How to Choose a firm to invest with
Over the years, we've developed a great deal of experience in acquiring hard assets
for investors' portfolios. We've worked with highly experienced investors and people
who are making their very first hard asset purchase. We've worked with many people
on an exclusive basis as well as some who work with multiple firms. Given our wide
range of clients, we've developed some strong opinions on how a firm involved in
the sale of precious metals and rare coins should conduct themselves. Certainly,
we hope you choose Superior Precious Metals when it comes time to buy, sell or trade
rare coins, gold, silver, platinum or palladium. But no matter who you work with,
it's been our experience that you should work with a firm that meets a certain set
of criteria:
It's critical that you work
only with firms that have been around a long time.
Five years at a minimum...ideally ten years or more. As the price of gold, silver
and numismatic coins begin to rise, new firms will come "out of the woodwork." Some
will be solid, but many will not. Firms ten years old or more have been around through
thick and thin. They are dedicated to the hard asset markets and are usually owned
by and employ professionals who truly believe in those markets. These are the best
firms with which to establish a long-term relationship.
Check for credentials and
professional affiliations.
What are the professional organizations to which the firm belongs? Make sure they
are members of PNG (The Professional Numismatists Guild) and ANA (American Numismatic
Association.)
Always request written information about the firm. Do not buy until you have reviewed it and checked out the firm. Most of the better firms have literature you can request which will contain much of the information you need to conduct your due diligence.
Understand exactly how transactions
are going to take place.
When is the price set? You should expect to take delivery of your purchase (some
less reputable firms will ask that they hold on to your purchase - this is a big
red flag).
How long should you expect for delivery? Bullion and bullion coins should come to you within ten business days. Semi-numismatic (semi-rare coin or pre-1933 U.S. gold coin) and numismatic (rare coin) transactions may take longer. Make sure delivery times are within these industry standards. If they are not, it is yet another red flag.
Understand exactly how you
might liquidate your investment.
Firms may have many "great investments," but what about when the time comes to capture
any gains you make on the purchase? You should understand what means are available
to liquidate any inventory you amass. Sometimes firms will make a secondary market
through sales to other collectors, auctions, etc. This can be very helpful.
Understand price margins and
- critically - buy/sell spreads.
Many disreputable dealers make their money by "gouging" buyers with overtly high
spreads. Ask questions about the buy/sell spread when you're interviewing potential
firms and check the answers by comparing their claims with what other firms tell
you.
Beware of sales pitches.
If the firm calls you repeatedly with one "unbelievable deal" after another, be
careful - it may well be unbelievable. If they persist in trying to sell you something
in which you have no interest, this is another red flag. Resist and seek more information
and other opinions. Do not make a decision until you have received sufficient information.
Remember...gold, rare coins and other hard assets are a great investment. They virtually
"sell themselves," so any firm that has to resort to aggressive selling tactics
should be viewed with suspicion.
Check and compare pricing.
Cheaper is not always better. In fact, below market pricing should be a major concern.
If a deal sounds too good to be true, it probably is.
Trust referrals.
As with most things, sometimes the best firm to deal with is the one you are referred
to by a trusted friend or family member who has experience with that firm.
If you receive information
from a good firm, and you like what you see and hear, go with them.
If you have the slightest doubt, especially if the firm does not sufficiently meet
the criteria above, then go back to square one and start over. Naturally it's always
better to be safe than sorry.
To find out more information about Superior Precious Metals you can request
a FREE copy of Superior Precious Metals' 2008 Investor Information Packet
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