So Ebay sellers are usually getting the ‘short end of the stick’ on their sales. But buyers, as long as they follow guidelines as outlined below, can still come out ahead.

As already mentioned, however, as more and more people become aware of the true value of gold and silver, it will become increasingly difficult to get that awesome deal with a winning Ebay bid.

1. Goto Ebay.com and create an account for yourself.

2. Goto Ebay and in the search box, enter the search string for what you are looking for. Here are some example search strings:

• gold oz krugerrand -copy
• gold oz maple -copy -bars -bar -plated -mil -mill
• gold oz eagle -copy
• gold oz buffalo -copy -bar -mills
• gold oz philharmonic -copy
• gold oz panda -copy
• silver oz eagle
• silver oz maple

For gold coins, the search strings above show the standard bullion coins that are recognized around the world for their quality and consistency in gold content.

For silver coins, stick with the standard Canadian Maples and American Eagles which are both 9999 pure silver.

3. After you enter the search string and press the “Search” button, Sort the listings by order of auction expiration (ending soonest). Most of the action will happen in the very last minute of the auction – people are out there “watching” these things instead of bidding right away because they think that making bids attracts even more people and makes the price go up, which is true. It also makes it difficult for people to
out-bid them if they only have a few seconds to think about it, so they wait until the
final seconds to place their “highest bid” and hit enter. This is the strategy I suggest you take as well – set yourself a price you’re willing to pay and wait about 20 seconds prior to the auction ending before you place that
bid. Chances are, there are others doing the same thing, so their number may be higher than yours or vice-versa.

4. Ignore all “copy” coins. They’re just toys. Also ignore gold-plated coins – they’re worthless. In the search strings in #2 above, the “-copy” should filter out most of the copy coins. Also stay away from gold or silver “commemorative” coins from any country. Unless you’re a collector, it’s difficult to determine the value of these types of coins.

5. Look for the standard gold bullion coins – These are listed here. (Not listed on this site are Chinese Pandas, which go for about the same as the Gold Buffalos.) Every day the price changes, so it’s important to check this site constantly, especially just before you make your bids.

6. You’ll see some fractional coins – those that are less than 1 ounce. Like for example a 1/10th ounce Canadian Maple Leaf. Fractional coins come in 1/2 ounce, 1/4 ounce and 1/10 ounce. Some, like the Chinese Panda also have a 1/20 ounce, which is a little smaller than a dime and still sells currently for about 80 bucks. You will usually pay a higher price/ounce on the fractional coins because in theory, they are more apt to be used in crises situations than the full ounce coins (imagine if we had a currency crises and no one took dollar bills anymore…. if you needed to buy some bread, but all you had was 1 ounce coins, you’re going to have to break the coin, or buy a butt-load of bread. So having these smaller denominations will help that situation.) Also, due to fabrication costs – a higher percentage of the coin is put to the actual minting of it. Anyway, with fractional coins, always calculate what the per-ounce cost is for that coin. For example, if it’s a 1/4 ounce coin and the price is $400, you need to multiply that by 4 to get a full ounce, which would be $1600/ounce in this example.

Generally speaking, you should expect to pay a higher price for these fractional coins for reasons stated above. It’s reasonable to pay the following premiums above the price of the respective 1 oz coins:

• 1/2 oz coins will be roughly 1.5% more per ounce.
• 1/4 oz coins will be roughly 2% more per ounce.
• 1/10 oz coins will be roughly 5% more per ounce.
• 1/20 oz coins will be roughly 7% more per ounce.

Example A: if a 1 oz Gold Canadian Maple Leaf is listed on the site above (#5) for $1400, then a 1/2 oz Maple coin would be about (1400 + (1400 x 0.015)) $1421/ounce.
Since it’s a 1/2 ounce coin, we’d need to divide that by 2 to get the total cost of the coin = $710.50. (So don’t pay more than $710.50 for this coin.)

Example B: if a 1 oz Gold Eagle is listed at $1405, then a 1/10 ounce Gold Eagle
coin would be about (1405 + (1405 x 0.05)) =$1475.25/ounce. Since it’s a 1/10 ounce coin, we’d need to divide that by 10 to get the total expected cost of the coin = $147.53. (So you should not be paying more than $147.53 for this coin.)

7. Some auctions have free shipping. Some don’t. Always take the shipping costs and add that to the final cost to determine your actual cost per ounce.

