Precious Metals Club - silver, gold, etc. at a Discount, GEI welcomes PMC as an advertiser - discuss here Options

[DrBubb]

Precious Metals Club - silver, gold, etc. at a Discount
GEI welcomes PMC as an advertiser - discuss here
==================================

...... (see ad button at top - click just to right of it to come here)

Precious Metals Club is a Canadian based "buying club" for Gold, Silver, and other precious metals.

It pools the buying interest of its members to achieve better prices, and passes on virtually all of the discount to its members. It does, however charge a small monthly fee to its members.

PMC is a GEI member, and is one of the founders of the business. It is still fairly new, and so they are seeking new customers to expand their business. They can happily dela with clients based in North America, the UK, Europe, and even Far Eastern countries like Hong Kong, and I think New Zealand.

Many questions are answered on the website. / LINK: http://www.PreciousMetalsClub.com

In addition, PMC has offered to visit GEI on a fairly regular basis, and answer questions posed by GEI posters. I expect we could see this thread develop along the lines of the GoldMoney thread. But there are some important differences in how the two companies operate. The main one being that PMC is now set up to send out bars to its members, while GM's whole business model is to store metal on behalf of its clients.

[DrBubb]

(From PMC's About page):



We are an incorporated company, located at #104, 167 Woodbridge Way, Sherwood Park, Alberta. Our contact phone number is (780) 819-2426. Two generations of our family, own and operate the business, each individual specializing in their area of interest and expertise.

Like so many others, we have always had a passion for gold and silver. For a number of years we have purchased gold and silver. The realization that no company offered discounted bar premiums for regular purchases of precious metal bars, started the process towards the formation of the company. There are a lot of investment companies offering different investment programs, all with slightly different twists for saving, but none of them actually send you the precious metal bars.

The Precious Metal Club Ltd is primarily an investment company, selling precious metal bars, to individuals wanting to regularly purchase precious metal bars, with low bar premiums. After all it’s your initial costs that actually affect the value of your investment and the overall potential for your ROI. We are dedicated to supplying an exceptional service and low prices to members and non-members alike.

/see: http://www.preciousmetalsclub.com/aboutus.html

EXCERPT
======
We Receive all bars and ship out your bars according to your schedule through secure and insured methods.
There are times when the actual delivery of a precious metal, is delayed. If this occurs all members affected will be notified.
Sometimes During periods of extreme volatility of the world market, while it is possible to secure the purchase price of precious metals. But the actual delivery dates can be delayed.

In order to secure the best possible price per ounce, a later deliver date is often offered. This can occur when a mint is making bars to order, particularly with large orders. The best price for silver are currently sold in this method.

We Store ALL bars in a secure facility (bank safety deposit box) NOTHING is kept at our place of business.
Precious metals scheduled for local pickup, are stored in the safety deposit box until the day of the pickup.
We Send monthly statements, via email, for those that do not have a computer, we will mail out a hard copy.
We Make special purchases to meet your immediate needs.

We Ship all or part of your holding on request unless there has been a delivery delay by the supplier. Even then we will attempt to meet your requests with PMC’s own stock

[DrBubb]

EXAMPLE, the UK Buyer (of Pds.200 per Month)
===============================

PMC, if you see this, I want to run thru an actual example.

Suppose I decide that I want to buy Pds.200 of metal each month for 12 months, and have it shipped to a location in London,
how much metal can I expect to receive, assuming a spot price for Silver of US$14.00 (at Pds.$1.40, that's Pd.10.00 per ounce.)

AND WHEN should I expect to receive it.

Is this too small a quantity to bother with? If so, what's a sensible minimum value per month?

I suppose that I am better off buying by credit card, since there is some protection that comes from buying that way.
Or have I got that wrong?

BTW, how does you company make money from this business?

[chris ct]

double post.. bubb I'm not seeing that button. I am in the IP Board Guest Skin.

[DrBubb]

double post.. bubb I'm not seeing that button. I am in the IP Board Guest Skin.

Okay.
Thanks, I should add the button there two, buy maybe not for a few days.
I want to see what types of questions arise from our members using the usual "member skins"
( I like best the May 2007 skin.)

