Precious Metals Frequently Asked Questions (FAQ)

Q: How do I Buy Precious Metals with Superior Gold Group?
A: After you've spoken with an Account Executive(AE) for a personal or commercial account for your company, you may place a trade.

1. Call Superior Gold Group's trading desk at (888) 969-6465. For quality assurance and security, all calls are recorded.
2. The Superior Gold Group's Account Executive will discuss account options, prices, and product availability with you.
3. Confirm: The Superior Gold Group Account Executive will quote you a price for a specific product and quantity. If the price is acceptable to you, you may place your buy order and "fix" the price. The Account Executive will provide you with a transaction number.
4. Complete: You may pay for your order by bank wire, check by phone or a check by mail. Superior Gold Group will deliver your bullion or numismatic coins to your address of record within 7-31 business days after good funds are received. Superior Gold Group will provide you with a Transaction Confirmation detailing each trade.

Q: How do I Liquidate Precious Metals with Superior Gold Group?
A: After you've opened an account with our company, you may place a trade. Bullion must be received, inspected and accepted by Superior Gold Group prior to executing a trade.

1. A Superior Gold Group representative can assist you with shipping bullion to Superior Gold Group.
   A standardized packing slip is available. It provides shipping instructions and ensures that your bullion is processed promptly and accurately.
2. Call Superior Gold Group's commercial trading desk at (888) 969-6465 and ask for your AE that opened your account. For quality assurance and security, all calls are recorded.
3. Discuss product receipt and prices.
4. Confirm: A Superior Gold Group AE will quote you a price for a specific product and quantity
   If the price is acceptable to you, you may place your sell order and "fix" the price. You must ship your gold or commodities to us same day and received by Superior Gold Group with in (3) three business days to honour the transaction. The AE will provide you with a transaction number.
   
5. Complete: Superior Gold Group will make payment to you by bank wire or check by mail. Superior Gold Group will provide you with a Transaction Confirmation number detailing your trade.

Q:    Do dealers buy bullion or numismatic coins back at the same price they sell it?
A:   No,There is a price differential or "spread" between our selling price (the "ask" price) and our buy-back price (the "bid" price). This is often referred to as a "transaction cost."

A typical spread on our most common bullion coins (e.g. Canadian Maple Leaf or South African Krugerrand gold coins) is approximately 6% to 10%. Our spread on semi-numismatic coins, rare or numismatic coins and rare currency ranges between 30% and 35%. Examples of coins which have a spread between 30% and 35% include the Swiss 20 Franc, the First Strike certified coins and the Morgan and Peace silver dollars.

With the exception of the most common 1 oz. bullion coins, Superior Gold Group charges clients its numismatic spread (which ranges between 30% and 35%) on coins. To earn a profit upon resale to us, your coins, currency or bullion must appreciate sufficiently to overcome this price differential.

To illustrate how this spread works, consider the following example. If the spread on a coin is 30% and Superior Gold Group’s ask/sell price is $400 for the coin, then Superior Gold Group's bid/buy price is $307. Your coin must appreciate more than $93 to earn a profit. If you choose to sell your coin back to Superior Gold Group, you must also pay a 2% liquidation fee (the minimum liquidation fee is $20). Purchases of less of $1,000 are subject to a small lot fee of $20.

Our prices are set internally based upon our analysis of a variety of factors and are not necessarily tied to the prices quoted by any other organization. The prices charged by Superior Gold Group for coins are subject to change based on market conditions. Our total profit before operating expenses may be more or less than our spread based on various factors selling price (the "ask" price) and our buy back price (the "bid" price) including, but not limited to: quantity purchasing, favorable or unfavorable purchases, and positive and negative market conditions.

Q:    Will you buy back my bullion if the market price goes way up?
A:    Absolutely. When bullion prices go up, that just means that bullion demand has increased and prices are higher relative to the dollar. We buy bullion at those higher prices because our customers will be paying us higher prices. The bullion markets are very simple: prices are simply re-adjusted in terms of how many dollars will buy an ounce based on the supply and demand in the world market. Every day, each precious metal is traded for dollars, and conversely, dollars traded for the precious metal. Price is the balance between the two.

Q:    Are bullion purchases taxable?
A:    Superior Gold Group does not collect any tax, including sales tax. Washington State sales tax is not collected on any bullion orders. We are not required to collect sales tax from other states.

Q:    Are bullion coins legal tender?
A:    Yes, if they are government issued bullion coins with a face value. This nominal face value allows the coins to travel across national borders without the taxation or fees otherwise imposed by many countries on bullion itself.

