Welcome to Our Frequently Asked Questions Guide

Please use the cataloged information we have available as a way to help make your purchasing decisions clearer. Feel free to share our findings in order to help spread the overall knowledge of gold and silver.

As always, please contact us with any further questions or when you’re ready to make a purchase and our experts will be more than happy to help.

How Can I Safely Store My Physical Gold and Silver?

Your precious metal holdings can be stored at home, in a safe deposit box, or at a depository warehouse.

Storing your coins and bars at home is typically the least expensive option, but does carry an increased risk of theft. Home storage is as secure as you make it, with many customers opting for a well-hidden safe. It’s important to remember the first rule of storing precious metals at home: never talk about storing precious metals at home. Other benefits of home storage include increased liquidity and zero counterparty risk. In plain English, this means your coins and bars are available to you at a moment’s notice and you don’t have to trust anyone else to protect them.

However, under normal circumstances, offsite storage is more secure. A safe deposit box in a bank is less expensive than a private warehouse; however, during a financial emergency, there may be a bank holiday, and the safe deposit box may not be accessible. It should be noted that even in the Great Depression, depositors did not lose the gold in their safe deposit boxes, but we cannot predict the future.

For maximum security at an additional cost, private storage facilities are available that specialize in storing precious metals. Euro Pacific Precious Metals has strong relationships with storage facilities in the US, Canada, and Switzerland. While private storage presents additional costs, we think it is an excellent option for customers with large holdings or those looking to keep their metals overseas.

Once you’ve purchased physical gold or silver, the next question is where to keep it. While there may be some peace of mind having your bullion in a safe at home or in your bank’s safety deposit box, there are also compelling reasons to hold your precious metals in a dedicated storage facility.

Royal Gold recommends Delaware Depository Service Company (DDSC) and International Depository Services (IDS) as secure storage solutions for our clients. DDSC has facilities in Delaware and Zurich, Switzerland, while IDS stores metals in Toronto, Canada. Both have excellent reputations within the precious metals community. These private storage facilities are audited numerous times by external firms, as well as undergoing continuous internal audits, to ensure the safety of your investment. Should a crisis occur that causes banks to close, depositories such as DDSC and IDS are more likely to remain open, allowing clients to access their metals at a time when safety deposit boxes or regular bank withdrawals may be unavailable.

Most importantly, every ounce of silver or gold deposited at these recommended storage facilities is fully allocated, which means all the metal is 100% physically present at the storage facility. This isn’t a fractional reserve system, where just a small portion of your wealth is kept on hand while the institution gambles with the rest. Your metal remains physically on-site, and available to pick up, ship, or sell back to us whenever you choose.

Dedicated storage also allows investors to diversify geographically. As many Euro Pacific customers agree, governments can be volatile – especially in times of economic crisis. By keeping some of your holdings in historically stable countries like Switzerland or Canada, investors are able to hedge against political risk here at home.

The ease of selling and buying metals is another excellent reason to consider dedicated storage. When you purchase metals from Royal Gold, we can ship your purchase directly to your chosen facility as soon as we confirm receipt of your payment. Shipping is free within the United States and at only a minor additional cost to Zurich and Toronto. Royal Gold maintains accounts with DDSC and IDS so that your metals can be easily sold back to us without the cost of shipping or insurance. All it takes is a phone call to lock in the price, after which ownership of the metal will be transferred within 48 hours, while a check is sent or funds are wired to your account.

Even better, the cost of ongoing storage is also very affordable. Beginning on the day the metal is received, storage with DDSC is prorated at a cost of 0.5% of the stored metal’s average daily value, while IDS charges 0.7%. Clients are billed twice a year, every January and July. For an additional cost, segregated storage is available, meaning your metal is kept physically separate from all the other holdings in the facility.

Can I Easily Sell My Physical Precious Metals?

It is good practice to ask about the liquidity of any investment. Liquidity refers to how easy it is to buy or sell an asset quickly at a similar premium to what you paid. Physical precious metals are more liquid than many people expect.