I suppose that PMC will be answering them eventually in the Western Canadian timne frame

[PMC]

Sorry I took a little time to respond, but I did want to work out a whole year of purchases to make sure the information I gave you was accurate.

here it is

Assuming and consistant throughout the year
Silver asking spot is 14.00 USD
The exchange for GBP to CDN = 1.75 buying rate
The exchange for USD to CDN = 1.20 buying rate
The exchange for GBP to USD = 1.40 buying rate


Assuming that a regular investment of 200 GBP
$ 200.00 GBP
X 1.75
350.00 CDN

1 oz bar of silver 14.00
+ 1.50 (bar premium) USD
==========
15.50 USD (at current membership levels, as the membership increases the bar premium will go down)

Summary:
Month #1 = 17 bars
Month #2 = 18 bars
Month #3 = 18 bars
Month #4 = 17 bars = the bars from Month #1 arrive
Month #5 = 18 bars = the bars from Month #2 arrive
Month #6 = 18 bars = the bars from Month #3 arrive
Month #7 = 17 bars = the bars from Month #4 arrive
Month #8 = 18 bars = the bars from Month #5 arrive
Month #9 = 18 bars = the bars from Month #6 arrive
Month #10 = 17 bars = the bars from Month #7 arrive
Month #11 = 18 bars = the bars from Month #8 arrive
Month #12 = 18 bars = the bars from Month #9 arrive and so on

Year end total bars = 212 bars + 14.89 CDN left over

What we have not taken into consideration is shipping and the frequency of shipping?

Your other questions:
What do I consider the lowest practical level?
$100.00 CDN per month, if shipped once per year (but that is just MY opinion)

Receiving dates?
I have indicated in the summary when the bars should arrive, for distribution to the membership. In the past shipping
by air (Canada Post) to the United Kingdom has taken 5 – 10 days.

Payment Security
Yes, both credit cards & PayPal offer purchase protection.

So how does the club make money.
In 4 different ways,
First, when the company or I need to make a purchase, we piggyback on the club's monthly orders, and reduce our
initial costs.
Second, not everyone can or wants to purchasing regularly. When we sell a lot to a non-active member, we use our
contacts to make purchases and sell at competive rates. For example, Members paid 40.00 over spot and non-
members paid 75.00 for 1oz gold bars (usually Pamp).
Third, while the 10.00 membership does not sound like much, our initial goal is 1000 active members, then 10.00 each
will start to add up.
Forth, this is will take a while and can only be considered as a long term goal. When it's time to liquidate your holding
you more likely to deal with the company that you have worked with for years. Why, because you feel comfortable and
trust them, if you didn't you would have changed dealer along time agol. The club will offer members that are
liquidating a fair price for their precious metals, and in turn sell it to the membership and others.

I hope I covered everything, if not let me know and I will.

below I am including the actual way it was figured out (only the first 2 months) if you need to see all 12 let me know).

Month #1
17 bars
x 15.50 USD
263.50 USD
X 1.20 exchange USD to CDN
316.20 CDN
+ 10.00 CDN membership fee
326.20 CDN
X 1.03 CDN Transaction fee
335.99 CDN for 17 bars of silver

350.00 CDN investment
335.99 CDN
14.01 to carry over until next month

Month #2
18 bars
x 15.50 USD
279.00 USD
X 1.20 exchange USD to CDN
334.80 CDN
+ 10.00 CDN membership fee
344.80CDN
X 1.03 CDN Transaction fee
355.15 CDN for 18 bars of silver

350.00 CDN investment
+ 14.01 CDN carried over
364.01
-355.15
8.86 to carry over until next month

EXAMPLE, the UK Buyer (of Pds.200 per Month)
===============================

PMC, if you see this, I want to run thru an actual example.

Suppose I decide that I want to buy Pds.200 of metal each month for 12 months, and have it shipped to a location in London,
how much metal can I expect to receive, assuming a spot price for Silver of US$14.00 (at Pds.$1.40, that's Pd.10.00 per ounce.)

AND WHEN should I expect to receive it.

Is this too small a quantity to bother with? If so, what's a sensible minimum value per month?

I suppose that I am better off buying by credit card, since there is some protection that comes from buying that way.
Or have I got that wrong?

BTW, how does you company make money from this business?

[Pixel8r]

I guess UK buyers would also need to add 15% VAT on silver when it arrives?

[DrBubb]

1 oz bar of silver 14.00
+ 1.50 (bar premium) USD
==========
15.50 USD (at current membership levels, as the membership increases the bar premium will go down)

MORE...
1/
The "BAR PREMIUM" seems to be a key thing here.
How does being part of the PM Club save money for the purchaser?

