Prices
Precious Metals prices are determined by the SPOT PRICE. Spot prices can be viewed on the home page of this website. Spot price is determined by the COMEX (Commodity Exchange, Inc. is a division of the NYMEX - New York Mercantile Exchange), where paper contracts** for the future purchase of Precious Metals are traded. A futures contract represents an exchange approved fixed quantity of Precious Metal (Gold = 100 oz, Palladium = 100 oz, Platinum = 50 oz and Silver = 5,000 oz), brand and purity. A certain percentage of the price of the contract is paid on "margin" when you buy the contract. The balance is due when the Precious Metal is delivered. For example, physical 50 troy ounce Platinum bars are delivered, honoring forward month contracts in the months of January, April, July and October (1,4,7,10). In December if you buy a January (forward month) Platinum contact at $1,900./oz the total contact cost is 50 oz x $1,900./oz = $95,000. At the time of purchase you are required to pay approximately $15,000. margin deposit. The balance is due when the contract is delivered. If you sell the contract before delivery and the price goes up you make a profit, if the price goes down you take a loss. Since the majority of market participants never take delivery of the Precious Metals, the market price is influenced by many factors other than supply and demand and is very volatile. Please note: SPOT PRICE is a theoretical price which the purchase and sale price of Precious Metals is based.
**We do not recommend that you buy the above referenced paper contracts as a Precious Metals investment. These are highly leveraged securities and you can lose much more than your initial investment.
The bid - ask price. The bid price is what a buyer will pay and the ask price is what a seller will offer. This applies to paper contracts and physical Precious Metals. The bid price is generally less than the ask price; if you sell a Gold coin to a dealer, he will pay you less than if he were to sell the same Gold coin to you.
When you buy physical bullion, coins and bars, there are many factors that determine the PREMIUM (amount over spot price) that you will pay. Fabrication costs, type of product (Silver Art Bars are collected and sold like rare coins), business costs for the vendor (overhead, monetary cost of holding inventory and insurance) and most importantly supply and demand. If everyone is trying to buy Gold, and the inventory is scarce, a large premium will be charged by a dealer who has limited supply (short squeeze).
Higher premiums generally apply to smaller and government bullion products (based on availability). One ounce Silver bars carry a higher premium than 100 ounce Silver bars. One tenth ounce Gold coins carry higher premiums than one half ounce Gold coins. American Eagle coins carry higher premiums than refinery bullion coins and bars.
The price of the very same Precious Metal product can vary greatly from minute to minute and from dealer to dealer. It is really a matter of who has what and who wants to sell.
Purchases
When you decide what Precious Metals products you are interested in purchasing:
1. A purchase invoice will be e-mailed to you, describing the Precious Metals and the total ounces. A price will be quoted based on the spot price at that moment. The price is only valid for the limited period of time described on the purchase invoice.
2. You will then initiate a wire transfer to Dr. Platinum (wiring instructions will be provided to you).
3. When your funds are received a purchase confirmation will be e-mailed to you, describing the Precious Metals, the total ounces and the exact buy price.
4. You will schedule a date for physical pick up or your Precious Metals will be shipped to you. All shipments are sent USPS insured and registered. Delivery fees apply.
5. Storage of your Precious Metals is available in Dr. Platinum's segregated accounts at an insured United States *COMEX approved depository.
A Dr. Platinum storage certificate will be sent to you, via certified mail, denoting the following information about your Precious Metals:
- Troy ounces of Precious Metal, type of bullion product (coin type, bar brand, bar serial number if applicable) and vault location.
The certificates are non-negotiable and not transferable.
There is a replacement charge for lost or stolen certificates.
Annual storage fees will be paid at the time of purchase, pro-rated to the end of the calendar year and each January thereafter.
- Storage fees are based on the bullion type and number of troy ounces.
Physical Delivery of your bullion products may be requested at any time.
- Withdrawal and delivery fees will apply.
- 100 troy ounces = 6.857 pounds
- 1000 troy ounces = 68.57 pounds
*COMEX = Commodity Exchange, Inc. is a divison of the NYMEX - New York Mercantile Exchange, LBMA = London Bullion Market Association
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