Precious Metals Frequently Asked Questions
PURCHASING
1. How can I buy precious metals from PMBG?
Simply follow these three steps to buy gold and precious metals with Precious Metals Brokerage Group:
A. You can either buy directly online, or call Precious Metals Brokerage Group directly at +1 866-775-3131. A PMBG account representative will assist you with any questions you may have about our inventory of precious metals. Read our transaction and shipping agreement, which you can request both online, or in the mail with the gold investment kit.
B. Complete our account and storage / IRA agreement form and select your first precious metals acquisitions.
C. Confirm your precious metals selections and form of payment with a PMBG Account Representative. Please alert a PMBG account representative if you prefer precious metals from a specific grading service. PMBG currently uses PCGS and NGC grading services.
2. What is PMBG’s precious metals refund/cancellation policy?
Refund policies vary from state to state and from transaction to transaction. You can find a complete list of refund policies for each state in our Transaction & Shipping Agreement.
You are acquiring physical gold, silver, platinum and palladium that can be delivered to you or stored with a third-party storage facility (some restrictions may apply).
3. What are the definitions of some common terms within a precious metals transaction?
“Ask” refers to a coin or bar’s selling price.
“Bid” refers to a coin or bar’s buyback price.
“Coin Grading” refers to a grading system to describe the condition of a coin. The most commonly used grading system grades coins on a scale from 1-70 with a 1 for coins in poor condition and a 70 for “Mint-State” condition that represents the perfect coin.
Legal Disclaimer- *Images of mint state coins are representative only, and should not be construed otherwise. Actual product may differ from images on the website. These images do not imply a specific grading agency. All PMBG mint state coins are graded by PCGS & NGC. If you have a preference on coin grading agencies, please speak with your account executive on the matter before making a purchase. Additional fees may apply.
“Markup” refers to the amount added to a coin or bar’s cost to obtain the selling price.
“Melt Value” refers to a coin or bar’s value based upon the precious metal content multiplied by the spot price of the metal. For example, if a coin contains one ounce of gold and the spot price is $900 per ounce, the melt value of the coin is $900.
“Obverse” refers to the front or “heads” side of a coin.
“Premium” refers to the amount charged above a coin or bar’s melt value.
“Reverse” refers to the back or “tails” side of a coin.
“Spread” refers to the difference between a coin or bar’s “ask” price and its “bid” price. For example, if a coin’s ask price is $1,000 and its bid price is $950, the spread is $50 or 5.5%. A coin or bar’s spread is different from its markup.
“Spot price” refers to the price paid for a precious metal based upon immediate delivery. Spot prices may be expressed as the “ask” or selling price and the “bid” or buyback price.
4. How does Precious Metals Brokerage Group compare to its competitors?
Precious Metals Brokerage Group does not comment on specific competitors, their practices, or their prices. We encourage our clients to conduct their own due diligence.
5. How can I receive more information from Precious Metals Brokerage Group?
For more information on investing in precious metals and/or the market in relation to precious metals, call +1 866-775-3131. PMBG’s Account Executives are available and ready to assist you Monday through Friday, 7 a.m. to 6 p.m. (Pacific Time), excluding major holidays.
DELIVERY OF PRECIOUS METALS
6. Can I take possession of my precious metals?
Yes. For all of our precious metals investment products, PMBG clients have the option of either taking prompt delivery or storing their acquisitions with a third-party storage facility (some restrictions may apply). If you decide to take delivery, your acquisitions will usually be delivered within 15 days of receipt and verification of payment.
7. Can I store my precious metals if I don’t want to take physical possession?
For most clients, the answer is yes. Some states require clients take delivery of their precious metals. Your Account Executive can provide additional information on whether third-party storage is available for your acquisitions. You should review PMBG’s Account Storage Agreement for the full terms regarding storage.
8. When will my precious metals be delivered?
PMBG will deliver your order within 7 business days of receipt and verification of payment. On rare occasions, delivery of precious metals may take up to 10 days. This can potentially happen if there is a surge in demand which forces us to back-order certain precious metals products. Your PMBG Account Executive will notify you immediately if the delivery process will exceed 7 business days.
PRICING OF PRECIOUS METALS
9. What is the spot price of precious metals based on?
Precious metals are traded throughout the day in different markets. The most active trading occurs in New York, London, Zurich, Tokyo, Sydney and Hong Kong. The prices quoted on our website reflect the “spot” price of precious metals on different commodity exchanges, plus a fee for physical delivery, shipping and insurance.