2/
Another advantage is maybe storing silver with PMC,
since if it stays in Canada it will not attract the VAT that is due if it is shipped into the UK.
But what assurances can you offer to demonstrate the Silver is really held there, and can
be sold or shipped at buyer's order?

3/
Do you sell/ship anything (Silver coins or medallions perhaps?) that does not attract a
VAT tax when shipped into the UK?

Third, while the 10.00 membership does not sound like much, our initial goal is 1000 active members, then 10.00 each
will start to add up.
Forth, this is will take a while and can only be considered as a long term goal. When it's time to liquidate your holding
you more likely to deal with the company that you have worked with for years. Why, because you feel comfortable and
trust them, if you didn't you would have changed dealer along time agol. The club will offer members that are
liquidating a fair price for their precious metals, and in turn sell it to the membership and others.

Is that a one-off cost? Or per annum? Per shipment, or per month?

[PMC]

MORE...
1/
The "BAR PREMIUM" seems to be a key thing here.
How does being part of the PM Club save money for the purchaser?

Saving you money, that is the key right. I do not know of anywhere else that you can regularly purchase 10 bars of silver and only pay 1.50 over spot. Perhaps I am wrong. If you are purchasing 500 bars on your own, then yes, perhaps you will be able to match the price. Remember as a club member you can buy gold bars for 40.00 over spot, Again I do not know of anywhere else you can buy 1 - 1 oz bar of gold for that price. From time to time, one of members will want something special, most recently we purchased a lot of 1 gram bars. The minimum lot for 1 gram bars is 50 bars, the member only wanted 35, the club picked up the additional 15 bars and is currently offering them to the membership for 3.50 over spot.

2/
Another advantage is maybe storing silver with PMC,
since if it stays in Canada it will not attract the VAT that is due if it is shipped into the UK.
But what assurances can you offer to demonstrate the Silver is really held there, and can
be sold or shipped at buyer's order?

Currently we have not been offering long term storage, but that is because no has requested it. Should we decide to get into this, I could make arrangements with a law firm to receive and store the silver on your behalf. That way you would be protected by an independent group and as law firm they would have insurance against fraud guaranteed by the law association. Or perhaps I could make arrangements with one of the national banks, to do the same. 3/
Do you sell/ship anything (Silver coins or medallions perhaps?) that does not attract a
VAT tax when shipped into the UK?



Is that a one-off cost? Or per annum? Per shipment, or per month?

The 10.00 membership fee is a monthly fee.

[PMC]

MORE...
1/
The "BAR PREMIUM" seems to be a key thing here.
How does being part of the PM Club save money for the purchaser?

2/
Another advantage is maybe storing silver with PMC,
since if it stays in Canada it will not attract the VAT that is due if it is shipped into the UK.
But what assurances can you offer to demonstrate the Silver is really held there, and can
be sold or shipped at buyer's order?

3/
Do you sell/ship anything (Silver coins or medallions perhaps?) that does not attract a
VAT tax when shipped into the UK?

Yes, if you have an interest in a particular type of material (i.e. silver coins) we would be happy to assist you.

Is that a one-off cost? Or per annum? Per shipment, or per month?

[Member100]

The 10.00 membership fee is a monthly fee.

Okay.
So let me see... If you save $1.00 per ounce, then you need to buy at least 10 ounces per month (ie $150 /month)
for this plan to begin to save the member money.

I suppose you have alot of members at $500-1,000 per month?

[PMC]

Not sure what you have to pay for a bar premium, but in North America, the typical price for anything less than 50 bars is 3.75 to 5.00.



The average investor is at about 200.00 CDN each month.

Okay.
So let me see... If you save $1.00 per ounce, then you need to buy at least 10 ounces per month (ie $150 /month)
for this plan to begin to save the member money.

I suppose you have alot of members at $500-1,000 per month?

[Ret45]

Hi,

How much do members currently pay above spot for gold bars?

What is the shipping charge, per ounce of gold, for shipping to an EU country

I presume there is no VAT for importing into the EU.

thanks

[PMC]

Members are currently paying $35.00 US over spot

as for the shipping charges, it depends on the number of bars being sent.

I will check tomorrow, and see what it costs for a single bar.

As for the VAT, honestly I have no idea. Perhaps someone else out there can tell us. In CANADA there is NO tax or duty on .999 Gold, Silver, Platinum or Palladium.

Hi,

How much do members currently pay above spot for gold bars?

