.

History is littered with governments—primitive and brutal ones, kingdoms and religious

oligarchies, modern nations, fascist, communist, and democracies alike—that have corrupted the

money they issue to their own advantage and to the detriment of their people.

Even today's electronic, digital money is manipulated. Its corruption is very similar to the

corruption of paper money. Just as more paper money is created by running the printing press,

more digital money is created by a keystroke of a computer. By inflating the money supply, the

value of the existing money—your savings—is diluted in the process.

We are cheated out of our very own hard-earned money.

Preferring not to be cheated, for thousands of years people have preferred gold and silver as

money. As fiat government monetary systems break down, just as we are experiencing with both

the euro and the international dollar reserve standard today, people are turning away from state-

sponsored money and turning to precious metals as a superior standard of commerce and store of

value.

Important: While we are still very early in this process today, it is accelerating.

While the monetary nature of gold has never quite been forgotten—nation states like the U.S.

still hold gold reserves and central banks even demand gold collateral when lending to one

another—the monetary qualities of silver have been both out of sight and out of mind. And

therein lies your opportunity.

A Powerful Case for Silver

Although silver has been used for commerce in more times and in more places than gold, it is not

surprising that its monetary role has been eclipsed by its amazing applications in modern

technological usage. Silver is prized and almost indispensable in solar energy, medicine,

electronics and the in digital world, as well as in nanotechnology.

Page 4: Your Guide to Buying Silver

Despite the relentless growth in silver demand in modern industrial applications, it is important

to remember that silver also has many desirable monetary qualities as well. Some of these

qualities include:

Silver cannot be created out of thin air. Unlike fiat money, the supply of silver is limited.

It is not subject to the value-destroying sudden and sharp inflations so characteristic of

paper money.

Silver has been prized around the world for thousands of years. Because of its universal

desirability it is also highly liquid, a crucial asset in the event of bank holidays, closures

and the freezing of assets—and against a time when the ATMs stop spitting out cash.

It is fungible. Silver is a chemical element; every ounce of pure silver is exactly like

every other ounce. It is both durable and divisible. And it represents a compact form of

wealth that is convenient in scale for the day-to-day commercial needs of households. In

the event of a currency crisis, it can prevent commerce from deteriorating into primitive

and cumbersome barter.

No wonder silver has provided such a dependable standard of commerce in so many times and

places… or why after years of trading quietly in a narrow range, the sleeping giant is stirring and

silver prices are moving to explosive heights.

Investment demand for silver led to the creation of silver ETFs in 2006. But that is still less than

two ounces of silver per American. In fact, if the diversification away from a failing dollar

during a crisis and the spontaneous re-monetization of silver led Americans to acquire a mere 10

ounces of silver per capita, only 40 ounces for a family of four, it would demand all the world’s

mining production at current levels for more than four years—with no production left over to

meet demand from anywhere else in the rest of the world or for any other uses.

Silver investing is not growing in a vacuum or because of the phases of the moon. It is growing

in response to levels of spending and debt that are no longer manageable. It is responding to

economic conditions that the numbers tell us are not improving, but are worsening. Just as fiat

currencies around the world are beginning to break down, investment demand for silver is

surging in China, India and Europe, just as it is in the United States.

It is the advanced stages of state insolvency that make silver investing imperative. It is the

early stages of the re-monetization of silver that provide you huge opportunity as a silver

investor today.

And I can show you exactly how to start building your stockpile today.

How You Should Buy Silver

There are a variety of ways to invest in silver, from physical silver available in a variety of

forms, to secondary silver investments such as silver stocks and ETFs, which are useful in

specific circumstances. While each entails its own advantages, each also has its own risk. And

one day—a day that is fast approaching due to governmental risk, the very risk we saw much of

Page 5: Your Guide to Buying Silver

in the 2008 panic, and the counter-party risk more recently evident in the bankruptcy of MF

Global—I will recommend that all such secondary vehicles be avoided entirely.

That is why today, the best way to invest in silver is real, physical silver.

Owning physical silver, regardless of alternatives, must be your first line of defense, your

first step in protecting yourself and your family from an inevitable currency crisis.

To do this, there are three ways I recommend buying silver…

#1: U.S. Silver Bags

First, in a crisis it is important to have a currency unit scaled to the essential needs of daily

human life. Your house payment may be measured in thousands of today’s dollars or on a scale

compatible with gold prices. But making a house payment is a lower priority than purchasing a

gallon of gas, a loaf of bread, or a pair of shoes.

