Metals Notes

An Introduction to Buying Gold 101

Part 1: Why Own Physical Gold?

As opposed to our usual format of discussing a hypothetical scenario, we thought an article along the lines of “An Intro to Gold Buying” might be in order. Both novices and sophisticated investors can benefit from a review of the basics. The following is a list, in no particular order, of some but not all of the reasons to purchase tangible gold.

  1. Physical gold ownership can be essentially and legally anonymous, especially when purchased from Jack Hunt Gold & Silver. We’ll elaborate on that point in Part 2.
  2. Unlike bank deposits, stocks and bonds amongst others, physical gold cannot default, go broke or file for bankruptcy.
  3. Physical gold is true money and it has been for thousands of years. Can the same be said for currency?
  4. Physical gold is real…it is tangible. Currency, stocks, bonds, etc., are just pieces of paper reflecting faith in promises by the issuer.
  5. Gold prices usually have an inverse relationship to the stock market and U.S. dollar. Investors long on equity markets or the dollar should consider hedging their paper bets with physical gold. This point reinforces the frequently advised notion of asset diversification. Many traditional paper asset bankers and brokers recommend at least a small percentage of one’s liquid assets be of the tangible nature. Having 5% to 20% of one’s assets in precious metals seems a reasonable level of diversification.
  6. Gold is easy to store. It is comparatively light, compact and easy to transport.
  7. Gold as a “safe haven” investment tends to at least maintain its value, if not appreciate, during world crises.
  8. During inflationary cycles gold historically outperforms other assets.
US Gold Eagle Coins

US Gold Eagle Coins

Part 2: Why Buy Gold from Jack Hunt?

There are several noteworthy reasons as to why you should purchase your precious metals from Jack Hunt Gold & Silver. Here are several to consider.

  1. Anonymity: Unlike virtually every other precious metal dealer in existence, our transactions are legally done the old-fashioned way…with pen and paper, not on a computer. Records of your transactions will not be drifting in cyberspace for eternity. Invoices are hand-written on a triplicate form. The original copy goes to the consumer while the two copies we keep are kept in house for three years then destroyed. The information is never entered on a computer and our copies can only be released with a valid subpoena within three years from the transaction date. We never sell or share your address, phone number or other related information like many other precious metal dealers do. Within the limits of the law your anonymity is critically important to us.
  2. Guaranteed Buy Back Policy: To my knowledge Jack Hunt’s is the only major precious metal broker that has a definitive buy back policy in writing and has had this guarantee in effect for nearly 40 years. Other dealers may buy back bullion, but their buy back policy is undefined in relation to the “spot” price.
  3. Non-Commissioned Brokers: Our sales professionals are here to execute your wishes. We will not steer you towards high mark up or illiquid products for our own personal gain. We will not call you without your permission. We offer knowledgeable insight but the decision to buy or sell is yours and yours alone.
  4. Financial Stability: Jack Hunt Gold & Silver is a family owned business that has been here in Western New York for over 50 years. We have a multi-million dollar credit line which allows us to be one of the few direct distributors of U.S. Mint gold and silver products in the world.
  5. Inventory: As an authorized distributor of U.S. Mint bullion products we have inventory when others may not.

Hopefully the reasons we’ve noted for buying tangible gold and other precious metals will help you to determine whether precious metals belong in your portfolio. Consider making Jack Hunt Gold & Silver your precious metal dealer of choice.