What is the shipping charge, per ounce of gold, for shipping to an EU country

I presume there is no VAT for importing into the EU.

thanks

[PMC]

That is something that I have had no experience with, typically taxes and dues are handles at the recieving country.
In Canada we do not have any Duty or Tax as long as it's marked .999 pure. This is one of the reason only a few companies handle Silver coins.

I guess UK buyers would also need to add 15% VAT on silver when it arrives?

[PMC]

Shipping charges
up to 500 grams, 53.55 CDN and up to 1.5 kgs, 66.15 CDN
Insurance is 1.20 CDN fro 100.00 value, the initial 100.00 is included.

Members are currently paying $35.00 US over spot

as for the shipping charges, it depends on the number of bars being sent.

I will check tomorrow, and see what it costs for a single bar.

As for the VAT, honestly I have no idea. Perhaps someone else out there can tell us. In CANADA there is NO tax or duty on .999 Gold, Silver, Platinum or Palladium.

[littledavesab]

Question for PMC

On importing gold bars etc - what quality are your bars?
+ assume they meet UK tax regulations for "investment grade" see below?

What is the normal size gold bar that you offer /
What is the best value size gold bar that you offer ?
What is the smallest size gold bar that you offer ?

Are they hallmarked at all?


Importing gold and VAT
http://customs.hmrc.gov.uk/channelsPortalW...cument#P68_2884

2. Exemption for investment gold
Investment gold is exempt from VAT, subject to an option to tax. If you are interested in opting to tax your supplies you need to read section 4.

top ^2.1 What is investment gold?
Investment gold is:

(a) gold of a purity not less than 995 thousandths that is in the form of a bar, or a wafer, of a weight accepted by the bullion markets;

( a gold coin minted after 1800 that:

is of a purity of not less than 900 thousandths;
is, or has been, legal tender in its country of origin; and
is of a description of coin that is normally sold at a price that does not exceed 180% of the open market value of the gold contained in the coin; or

[littledavesab]

More questions

what if i want to start with a £500 or £1k initial investment and then say £100 p/m

what if I do not want to store gold at home - but want it in a bonded warehouse or similar

UK - CAD ex rate - where do you take this from? to save having to ask this every so often - or can they put that on their website also

[DrBubb]

2. Exemption for investment gold
Investment gold is exempt from VAT, subject to an option to tax. If you are interested in opting to tax your supplies you need to read section 4.

top ^2.1 What is investment gold?
Investment gold is:

(a) gold of a purity not less than 995 thousandths that is in the form of a bar, or a wafer, of a weight accepted by the bullion markets;

(B) a gold coin minted after 1800 that:

is of a purity of not less than 900 thousandths;
is, or has been, legal tender in its country of origin; and
is of a description of coin that is normally sold at a price that does not exceed 180% of the open market value of the gold contained in the coin; or

Seems like PMC will need a product for the UK which fits these requirements.
I wonder what the cheapest qualifying gold investment might be?

[PMC]

Most of the gold we get in is Pamp. Although from time to time we get Canadian Royal Mint bars.
typically we have 1oz bars in stock, with easy availability for larger quanity
Both are mark .999
Both have individually serial numbered.
So according to the guide below, yes they meet the investment grade, qualifications.
The 1oz bar is the best value.

[/indent]1oz bars are easier to liquidate than the larger sizes, we will buy them for your but as soon as you start

moving away from the norm, you are to reduce the number of available buyers.

From time to time, usually because of a special request we carry 1 gram bars. These are even [indent]

marked .999

Question for PMC

On importing gold bars etc - what quality are your bars?
+ assume they meet UK tax regulations for "investment grade" see below?

What is the normal size gold bar that you offer /
What is the best value size gold bar that you offer ?
What is the smallest size gold bar that you offer ?

Are they hallmarked at all?


Importing gold and VAT
http://customs.hmrc.gov.uk/channelsPortalW...cument#P68_2884

2. Exemption for investment gold
Investment gold is exempt from VAT, subject to an option to tax. If you are interested in opting to tax your supplies you need to read section 4.

top ^2.1 What is investment gold?
Investment gold is:

(a) gold of a purity not less than 995 thousandths that is in the form of a bar, or a wafer, of a weight accepted by the bullion markets;

(B) a gold coin minted after 1800 that:

is of a purity of not less than 900 thousandths;
is, or has been, legal tender in its country of origin; and
is of a description of coin that is normally sold at a price that does not exceed 180% of the open market value of the gold contained in the coin; or