In that case you will want small silver coins, a “bread and butter” currency that can be used

directly in everyday purchases.

That's why I recommend that every family own a “bag” of U.S. silver coins, often referred

to as “junk” silver bags.

When the U.S. government stopped circulating silver coinage in 1964 (except for some half

dollars with sharply reduced silver content that were minted until 1969), it issued instead base

metal coins with a thin coating of a copper-nickel alloy to duplicate the appearance of the real

silver coins. Not fooled by appearances, people immediately distinguished between the coins and

began setting aside and saving the real silver coins, which before long were trading at prices

based on the underlying silver content.

When these coins were first put into circulation before 1965, they were delivered by the U.S.

mint in bags of $1,000 face value. Silver bags, bearing coins with a face value of $1,000

dollars—although worth more because of rising silver prices—became a standard trading item of

the silver market.

Each silver bag contains silver dimes, quarters or half dollars minted before 1965. Please note,

these are not numismatic or collector coins. They are circulated, usually well-worn coins (hence

the name “junk”) that were an important part of the general circulating currency of the American

people until 1965.

Since those coins were minted with an alloy of 90% silver, they are also referred to as 90% silver

bags. To constitute a face value of $1,000 dollars requires 10,000 dimes, or 4,000 quarters, or

2,000 half dollars. But regardless of denomination, each silver bag has a content of about 715

ounces of actual silver. The price for a silver bag is based on this silver content.

Page 6: Your Guide to Buying Silver

Silver bags usually trade for a small premium of a few percentage points over the spot silver

price quoted on your financial pages. These premiums change with market conditions. For

example, a rush of market demand in 1999 from buyers concerned with the Y2K changeover

temporarily ran the premium up as high as 50%.

If the prevailing or “spot” silver price were $30 an ounce, then each bag of junk silver, whether

dimes, quarters or half dollars, with a value keyed off of its silver content of 715 ounces, and

assuming a premium of 2.5%, would cost $30 x 715 + 2.5%, or $21,986.

With silver at $50 per ounce and assuming the same premium, a bag would cost you $36,644

($50 x 715 + 2.5%), while at a prevailing silver price of $75 an ounce the calculation yields a

bag price of $54,966 ($75 x 715 +2.5%). The dealer will also charge a few percent as a

commission or markup that will sometimes be explicit and sometimes just built into the total

selling price. Most dealers will sell half bags; some sell smaller fractions.

Personally, I prefer junk silver dimes because they represent a smaller unit of purchasing power.

But to reiterate, the silver content for the same face value of each—for example ten dimes, or

four quarters, or two half dollars—is the same. Although, if you were interested in purchasing a

bag of junk silver half dollars, be prepared to pay a small premium—recently about $100. There

were fewer half dollars minted and they are now popular with some buyers.

I recommend buying and taking possession of these junk silver coins, not as a trading item, but

as an essential step in protecting yourself and your family. Just as you have fire insurance on

your home and automobile insurance, you should have insurance against the government’s

proven fiscal and monetary recklessness. Each coin provides you with an instantly recognizable

and well-known unit of precious metal purchasing power.

Be sure you are buying 90% silver U.S. coins minted prior to 1965. Often these bags are sealed

by the dealer who will buy them back without inspection and without having to re-count them if

his seal is unbroken. Break the seal anyway and inspect its contents. If you do so in the presence

of the dealer of broker when you acquire the silver, he should be able to have the bag resealed.

#2: Silver Bullion Coins

Nobody under the age of 50 will remember when actual silver dimes, quarters and half dollars

were the circulating currency of the U.S. Because those coins have not been minted since 1964,

other silver bullion coins have been produced.

These have the advantage of being minted in one-ounce and fractional-ounce sizes. Because they

are priced based on their silver content plus a small additional premium for minting costs, their

whole- and fractional-ounce size makes tracking their value easier than tracking the value of pre-

1965 U.S. silver coins.

Among the mostly widely traded and well-known bullion coins are the U.S. one-ounce Silver

American Eagle coins and the one-ounce Silver Canadian Maple Leaf coins. The coins are

very close in price, although the premium for American Eagles is generally slightly higher.