8. Never pay more than what is listed in the pricing tables in the link given above
at #5. This can be frustrating, because you’ll see many people pay a lot more and you’ll start wondering about this whole Ebay thing. But you really need to be smart and stubborn. You’ll lose a lot of auctions, but that’s ok, you’re waiting for a really good deal using Ebay. Depending on how aggressive you want to
be, bid a lot less than the price tables or just up to the price. It may be a good idea to
watch the auctions for a week or so, just to get the hang of what’s happening, before you make your first bids.

9. Never – I mean NEVER – bid on an auction from someone that doesn’t have
any feedback rating (having 0 feedback entries). In fact, make sure they are an established Ebay seller = they will have at least 25 feedback entries. And make sure that they have at least a positive feedback score of 96% or better as a seller. (Sometimes scammers just create a quick Ebay account and sell off bad stuff for a quick, one-time sale. You’re taking a chance on this if you bid on an item from someone without any feedback yet.)

10. Don’t bid on any auctions from another country (especially Hong Kong or
China) because they are usually selling fakes. Sellers in Canada can sometimes be ok as long as they have a reasonable feedback record. (The author has personal experience obtaining a fake quarter-ounce gold Panda – so please learn from that mistake!)

11. When you find an item you think might be a good deal, add it to your “watch list” in Ebay. This makes it easy to track the item, until you’re ready to place a bid.

12. If you win an auction and the coin is shipped to you, you will immediately need
to check out the validity of the coin. If it’s a fake, it will not have the properties of
coin specifications needed for the coin to be pure gold. These specifications can be found online, using google. On google, just search for “coin diameter gold eagle” for example. You will need the diameter, thickness and weight specifications. At home, you’ll need a scale and calipers to do your checks.

If the coin does not check out, Ebay guarantees your purchase and will refund the
money, even if the seller doesn’t allow returns. But you need to act fast and file a case with Ebay as soon as you’ve determinedthe problem with the coin.

13. You can give yourself an edge in buying power by joining the Ebay bucks
program. It’s free and easy to do. Near the top of the Ebay page, there should be an Ebay bucks link. Just click it and follow the instructions. Essentially, Ebay pays you a
little bit each time you make a purchase. You can use these Ebay bucks toward future
purchases on Ebay. Note: Ebay announced that as of October 1, 2011 they will no longer give Ebay bucks for the purchase of precious metals. So there goes that advantage.

14. Give yourself a further edge by enrolling in Ebates.com. Follow the
instructions at ebates.com to set up an account. Then click-through Ebates.com to go
to Ebay before making your bids. If your bid wins, Ebates will give you a rebate check.
(This is in addition to the Ebay bucks program!) Note: As of June 16, 2011 Ebay has suspended its Ebates.com rebate program until further notice. So there goes that advantage.

Contact the author of this article by sending an email to: Jon K

The technology available in today’s world certainly makes things more convenient. Using the Internet, everyone can now transact just about anything online. This includes the purchase and storage of precious metals.

In evaluating the different online precious metals services, one must consider at least the following criteria:

• The service provider should have a track record that can be verified. Make use of the world-wide-web and search for news about the provider that may indicate financial or fraudulent activity. For providers in the U.S., you can check with the Better Business Bureau to see if anyone has lodged complains or if there are any lawsuits pending. In any case, do the homework and due-diligence necessary prior to investing. (And that is true for any investment.)

• Geographically speaking, where does the provider store the metal? What are the political environments like in those countries where their vaults are located and what are the chances of government seizure of the precious metals held in those vaults? Some providers offer several different vaulting options, thus providing for geographical diversification and exposure to more than one country-specific market.

• What are the fees associated with buy and sell transactions? It is normal for companies to charge commissions and fabrication fees, but excessive fees should be guarded against. A combined transaction fee of less than 5% is reasonable. Anything larger, depending on the situation, should be questioned. The fee structure should be understood prior to making any investments.

• What are the storage fees? And on what basis (monthly or annual) are they charged. What form do the storage fees take? (Do they require a cash deposit to be held, or do they simply deduct a portion of the metal stored in their vaults from your account?

• How closely to the provider’s spot-rate quotations for the prices of their metal compare with the overall precious metals market? This varies greatly among providers and should be understood prior to investing.

• Another thing to look for is that the provider should regularly be publishing results of independent audits showing that they do indeed hold the precious metals they claim on behalf of their clients.

• Finally, and this one is extremely important, there should be some method the provider offers to allow the cutomer to take physical delivery of the metal if desired. Not all providers offer this, which would make them an electronic-only bullion dealer. The terms under which a physical delivery can be requested as well as the fees involved should be completely understood prior to making any investment.

