Buying Gold and Silver: The Why and The How

[Note: Readers have been asking me how to buy gold and silver so I thought it best to give some advice from my own experience on how to buy it if one feels led to do it. I realize this would be a new experience for most people.]

The American Founding Fathers knew that the only real money on this earth was gold and silver.  That’s why they wrote it into our constitution:

“No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts…”

U.S. Constitution, Article I, Section 10

This was the prevailing opinion among a group of intelligent, educated and moral men.  I cannot think of any other group of 55 people coming together in all of human history with the purpose of setting up a government that were armed with those three qualities.

It is perhaps appropriate that the highest form of money on this broken and sinful earth is also to be the pavement, the surface of the roads to be trodden on by brothers and sisters for ages to come in the New Jerusalem:

“The great street of the city was of gold, as pure as transparent glass.”

Revelation 21:21b, NIV

The U.S. Coinage Act of 1792 established that every U.S. Dollar was to be equal to about 3/4 ounce of silver, and that twenty U.S. Dollars was equal to one ounce of gold.  U.S. money was silver and gold from 1792 until 1933.  In 1933 the collectivist and tyrannical administration forced paper on Americans as their money.  Prices may have risen and fallen over the nineteenth century, but overall net inflation was zero.  In 1792 an ounce of gold bought the best men’s suit.  Someone holding that one ounce of gold in the early 1900’s could have also bought a really nice suit.

Money in general must be usable as a convenient medium of exchange but must also inherently have and preserve its own worth.  Gold and silver has been used for 5,000 years to do just that.  This is why a reserve of gold has been part of the core holdings of every major central bank in the last three centuries.  But in the last hundred years or so central banking has done a thorough job of manipulating the price of gold and scaring the common person from holding it.  Unlike the Founding Fathers bankers have proven that by and large they are not moral (by bankers I am not referring to tellers and loan officers, but to the leadership of banks).  The only people Jesus got physical with were bankers.

The current system of western banking (which today is in fact insolvent since 2008) which uses U.S. Dollars and Euros to manipulate markets and prices, will be removed and shown for what it is after the Second Signpost begins.

Why Own Gold Now?

Just as every American household was its own central bank through the 1800’s, every household can be again but only if one is prepared.  Gold has been the safe haven to store wealth every time a currency becomes worthless.  Gold coins are an excellent ticket to bribe border guards so one may pass.

The Second Signpost will most likely end the U.S. Petrodollar system.  This will be the nail in the coffin for the dollar maintaining its value and thus the end of wealth for people holding their assets in U.S. dollars.  It may be very soon.  Gold allows one to transfer wealth from the old currency to whatever is the next currency.  During times of hyperinflation which is a currency event that the dollar will go through, gold and silver will help your family eat.

As I was writing this article I looked on Jim Sinclair’s site.  He was just repeating his big message – “GOTS” – “Get Out of The System“.

How to Buy Gold and Silver

Gold coins and a gold ingot.  This is an excellent insurance policy to deliver your provision from one currency system to another.

Gold coins and a gold ingot. This is an excellent insurance policy to deliver your provision from one currency system to another.

Here are some tips for purchasing gold:

1) Buy coins not ingots nor bars (unless you are incredibly wealthy and need to store millions of dollars).  Coins (1-oz, 1/2-oz) are mobile, convenient, and typically will not need to be re-weighed when using them for barter or if you need to sell them.

2) Buy 90% gold coins not the pure 99.999%.  The latter type such as Canadian Maple Leafs will easily scratch lessening their value somewhat.  The 90% gold coins such as American Eagles can stand up to wear and use as money.

3) There are two kinds of gold coins – bullion (Eagles, Maple Leafs, Krugerrands) and numismatic coins (i.e. old coins that are collected).  The jury is out on whether gold will be confiscated again.  I don’t think it will, but one never knows.  Numismatic coins have a collectors’ premium of 30% or more, but having a fraction of your coins in this form would most likely escape a confiscation as it did in 1933.

4) Buy from reputable firms.  Do not buy from outfits who advertise on TV.  A good firm will typically charge less than 5% commission on your purchase.  10% is still alright but heavy.  20-30% or more is the realm of the scammers and corner Gold dealers that have popped up.

5) 1-oz coins have less commission.  Half ounce and quarter ounce coins have increasing commission.  Some half ounce and quarter ounce coins might come in handy for barter but they are more expensive ounce-for-ounce.

6) You can track the spot price for an ounce of gold yourself either on financial news on TV or at Kitco online.  That way you can also compute the commission you will pay.

7) There are two kinds of dealers to go with – buy from a national gold firm which does business by mail, or find a local gold or coin dealer.

8) Major national firms that I have dealt with and whom I can recommend are Monex Precious Metals and Schiffgold.  With either of them you set up an account, wire money or mail a check to them, and you call them and tell them what you want to buy.  Both companies will mail you the product discreetly.  Monex will even store it for you for a small monthly fee.  Both companies only allow sales and purchases in lots of 10 1-oz coins at a time.

