Hello, I was wondering if anyone has any information on Kitco. Is it legit, etc. This is the first time i have bought Silver, and before I buy I would like to know who I would sell it to if the need arose. Also if anyone has any recommendations for places to buy silver it would be appreciated.

Thank you

Fakes of junk silver abound nowadays.  Easier to fake than eagles.  A major reason to buy from a reputable dealer.

Kitco tracks the metals market. They are a legitimate source of information. Don't know if they even sell themselves, although I think they do. A lot of people advertise on their web site, not all are necessarily trustworthy. I recommend buying silver in cash from private parties and never putting it in a safety deposit box. I think silver dollars are best. There's usually no sales tax because it's money, not bullion. Also large bullion transactions are tracked by the government, and it's best to always have at least some silver and gold privately stashed away in case the government goes full-on rogue and tries to confiscate everyone's wealth. Older coins in the past were exempt from confiscation when FDR confiscated everyone's gold. In addition to silver dollars, "junk" silver -- pre-1964 dimes, quarters and halves -- are a good investment. In case of economic collapse, they will be useful for barter. Pre-1964 US dimes are a medium of exchange already in some collapsed third world economies. Also they can't be counterfeited & silver-plated like bullion rounds.

I agree with you regarding your statement concerning the buying of silver coins minted by a Government. Can you give me some examples of "Private Parties" that i can buy from?

Hi Coastal GA Trad (and others)

I have personally dealt with Kitco for gold/silver multiple orders.  They are fine, I never had any complaints about the transactions or any problems. They have been around for a long time, decades I think.  If you live in the US, there are many reputable places to purchase gold/silver from. It is worth checking prices and shopping around a bit, especially if you are doing a larger order.  Here are a couple more suggestions to get you started:

I haven't ever dealt with him, but he is one of the largest dealers and has usually some of the best prices.  I have never heard anything bad about tulving, they do have an order minimum to be aware of.

http://www.tulving.com/

Gainsville Coin is another big outfit, I haven't ordered from them (Im in Canada) but I never heard anything bad about them.

http://www.gainesvillecoins.com/

I think if I can make another order, I want to try an order with these guys, Provident Metals out of Texas.  They get great reviews and usually have some of the best prices around they also have a good selection.  I am especially interested in their fractional silver rounds.

http://www.providentmetals.com/

And this is a good site to check at a glance what the major dealers are currently charging for premiums:

http://www.comparegoldandsilverprices.com/

You can also consider supporting your local coin dealer.  If you live in or near a bigger town that has a couple.  It isn't a bad idea to at least make a couple smaller purchases locally to get familiar with them, even if you do end up ordering online to save money.  But get familiar with what premiums are going for on what you are interested in buying.  Don't get ripped off on premiums. Some small town dealers have pretty steep premiums.  But then again some small dealers have pretty good prices, plus a wealth of knowledge and experience.  It is always worth checking out what you have locally.

I hope this helps

Luke

Shop around to find the best price.  That said, the best prices I have seen recently are at Liberty CPM, Tulving, Gainesville, Provident.  All are reputable.  If you do a Google search on those names you will find web pages discussing them and their pros and cons and can also find other dealers that way.  Check the BBB website for complaints about any dealer in which you are interested.  Tulving has the lowest prices but delivery can take a while.  When checking price, pay attention to details like shipping and volume discounts.  If you are buying silver, demand is currently high so it can take a few weeks to get delivery.  Gold is generally not an issue in that way.

Silver generally speaking can be purchased in bar form, bullion coin form, and junk coin form.  Bar has the lowest dealer premium but bullion coins issued by a government (e.g. American silver eagles) are probably more acceptable to more people when you want to sell.  Junk coins are interesting -- American coinage pre-1965 was 90% silver, and a silver dollar that is 90% silver is worth (round number) about $20 today because of the debasement caused by the Federal Reserve.  I believe it is actually so bad now that pennies and nickels cost more to produce than face value (which means you can make a profit by selling them for their metal content (which is undoubtedly illegal by the way)).

Local coin shops where I live keep records (of at least some transactions) by law.  The records do not go to the govt but they certainly could should the govt demand them.  Local coin shops also are subject to state sales tax laws and only some states have exemptions for precious metals purchases and then sometimes only for larger amounts.

The sell value can be impacted by condition so be careful not to scratch up whatever you buy.  Some gold bullion coins in particular are .999 purity and scratch very easily.  Sell value is also a consideration in deciding what to buy -- a bar from a minor mint may not be as liquid as an American Silver Eagle for example.  For that matter, don't just look at the sell price, also pay attention to the buy price -- if you want to sell someday you don't want to have bought something at a really nice price that does not sell at a good price!

Precious metals is a vast topic -- there is lots of evidence of massive US government / bank manipulation of the precious metals markets to suppress prices to keep the dollar looking good.

Be careful about the websites where these topics are discussed, some of the best ones are frequented by people with very bad morals.  They know money and economics but nothing of God.  Reading the comments on such sites can be really informative but is akin to wading through a sewer.

Did you leave with real silver or did you leave with a piece of paper?

That's actually a really good question. A lot of people buy and sell paper that's supposed to represent gold and silver, particularly in the COMEX (formerly the Commodities Exchange) futures market. There's been speculation that some of the metal that gets traded that way doesn't even exist. Also, paper is -- well -- paper. Part of the whole point of owning gold and silver for a lot of people is to be able to hold tangible wealth in their hands. There is always a risk that good paper might become bad paper. An ounce of gold or silver remains an ounce of gold or silver.

I think I mentioned this earlier, but it bears repeating. Precious metals stored in a safety deposit box can get confiscated any time the government decides that's a good way to raise revenues. It happened in 1933, and it can happen again.