KMG Gold Recycling USA, Ltd is a BBB Accredited Gold Buyer in Grand Forks, ND
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Friday, September 15, 2017

KMG Gold Recycling Finds New Home, Opens Third Location In Winnipeg

September 15, 2017. Winnipeg MB Canada
KMG Gold Recycling has found a new home and head office at 1220 Pembina Hwy in Winnipeg Manitoba Canada. This new building, a former bank complete with impenetrable vault, will be the new head office and processing centre for the world famous, KMG Gold Recycling. KMG Gold Recycling founder and President, Michael Gupton says the new facility will house a gold depository, silver repository and will have the ability for customers to securely store gold and silver coins, bars, wafers and precious metal items in the first of its kind secure vault. Complete with after hours gold scrap depository services.
This news comes on the heels of the announcement that KMG will be opening a new gold buying outlet at 1514 Regent Av W, in Transcona, a suburb of Winnipeg.
KMG Gold Recycling started recycling and buying gold, silver, platinum, and palladium in 2007 and fast became the premier, published, and world famous source for the general public to recycle their unwanted gold jewelry, gold and silver coins, junk silver, platinum thermocouple wire, and dental gold such as gold crowns. Their success lies partly in their efforts to educate consumers about the precious metals recycling industry and how they can get the most money for their unwanted gold, silver, platinum and palladium.
KMG Gold Recycling will very soon have 4 locations in Canada and the United States. 620 Academy Rd Winnipeg, 1514 Regent Av Winnipeg, 1220 Pembina Hwy Winnipeg, and 1003 S? Washington St Grand Forks ND
Please visit https://www.kmggold.com for updates, locations, hours of operation, and also follow KMG Gold Recycling on Facebook.com/kmggold. Call toll free 1-877-468-2220
KMG Gold Recycling buys, recycles, refines, stores, insures and manufactures precious metals of any kind.



Posted by Mike Gupton at 6:09 PM 0 Comments

Monday, January 19, 2015

A Steel Penny?

The 1943 steel cent, also know as a steel war penny or steelie, was a variety of the U.S. one-cent coin which was struck in steel due to wartime shortages of copper. It used the same design that Victor David Brenner had made in 1909 for the copper Lincoln cent.


Due to wartime needs of copper for use in ammunition and other military equipment during World War II, the United States Mint researched various ways to limit dependence and meet conservation goals on copper usage. After trying out several substitutes (ranging from other metals to plastics) to replace the then-standard bronze alloy, the one-cent coin was minted in zinc-coated steel. This alloy caused the new coins to be magnetic and 13% lighter. They were struck at all three mints:Philadelphia, Denver, and San Francisco. As with the bronze cents, coins from the latter two sites have respectively "D" and "S" mint marks below the date.

However, problems began to arise from the mintage. Freshly minted, they were often mistaken for dimes. Magnets in vending machines (which took copper cents) placed to pick up steel slugs also picked up the legitimate steel cents. Because the galvanization process didn't cover the edges of the coins, sweat would quickly rust the metal. After public outcry, the Mint developed a process whereby salvaged brass shell casings were augmented with pure copper to produce an alloy close to the 1941 - 42 composition. This was used for 1944 - 46-dated cents, after which the pre-war composition was resumed. Although they continued to circulate into the 1960's, the mint collected large numbers of the 1943 cents and destroyed them.

The steel cent is the only regular-issue United States coin that can be picked up with a magnet. The steel cent was also the only coin issued by the United States for circulation that does not contain any copper. (Even U.S. gold coins at various times contained from slightly over 2% copper to an eventual standard 10% copper)

Looking for one for your collection? Stop in and check out our collection of coins at KMG GOLD.

Posted by Mike Gupton at 12:00 AM 0 Comments

Wednesday, March 26, 2014

Cutest Coins Ever Made? Anne Geddes For the New Zealand Mint

Photographer Anne Geddes has been long known for her adorable pictures of babies who are often photographed dressed as fairies, fairytale creatures, flowers and little animals. Her images have been published in books and calendars in 83 counties, and Geddes has proven herself to be a savvy photographer, clothing designer and businesswoman. Born in Australia and now living in New Zealand, Geddes has created a limited edition collection of coins for the New Zealand Mint.