Page 7: Your Guide to Buying Silver

When you are in the market for one-ounce silver bullion coins, you will likely be offered “silver

rounds.” The term refers to a wide variety of privately minted one-ounce silver coins. Some are

intended to be art and as commemoratives while others are simply the production of private

mints marketing low premium bullion coins. Some mints produce silver rounds in fractional

ounces: half, quarter, and tenth ounce rounds.

While I don’t intend to suggest a preference for state-owned refining and minting, it is my

intention to steer you to only the universally recognized and traded coins and bullion bars. While

the premiums on some of these items will be higher when you buy them, those premiums

generally stay with the product so that you get more for them when you sell them as well. I have

seen times of market chaos with real liquidity challenges that have developed with privately

minted silver coins and other products of perfectly dependable but lesser known hallmarks. By

definition, a currency crisis is a period of chaos. Owning the best-known and most widely traded

coins and bullion bars will help you help minimize problems when it matters most.

After you purchase a bag of junk silver coins, the American Eagles and Canadian Maple Leaf

silver coins are my secondary recommendation.

#3 Silver Bullion Bars

If your silver investing extends beyond the essential silver coins I have described so far, you will

probably want to add silver bullion bars to your portfolio. Silver bullion bars are my third

recommendation and suitable for larger portfolios after you have established a core position in

liquid coins.

Silver bars are widely available in 1,000-, 100-, 10-, and one-ounce sizes of unalloyed silver of

.999 purity. Other sizes to be found include kilo bars (32.15 ounces) and five-ounce bars as well

as various other bars measured in grams.

Bullion bars of 1,000 ounces of specific approved hallmarks such as Engelhard, Handy &

Harman and Johnson Matthey are the standard delivery item on the Comex commodity exchange

and are common in institutional depositories. This is the form in which refiners pour silver

bullion; they are then weighed and stamped with the hallmark of the refinery, weight, and purity.

Besides being approved for commodity exchange delivery, the other virtue of 1,000-ounce bars

is their low cost over the spot silver price.

One inconvenience of 1,000 ounce bullion bars, though, is their weight. The weight of these

large refinery bars are not standard and can vary widely so that the prices have to be adjusted up

or down depending on the variance above or below 1,000 ounces for the specific bars you are

buying or selling. In addition, since 1,000 ounce bare are used primarily in trading and

institutional storage, once a private individual has taken delivery of them and the chain of

custody from industry-approved depositories has been broken, a subsequent buyer may require

the bars be assayed, adding expense and delays to the transaction. Shipping these bars, which

weigh about 68 pounds, can be difficult as well.

Page 8: Your Guide to Buying Silver

You can avoid all those difficulties with 100-ounce bars (weighing 6.8 pounds) which have

proven popular and convenient for most investors. The best-selling 100-ounce bars have been

Engelhard and Johnson Matthey. These bars are of .999 purity, which is the industry standard.

The Royal Canadian Mint seems to do everything exceptionally well. They produce the beautiful

and popular Canadian Maple Leaf one-ounce gold coin, as well as the striking one-ounce

Canadian Maple Leaf silver coin recommend above. Now they have released a handsome, new

100-ounce bar of .9999 purity.

Smaller silver bars of 10-ounce and one-ounce sizes are growing in popularity as well. But

remember that the cost per transaction is higher the smaller the bar, just as oats are more

expensive when you buy oatmeal by the individual serving packet than they are in the store’s

bulk food aisle, and less expensive still when you buy them by the railroad car load. 100-ounce

silver bars have proven to be a good trade-off between cost and convenience.

Remember that your objective is to own silver that can serve both as a store of value and as a

currency. That's why I recommended first that you have silver coins in the form of U.S 90

percent silver bags. After you've purchased a bag of pre-1965 U.S. silver coins, and diversified

into American Eagles and Canadian Maple Leaf silver coins, if you are in the market for more

silver, I recommend the 100 ounce silver bars from Engelhard and Johnson Matthey.

Where to Buy Your Silver: Recommended Dealers

The next step is knowing where to go to buy silver.

And while this should by no means be construed as a recommendation, below are three

precious metals brokerages that I am familiar with. All have been in the business a long time—

many decades, in fact—and have earned their sterling reputations. They do substantial business

with clients all across the nation. And they are knowledgeable businessmen with honest

practices, good, fair prices, and dependable service:

Asset Strategies International (ASI) 1700 Rockville Pike

Suite 400

Rockville, Maryland 20852-1631

800-831-0007 www.assetstrategies.com/

CMI Gold & Silver Inc.

