Right turns and wrong turns on the road to gold
Some might consider the precautionary checklist offered below a matter of common
sense, but in our experience it is surprising how many prospective gold
owners simply dive-in without much in the way of a consumer inquiry. Your choice of a gold
firm can mean the difference between success and failure as a gold owner.
Choose the right firm and it will help stay the course on
protecting your assets from economic uncertainties. Choose the wrong firm and
you can be easily diverted from true gold ownership through a maze of related
but speculative and/or derivative investments.
High-end numismatics, leveraged precious metals accounts,
graded (slabbed) contemporary bullion coins, off brand bullion bars and
jewelry items, gold stocks, precious metals futures contracts or options, and
exchange traded funds (to name a few of the wrong turns often taken by
first-time investors) – all have a gold component as part of their profile,
but are no substitute for physical coins and bullion which you own outright.
Only gold coins and bullion meet the four basic criteria
for safe-haven status – liquidity, portability, tradeability, and
“appreciability” in direct correlation to the international spot gold price.
Inherently there is nothing wrong with owning any of the other investment
vehicles just listed as along as you are mentally and financially prepared to
shoulder the risks. If you are interested in owning the precious metals
for asset preservation purposes, it follows you would be best served by a
firm specializing in coins and bullion for delivery.
Key criteria for choosing the right gold firm
Apply the tests listed below to your choice of a gold firm and we are
confident you will get off to a strong start. We are confident too that
USAGOLD will grade at or near the top of your list.
1. Choose a gold firm that has a solid track record. Ten
years in business is good; fifteen years or more is even better. As gold
continues its secular bull market, opportunists are sure to enter the market,
resulting in numerous start-up gold firms that often close their doors as
quickly as they were opened. Firms fifteen years old or more have seen both
good times and bad in the gold market. As such, they have demonstrated a
commitment to the industry that carries a great deal of value to you as an
investor. Such longevity shows not only a commitment to the principles of
gold ownership itself, but is also indicative of the sustainability of a
particular organization – an important indicator when it comes to the ethics
of an organization’s sales practices, the accuracy of its advice, and it’s
ability to honor its commitments.
Coins & bullion since 1973
2. Choose a firm with a commitment to keeping you
informed – one that offers information-based services suitable for our
information-based age. During your time as a gold owner, much is likely to
change in the economic and political landscape. You will want to stay
informed, and the mainstream press does not always report prominently on the
trends likely to affect your portfolio, or emphasize the articles of interest
to you as a gold owner.
The USAGOLD.com website
online since 1997
Our commitment to information services is almost as
old as the firm itself. Starting decades ago with our monthly hard-copy
newsletter, News & Views, and continuing today with our widely acclaimed
website, we have dedicated ourselves to providing first-class information
services designed to meet our clients’ needs. The USAGOLD website today hosts
almost 1.5 million visits per month – a guiding light and practical resource
to its users.
3. Choose a firm willing to spend time with you and
answer your questions. The firm that is abrupt at the outset is likely to
give you short shrift if you have a question or concern that needs to be
addressed in the future. Be wary of companies that use aggressive sales
tactics. Seek out and develop a relationship with firms that handle your
inquiry in a friendly, professional manner.
Choose a firm with a large and satisfied client base. You
will benefit from the experience it has gained working with a variety of
situations. A firm that knows its business can help you choose the right
portfolio mix to address your specific goals, circumstances and concerns.
Understand the difference between the “client-oriented” and
“customer-oriented” gold firms. The latter generally compete on the basis of
price with little or no attention paid to your particular portfolio needs.
A boutique firm with a large clientele
USAGOLD is unique among national gold firms in one
important respect. By design, we are a boutique firm with a small but highly
regarded staff of experienced and knowledgeable client advisors. We have
little interest in expensive national media campaigns, a large and unwieldy
overhead and the aggressive sales tactics which usually accompany that
business model. Instead, we have gone about the business of building our
clientele, which now numbers in the thousands, through the USAGOLD website
and by referral from our existing clientele. Our commitment to the gold
business spans nearly 40 years and, during that time, we have built and
maintained a reputation for friendly, client-oriented service and consistent,
level-headed guidance — qualities that will benefit you as a gold owner now
and in the future.
4. Choose a firm with a high degree of professionalism
and commitment to the gold business. The level of expertise in the gold
market varies from firm to firm as their general interest in the economy and
financial markets. Although there are many outlets for gold, there are
relatively few companies with staffs capable of providing reliable direction
to the first-time investor. Not every gold firm, for example, has asset
preservation as its top priority. Some tout leveraged accounts or high-end
numismatics neither of which blend well with the safe-haven aspirations of
most gold owners. Then there is always the firm that totally disregards the
individualized needs of the inquiring client and concentrates instead on its
Before you even contact a gold firm, it would serve your best interest to ascertain the real nature
of its business. You can learn much by browsing a company’s website —
something even the smallest firms offer these days. If its product line,
services (and, most importantly, its focus) seem a good match, a follow-up
call is in order. If not, keep searching. The initial spade work will end up
saving you considerable time, effort and money over the long run.
Safe haven for the asset preservation investor
USAGOLD carries the range of precious metals bullion
coins and bars and bullion-related historic gold coins that track the gold
bullion price. Our unambiguous purpose is to accommodate investors wishing to
own precious metals for asset preservation and/or safe haven purposes.
5. Choose a firm with strong credentials and a solid
history. A firm that has proven itself to be trustworthy can help you avoid
some of the problems, pitfalls and wrong turns often encountered on the road
to gold ownership. One reliable source for investigating a business’ standing
is a Better Business Bureau (BBB) profile — something any reputable gold firm
should have. (If they are not members, that is a red flag in itself.) There
you will find basic information — the company’s BBB rating along with a
record of complaints and how they were handled. A history of dissatisfaction,
particularly if there has been a large number of complaints, can be a warning
sign even if the complaints were settled satisfactorily.
An admirable track record for over forty years
USAGOLD enjoys an A+ rating with the Better Business
Bureau, and has been granted the right to display the Reliability Program
logo. It has not had a single complaint lodged against it for over over a
decade, and has consistently been awarded the annual Gold Star certificate
which goes to firms that have no complaints over a three-year period. In
addition, the firm is a member of the Industry Council for Tangible Assets
since 1985. Michael J. Kosares, the firm’s owners is a life member of the
American Numismatic Association, having joined the organization in 1975.