Each of the four coins depicts a baby in typical Anne Geddes style - very cute, curdled up and sleeping! Each coin comes has a face value of $2 and is made of 999 fine silver. The first two coins in the collection were issued in 2012 (the babies sleeping on and in flowers) with additional ones issued in 2013 (baby in a cocoon) and 2014 (Christmas themed).

Sadly KMG Gold doesn't have any of these awesome coins in stock, but we promise we sell a wide range of other (slightly less cute) coins and bullion!
KMG Gold Recycling Anne Geddes NZ Mint Coins
Posted by Mike Gupton at 12:30 PM 0 Comments

Wednesday, December 11, 2013

KMG Gold wins BBB Environment Friendly Torch Award for 2013!

KMG Gold Recycling wins BBB Torch AwardWe're happy to be adding another beautiful Torch Award trophy to our collection this year. Our second win for 2013, KMG Gold has been awarded the Environment Friendly award from the Better Business Bureau. This is our fifth consecutive award from the BBB and we couldn't have done it without the nominations we received from our loyal and satisfied customers like you!

You might already know that the BBB Torch Awards is an annual program that recognizes businesses that build trust, advertise honestly, remain transparent in their business dealings, honor their promises and display integrity in all of their marketplace KMG Gold Recycling MIchael Guptonactivities. Companies are nominated by peers and customers and the winners are then selected by a panel of independent judges.

We're proud to announce that KMG Gold is currently the only company in the precious metal recycling industry to receive multiple BBB Torch Awards for Business Excellence and the only company to win the Environment Friendly award for 2013.

To be nominated for the Environment Friendly Award, a business must demonstrate leadership and innovation in minimizing the impact the business has on the environment. In our case, the environmental impact is much broader than just our business. All of the precious metals refined by KMG Gold are recycled and placed back into the world's precious metal markets. This helps reduce the demand for newly mined metals, which in turn, helps reduce both the amount of energy required to mine virgin metal, as well as decrease the amount of acid rock drainage generated by mine waste rock dumps and tailings ponds. By recycling their precious metals, KMG Gold customers have helped reduce the amount of acid waste rock generated by virgin mining of gold alone by more than three million tons.

Posted by Mike Gupton at 11:29 AM 0 Comments

Wednesday, November 06, 2013

Inside the KMG Coin Shop: The Swiss Franc

KMG Gold sells Swiss RappenAt the KMG Gold head office in Winnipeg, Manitoba, we try to curate a collection of coins that is both interesting and desirable to collectors. If you've visited our new ecommerce website recently and taken a peek around, you've probably noticed that we're expanding our coin and numismatic collection daily.

While we have an impressive amount of Royal Canadian Mint coins for sale, we're also proud to offer a wide assortment of coins from around the globe. We find it very interesting to be able to look at different currencies from different countries and see how they're similar to, and different from, Canadian money!

We like a little excitement in the KMG Gold offices so we thought we'd share one of our coolest coin finds of the week, the Swiss franc. Called Rappen in German or centimes in French, these coins are among the world's oldest currency that is still valid today. The oldest coins, the 10 Rappen, date back to 1879 and are still KMG Gold sells 10 Swiss Rappenmade of their original alloy of copper and nickel. In 1967, francs that circulated with face values of 1/2 franc to 5 francs changed in composition since their silver alloy was worth more than the face value of the coin!

It's interesting that a Swiss Franc from 1879 looks identical to a modern day Swiss Franc (except for some wear and tear!). And each coin is still inscribed with the words Confoederatio Helvetica, the Latin name of the Swiss Confederation.

Each coin that exists is an interesting connection to history and KMG Gold is happy to offer a small selection of this interesting currency online and in-store.

Posted by Mike Gupton at 11:00 AM 0 Comments

Wednesday, October 30, 2013

The Results Are In...We Won!

After receiving dozens of kind nominations from our happy customers and being named a finalist by the Manitoba and Northern Ontario chapter of the Better Business Bureau, we're happy to announce that on October 21, 2013 we were named the winner of the 2013 Torch Award for Marketplace Excellence.

We won the award for a midsize business and were recognized for our display of honesty, integrity and transparency in all out marketplace activities. It is because of our strong customer service that we were able to win this prestigious award and we never could have done it without support from YOU, our happy customers.