3800 N. Central Avenue

11th Floor

Phoenix, Arizona 85012

Page 9: Your Guide to Buying Silver

800-528-1380

www.CertifiedMint.com

Colorado Gold Don Stott

888-442-0994 (Eastern)

888-436-7077 (Central)

888-786-8822 (Mountain)

www.ColoradoGold.com

How to Store Your Silver

Now that we've discussed why and how to purchase silver, the next obvious question is what to

do with your silver. It should also go without saying that you must take delivery of your precious

metals and never leave them in storage with any dealer. What are your alternatives?

Please don't say a safe deposit box. That’s where most people turn when they acquire items of

value. A safe deposit box is a common default move, but if the current monetary system and its

institutions such as today’s banks were dependable, you wouldn’t need to buy silver in the first

place.

If you take the government’s current voracious appetite for our wealth and project how that

appetite will grow in the event of a crisis… or if you consider gold confiscation in our own

national history, and the measures governments have taken in the past to steal people’s precious

metals… or if you recall the bank runs in the mortgage meltdown of 2008… you will decide to

store your precious metals anywhere but in a bank.

In addition to the risk of bank closings and likely new restrictions on access to valuables left in

banks, there are fees and expenses involved. And you do not want to make the mistake of

believing that because your valuables are stored in a bank that the contents of your safe deposit

box are covered by FDIC insurance. They are not.

That’s why I recommend that all crisis supplies, especially silver coins, be stored at your home

or some other private property to which you have free access at the time of your choosing. The

exception to this general rule is if for public figures or persons prominent for their wealth. If you

fall into either of these two categories, you may find it wise to use a private storage facility for

your gold and silver, as well as other private locations to which you have access.

Within that general parameter, blanket storage recommendations are impossible to make. Much

will depend on your specific family circumstances, your living arrangements, and the nature of

your home. I have gathered a variety of recommendations that you should carefully consider

before selecting the storage method that is appropriate to your needs.

Page 10: Your Guide to Buying Silver

Let's begin with what many will think of as a secure method of storage: a home safe.

Top 3 Safes for Your Home

There are three types of safes that you may want to consider for at-home storage of your silver: a

standard “home” safe, a floor safe, and a wall safe. Each of these three types of safes offers

safety and security for the protection of your silver and your important documents at the same

time. Here’s why:

1. A high-quality standard home safe is a worthwhile investment at modest prices. There are a

variety of options available in different sizes and price points. But to ensure that your silver and

papers are stored securely in a home safe that is resistant to burglary and fire, there are a few

features I urge you to consider:

• That it is fire proof

• That it is impact proof

• And that it is designed for maximum security, which means that it should be pry resistant, use

bolts, and have a combination lock.

The AMSEC UL1511 2 Hour Fire Protected Safe comes with these highly recommended

safety features: • Fire proof: Can withstand fires up of up to 1850 degrees for two hours, and a

30-foot drop. That is equivalent to falling through a three-story, burning building.

• Insurance: Lifetime fire replacement and one-year parts and labor warranty.

• Interior dimensions: H 15 1/2 x W 11 1/2 x D 12.

• Security: 3.5-inch thick door with 5/8 inch thick front that is pry resistant; handle activated

locking mechanism with solid steel chrome-plated locking bolts; internal anchor bolt hole with

hardware; changeable combination lock with relock (with one million possible combinations);

auxiliary spring-loaded relock device activated upon severe attack; heavy duty spring hinges.

• Weight: 215 pounds.

• Price: On sale for $649.99.

• Website: www.Safesetc.com

2. A wall safe is another great way to protect your silver—and is out-of-sight of prying eyes.

Wall safes can be both discreet and secure, two of the most important characteristics of an at-

home storage system.

If you're considering a wall safe, you should consider:

• One that can retrofit into a standard wall.

• One that is easily secured and can be hidden in closets or behind paintings.

• One that comes with an emergency override key.

• One that uses an electronic lock.

A wall safe that fits this description to a "T" is the LockState LS-52EN Large Digital Wall

Safe.

Page 11: Your Guide to Buying Silver

• Wall thickness: 2 mm

• Door thickness: 2 inches

• External dimensions (inches): H 20.67 x W13.78 x D 3.74.

