A  No, the "spread," or difference between the buying and selling prices allows dealers to stay in business and is much the same as when banks charge more interest for loans than they pay for savings accounts. The precious metals bullion business is a very competitive one, and the profit margin, or spread, is very small compared to almost any other inventory business. PMG Precious Metals is determined to provide the narrowest spread possible for the bullion-buying public.

A  Absolutely. When bullion prices go up, that just means that bullion demand has increased and prices are higher relative to the dollar. We buy bullion at those higher prices because our customers will be paying us higher prices. The bullion markets are very simple: prices are simply re-adjusted in terms of how many dollars will buy an ounce based on the supply and demand in the world market. Every day, each precious metal is traded for dollars, and conversely, dollars traded for the precious metal. Price is the balance between the two.

A  Yes, if they are government issued bullion coins with a face value. This nominal face value allows the coins to travel across national borders without the taxation or fees otherwise imposed by many countries on bullion itself.

A  Yes, a maker's mark and statement of weight and fineness is stamped directly onto the bullion, whether coins or ingots. The bullion itself, in effect, bears its own "certificate" from whichever mint or refiner produced it. Gold, specifically, is an element with a unique specific gravity, and other attributes which are easy to test for authenticity. The ancient Egyptians pioneered the "acid test" for gold, and any jeweler or pawnbroker can demonstrate the basics of gold.

A  We recommend British Sovereigns as an alternative to gold bullion for those customers seeking low-priced "bulk gold." They offer the benefits of modern gold bullion and are priced by their gold content.

A  Yes, in this country, from 1933 to 1974 U.S. citizens could not legally own gold bullion without a special license. In 1975 these restrictions were lifted and gold can now be freely held without any licensing or restrictions.

A  Yes. You do need a custodian, a qualified third party such as a bank, to actually hold the qualifying bullion in your name. Some qualified depositories will do IRA storage of physical metals for you. Annual storage fees are usually involved, and an initial fee to set up the account. We can help you get set up with a precious metals IRA custodian through our excellent partnership programs.

A  Private gold ownership in the United States has no size limitations. You are limited only by your budget and good judgment.

A  Only if they involve cash or cash instruments such as cashier's checks which total over $10,000. No report on transactions involving single checks (we do not accept personal checks) or bank wires are required. Currency regulations involving amounts over $10,000 were designed to thwart money launderers and drug dealers.

A  Certain forms of gold which traded as commodity contracts in 1982 fall under the Broker Reporting Act of 1982. Specifically named are South African Krugerrands, Canadian Maple Leafs, and Mexican gold Onzas in quantities of 25 ounces or more. Sales of these items, as described, require a 1099B IRS information form.

A  No branch of federal, state, or local government has specific interest in how much gold you might own. The U.S. Mint, a division of the Treasury Department, strikes the gold Eagle bullion coins, and supports their sale with national advertising, sales brochures, gift boxes, and so on, but they do not keep track of who is buying it from their dealers.

A  Yes. If you hold precious metals bullion as an investment, and later sell it at a profit, you will have either a long-term or short-term taxable gain,

A  No. The physical appearance of your bullion coin or bar does not affect its resale value. Rather, its value is determined by the following three factors: metal, weight, and purity. The per ounce prices for precious metals like gold and silver are determined by world market conditions. Naturally, since the market price for each precious metal is determined on a per ounce basis, the weight of your bullion coin or bar will also always factor into its overall value. Finally, the purity of the metal from which your coin or bar is minted is important. The purity of bullion products can vary. Increasingly, however, government backed bullion coins and bars are refined to 99.99% purity, the highest level available on the market. Moreover, most bullion products are stamped with their exact purity for easy identification.

A  Gold bars, like other precious metal bars, are typically measured in units of weight as opposed to their linear or physical dimensions. Precious metal bars are "assayed" or evaluated by professionals to determine their exact weight, and this value is generally stamped on the obverse or front of the bar itself.

Although the metric system is commonly used to identify denominations for gold bullion bars traded throughout the world, the Troy ounce is a widely recognized standard unit of measurement. One Troy ounce is equal to approximately 1.1 ounces. Standard denominations for retail gold bullion bars are 1,5, and 10 Troy ounces. Smaller gold bars (weighing less than 1 Troy ounce) are often measured in grams.

A  The value of circulated U.S. silver coins, such as Morgan and Peace Silver Dollars,
is determined by several factors, including their silver content, their overall physical
condition or "grade", and the rarity of the specific coin.

Circulated U.S. coins in a variety of denominations and from several distinct periods in American history are sought out by investors for their silver content. Prior to 1964 in the United States, dimes, nickels, and quarters minted for circulation contained up to 90% silver. Morgan Dollars, which were first struck by the U.S. Mint in 1878 and produced until 1921, also contain 90% silver. The value of these and other circulated coins, based on the silver content alone, is determined by the fluctuating price of silver on world markets.

Silver coins are also evaluated or graded based on their physical condition. Generally, coins can be classified into two distinct categories: circulated and un-circulated. The American Numismatics Association (ANA) recognizes 11 different grades for circulated coins, ranging from AG-3 at the bottom of the scale to AU-58 at the top.

Market prices for circulated silver coins can vary widely depending on the rarity of a particular coin design or date of issue. The Mercury Dime is the perfect illustration of this point. Minted from 1916 to 1945 at the Philadelphia, San Francisco, and Denver Mints, it weighs about 2.5 grams and contains 90% silver. While the 1944 Mercury Dime retails for approximately $1.50, the much rarer 1921-D ("D" is the mark of the Denver Mint) sells for more than $500.

Q  Are proof sets, un-circulated sets, and other special commemorative sets being issued with the new quarters? How much do they cost?

A   Each year beginning in 1999 until 2008 the United States Mint will introduce five new quarters that will be included in the United States Mint Proof Set, the United States Mint 50 State Quarters Proof Set, the United States Mint Silver Proof Set, and the United States Mint 50 State Quarters Silver Proof Set. Each set also includes the Lincoln cent, the Jefferson nickel, the Roosevelt dime, a Kennedy half dollar, and a Sacagawea dollar coin. Beginning in 2006, the United States Mint Silver Proof Set and the United States Mint Proof Set will also contain four Presidential dollar coins. Each quarter in the United States Mint Silver Proof Set and the United States Mint 50 State Quarters Silver Proof Set contains 90% silver generally referred to as coin silver.

For a confidential, personal consultation on buying or selling precious metals and rare
coin at dealer prices, call PMG Precious Metals today...1-800-618-4450.