President and CEO Michael Gupton started KMG Gold from inside his home (in his dining room, in case you were curious!) in 2007 and when the business outgrew the space, he moved to a Winnipeg storefront in 2009. Since 2009 and since the inception of the Manitoba and Northern Ontario BBB in that same year, we have worked hard to win four consecutive Torch Awards each year since then!

One of the reasons why KMG Gold has been repeatedly recognized is thanks to our mandate of strong customer service and education. When a customer walks into KMG Gold, our goal is to make them feel at home and comfortable with the precious metal recycling business. We want to educate our customers on the processes involved in purchasing their precious metals so that they can make informed decisions when they decide to sell their gold, silver, coins, etc. We believe this is very important since this industry often attracts its fair share of unsavory characters who are willing to do anything to get a sale.

If you nominated us for an award - thank you! And if you didn't, come by and see what sets KMG Gold apart from the competition!
Posted by Mike Gupton at 10:00 AM 0 Comments

Tuesday, May 14, 2013

CASTING CALL AT KMG GOLD WINNIPEG

www.kmggold.com CASTING CALL: Wednesday May 15, and Thursday May 16, 2013

Ever wanted to get an appraisal for all of the weird stuff you've been saving for years? KMG Gold Recycling is having a reality show filmed at 620 Academy Rd in Winnipeg, Wednesday May 15, and Thursday May 16, 2013. The film crew and production compnay will be here as well as all of our experts for Coins, Militaria, Antiques, Paper Money, Watches, and of course GOLD, SILVER, PLATINUM, and PALLADIUM.
Get FREE APPRAISALS and be on TV!
If you have an item that has a story behind it, we would like to talk to you. Did your Grandfather have an old railroad pocket watch? Do you have a sterling silver set that was owned by Queen Victoria? Do you have a collection of gold or silver coins that is very old? We will evaluate it for free and maybe your story will be on TV.

Why Are You Selling Your Gold?

Tell us your story why you're selling your gold. Need to pay bills? Need to pay for home renovations? Need to pay for a vacation? Need to buy a new stove, fridge, washing machine and a dryer? Maybe you are just cleaning up your old stuff and it's time to get rid of it. Whatever your story is, we need to hear from you!
Bring Your Gold and Your Stories to KMG Gold Recycling
620 Academy Rd. Winnipeg Manitoba
Wednesday and Thursday, May 15-16, 2013, 9:00-5:00


KMG Gold Recycling | www.kmggold.com | 620-C Academy Rd, Winnipeg MB R3N 0E6 Canada
Toll Free: 877-468-2220 | Office: 204-452-4653 | Fax: 204-261-8752 | Email: recycle@kmggold.com
www.kmggold.com
Posted by Mike Gupton at 4:33 PM 0 Comments

Tuesday, September 06, 2011

Gold Prices

The London Gold Fixing is the most common benchmark for the price of gold. The London Gold Fix refers to a twice daily telephone meeting of committee members from five bullion trading companies on the London Bullion market.

Representatives from the five firms meet twice daily to set the price of gold bullion. However, gold trading goes on world over based on the intra-day spot price, which is typically taken from over-the-counter gold-trading markets globally.

Recent Price Increases

The recent increase in the price of gold can perhaps be traced back to 2008, when the gold price went above US$1,000 to peak at US$1,004.38. However, after the March 2008 increase, Gold prices once again fell to a low of US$712.30 per ounce.

But it wasn’t long before the prices begun to rise again in late February 2009. Towards this time, the gold price provisionally went above US$1000 but later experienced a slight decline towards the end of the first quarter of 2009. By the end of 2009, the earlier March intra-day spot price record of US$1,033.90 was surpassed numerous times in October.

The price of gold effectively began climbing new highs in late 2009, peaking at about US$1226 before a sudden slight decline. However, as of August 19, 2011, the price of gold had peaked at a new all time high of US$1852.00 at the London Gold Fix.

A number of factors account for the fluctuating price of Gold.

Like any other goods, the price of gold is largely determined by speculation, supply and demand. On the one hand though, saving and disposal also affect greatly the price of gold more than its consumption. The fact is, most of the world’s gold ever mined can be found in bullion bars or jewelry, but with minimal value in terms of gold’s fine weight. As of the end of 2006, estimates indicate that all gold ever mined globally summed up to 158,000 tons.

