Kitco pool accounts

[rexmerdinus]

Can someone tell me about this in layman's terms? I assume it's kind of like an E-trade for PM's, and you make money based on the spread...am I close? Is it worth it?

[Lemon Thrower]

this is like giving money to someone going to vegas to bet for you. think about it.

kitco "promises" to pay you a return based on the price of whatever metal you pick. they don't promise to actually own the metal, and your investment is at risk for their business failure.

the one advantage is transaction costs are lower.

frankly, buying GLD or SLV is safer.

this is like bending down in front of a steam roller to pick up pennies.

[Mossy]

I was considering using it as a savings account to get together enough to buy larger bulk than I could afford at any moment, and to lay claim to some silver when physical was not available.

However: Either they just recently started charging $15 per transaction (both ways) or I missed it when I first checked it out. That sure changes things for me.

[rexmerdinus]

Just started, according to what I read this morning when I was checking them out. I was thinking more in terms of being able to trade in the market, rather than just investing for the longer term. Physical is certainly best, but I'd like not to have to wait for them to ship it every time I buy something. Just thinking of making some short term profits.

As for trusting the company, well, yeah you're right Lemon, but you have to trust a company every time you order anything online or mail order, which I do a lot since I live 70 miles from the nearest Wally World. Seems like if it's a reputable company, they should be as trustworthy (or not) as any other online investment brokerage.

[barrytrot]

Just started, according to what I read this morning when I was checking them out. I was thinking more in terms of being able to trade in the market, rather than just investing for the longer term. Physical is certainly best, but I'd like not to have to wait for them to ship it every time I buy something. Just thinking of making some short term profits.

Use caution when pursing "short term profits". There are not a lot of wealthy people pursing short term profits. Long term profits seem to be the key in acquiring and maintaining wealth.

I've heard a lot of people talking about "get rich quick", but I've only seen people "get rich slow". Other than the lottery. So invest in that heavily

[Mossy]

Rex, buying something that is going to ship pretty quick is one thing. Buying something that you might ask them to ship a couple of years down the road is very much a different deal. Maybe they don't have any when you want them to ship, maybe the rules and charges have changed, maybe the laws have changed, maybe they have gone bankrupt. (Kitco has some legal problems, I don't know if they have cleared up.)

My idea was to request shipment in maybe 6 months at the most. Even that would be risky. (Then they decided to charge that service fee, probably to prevent exactly what I had in mind. No thanks.)

[rexmerdinus]

Good points all around. kinda just wanted to bounce the idea around a bit and see what these were all about. Thanks!

[Delawhere Jack]

When I starting buying silver in 2008 it was in the Kitco pool. After about 6 months I paid the fee for delivery. It took about 3 weeks to get the metal. Not to knock Kitco specifically, but I wouldn't buy into any pool type scenarios at this point. The counter party risk is too high, you may never be able to take delivery.

[oktyabyr]

I used it when I first started. They didn't have any fees then. It was good for me because I didn't have much free money. I could buy $5 here, $10 there. I made some money off it. Tried to play the peaks and dips. Made some, lost some. But I was up overall. It was the only time I sold any silver. Lol. When they started charging fees, I cashed it all out and went and bought some real stuff. Bullion Direct has something similar. I've used that. Build up a decent amount. Then request delivery.