• Internal dimensions (inches): H 20.28 x W 13.39 x D 3.35.

• Bolts: 2 bolts, 5/8 inches in width; comes with two pre-drilled holes on each side.

• Security: 2 emergency override keys (not needed to open safe).

• Lock type: Electronic lock with thumb throw latch.

• Installation: Retrofits easily between standard 16" studs.

• User code: 1 master code, 3-to-8 digits.

• Weight: 37 pounds.

• Pricing: $199.

• Website: www.LockState.com

Due to its size, the LS-52EN can be easily and securely installed behind mirrors, pictures or even

furniture. The inset door and knob allow the safe to sit flush against the wall, which means that it

is out of sight.

3. A floor safe is also a good vault for valuables. There are a variety of floor safes that can be

installed in a concrete, wood or non-concrete floors. There are good reasons to consider steel

floor safes. They are:

• Durable and long-lasting; they can be installed in a variety of locations.

• Extremely secure. Steel body offers maximum protection against attacks.

• Heavy; makes lifting difficult to impossible.

The Hayman FS Steel floor safe is the number-one selling floor safe for these reasons:

Steel body: It can be safely installed in a variety of locations; resistant to prying.

Boltwork system: Protects against drill and pry attacks on bolts.

Re-locking devices: Fires when the lock is attacked.

Hardened steel under the lock: Provides resistance against drill attacks.

Combination or Electric lock availability.

Weight: Come in four sizes; 80-222 pounds.

Pricing: $690-$1,575, with upgradeable options available.

Website: www.HaymanSafe.com

Purchasing and installing an at-home safe provides you with a measure of security and the

convenience of accessing your cache at a moment’s notice.

But having a safe is just one component of securing your stockpile. Always be sure to remember

these two rules if you choose to utilize a home safe:

1. Never tell anyone that you have silver in your home. If you are not capable of installing a safe

yourself, then you will have to find someone to do so for you. Exercise careful diligence in

selecting someone trusted.

Page 12: Your Guide to Buying Silver

2. Keep your standard home safe out of sight and, if possible, bolted in or cemented to your floor

or wall space.

If an at-home safe doesn't best fit your needs, or you find having one unnecessarily complicated,

there are some unconventional methods of storing your silver that are also worth considering.

Top 5 Unconventional Silver Storage Methods

Burglars seem to agree that among the worst places to hide your valuables are the freezer or

refrigerator. For example, in 2009, Louisiana congressman William Jefferson was sentenced to

13 years in prison in a bribery and corruption case. Investigating agents easily found $90,000 in

marked bills he had received, hidden in frozen food containers in his freezer.

For obvious reasons, medicine chests are among the worst hiding places as well, along with

dresser drawers, under mattresses and in and around beds. Toilet tanks are poor locations as well.

Instead, you might consider these other at-home options…

1. It is not uncommon for thieves to use metal detectors during in-home invasion. To ensure that

your silver goes undetected, hide some coins nearby other metal objects such as utensil and

tableware, hardware or even inside paint cans.

2. Another place for you to consider is inside the ventilation system. If you have central air

conditioning in your home, then you should be able to unscrew a vent and place your silver

behind it in a way that doesn’t block the air flow. Don’t forget to remove the coins if you have

someone working in and around your ventilation or heating and cooling system.

3. Carrying your silver on your person is a risky, but surefire way to make sure your silver is

always accessible to you. This may become a useful option once a currency crisis is well

underway. Sewing a few coins into the lining of a jacket is the best way to make sure the coins

are on you, but out of sight. Know, however, that with this method comes the risk of robbery or

loss of the item.

4. Unexpected safes, such as paint cans or “soda can safes” are a creative and rather secure way

to hide your silver in plain sight. Tucking coins away in cans that will themselves set off metal

detectors to begin with offers some protection. Just make sure to put the cans in a place where

they will blend in or in the case of a soda can safe, not get grabbed by someone looking for a

cool drink. Check out some safes made from soda, shaving cream, and other household product

cans at www.Simply70s.com or, here.

5. And one last way to store your silver may seem old fashioned, but hiding your valuables on

your property isn’t a bad way to go. Burying silver in a well-enclosed case or in PVC piping in

your backyard ensures that your stockpile is always close at hand, but still safely out-of-sight. A

common strategy is to bury your silver next to a landmark, such as a bush or a tree, so that you

will remember where your gold and silver are hidden. You may need to relocate your goods if

Page 13: Your Guide to Buying Silver

you have landscapers or workmen doing adjacent work that would allow them to discover your

valuables. And remember that such storage is discoverable by a metal detector.