There may be other considerations depending on the investor’s needs, but this should serve as a necessary first line of thought to be given to this type of investment.

Below is a table comparing the author’s personal experience with 3 of the more popular and reputable precious metal online storage providers.

Positives:SilverSaver® is unique in that it offers its customers Rewards, which is a program that pays people for signing up friends and family. Every time a referred client makes a purchase, the SilverSaver® Rewards program ensures that the referrer gets a small ‘kick-back’ (in gold or silver). SilverSaver® stores it’s metal at First State Depository located in Wilmington, Delaware. Easy sign-up. Adding bank accounts for transfers is easy too! Customers can purchase either gold or silver on a one-time basis or on a recurring schedule. Customers can sell their precious metals for cash at the daily SilverSaver® Base Rate without any fees or commissions. This is much better than other providers & dealers, which typically take 3-10% of the final sales amount! Customers can take delivery of their gold or silver in many different forms (each having their own associated fabrication fees).   Disclaimer: The author of this article is using the SilverSaver® Rewards program and if you click through these links provided to SilverSaver® and create an account there, the author will benefit, but there is no extended cost to you.
Negatives: SilverSaver® seems to be only available to U.S. and Canadian customers. The storage fees seem reasonable (0.02%/month), but their premium (the amount the customers pay on top of the price of the physical metal in order to cover expenses and commissions) is based upon a graduated scheme, currently ranging from 2.99% to as much as 7.49%. But this amount is a combined amount over a two month period, so the more the customer buys, the premium rate gets better. The SilverSaver® Base Price changes every business day according to the real physical market. SilverSaver® indicates that it is “historically comparable to internationally recognized silver prices such as the London Daily Fixed and the Handy & Harman Daily Fixed prices.” When a customer places an order, he/she only has an approximation of the Base Price they will end up paying for the metal. This is due to the fact that when an order is submitted, the actual Base Price for the date of purchase hasn’t been established yet. This may not be suitable for all investors, but for those wishing to utilize Dollar Cost Averaging during this precious metal bull run, it is a good investment mechanism.
Positives:Once past the initial hassle of getting a GoldMoneyaccount set up (see below), the investor is rewarded with a vast array of investment options. It is possible to invest in gold, silver, platinum & palladium. Trading markets and vaults are globally dispersed – located in London, Zurich & Hong Kong. Two different vault depository companies are used – VIA MAT and G4S. Metals can be moved from one geographic location to another or from one type of metal to another (for a fee, of course). Buying and selling metals can be done with a wide assortment of currencies – USD, CAD, GBP, EUR, CHF, JPY, AUD, HKD, NZD. Premiums charged for precious metals depend on the geographical location of the market as well as the amount of metal being purchased. Most are reasonable expectations, given the variety of options. Physical delivery is possible and in multiple forms. Storage fees are mostly reasonable, but note that they vary according to geographic location and vault.
Negatives: Setting up the intial account requires verification steps, which include creating photo copies of two forms of identification and submitting to GoldMoney prior to funding the account. This could also be viewed as a positive feature as it serves to protect both the investor and GoldMoney, but it is a bit time consuming. GoldMoney is headquartered in the British Channel Islands (UK). So for most investors outside the UK, it is necessary to initiate an international wire transfer prior to purchasing any precious metals. Since this is considered a “foreign financial account” by the U.S. Department of the Treasury, if the account has a value of $10,000 or more during the year, US investors must file form TD F 90-22.1 (FBAR), which is separate from the federal income taxes filed to the IRS. (More accurately, the $10,000 is an aggregate amount for the total sum of all foreign accounts the U.S. investor may own. If the total is $10,000 or more, every foreign account will need to be listed on the form above.)
Positives:Again, after the initial account set-up, Bullion Vaultoffers the investor a unique precious metals trading platform. Trades can be made for either gold or silver. Exposure to London, Zurich & Hong Kong markets. The Bullion Vault web platform allows the investor to see live streaming markets in each geography. Bid & offer prices as well as market depth are visually displayed. The investor is able to easily make trades instantly or may even place bid or sell offers, which is something other providers lack. Storage fees are reasonable and are transacted using the available cash in the account.
Negatives: Initial account set-up is time consuming and involves making copies of at least two forms of identification and submitting them to Bullion Vault. Bullion Vault is headquarted in London, so an international wire transfer is necessary for most investors prior to purchasing any metal. The same foreign account U.S. regulations apply as already mentioned above using form TD F 90-22.1 (FBAR). Changing a funding bank account is not convenient. One must basically go back through the account set-up process again. Supposedly, this is to fight against money-laundering and to protect the customer as well as Bullion Vault. Taking delivery of the precious metal is only possible if it becomes absolutely necessary due to bank insolvency or some similar catastrophe.
Information as of September 7, 2011