Physical gold and silver prices are based on the floating “spot price” of the respective metals. Your physical precious metals should only cost a few percentage points above spot and sell for a few percentage points below spot. This is called the “spread.” A narrower spread means a more liquid product.

Generally speaking, the most commonly recognized products are the most liquid. That is, they are the easiest to sell at the best prices. These include products like the gold & silver American Eagles and Canadian Maple Leafs.

Often there is a correlation between premium and liquidity. In the case of an American Eagle, you may pay a little more upfront for the coin, but when you want to sell it, it will likely fetch a better price than a less well-known product. Privately minted products often have lower premiums, but in turn may be slightly less liquid. Think of liquidity like a used car: would you pay more for a recognized brand like Toyota or BMW, or an uncommon foreign sedan you’ve never seen on the highway?

Royal Gold is committed to only selling the most liquid products, which is why we don’t offer numismatics, proof sets, or special editions. We offer competitive buyback rates on the products we sell, and have some of the best prices in the industry.

Selling your gold or silver back to Royal Gold is very easy. Simply give us a call to lock in a price on your products. When you’re ready to proceed, we provide a shipping address to send your metal. We typically recommend using the United States Post Office, which has flat rate boxes that can be insured up to $25,000. Once we receive and verify the contents of your shipment, we send your payment via wire or check.

Some investors worry about liquidity in the case of a chaotic financial situation, such as a natural catastrophe, stock market collapse, or hyperinflation. However, history shows again and again that people embrace hard assets like precious metals during times of crisis. It is likely that in an emergency, a large variety of items would be available to exchange for your precious metals – from fuel, to food, to shelter. After all, that’s one of the main reasons investors hold physical gold and silver in the first place.

What Are The Benefits of Owning Physical Platinum?

Considered the rich man’s gold, platinum is the rarest of all the precious metals, more rare than gold by about 30 to 1. With only 135 tons of the white metal mined annually and high industrial demand, platinum typically trades at a premium compared to gold. Currently, platinum trades at a discount to gold, one of the few times it has over the past 50 years. Still, platinum outperformed gold in 2012.

The largest consumer of platinum is the automotive industry, with the metal made into catalytic converters, which render the fumes from internal combustion engines less toxic. We expect this demand to grow with more stringent air standards worldwide and as citizens in the booming East Asia economies demand their own vehicles. As a metal that is hard to tarnish, platinum is more durable than silver or gold in jewelry, and more coveted. The jewelry demand for platinum continues to increase, with China and India leading the way. Jewelry and industrial uses consume an estimated 90% of the platinum mined annually, with the balance going to investments.

Platinum holds opportunities both as a store of wealth and a speculation on its future price growth. The white metal is 30% below its all-time high price, whereas gold is 11% below its all-time high.

Royal Gold sells physical platinum in a variety of coins and bars to fit your needs.

What Are The Benefits of Owning Physical Palladium?

Along with platinum, rhodium, ruthenium, iridium, and osmium, palladium is known as a platinum group metal (PGM). All of these metals share similar properties and are often found together in nature. However, there are critical differences that determine the relative industrial utility and market price of the different PGMs.

Because all the PGMs are very rare and difficult to mine, the markets for these metals are much thinner than for gold and silver. In fact, platinum and palladium are the only ones commonly bought and sold. They do not trade on futures markets and are mainly bought by industry and investors in physical bullion.

Like platinum, palladium is an integral part of catalytic converters, which clean toxic vehicle emissions. This use accounted for 71% of palladium’s global consumption demand in 2011, followed by the electronics industry with 16% of global consumption, the dental industry with 7%, and the remaining split between jewelry, investment, and chemical industries.

Because of strengthening automobile and electronics demand in emerging economies and labor unrest in South African mines, palladium hit a nine-month high at the end of December as some predict a shortfall in the new year. The mining supply is limited, with Russia and South Africa accounting for about 80% of annual global output. Though it has risen 300% since its recent low in 2009, palladium remains 46% below its record high.

For those willing to accept higher volatility in return for potentially outsized returns, palladium remains an attractive option that fits into Peter Schiff’s overall investment thesis.