Similarly, you could simply place a few pieces of silver in a flower pot. It won’t go anywhere

and it will always be on-hand, should you need it in a hurry.

Do not forget to share the location with a spouse of trusted family member. At the very least,

note it in a place that a survivor is bound to discover it. Many are the tales of a surviving spouse

who knows there is a hidden stash of wealth about, but can’t find it.

Beyond that, be discreet about your ownership of gold and silver. That can be the best protection

of all.

Final Thoughts for Silver Investors

Many of us already have an uneasy feeling that something is fundamentally wrong in the

economy and with the monetary system. But many will fail to take the necessary steps to respond

to the inevitable crisis. It is crucial that you take action if you wish to protect yourself from

unwelcome events.

Right now, our objective is to avoid risks inherent in the monetary system. And owning silver is

a good place to start.

But as you begin to purchase precious metals, there are a few avoidable risks that you should be

aware of…

#1: Many brokers and dealers work aggressively to switch buyers from the low mark-up

bullion products recommended, to high mark-up, high commission numismatic or collector

coins.

Selling these products—rare coins, proof sets, commemorative coins, and old silver dollars—is a

profitable business for them. Often the sales tactic involves representations about what will

happen in the event of governmental confiscation of gold and silver based on President

Roosevelt’s order confiscating the American people’s gold in 1933. In unspecified terms, that

executive order exempted “rare and unusual coins.”

Representations that future government actions must duplicate that order are baseless. And

although Roosevelt’s order applied to gold, the narrative is used to sell high mark-up

numismatics to silver buyers as well.

These well-honed sales narratives, although persuasive, are usually incomplete and sometimes

simply outlandish. But I understand that you may find such sales pitches hard to resist. Resist

them anyway because in a crisis or bartering situation you will have some difficulty explaining

to someone who wants two silver coins for something you desperately need, why he should settle

for one silver coin that you paid twice as much for because it has a rare date.

Page 14: Your Guide to Buying Silver

That is why I urge you to follow the product recommendations I made in this special report—

junk silver bags, American Eagles and Canadian Maple Leaf coins, and silver bullion bars.

Because if you do, you can ignore aggressive sales tactics and marked-up collector coins.

#2: Buying goods that cannot be delivered right away.

Unfortunately, in recent years, the precious metals business has experienced tight markets and

slow deliveries of coins and bullion. In a monetary breakdown, shortages and tight markets will

be the order of the day. For the time being, the slow deliveries have only foreshadowed the crisis,

reflecting a combination of limited mint production capacity and the surging investor demand I

have described. This has meant delays in the delivery of some items by as much as six or eight

weeks.

Such delays are unacceptable to me and should be unacceptable to you.

It is true that a metals broker, like a stock broker, enters the trading and wholesale markets on

your behalf, acquiring goods for you with your money. Although all must wait for checks and

even cashier’s checks from you to clear before making delivery to you, sometimes there is a

short period of days before settlement is made. That is common in the industry. Still, many well-

capitalized precious metal brokers can make immediate delivery to you from among the widely

traded products I have recommended upon their receipt of good funds.

But under no circumstances should you order and pay for precious metals that the dealer cannot

deliver to you within days. If there is a shortage of a particular product, you have two choices:

1.) buy something else that can be delivered right away, or; 2.) ask to be notified when the

product is available and buy it then. The price will have moved in the interim, perhaps against

you, but you will still have your money. Remember, this is the age of MF Global, Bernie

Madoff, and derivative failures. A great deal can transpire in an unstable environment of risks

that cannot be foreseen.

That is why I advised you earlier to take physical delivery of your precious metals and under no

circumstances leave them with the dealer to store for you.

#3: Be sure of what you are buying.

You must beware of products that are similar to my recommendations but do not conform in

some seemingly small way. As an example, a seller on Bay offered a product under the silver

offerings described as “1 Troy Oz. 100 Mills .999 Silver Bar” that was apparently nothing but

copper with a thin coat of silver.

But this is a risk you have minimized since you are not buying numismatic or collector coins,

and are following the specific recommendations I have made.