The investor should be fully aware of the reasons why he/she is investing in the physical metal. The most obvious reason is that physical ownership protects the investor against the continuous debasement of paper money. So, it is probably best to have the physical metal in a form widely recognized & accepted among the citizens of the world. It is advisable to stick with internationally recognized bullion bars and coins such as the American Eagle, American Buffalo, Canadian Maple Leaf, Austrian Philharmonic, South African Krugerrand, Australian Kangaroo/Nugget, Chinese Panda & the Mexican Libertad. The reasoning here is that all these brands have well-known gold content and weight-to-size specifications that can easily be verified. Additionally, it is best to stay away from antique, specialized numismatic and commemorative coins unless the investor has extensive knowledge in those areas.

Basically, there are three steps involved in obtaining physical precious metals. All steps should be researched to the investor’s satisfaction before taking any action.

• How much physical metal will be purchased?
• From where will the metal be purchased?
• Where will the metal be safely stored?

All of these decisions are closely tied together. It is advisable not to take any action until all three decisions have been made.

How much metal to purchase is a decision that depends on individual circumstances. But if one has a target quantity of metal they ultimately want to own, it is not always a good idea to buy it all in one big chunk. It is a fool’s game to try and time the market by trying pick the absolute bottom, so one shouldn’t even try. Instead, Dollar Cost Averaging is a good way to play the physical metals market. Buying in little tranches during the bigger dips along the way has been a successful strategy during the past decade, especially so over the past 2 years.

Once the quantity of metal has been decided, it must be determined from where, or from whom, the metal will be purchased. Significant amounts can be achieved by the average investor via bullion dealers or brokers. (See our links page for some recommendations.) For smaller quantities, especially spread out over time, it is also possible for the buyer to obtain some good deals on Ebay, provided the buyer does so with patience and a strict adherence to a sound bidding strategy.

Finally, one needs to decide what they’re going to do with the metal once it’s delivered. There have been horror stories regarding home burglary, which may scare some people away from having their metal stored in their own homes. And for some, the home-storage option is simply not possible. A safety-deposit box at a bank is one choice. Though, given the economic uncertainty of the banking system these days, some argue that private wealth should be kept out of the banking system entirely. Therefore, an alternative would be storing the metal with a firms such as Gold Silver Vault or First State.

In any event, having some physical metal which you can easily access if the need arises will be a blessing. Once the fiat currencies around the world have reached their intrinsic value (=zero), having something of tangible value in your hands becomes paramount to success, and may even make the difference between financial survival and complete loss.

There are a few different ways to invest in precious metals. Each investor needs to give serious thought to these ideas and select the option(s) that best suit their own needs.

Below is a quick reference to different investment vehicles available to the average investor interested in the precious metals market.

Investment Vehicle	Description
Physical Metal	Buying physical precious metals requires the investor to take delivery of their gold and/or silver bullion in coin or bar form. This also requires self-storage (using either a home-safe or a bank safety-deposit box). Every serious precious metals investor should have at least some percentage of their entire investment portfolio in this form of physical ownership.
Online Storage	The world wide web makes it possible to do online investing as well as purchase and remotely store precious metals. For those investors that are unable to personally store their metal, this option can be extremely convenient. With the added benefits of having global access to storage facilities in the U.S., Europe and Asia, this option can also build in geographical diversification – always a good thing in today’s political climates.
ETFs	There are Exchange Traded Funds (ETF) which trade just like stocks in the stock market. These are by far the most convenient, but also perhaps a bit more volatile than the actual physical market itself. This method of investing should not truly be considered an investment in the physical metal, since delivery of the metal would be difficult for most investors.
Mining Companies	If you’re ultra-wealthy and you want to preserve that wealth, it can be extremely difficult to acquire all the physical metal your money can buy. This is mostly because hitting the market with huge buy orders can make the price spike up and upset the market. For this reason, the elite classes usually buy up their own mining companies. The smaller investor can still participate via publicly offered shares in large, mid and small-cap mining companies listed on stock-exchanges.