RE: Gold or Silver? The Mental Block
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I always wondered about the cut you take storing gold.
If I bought $1000 worth of gold for X today, and immediately had a hardship and had to sell it, how much would I lose? That difference is what I am curious about. I know selling physical gold locally you take a major hit as Gold Shops pay a fraction of what things are worth.
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Maybe someone like @silversaver888 or @underground from the ssg community could answer in detail.
As far as I know, you lose at least the amount over spot.
IF YOU DON'T HOLD IT, YOU DON'T "OWN" IT!
I never take a cut (for storage), I am self-storage and self insured ;) That being said, there are many good ways to sell PM's AT SPOT or ABOVE, depending on the market conditions. I've never sold, but my son did. He bought around 100 ozT Silver after his first ND (Bakken) trip, and the price went up a little... He then sold the 100 ozT and made a nice profit, he sent it to a place that I know, they paid SPOT +$1 and all it cost him was shipping. There are many good places like that now, Malcomb. Some are better than others. Some of the bigs still rape the sellers, like KITCO. They have "allocated accounts" also, I'd never consider buying into that. I'd avoid KITCO. I have bought phyzzz from them, (physical) and did OK. My personal favorite is SDBullion.com
Now to the original question, I cannot tell you the storage fees at all, but right now, the "premiums" are (were?) running around $150/ozT at my last purchase. This assumes buying AGE (American Gold Eagles) so you would lose the premiums. Storage fees on $1,000 would be negligible, and "storage" usually assumes one has ltos of gold. I believe you just picked a number to get an idea, but most people who use storage would have kilos or maybe even "400 ozt good delivery" bars. Most small buyers are HODLers and $1,000 is a small buy. BUying by the gram is also another bad deal if you can buy larger quantities. I have bought grams before, but only the ones "on sale" with low premiums. A gram has about a $20 premium right now, so that is like paying an extra $600 per ounce! 😱 I have an old blog post detailing "what to buy" if one is buying less than one ozT. It lists premiums as a percentage on all the popular sizes, and there are a couple of sweet spots.
To sum it up, I am firmly in the "6 Figure Club" as far as precious metals goes, never thought about Storage. YES, the local buyers will rape the sellers, I had a long talk with a sweet lady who broke it down for me, at the mall they were paying 55% of SPOT. She knew I was a serious stacker and prefaced it with "you don't want to ever sell your metals here". I'm this close to being a local BUYER, I think my model will forever put these guys out of business LOL
PS: I had a place "roll your IRA into GOLD" that did quote me some fees, it was way less than 1% per year...
BUT it assumed $100,000+ and it was more geared towards you selling the gold/silver as opposed to taking possession at some future date. There are only a small handful of places that offer storage that I would ever consider, like SDBullion. I think Ted Butler is the guy with the low-down on that. I still advise to self hold any amount.