Royal Gold offers 1-ounce palladium Maple Leaf coins issued by the Canadian government. The US Mint does not currently offer a palladium product, though it was authorized to do so by law in 2010. A study has been completed and may lead to the product being issued as early as this year, which is expected by some analysts to drive significant additional investment demand.

How Can I Protect My Retirement Savings From Inflation?

With a sputtering economy, rising consumer prices, and an uncertain future, hard-working folks are rightly worried about whether their savings will be around when it’s time to retire. Many Americans lost large chunks of their savings during the 2008 Credit Crunch and no one wants to see it happen again.

At Royal Gold, we help our clients protect their savings with the enduring value of precious metals. Many investors don’t realize that you can add physical gold and silver coins to an existing or new IRA (Individual Retirement Account) – and it’s easier than you may think.

Our Specialists can guide you through the process of selecting a reputable precious metals IRA custodian, such as Entrust IRA or Equity Institutional. Once your account is open, we’ll send you a form to authorize your existing IRA custodian to transfer funds to your new precious metals custodian. This is not a taxable event. We then purchase your gold, silver, platinum, or palladium and ship it to your new custodian depository. The custodian pays Euro Pacific for the purchase. It’s that simple.

Selling the precious metals in your IRA account is just as easy as purchasing them. Give us a call and we’ll lock in your price, transfer the precious metals from your custodian account to ours at no charge, and send your cash distribution to you. Or you can opt to can take physical delivery for your own safe-keeping.

While many financial pundits are talking up economic growth, be wary. As our CEO Peter Schiff reminded us last month, “Don’t catch recovery fever.” The real crash is still ahead of us. Don’t let a lifetime of earnings be washed away. Park them in an account that’s as good as gold.

Can I Easily Ship Gold and Silver Internationally?

Our clients are often surprised to learn that we can ship precious metals internationally with relative ease and affordability. In fact, some regions find our rates so reasonable that our total cost with shipping beats local competitors. This is in addition to the guarantee of doing business with a name you can trust. All things considered, it should be no surprise that some of our most loyal clients are in Canada, Europe, and Asia.

We are able to ship internationally with the same reliability and security as within the United States. Depending on your needs, metals will be shipped via either FedEx or UPS and insured through the long-established and well-respected Lloyd’s of London. One of our Precious Metals Specialists will personally guide you through the process, ensuring your shipment arrives safely at your home or office. While a minimum order still applies, there is no limit to how much insured metal we can ship.

We at Royal Gold strive to make transactions comfortable for all of our customers. Our Specialists are happy to call you outside of US business hours, no matter where you are located. Additionally, we are often available to chat at our website and we always promptly respond to emails.

International customers can also take advantage of our relationships with bullion storage facilities in Toronto and Zurich, to which we can directly ship your metals at a very competitive rate. [Read more about how Royal Gold can help you to safely store your gold and silver.]

If you’re a non-US precious metals investor, please reach out to us and see if we can’t surprise you with our competitive prices and customer service. Simply click here to request a callback at your convenience.

Should I Buy Gold From a Local or Online Dealer?

Ordering precious metals from an online dealer makes some people understandably nervous, which is one reason local brick-and-mortar metals dealers remain in business. But does it really make financial sense to shop locally instead of having your metals shipped to you by a larger dealer?

At first, there seem to be a number of advantages to buying gold and silver at a local metals shop. You get your purchase immediately, rather than having to wait for shipping. You know precisely where you got the bullion and the person who sold it to you, so if there is a problem you know exactly where to go. Some people assume this gives them more protection from phony or over-valued products.

These are all fair points, but there are other important considerations. First of all, brick-and-mortar shops usually have to charge higher premiums for their products because they have to pay for overhead, including the storefront and on-site storage and insurance of their inventory. Plus, they tend to have fewer customers because of their small scale, which also drives up prices.

It’s nice to have your gold or silver right away, but waiting a few days to get your gold can save you a lot of money. Even factoring in shipping and insurance, companies like Royal Gold can usually beat the premiums of smaller local shops because of the scale of our operation and agreements with major metals suppliers.