Q:    Do bullion coins come with a certificate of authenticity?
A:    Yes, a maker’s mark and statement of weight and fineness is stamped directly onto the bullion, whether coins or ingots. The bullion itself, in effect, bears its own “certificate” from whichever mint or refiner produced it. Gold, specifically, is an element with a unique specific gravity, and other attributes which are easy to test for authenticity. The ancient Egyptians pioneered the “acid test” for gold, and any jeweler or pawnbroker can demonstrate the basics of gold.

Q:    Do you recommend European Gold Coins?
A:    We recommend British Sovereigns as an alternative to gold bullion for those customers seeking low-priced “bulk gold.” They offer the benefits of modern gold bullion and are priced by their gold content.

Q:    Was gold illegal to own at one time?
A:    Yes, in this country, from 1933 to 1974 U.S. citizens could not legally own gold bullion without a special license. In 1975 these restrictions were lifted and gold can now be freely held without any licensing or restrictions. More importantly, ask your AE at Superior Gold Group which type of coinage may be best suited for you.

Q:    Can I put bullion in my IRA?
A:    Yes. You do need a custodian, a qualified third party such as a bank, to actually hold the qualifying bullion in your name. Some qualified depositories will do IRA storage of physical metals for you. Annual storage fees are usually involved, and an initial fee to set up the account.

Q:    What are the limits on how much gold I can own?
A:    Private gold ownership in the United States has no size limitations. You are limited only by your budget and common sense.

Q:    Are bullion transactions of $10,000 or more reported to the government?
A:    Only if they involve cash or cash instruments such as cashiers checks which total over $10,000. No report on transactions involving single checks or bank wires are required. Currency regulations involving amounts over $10,000 were designed to thwart money launderers and drug dealers.

Q:    If I sell gold to you, is that reported?
A:    Certain forms of gold which traded as commodity contracts in 1982 fall under the Broker Reporting Act of 1982. Specifically named are South African Krugerrands, Canadian Maple Leafs, and Mexican gold Onzas in quantities of 25 ounces (one 'contract') or more. Sales of these items in contract quantities require a 1099B IRS information form, reporting the sale of a regulated commodity contract.

Q:    Do I have to report my gold coin purchases to the Government?
A:    No branch of federal, state, or local government has specific interest in how much gold you might own. The U.S. Mint, a division of the Treasury Department, strikes the gold Eagle bullion coins, and supports their sale with national advertising, sales brochures, gift boxes, and so on, but they do not keep track of who is buying it from their dealers.

Q:    Do I have to pay taxes if I sell my bullion coins for a profit?
A:    Yes. If you hold precious metals bullion as an investment, and later sell it at a profit, you will have either a long-term or short-term taxable gain. There are certain type's of numismatic coinage that Superior Gold Group is not required to report upon liquidation. Please ask an AE at Superior Gold Group for further details.

Q:    Do scuff marks or scratches affect the value of my bullion coin or bar?
A:    No. The physical appearance of your bullion coin or bar does not affect its resale value. Rather, its value is determined by the following three factors: metal, weight, and purity. The per ounce prices for precious metals like gold and silver are determined by world market conditions. Naturally, since the market price for each precious metal is determined on a per ounce basis, the weight of your bullion coin or bar will also always factor into its overall value. Finally, the purity of the metal from which your coin or bar is minted is important. The purity of bullion products can vary. Increasingly, however, government backed bullion coins and bars are refined to 99.99% purity, the highest level available on the market. Moreover, most bullion products are stamped with their exact purity for easy identification.

Q:    What is the best way to store bullion?
A:    For anyone new to bullion investing, the question of how and where to store precious metal bullion coins and bars can be a perplexing one. When making this decision, investors should consider the following three factors: size, security and liquidity.

Size
Bullion products come in a variety of sizes and weights, which often determines their suitability for certain storage locations. Some precious metal bars, for example, can weigh up to 70 pounds. For practical reasons, those interested in purchasing bulk quantities of bullion will probably want to enlist the services of a registered precious metal storage facility. Those looking to keep their investment closer at hand may want to consider purchasing smaller sized precious metal bars or bullion coins, which can be stored and transported more easily.

Security
If an investor's greatest concern is security, registered storage facilities, as well as many banks, offer vaults devoted exclusively to safeguarding bullion commodities. Typically, these facilities offer additional insurance policies for a nominal monthly fee.

Liquidity
The major attraction of owning physical metal for some investors is its liquidity. For those who put a premium on having ready access at all times to their bullion investments, home storage is certainly an option. However, with the advent of modern technology, many bullion banking facilities offer investors 24-hour access to their private accounts. We believe holding precious metals physically gives you total control over your assets.

