I have recently purchased bullion from a Kitco pool account. According to their rep that I emailed, my purchase remains at the value I purchased it at. The advantages they claim are: Cut out the brokers, traders and middle-men Eliminate commissions, shipping, storage or insurance charges Get real-time quotes and enjoy small spreads Buy or sell online, over the phone or at our office Take physical delivery of your holding at any time* * Relevant fees are charged for physical delivery and/or conversion of pool holdings for physical metal. So, taking physical delivery or using their storage program is the only way to invest long term and wait for gains. Am I mistaking or does anyone else understand this differently?
Scratch this thread, something must have been lost in translation. I asked for clarification with the same rep (in Hong Kong) and he confirmed the value goes up and down with the market. I thought that would be quite useless as an investment otherwise. I don't actually want physical bullion.
Btw, ETF's are effectively the same thing and are more liquid and I would assume lower fees. Their holdings are backed by the physical metal as well. Long term, though, I still believe physically holding the bullion is the cheapest option. Those small little fees every year add up over 30 years or more. Plus, you get to hold pretty metal.