9) If you cannot buy 10 ounces at a time your local coin dealer will sell them to you on an individual basis.  Ask them what their mark-up is on gold coins.  If it’s greater than 10% go elsewhere unless you are late, the price is going up and gold is hard to get.

10) Only buy physical gold – not paper like in ETFs or futures.  Buy gold that you can hold in your hand.  If you can hold it, it is really yours.  If you cannot it may be legally yours but it still is not yours until you get it into your hands.

U.S. 90% silver, also known as junk silver.  Pre-1965 silver halves, quarters and dimes.

U.S. 90% silver, also known as junk silver. Pre-1965 silver halves, quarters and dimes.

Silver is poor man’s gold and should be useful for everyday purchases like groceries.  Before paper money, before 1913, a typical day laborer would earn $2 in silver coins and could buy a week’s groceries for $1.  Here are some tips for purchasing silver:

1) Items 1, 4, 7, 8, and 10 above for gold apply here to silver as well.

2) There are two kinds of silver coins one can buy.  The first is pure silver bullion coins typically one ounce each.  Silver eagles are an example.  The other and my preferred method is to get what is called either “90% US silver” or “junk silver.”  These are silver coins, pre-1965, dimes, quarters, and half-dollars.  Silver dollars are not included because they will have a large collectors mark-up.  Every silver half dollar contains half of ¾ ounce of silver.  Every quarter is one quarter of ¾ ounce and every dime is a tenth of ¾ ounce.  You can typically get these coins at a coin store.  Some stores sell it pre-packaged by face value, and others let you pick through their inventory.  This may be confusing, so as an example let’s say you want to buy $100 “face” in junk silver.  This could be 400 quarters or 1,000 dimes.  $100 would contain (3/4 ounce per dollar X 100 dollars) 75 ounces of silver.  If Kitco shows a price of $20 per ounce, then $100 face of junk silver coins would be ($20 per ounce X 75 ounces) $1,500.

3) Silver bullion can be bought at Monex and Schiffgold but junk silver can usually only be had at local coin stores.

Do not trade in silver and gold.  Do not buy and sell it hoping to make a profit.  When the currency event happens and gold goes to the sky you will be left out if you are caught without it.  Silver and gold is not an investment – it is insurance for your provision.  You don’t buy and sell insurance policies do you?

Pray about this topic.  With gold and silver you are your own central bank and immune from the corruption and judgment of the western banking system.  One might sound righteous by saying he would depend on the Lord and not get gold or silver but when the economic rug is pulled out from under our society, those without gold and silver become dependent on others with it, and become part of the problem rather than the solution.  The Lord can do miracles but He usually uses those with resources to help others.

Lastly, gold and silver are resources, not your god.  Trust in the God, not idols of silver and gold.  Make sure your heart is with your treasure in heaven not down here where thieves can break in and steal.



Categories: Preparation, Signpost #2: Iran

Tags: , , , , ,

25 replies

  1. What oz coin do you think will be best to have? Which would be the most “barter-able”?

  2. This is very helpful Mark, thank you. A very practical and valuable guide for the days to come.

    Blessings!

  3. http://www.apmex.com/ is a good alternative also for buying PMs

  4. Paigenoellet,
    My favorites are 1 and 1/2 ounce for gold, and the halves/quarters/dimes for silver. 1/4 ounce gold commissions are too high in my opinion.

  5. Rob H,
    I’m sure there are more reputable companies out there; I was only able to recommend the two I have done business with. If you have used Apmex and like them, thanks for the recommendation.

  6. Would you be able to barter easily with that though since it roughly is equivalent to around 1200 USD? So you would likely recommend having silver for common “cheaper” purchases?

  7. Paigenoellet,
    Gold is generally for paying debts, buying land, and supporting your needs long term. Silver is day-to-day. For perspective, look at what our fathers experienced 100 years ago – two silver dollars was a day’s pay but an ounce of gold was two weeks pay. Gold and silver may very well return to these values.

  8. I buy small denominations. When the stuff hits the fan, when Iran detonate the nuclear EMP (Electromagnetic Pulse) over half of America, shutting down the INTERNET for several weeks, you do not want to pay a whole ounce in silver for a loaf of bread because the merchant has no CHANGE. So small denominations, like 1/4 ounce, 1/2 ounce of silver will help you pay for small necessary items. You will NEED the large coins and gold for gasoline, i.e. the upcoming gas embargo from the Middle East. In the mean time, find alternative ways to generate energy and move your car. The movie PUMP shows you how to turn your typical car into ethanol and methanol car and YouTube shows you how to turn sugar and wood into ethanol and methanol. Also, buy a generator and guns to protect it. Do not let neighbor’s know your emergency supplies otherwise a Liberal neighbord might call Homeland Security and they will confiscate your supplies for the “benefit of the government”.