Considering the fact that vast amounts of gold are stored above ground than annual gold production, the gold price is mainly driven by alternating sentiment (demand), as opposed to annual production (supply).

Estimates from the World Gold Council indicate that annual mine production of gold in recent years has been around 2,500 tons. Out of this amount, about 2,000 tons goes into the jewelry and dental industry and a further 500 tons is used by retail investors and exchange traded gold funds.

There has never been a better time to sell gold given the high price of gold currently in the international bullion market. Generally, the price of gold has also historically gone up in uncertain economic situations, such as inflation, as investors rush to hedge against financial losses.
Posted by Caitlyn Diamond at 9:02 AM 0 Comments

Thursday, August 18, 2011

Buying Gold Bullion In Winnipeg

There has been a drastic increase in gold investment in the city of Winnipeg. People often chose to invest the spare cash they have into gold and then liquidate it when prices rise. Like other cities in Canada such as Calgary, Vancouver, Montreal, Victoria etc, Winnipeg is also becoming the hub of gold trading. Buying Canadian gold bullions can lead to a variety of options for people in regard to investment. As there is no lock period for the purpose of liquidating your investment, you can sell your gold when you want.

People reap certain benefits when they purchase gold:

• It is said to be the safest and most reliable form of investment, because the gold bullion is offered to people by the government. A variety of options are offered by the Canadian Mint for to invest in gold bullion. When you want to buy gold, you have the option of public or private parties. Trading is conducting with the help of spot prices but premium may also be charged. A Winnipeg gold buyer should remember that for gold investment, there are numerous ways. There are different ways to invest in gold so it is not necessary to purchase gold bullion.

• People can make use of the internet to make an online purchase and thus make an investment in gold. In this manner, people can use gold as a means of trading as they will not get their hands on tangible gold but it will instead be available in the form of stock or a commodity. But this is only applicable in situations where gold is bought for investment purposes.

• For people who are newcomers in the market and are making gold investments for the first time, there are literature and magazines which can offer all the necessary information about the gold market and explain its trends which can lead to better decision making. Reading them will be helpful in comprehending the moods and trends of the market and will help people in deciding the correct time for making or selling investments.

To earn top dollar as a buyer, one needs to spend time in educating oneself about the trends of the market and the different trading strategies which are used and will eventually allow you to get higher returns from your investment. If one wants good results, then for starters, small investments should be used and once people have analyzed and understood the market conditions and trends, huge investments can be made. To make a great profit in a short time, people can make large investments once they have gained confidence. The most liquid and highly paying investment is gold. But it requires large investments so one should be cautious. Before investing in private parties, people should get feedback from old clients and research it thoroughly. Before entering the market, one should be aware of the trends and political conditions.
Posted by Caitlyn Diamond at 9:10 AM 0 Comments

Thursday, July 14, 2011

Scrap Gold Buyer Online

Scrap gold buyer online in Canada, KMG Gold is the right place to sell gold. KMG Gold is the 2010 BBB Award Winner for Marketplace Excellence, Honesty, Ethics and Integrity in Business. This is enough proof for the integrity and ethics in business. You might want to read through real time customer testimonials in the KMG Gold website.

When we talk about buying precious metal bullion, we mean to talk about buying gold bullion, buying silver bullion, buying platinum bullion, buying palladium bullion, and buying rhodium bullion. It can be either one or more of these bullion types based on your affordability. These metals are precious because they are rare. Whether you are buying gold bullion or selling gold bullion it is very important you understand the reputation of the buyer and then go about the buying process.

Ensure that the dealer from whom you are buying the bullion is providing you with a consistently better price than the rest of the dealers. Since the prices for precious metals are transparently displayed in online gold selling sites you can safely compare the rates from different gold buying and gold selling sites about the price you can pay to buy for your gold or the price you can get for your gold, in case you are selling your gold.