When it comes to feeling secure in the authenticity and quality of your purchase, well-respected online dealers like Royal Gold typically ship brand new bullion products directly from the source of production.

Compare this to a local metals dealer who may get some inventory directly from the mint or refinery, but who also sells products they have bought from other customers. Most metals dealers will have several ways of testing their metals, but there’s nothing like the peace of mind of knowing that your coins or bars came directly from the mint to your door.

One final point that many people forget to consider is taxation. Please note that the following does not constitute legal advice, and you should check your local laws before making any precious metals purchases.

Online dealers like Royal Gold are not currently required to collect and report sales taxes when you purchase from us. However, your local dealer is. Keep in mind, you may be required by local law to report your purchase from an online dealer, but you have no choice with a local dealer.

This situation may change soon.

The Marketplace Fairness Act of 2013 was recently approved by the US Senate, and will soon be up for consideration by the House. If this legislation goes into effect, out-of-state retailers – whether they operate by phone, online, or mail-order – will be required to collect the sales and use taxes of any state or domestic region to which they ship. Some locales have tax exemptions for the sale and purchase of precious metals that are also being reconsidered in light of the Marketplace Fairness Act.

If you do want to make a large metals purchase without being involuntarily charged sales tax by the retailer at the time of sale, consider ordering your metals with an online dealer like Royal Gold before the end of 2013.

What Drives Changes In The Gold Spot Price?

From jewelry to electronics to dental fillings to money, the many demands of gold change daily, and so does the price. Each industry pushes and pulls the price depending on its own global demand.

Jewelry plays a major role in the gold’s daily fluctuations. The World Gold Council estimates the jewelry industry accounts for roughly 50% of the world’s annual gold demand. Much of this demand comes from India, where large purchases of gold jewelry have been part of the local tradition for ages. Any interruptions in this market will have a noticeable effect on the gold price. For instance, when India’s government imposed a short-lived import tax on gold in March, gold for immediate delivery fell .2%.

Fortunately, monetary demand has helped soften price corrections. Central banks in developing markets and large private buyers are on the lookout for dips in order to add to their stockpiles. Suspicion is growing about the value of the US dollar and the euro, so gold is sought as an alternate safe haven. Many Chinese, in particular, have a cultural affinity for gold bullion like Indians do for jewelry. Chinese families often give gold coins as gifts on special occasions. This has only increased with a government campaign to promote private ownership of gold. Investment now makes up roughly 40% of annual gold demand.

Industrial sources of demand for gold most prominently include electronics (as gold provides an excellent mix of conductivity and corrosion-resistance) and dentistry (where gold is utilized for its malleability). Industrial uses make up about 10% of annual demand for gold. The commodity markets are notoriously volatile, so having large sources of non-industrial demand actually works to stabilize the gold price relative to other precious metals.

However, demand is only one side of the price equation; there’s also supply. Gold miners add about 1.5% more metal to the global gold stockpile per year. That means that there is some ‘inflation’ built into gold. The difference is that gold’s inflation stays very stable over time, and is far less than the fiat currencies. That’s why gold is a better store of value.

What really makes the gold price confusing is that it is commonly priced in terms of US dollars, which endure their own international supply-and-demand pressures. So, even while the price of gold may appear to be falling in terms of dollars, the purchasing power of gold may still be increasing.

Consider May 2nd of this year: gold fell .53% priced in dollars and .44% in euros, but it gained .37% in pounds sterling.

Gold competes with other money as a store of value. Despite fluctuations in their relative prices, over time, gold tends to increase in purchasing power while fiat currencies decrease. Take buying an automobile for example. In 1985, the average price of a car was $9,000, or 28 ounces of gold at ’85 prices. This year, the average price of a car is $30,000, or only 19 ounces of gold at today’s prices. So a person keeping $9,000 in US dollars over the last 27 years would now be able to afford only 1/3 of a car, while a person holding gold would be able to afford a car and a half.

While gold’s value is terms of currencies will fluctuate, the long-term purchasing power of gold is what is important – which is why people have chosen gold as a store of value for thousands of years.