Q:    What sizes do gold bars come in?
A:    Gold bars, like other precious metal bars, are typically measured in units of weight as opposed to their linear or physical dimensions. Precious metal bars are "assayed" or evaluated by professionals to determine their exact weight, and this value is generally stamped on the obverse or front of the bar itself.

Although the metric system is commonly used to identify denominations for gold bullion bars traded throughout the world, the Troy ounce is a widely recognized standard unit of measurement. One Troy ounce is equal to approximately 1.1 ounces. Standard denominations for retail gold bullion bars are 1,5, and 10 Troy ounces. Smaller gold bars (weighing less than 1 Troy ounce) are often measured in grams.


Q:    How much are my old silver coins worth?
A:    The value of circulated U.S. silver coins, such as Morgan and Peace Silver Dollars, is determined by several factors, including their silver content, their overall physical condition or "grade," and the rarity of the specific coin.

Silver Content
Circulated U.S. coins in a variety of denominations and from several distinct periods in American history are sought out by investors for their silver content. Prior to 1964 in the United States, dimes, nickels, and quarters minted for circulation contained up to 90% silver. Morgan Dollars, which were first struck by the U.S. Mint in 1878 and produced until 1921, also contain 90% silver. The value of these and other circulated coins, based on the silver content alone, is determined by the fluctuating price of silver on world markets.

Grade
Silver coins are also evaluated or graded based on their physical condition. Generally, coins can be classified into two distinct categories: circulated and un-circulated. The American Numismatics Association (ANA) recognizes 11 different grades for circulated coins, ranging from AG-3 at the bottom of the scale to AU-58 at the top.

Rarity
Market prices for circulated silver coins can vary widely depending on the rarity of a particular coin design or date of issue. The Mercury Dime is the perfect illustration of this point. Minted from 1916 to 1945 at the Philadelphia, San Francisco, and Denver Mints, it weighs about 2.5 grams and contains 90% silver. While the 1944 Mercury Dime retails for approximately $1.50, the much rarer 1921-D ("D" is the mark of the Denver Mint) sells for more than $500.

Q:  What are the differences between bullion coins and rare or "numismatic" coins?
A:   Bullion coins are produced in mass quantities by government mints and are legal tender in their country of origin. Bullion coins sell for a small premium over their intrinsic (or spot) metal value. Bullion coin prices move, in tandem, with the price fluctuations of the underlying commodity (i/e., gold, silver, platinum or palladium).
Rare or "numismatic" coins are collected and valued for their scarcity, individual beauty, uniqueness or historical significance. Special collectible qualities can potentially render rare coins far more valuable in the marketplace than the value of any gold or silver that they may contain.

Q:    What makes precious metals "precious?"
A: Gold, silver, platinum and palladium possess six innate attributes that render them unique in all of nature. They are Beauty, Utility, Rarity, Indestructibility, Portability, and Inherent Value.
No other elements known to man manifest all the characteristics, and it is for this reason that mankind has always considered these metals precious.

Q:    Where is my metal held in custody if I choose to open an IRA account?
A: Superior Gold Group primarily utilizes the depository services of Delaware Depository Service Company (DDSC). Located in Wilmington, DE, DDSC is an exchange-approved depository. Fees may apply.

Q:    Why are the prices quoted for precious metals by dealers different than the prices listed in the newspaper?
A: Most newspapers either show the previous day's prices from the New York commodity exchanges or London market. The New York prices are for the standardized futures contract, closest to maturity (i.e., the nearby delivery month) on the close of exchange business. The London prices are for the "fixing" prices set by the world's largest market makers to balance their books. Both New York and London prices provide a good benchmark for the value of gold (or silver, or platinum or palladium). However, the prices reflect a very specific set product specifications, terms and trading counterparties; they do not represent the price of metals in any quantity, form, location or trading forum. Consequently, dealers monitor the New York and London prices to determine a starting price point from which they can determine a competitive final price for a particular transaction. The dealer quotes the current spot price at that particular moment in time or a quote for a specific product where the cost of that product includes manufacturing costs, supply and demand premiums. That quote may also include delivery, insurance, and sales charges.

Q: How are you affected by the US Patriot Act?
A: Please read all about our compliance with the Patriot Act.

Q: Why should I invest in precious metals?
A: Investors have many different motivations and objectives when considering an investment in precious metals. Precious metals: are tangible/real assets - their value is not determined by any government or company are excellent portfolio diversifiers - inclusion of precious metals in an investment portfolio can reduce overall volatility and risk serve as a hedge against inflation in times of economic uncertainty provide a store of long-term value - they have intrinsic value provide a safe haven in times of political or international unrest are an alternative asset with price appreciation potential.

Let's get started now, Account Executives are standing by.
888.969.6465