When you set out to buy precious metal bullions you will find a mix of them in different weights, shapes and sizes:
• Gold coins, gold wafers, gold coins of different weights, gold bars, gold kilo bars
• Silver coins, silver wafers, silver coins of different weights, silver bars, silver kilo bars
• Platinum coins, platinum wafers, platinum coins of different weights, platinum bars, platinum kilo bars
• Palladium coins, palladium wafers, palladium coins of different weights, palladium bars, palladium kilo bars
• Rhodium coins, rhodium wafers, rhodium coins of different weights, rhodium bars, rhodium kilo bars

From the assortment of available choices you have to decide the form of bullion you would like to posses and you should make your purchase accordingly. If you want to buy precious metals in Canada whether you are looking to buy gold in Canada, buy silver in Canada, buy platinum in Canada, buy palladium in Canada, or buy palladium in Canada deal with a company who has a stable customer service in case you might want to deal with them after sale. A good dealer will answer your concerns even long after you have completed the purchase.

There are online gold buying websites that allow you to continue with the gold buying and gold selling round the clock. You can take your time and shop at your convenience to reach the best price possible for your purchase.

Posted by Caitlyn Diamond at 9:12 AM 0 Comments

Tuesday, July 05, 2011

Royal Canadian Mint

The Royal Canadian Mint is the official maker of the Canadian bullion and investment grade coins. The mint produces collectible, investment and bullion coins for various uses. The Mint also produces and issues all of Canada’s daily circulation coins. In addition, the Royal Canadian Mint also mints coinage for a number of foreign countries. The Mint has throughout history designed and produced different coinage from gold, silver, platinum and palladium. However, the Royal Canadian Mint also serves as a gold refinery and offers assaying services.

The Royal Canadian Mint begun in 1908, with the increasing demand for home made Canadian coins. Before then, Canadian coins would be minted in London, at the British Royal Mint. Canada was still a colony of Britain and its circulation cents were minted in Britain from 1858. However, the emergence of Canada as a nation demanded that it produces its own home made coins. To serve this demand, a branch of the British Royal Mint was established in Ottawa in 1901. However, it was not officially opened until 1908.

But even after it was opened and operationalized, the Canadian Mint largely remained an extension of the British Royal Mint until 1931. The Ottawa Mint officially changed its name to the Royal Canadian Mint that year. It was subsequently removed from the British and placed under the Canadian Department of Finance. But even so, the Royal Canadian Mint still largely relied on the British Royal Mint for things such as master tools used in punches and dies when minting. It was only in 1969 that the Royal Canadian Mint was given recognition as a crown corporation. This effectively ended its dependency and ties with the Canadian Department of Finance, making it a self-governing body.

The Royal Canadian Mint has produced collector and commemorative coins, bullion coins, bars, wafers and grain, medals and medallions ever since it was established. As Canada continued to emerge as a nation, there was an increased demand for coinage that saw the establishment of a new mint in Winnipeg. Before the Winnipeg Mint was commissioned in 1976, most of Canada’s 10 cents coins were being produced at the US Philadelphia Mint. The Winnipeg Mint mostly dealt with collector circulation coins while the Ottawa mint dealt with collector coins. However, the Winnipeg mint also doubled up as a mint for foreign countries, having minted currencies for 70 countries to date.

The Royal Canadian mint has produced some notable coins such as the Commemorative 1976 Montreal Olympics coins.

Sell Canadian Coins For Top Dollar

A stash of Canadian coins, whether silver, gold, platinum or palladium can earn you top dollar when sold to reputable refiners. Reputable refiners will pay an average six times more money than middlemen, pawn shops or pawn brokers and jewelers. Sell your gold, silver, palladium or palladium coins for the most money today!
Posted by Mike Gupton at 9:54 AM 0 Comments

Friday, May 20, 2011

Bullion Shortage Hits Gold and Silver Coin Market - 20 May 2011

Gold coin premiums shoot up...

WHILE precious metals are currently in correction mode, the long-term concerns with supply won't disappear anytime soon, reckons Jeff Clark, editor of Casey Research's Big Gold newsletter.

In attempt to get a handle on the Bullion market, I spoke to Andy Schectman of Miles Franklin, who has contacts that run deep in the industry. What he sees everyday – especially the shortages in gold and silver coins – might just compel you to count how many ounces you own…

Jeff Clark: Andy, tell us about your industry contacts and how you get the information you're privy to.

Andy Schectman: We source our product from three of the largest six primary US mint distributors. Having 20 years of experience with these sources, as well as the dealers in the secondary market, we're as tied into the industry as anyone.

