Does your company allow me to put a stop limit on my gold and silver purchase in case prices drop?

Many stock brokers and gold margin (leased gold) dealers offer “stop limit” capabilities to their clients. This allows investors to cut their losses automatically in the event of a sudden drop in an asset’s value. The process works slightly differently with physical gold and silver purchases because the investor is privately storing the investment. Established bullion and rare coin dealers such as usually operate in the following manner:

-At the time of purchase a client can request notification of buy/sell points, at which time the broker will contact the client to execute a purchase, liquidation or a hold. Clients can also add, modify or remove price point notifications at any time during the holding period by calling 1-800-394-3337.

-The investor alone controls the investment and it is entirely up to the investor to sell the metals for a profit or loss. Our gold and silver experts can advise you on current and historical trends but investors must think for themselves when it comes to future gold and silver prices. Investors who want to liquidate their holdings must:

a. complete a recorded telephone confirmation of the transaction that includes itemized price information and cancellation disclaimer
b. receive a liquidation transaction number
c. receive shipping and payment information
d. ship product within 24 hours of recorded confirmation and provide with tracking information*
e. indicate method of payment (company check/bank wire)

* Brokers may require tracking information before guaranteeing bullion liquidation because of the bullion market’s constant volatility. Rare coin liquidations require notification of tracking information within 24 hours of placing a sell order

IRA stop limits work differently because the gold is stored by a third party. Once the investor and precious metals broker agree to a liquidation the dealer contacts the IRA’s trust company. The trust company (usually either Equity Institutional or GoldStar Trust) initiates the transaction and confirms with both the investor and the broker. The metals are shipped to the dealer’s depository or placed in another IRA investor’s vault and the funds are placed as cash in the seller’s retirement account.

To learn more about physical gold and silver investments contact today for a free copy of Real Money Magazine, the source for facts on gold and silver investing. Investors who want to take advantage of spot price movement through a purchase or sell can contact 1-800-394-3337 to speak with a qualified and commission-free precious metal advisor.

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