$106,848

That’s how much it cost to run a full page ad in Section C of the New York Times.

A big layout for most businesses.

It’s easily justified cost for a wide-release movie.

It can also be absorbed in the “branding” efforts of a big companies like Samsung who spend as much as $15 billion a year on advertising.

In the direct-response business (one where the person viewing the ad would have to respond to the ad and buy something), it’s a massive outlay.

It’s no surprise though a gold bullion dealer recently shelled out for a full page ad.

Granted, it’s probably worth the risk. But likely only for the wrong kind of bullion dealer.

Let me explain.

Two Mistakes New Gold Investors Make

First things first.

There are a number of gold bullion dealers out there selling gold.

Most are reputable.

I’d like to say a few are not.

It’s more like many are not.

Here’s how to tell the difference.

If you call a bullion dealer up and they start pitching you “rare gold coins” like 18th century Spanish doubloons, hang up the phone.

These places make a fortune of these “rare” coins.

More precisely, they make a fortune off your ignorance.

For example, the gold bullion market is pretty efficient.

If you buy some recently minted American Eagle gold bullion coins, you’ll pay about $50 to $100 over the spot price of gold for them.

They face a lot of competition in the market.

After all, you can go online and buy them with a similar premium over the spot price of gold if they try to charge too much.

The market for rare and collectible gold coins isn’t nearly as efficient.

I’ve heard stories of Spanish doubloons going for $2200 recently. That’s $900 over the spot price.

The problem is they aren’t worth it at all. If you took them to your local coin dealer to sell them, you’d probably get the spot price of gold.

As a result, you’re basically down $900 right from the start and gold would have to rise 65% just to get you to breakeven.

If you want gold bullion, buy the standard fare. American Gold Eagles, American Gold Buffaloes, South African Krugerrands, Austrian Philharmonics, or something like those.

They will cost you 4% to 7% over the spot price of gold, but that’s the standard cost of buying.

That’s how to avoid the first mistake new gold buyers make.

The second mistake can be a bit trickier because it involves storing your gold safely and securely.

This week your editor was involved in a potential of lost or stolen mail earlier this week.

The mail contained something valuable (not gold or precious metals) and the replacement costs would have been between $3,000 and $4,000.

Eventually it was found, but I did learn something in the process.

I learned my (fairly generous) insurance policy only covered the first $1,000 of the mail loss if it was stolen.

If you are getting shipped or own gold bullion, it is at risk of theft. And the risks go up with every uptick in gold prices.

Think of it like this.

Gold is perfect target for any thief.

Thieves break into houses and steal everything of value. From TV’s to smartphones. They’ll all go.

Stuff like that is worth hundreds of dollars.

Gold is worth thousands. Potentially tens of thousands or more depending on how much you own.

It’s also easy to transport, sell for cash, and is largely untraceable.

Gold heists are on the rise too.

That’s why you want to store it as securely as you can, don’t let people know you have it, and insure it as best you can in case the worst happens.

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