10. What is the cost of my precious metals? How do you make your money?
Precious Metals Brokerage Group has a spread or price difference between our selling price, called the “ask,” and our buy-back price, called the “bid.” That spread varies depending on the type of coin you acquire, with the most common bullion coins having the lowest spreads and all other coins having higher spreads. Spreads are generally 2-6% for bullion coins, and 5-15% for rare coins. Please read our Risk Disclosure and Account Storage Agreement, which describe the various spreads.
11. Do I pay taxes on precious metals? What are the tax penalties when I sell my precious metals?
We do not offer any tax advice. Please consult your tax advisor regarding this question.
12. Can I lock in the price now and decide later if I want to buy?
No. Once we have confirmed and locked in your purchase on a recorded confirmation line, you will typically have 24 to 72 hours to send in funds, or the order will be cancelled. This depends on the demand and market volatility of the asset you are purchasing. Precious metals prices are volatile, so the receipt of fund are time sensitive.
SELLING GOLD AND SILVER
13. Will Precious Metals Brokerage Group buy back my coins?
Yes, your PMBG account executive will either buy back, or help you liquidate your metals at the top market value of the day. Just call your Account Representative.
14. Will I be charged a fee when selling my precious metals with Precious Metals Brokerage Group?
PMBG does not charge a commission or any fees with current clients to sell your precious metals. Call your PMBG account executive, and he will assist you without charge in liquidating your metals at the top market value of the day.
15. Will PMBG purchase coins that I bought from another company?
PMBG welcomes the opportunity to consider acquiring coins our clients purchased from other precious metals companies. There are a variety of factors which PMBG must consider in determining whether to purchase these coins, including market condition and current market demand. Clients should know that PMBG generally offers lower prices for coins that were not originally purchased from PMBG.
INVESTING IN GOLD AND SILVER
16. How much will gold, silver and other precious metals go up?
No one can say with certainty whether prices will go up or down. PMBG provides a variety of investment information regarding the precious metals markets, including information on our website and our *FREE* Gold Investment Kit. Please keep in mind that we recommend you hold your precious metals for a minimum of 3-5 years. However, PMBG cannot determine how investment market conditions will change. Precious metals, like all investments, carry capital risks.
17. Should I liquidate my stocks, bonds, CDs or other investment/savings products to diversify my investment portfolio in physical gold?
We do not offer investment advice. You must independently decide what is right for you. In a volatile marketplace like today, financial planners who exercise prudent portfolio theory, may recommend allocating 10%-20% of one’s portfolio in physical precious metals. We are of that opinion at PMBG. However, precious metals, like all investments, carry capital risks.
18. Can I add precious metals in an IRA or Retirement Account?
Yes. Many PMBG clients choose to include precious metals as part of their retirement planning. If you currently have a self-directed IRA, you may begin including precious metals to your portfolio. If you do not currently have a self-directed IRA, you may start by downloading and reviewing the appropriate information under PMBG’s IRA Set Up Form.
19. How long should I plan on holding my precious metals investment?
We are of the opinion that investing in physical precious metals should be considered a long-term investment. While market conditions may dictate longer or shorter holding periods, we are of the opinion that our clients hold precious metals for a minimum of 3-5 years. In order to keep our customers informed, PMBG strives to offer up-to-date market information on a daily basis from third-party analysts and experts.
20. How much of my overall portfolio should be in precious metals?
We recommend you consult with your financial professional to determine what amount of capital is right for physical precious metals. PMBG is of the opinion that diversifying 10%-20% of your portfolio in physical precious metals is prudent allocation. Other individuals, professionals, and institutions may recommend different percentages. You must choose what is right for you based upon individual circumstances.
21. Is this a low-risk investment?
All investments have capital risk, including precious metals. Markets go up and down and any investment can lose money. Please conduct your own due diligence and decide whether physical gold, silver, platinum, and palladium are the right investments for you.
CLIENT PRIVACY (Visit Privacy Policy at Bottom of HomePage)
22. Do you need my Social Security Number (SSN) when I buy coins/bars?
No. You only need to provide a SSN when you work with a PMBG Account Representative to set up a precious metals IRA.
23. Are certain coins exempt from confiscation by the government?
No financial expert can guarantee gold is exempt from a hypothetical future confiscation. This scenario or event may never occur. However, if the government were to confiscate gold as it did in 1933, certain gold coins with a “recognized special value to collectors of rare and unusual coins” MAY be exempt in future confiscations. However, we will NEVER “push product” with fear mongering tactics based on speculative future events like a ‘government confiscation’. This is a common unethical tactic used by many to ”push product”. We do not use or embrace this sales practice.
24. Why does Precious Metals Brokerage Group monitor or record telephone calls?
PMBG may monitor or record a telephone call for purposes of training and compliance with our policies and applicable law. Transactions are recorded as part of our binding agreement with each client to assure protection of both parties in the transaction.