  9. You’re welcome Brother Mark. Great article and it is right in line with what the Lord has revealed to me. Also another good website is https://www.gainesvillecoins.com/. I like APMEX better because of the free shipping, better inventory, I can buy one coin at a time and stay within my budget, and quicker delivery…and I am a “gold bug” like many people on the KITCO forums. The key is to compare the final cost of similar coins between sites, stay within your budget, and buy bullion (much lower premium). I will buy numismatics sometimes because I like coin collecting but for a hedge of protection against an economic collapse, stack bullion. We may not have much time if the Mystery of the Shimetah, as presented by Jonathan Cahn, is revealed this fall. Pray about what The Lord will have you to do!

  10. Amen, Rob. APMEX shipping one coin at a time can be an advantage. I have some numismatics because diversification is almost always a good thing.

  11. Martinezjosei,
    Small denominations indeed. Silver dimes are an excellent way to do this. As far as change goes, save your copper pennies dated prior to 1982.

  12. This is an excellent article and discussion Mark. A couple of notes:

    * it is my understanding that any gold purchase greater than $10k at a time is reported to the US Gov’t. If an emergency develops they very well may seize the records of gold retailers to see where even smaller amounts were delivered.
    * I think there is a high probability that the USA will confiscate gold. If they did it in the 30’s what will stop them in a real emergency? They may need it for oil and other international trade purchases because the dollar may become worthless. Gold may be confiscated for the common good, just as guns and food may be.
    * The USA and other G20 nations may then issue a gold based currency that will probably be digital. It is a step toward the Mark of the Beast.
    * Silver may become a medium for exchange. 1 oz. of silver is now going for $17/oz. If this price escalates by a factor of 10x to $170/oz., a one oz. silver coin could become a modern “denarius,” a day’s wages as it was in biblical times. Eventually though, the USA will want to control currency and will want to shift to digital money.
    * Silver is easier to purchase and will probably be safer (no confiscation) and more useful than gold.
    * Having something other than gold or silver for barter is not a bad idea. Skills are also possible barter material. Everyone should have alternatives planned.

  13. Here is some info that we all need as a vector on what coins to buy and if the laws don’t change: http://www.jmbullion.com/reportable-bullion-transactions-infographic/

  14. I have heard silver is a better buy than gold during war, hyper inflation, deflation..

    Whatever the current ratio of silver to Gold is now, it gets to be closer to 14 to 1 ratio during war, hyper inflation or deflation.

  15. All good thoughts, Nelson. Of course there is the debate over whether or not gold will be confiscated. As I said in the post I don’t believe it will be.
    But just to remind everyone the purpose of this post is to educate people on how to get gold and silver if they believe they should do so.

  16. Rob H. That is a very useful article on USA reporting requirements

  17. Progressive ideas in solar or alternative energy could be of advantage as well.

  18. Gold will only be confiscated if and only if the Second Ammendment is nullified. Congress can pass any law they want but the armed people will decide if they will allow it! Gun confiscation must happen first before gold confiscation. No gun confiscation, no gold confiscation, period! But gun confiscation can only happen under Martial Law! But Martial Law (and Internet control) can only happen for six month, under a real national emergency. If Iran detonate an EMP over America, that will be a national emergency!!!

    But of course, if the dollar collapses then there will be no need for an EMP attack.

    But also, if the price of oil skyrocket then a similar scenario might actually happen!!!

    I believe God had allowed silver affordable so far for His people to be able to prepare economically! while allowing gold to go high as a warning and example of what to come to silver.

  19. martinezjosei, I think you make a very good point about the price of gold and silver. The world elite have held the price down for their own protection, but it may be the hand of God allowing his people to purchase now, not for ourselves, but to act as “Josephs” in the coming famine. Nelson

  20. Nelson, martinezjosei,
    You both have touched on another good point. The amount of gold supposedly held by our government vs the amount of dollars out there in print physically and electronically, has made estimates for the true gold price in dollars right now anywhere from $7,000 to $10,000 per ounce. So whether gold is $1200 per ounce or $2000 per ounce it really is the buy of a lifetime. Nelson is right – for those people who know the truth, gold is a steal.

  21. Thought you might this interview by KT McFarland on the fact that Iraq is no more. She also mentions that Iran is purposely trying absorbing the Sh’ias.

    http://www.realclearpolitics.com/video/2015/05/28/kt_mcfarland_the_dirty_little_secret_is_there_is_no_more_iraq.html

  22. Gary,
    This topic came up a few months back. There is an Iraq as long as Baghdad remains its capital, and there are still democratic elections.

  23. This is interesting, but if things get very bad the currency of choice may become seeds.

  24. Chris f,
    You’re right. But anything desired by people can become a medium of exchange. Silver and gold have a good chance of being accepted by a wide scope of people. But things as varied as nails, Roundup, 2×4’s, watering hoses, bottled water, beans and rice, toilet paper, antacids, vitamins, a shovel, mouse traps, ammo, and the list goes on and on, can be currency.
    God bless your preparations.

  25. My grandfather bought a lot of gold in his lifetime, he made it something of a hobby. He passed away a few months ago and I am thinking about continuing his tradition. Plus, I think it is a great way to keep your money safe. I’m glad I stumbled across these tips, I will definitely be buying 90% gold instead of the other. I will be looking into cash for gold here in Florence, KY. Thanks for sharing!
    http://www.advanceucash.com/services

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