Jeff: You made some interesting comments to me about supply and premiums. Tell us what you're hearing and seeing in the Bullion market right now.

Andy Schectman: I feel as though I'm the boy who cries wolf or that I've been beating the same drum for too long. But in reality, it has been my feeling since late 2007 that ultimately this market will be defined less by the price going parabolic – which I think ultimately will happen – and more by a lack of supply. You see occasional reports that state it's just a lack of refined silver or lack of silver in investable form. But as far as I'm concerned, there is a major supply deficit issue, and it's getting worse.

Take the US Mint, for example. Right now, as we talk, you can barely get silver Eagles. We're seeing delivery delays of three to four weeks, and premium hikes of a Dollar or more in the last three weeks. Most of the suppliers in the country are reluctant to take large orders on silver Eagles because they don't know (a) when they'll get them, and (b) what the premiums will be when they arrive.

I was talking to the head of Prudential Bache and asked him about silver Eagles. He said, "You know, as soon as the allocations come in, they're sold out. We can't keep them in." This is coming from one of the largest distributors of US Mint products in the country.

And this is all occurring in an environment that has only minimal participation by the masses. Few people in this country have ever even held a Gold Coin or a silver coin. So, if it's this difficult to get Bullion now, what's it going to be like when it becomes evident to the masses they need to buy? This is what keeps me up at night. 

Jeff: Some analysts say it's a bottleneck issue, that the mints have enough stock but just need more time or more workers to fabricate the metal into the bars and coins customers want.

Andy Schectman: No, I don't believe that. What business do you know that if they had that much profit potential wouldn't increase production and hire more workers to meet demand? To me, the "inefficient model" argument is an excuse.

Look at what the US Mint alone has done: they haven't made the platinum Eagle since 2008. They make maybe one-tenth as many gold Buffalos as they do gold Eagles. They've made hardly any fractional-ounce gold Eagles. Heck, they can't even keep up with the demand for the products they do offer. Does that sound like a bottleneck to you? Or is it because there is far more demand than there is available supply? It's pretty clear to me it's the latter.

Jeff: What are you seeing in the secondary market; are investors selling Bullion?

Andy Schectman: There is no secondary market. Absolutely none. Nobody is selling back anything, at least not to us. Think about that: if this was a traditional investment and your portfolio went up 100% in the last year, like silver has, you'd think some investors would take some profits and ride the rest out – but nobody's selling anything.

This is why I think the lack of supply is the single biggest issue in this market. And in time, I think it will become much more obvious. 

There are only five major mints – US, Canada, South Africa, Austria and Australia. Yes, there is a Chinese Mint and a couple Swiss Mints and some private refiners, but they amount to very little in the overall scheme of things. We're in a situation where the mints are limiting the selection and raising the premiums, and this is occurring at a time when most people own no Bullion. As it becomes more apparent that people want Bullion instead of paper Dollars, I think you'll see premiums go parabolic and supply get even tighter.

Jeff: Are you getting a lot of new buyers to the Bullion market?

Andy Schectman: More than ever. One of the interesting things we're seeing is a lot of younger people dipping a toe in the water, buying little bits of silver here and there. We're also seeing bigger orders, as well as more frequent phone calls from financial advisers asking us if we can help their clients. So yes, the base is broadening.

Jeff: That's very interesting. So are you seeing more demand for gold or Silver Bullion right now?

Andy Schectman: 90% of the new business is in silver. And I think that's indicative of the state of the economy. People are trying to get into precious metals, but they think gold is too high. I think they're Buying Silver because they realize the fundamentals for owning gold also apply to silver. They think the profit potential is better in silver, too. This has actually made the supply for gold better than it is for silver right now, and a lot of that has to do with price.

Jeff: Why are premiums fluctuating so frequently?

Andy Schectman: Premiums are almost impossible to gauge right now. Because the availability of product is getting smaller and smaller and the demand is getting stronger and stronger, premiums are changing literally overnight. And it doesn't take many large investors around the country to force premiums higher.

The net of this is that it's really hard for us to be able to say what the premium for a specific product will be two weeks out.

Jeff: You mentioned increased interest from fund managers. Tell us the kind of comments you're hearing and why they're buying Bullion.

