How to Buy, Store, and Sell Precious Metals with SchiffGold
This article was written by Dickson Buchanan, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
Due to the high level of response from our readers to the first article we posted on the benefits of our low cost vault storage solutions, we wanted to follow up and delve into the details of how to buy and sell gold and silver stored in a domestic or international vault.
To begin with, creating a storage account through our storage partners is a simple and easy process. Individuals as well as corporations, LLC’s, trusts, partnerships and other legal entities, can open an account. There is a one-page form to fill out, a couple of identification documents to provide, and in about two to three business days, your storage account will be opened. As our website details, we have domestic storage locations here in the US in addition to strategic international jurisdictions abroad.
Once the storage account is created and you have your assigned account number, you can then proceed to buy your physical metals from our firm.
This is also a very easy process. We believe in the power of developing personal relationships at SchiffGold, therefore every customer works one on one with a knowledgeable precious metals broker who can offer tailored advice and customized solutions for your investment objectives with the metal. This is true not only for advising on which storage solution is best for you, but also with the actual purchase of physical gold or silver. To purchase gold and silver for your vault-storage account, just call up your broker and indicate to him which products you would like to order and in which vault you would like them stored. Your broker will execute the transaction on your behalf. Once payment is fully processed your metals will make their way to the vault you selected.
Once the metals arrive at the vault, you will receive a confirmation delivery indicating that your metals have safely arrived safely and are now uploaded into your storage account.
From this point on you have complete control over the metals in your storage account. You can do any of the following;
- Set up an appointment to visit the vault and view your metals.
- Have your metals shipped to another location or address.
- Buy additional metals to be stored under your account at the vault.
- Sell your metals back to us for currency.
Let’s examine each of those options a little more in depth.
Setting up an appointment to visit the vault and view your metals is not difficult at all. The main thing to keep in mind is that you can’t just show up at the vault. You must call and schedule an appointment to view your metals. A previously scheduled appointment is absolutely necessary because of the high level of security and privacy these vaulting institutions maintain. In addition to scheduling an appointment, you will need to provide verification ID’s for all the visitors who will be visiting the vault. The vault may require additional information such as multiple forms of ID, the license plate number and type of vehicle you will be arriving in and other information deemed necessary by the vault and the storage provider. Upon arriving at the vault, you will be directed by a vault associate into a viewing room. There your metals will be pulled from the vault and you will be able to view and inspect your metals in the viewing room. Once finished, the metals will be resealed and returned to the vault.*
Second, you can have your metals shipped to another address or location of your choice. This process can be started by simply calling your broker, storage provider or sending them written notice of your intentions to have either part or all of your metals shipped to the address you choose. This is officially called a withdrawal request. It can be for a portion of your account, or you can request to withdraw your entire metals holdings. Once the request is received it’s just a question of where you would like your metals shipped. The vast majority of shipments are sent via UPS. Shipping and insurance quotes will vary depending on the shipping vault and the host destination. For specific rates, please contact your precious metals broker and have him get a quote for you.
Third, you can add to your vault holdings by buying additional metal to be stored in your account. This process is identical to making your first purchase. Simply call your broker, place your order and your metals will be confirmed into your account once they are received at the vault.
Fourth and finally, you can sell your vaulted metals back to us at any time. SchiffGold has its own accounts at each storage vault. This allows us to easily facilitate the sale of your metals should you desire to do so. To sell back to us your vaulted metal, simply call your broker and indicate the amount and type of metals you would like to sell. Your broker will then quote you based off the current market price. If you want to proceed with the sale, you will close the transaction with the broker and lock the price in just like when you bought the metals initially. Once the price is locked in, there is a one page form, called a “Metal Movement or Transfer Form” that will need to be signed and sent to the storage provider. Once all storage account dues are paid in full the metals will be released from your account and transferred into our account at the same vaulting institution. Upon receipt of those metals in our account we will then wire the funds to the account that you provide as payment for the metals you sold to us.
This option of selling your metal back at a later date assures complete liquidity for your vaulted gold or silver. Gold is already one of the most liquid assets in a wide variety of market conditions. In fact, gold (and silver) is liquid in just about every conceivable market condition except the proverbial Robinson Crusoe example where one is stranded on a desert island.
While we are very sure that gold will be around in the next 5 to 10 years, we are not so sure that certain fiat currencies will be around. So when it comes to the option of selling your metals, keep in mind that this option is available only as long as there is an active dollar to gold price. One can scarcely think of any good reason to part with their gold only to exchange it for worthless paper. Yet it is worth mentioning because certain companies will offer “guaranteed buybacks” in order to persuade potential clients to buy collectible products that end up doing more harm than good. However, if fiat currencies become so devalued that the pricing mechanism breaks down and gold is no longer offered for fiat currency, then of course, this trade won’t be available. And no one in their right mind would want to trade their true money for fake money anyway.
We hope this article has helped clarify the additional services that SchiffGold offers to our clients. To discuss how our vaulting solutions can help secure your financial objectives please give one of our knowledgeable precious metals brokers a call today.
*There are fees associated with visiting and viewing your precious metals at any vault institution. For more information on what those fees are, please call 888.465.3160 and ask to speak to a precious metals specialist.
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