- What discounts are available?
- How much is the metal worth now?
- Do I pay sales tax?
- Why do some 1oz gold coins/bars cost more than others?
- Can I return it to Costco?
- Where can I sell it?
- Should I buy physical metal or an ETF?
- What about mining stocks?
- How should I store my metal?
- Is physical metal only for crazy preppers?
- Can I make money by quickly flipping Costco metal?
- Is Costco metal useful for getting credit card bonuses?
- Executive members earn 2% cash back on all Costco purchases, including gold and silver.
- Limited to $1,250 cash back per 12-month period (equivalent to $62,500 spend).
- Refunds are Costco credit, not cash, usable only at Costco locations (not online or at gas stations/food courts). However, you can use them to purchase shop cards which can be used online and for gas.
- Bank of America Customized Cash[bankofamerica.com]: 3% cash back if you select "Online Purchases" as your category at Costco.com; up to 5.25% with Preferred Rewards (limited to $2,500 in spend per quarter); only 1% at physical Costco stores.
- Chase Freedom[chase.com]: Occasionally/unreliably offers 5% cash back for warehouse clubs, but limited to $1,500 in spending, resulting in about 3-3.5% cash back for one ounce of gold.
- Bank of America Unlimited Cash[bankofamerica.com]: Up to 2.625% cash back with Preferred Rewards; unremarkable 1.5% without preferred rewards.
- Other Cards: Many cards, including Wells Fargo Active Cash[wellsfargo.com], Citi Double Cash[citi.com], and Citi Costco Visa[citi.com] offer 2% unlimited cash back.
JM Bullion buy prices**:
- PAMP 100g gold bars[jmbullion.com]
- PAMP 50g gold bars[jmbullion.com]
- 1ozt Gold American Buffalos[jmbullion.com]
- 1ozt Gold American Eagles[jmbullion.com]
- 1ozt Gold Canadian Maple Leaves[jmbullion.com]
- 1ozt Gold PAMP bars[jmbullion.com]
- 1g Gold PAMP bars[jmbullion.com]
- 10ozt Canadian Mint Silver Bars[jmbullion.com]
- 1ozt American Silver Dollars[jmbullion.com]
- 1ozt Platinum Canadian Maple Leaves[jmbullion.com]
- 1ozt PAMP platinum bar[jmbullion.com]
- Local coin shops often pay well and provide immediate cash.
- Online vendors such as JM Bullion[jmbullion.com], Kitco[kitco.com], and AMPEX[apmex.com] offer competitive prices but you must pay insured shipping.
- Jewelry stores and pawn shops will buy gold but typically at lower prices.
- eBay is not recommended due to potential issues.
- Transaction Costs: Buying physical metal often incurs transaction costs, which is the difference between the buying and selling price. However, executive cash back and credit card discounts often eliminate these costs, or even create a negative transaction cost, allowing for small, but risky profit if you quickly sell.
- Holding Costs: Gold ETFs have no transaction costs at most discount brokerages, but incur holding costs. ETF management fees range from about 0.1% to 0.3% annually. Over time, this means that the metal value of physical gold will always outperform ETFs over the long term, as management fees accumulate about 1% every 4-7 years.
- Security: You are responsible for securing physical gold. If you have a safe place to store it, the holding cost is zero. ETFs securely store and insure the metal for you.
- Tax Reporting: Brokerages and ETFs will file a 1099 with the IRS. In contrast, selling physical gold usually does not result in a 1099 unless the sale exceeds $10,000. Some individuals may misuse this for tax evasion, but that is a felony, with penalties of up to $250,000 in fines and up to five years in prison.
- Theft Risk: Electronic gold accounts can be hacked and are not immune to theft. The debate over whether physical or electronic gold is more susceptible to theft is inconclusive, and will depend on how well you secure your electronic accounts and/or physical assets.
- Value Considerations: ETFs represent a "pure metal" investment, focusing solely on metal value. Physical gold may also have collector value, which fluctuates independently of metal prices.
- Sales Tax: ETF purchases are exempt from sales tax, which is a big advantage in states that impose sales tax on physical metal purchases.
- Simplicity: ETFs are sold in one market, at one price. Your broker handles tax, cost basis accounting, and beneficiary tracking, and the ETF handles storage and insurance. You must manage these things with physical gold. In addition, when you sell, you have to shop around for the best price.
- Short-term trading: Electronic gold is superior for short term trading. Physical gold is less convenient, may have a transaction cost, and must be shipped. Electronic gold management fees are negligible over the short-term. Electronic gold also enables futures trading.
- Fake Bars:
- Store it securely, avoiding obvious places like safes, jewelry boxes, or bedroom drawers.
- Consider well-hidden locations to prevent theft.
- Do not tell people you have gold in the house.
- Store with receipts so you can prove cash basis to the IRS when it is time to sell.
- Add a note with the location of the metal with your estate documents. This way, if something happens to you, your executor or guardian can find the metal. Otherwise, it may be lost forever in your hiding place.
Back to table of contentsHow to spot fake PAMP gold bars: https://www.youtube.com/watch?v=RR_d1eWZjzs
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25 Comments
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Thanks for this, added to my checker list and repped!
$2720 is a good deal, but after $110 in rebates it's the best deal you'll find, I think anywhere.
Note: To get the $2611 price you need a Costco Executive membership, a 2% cashback credit card, and you'll need to wait for your ANNUAL rebate on the executive membership to come around.
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1) governments are borrowing irresponsibly to fund pork barrel projects
2) central banks are injecting liquidity in feeble attempts to prop up their markets
3) inflation has never been under control
It's fine if you don't need any gold, as long as you don't wait til its up 600% and then decide you need gold.
https://money.com/how-to-sell-gold-costco-bars/
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It's fine if you don't need any gold, as long as you don't wait til its up 600% and then decide you need gold.
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