Andy Schectman: I think it's coming from their clients. It's my impression that people are taking it upon themselves to study a little bit more, to be more accountable for their assets, and I think they're telling their financial advisors to Buy Gold. And in some cases it's because they don't want a paper derivative.

It's no secret that financial advisors don't like gold and silver. Once money goes to a Bullion dealer, it's not coming back to a stock portfolio anytime soon, so they discredit it. But now it's my impression they're being asked by their clients to buy it. So it's not necessarily because the financial advisor wants gold as much as it is the client requesting it.

Here's a good example. There's a firm here in Minneapolis that represents the Pillsbury fortune, and they asked me to talk to their partners about precious metals a few months ago. At the end of the conversation they said, "Okay, we're going to place an order for one of our clients." Upon hearing it was for one client, I thought it would be in the range of $50,000 to $100,000. Well, the order was for $5 million.

There are two astonishing things about this. First, that's twice as big as the largest order I've ever had. It was one order, for one client, who's brand new to the market. How many more potential buyers are out there like that? 

Second, they made it abundantly clear to me that it was out of pressure from one of their clients that they sought me out. So clients are increasingly demanding Bullion, regardless of what their financial advisers say.

Jeff: Hearing about all this new buying might make some think we're near a top in the market. Could that be the case?

Andy Schectman: No, no. I think Richard Russell says it best: "Bull markets die of exhaustion and overparticipation." Well, we're nowhere near that point when so few people in this country own gold and silver. Heck, I'm a Bullion dealer, and most of my peers don't own any gold and silver! Yes, you're seeing more commercials, but there are just as many commercials to Buy Gold as there are to sell it. I think that's an indication this market is not exhausted.

Remember that in the year 2000 everyone and his brother had some NASDAQ shares. That's an example of an exhausted or overparticipated market. We're nowhere near that.

Jeff: Where are the best premiums for silver?

Andy Schectman: The very best buy in silver right now is junk silver. And by the way, I think the term "junk" is unfair. It isn't junk anymore. It used to be junk in the ‘90s when silver was 3 or 4 bucks an ounce and it was sold basically at melt value and carried no premium. So I'd call it "90% dimes and quarters." Anyway, junk silver has the lowest premium right now and, in my opinion, offers the best upside potential.

Next would be 10- and 100-ounce Silver Bars. And then one-ounce silver coins – but the Eagles are very expensive at the moment, if you can get them. The Austrian Philharmonic has the best value in a one-ounce silver coin right now, and they're available. But again, premiums for all silver coins are escalating.

Jeff: What about gold?

Andy Schectman: Gold is not as bad. In fact, I would say that gold availability is decent right now for one-ounce coins and bars. There isn't much available in fractionals. And Buffalos are still kind of hard to get. Other than that, the one-ounce coins with decent availability are Canadian Maple Leafs, Australian Kangaroos, and Krugerrands. And they all have decent premiums.

Jeff: So the take-away message is what?

Andy Schectman: First, I think you said it best with your recommendation to "accumulate." Not only will it smooth out the volatility in price and premiums you pay, it will also give you a bird in the hand. If I'm right about this market, and I really believe I am, it will be defined by lack of availability of refined product. To combat that, just accumulate month in and month out, and be thankful when you're able to get what you want.

Second, it's about the number of ounces you own. You want to get as many ounces as you can without being penny wise and pound foolish. Stick with the most recognized products – don't buy 1,000-ounce bars, for example, because they're illiquid. You want to maximize your liquidity, and you do that by buying the most common forms of Bullion – one-ounce coins, bars, and rounds; 10- and 100-ounce products; and junk silver.

Last, keep in mind that premium and commission are two different animals. Commission is what the dealers make on top of the premium. Premium is what the industry bears. So if the US Mint is selling silver Eagles for $3 over spot to the distributors, that's before they're marked up to the public. So even though the "premium" is high, you're actually going to get most of that back when you sell. 

So, Buy Gold and silver while it's available, even if you don't buy it from me, because if I'm right, getting it at all could soon be your biggest challenge.

Jeff: Thanks for your insights, Andy.

Ready to buy gold or Silver Bullion, but worried about high coin premiums? Try KMG Gold... 

Posted by Mike Gupton at 8:30 AM 0 Comments