Quote:
Originally Posted by Tishabet
I can understand investing in precious metals, but isn't physical receipt of th bars a bad idea? I.e. Aren't you losing a percentage both ways by physically taking possession of the commodity in the form of bars or whatever? I'm not disputing the cool factor, just wondering if it makes sense from an investment standpoint.
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All valid points. I have no experience with paper receipt of metal, though I've been called by a number of companies that handle leverage accounts. They all promise the option of taking delivery of the metal but there's always been a few details of how it would work out that make me decline their offers.
Understand I've never ordered any precious metals, one would have to absorb shipping and insurance both ways. Then the buy-sell spread both ways, your chosen metal would have to go up x% just to break even.
Then where are you going to store the stuff? Safety deposit box? More money. $20k in gold doesn't take up much room, I guess you could stash that somewhere in the house. That much silver starts getting pretty bulky.
I've talked a lot of people out of buying with these kind of arguments, perhaps you have to be a bit irrational to get involved with the stuff.
Jim