Is buying products priced .99 cents above spot price a good investment?

This widely depends. You must consider the ease of liquidity, privacy and the sellback process before you buy.

A common tendency novice investors make is to let their decision be based on a price.

An experienced investor always understands their exit strategy before they invest.

Here are a few things to consider when selecting a precious metals product:

1) Liquidity

What is the popularity of this product/brand and can I readily find it offered at my local precious metal dealer? The reason for this is because if you need to sell this product in a pinch, then you will need to know your resources of where you can immediately liquidate it in your area. If for example, there was an economic event or collapse, then who are the local dealers in your area and would they accept this product?

Remember, during the week of  September 11, 2001 the stock markets were closed, the banks were closed, and ATM's ran out of cash in New York city.

Would someone on the street recognize the product or even want to consider it for bartering purposes?  

If you buy an off brand hallmark or bar brand, you may be limiting your ease of liquitidy and sellback options.

2) Privacy

If privacy is important to you, then you should know which products are reported by the dealer at the time you sell back your metals. For example,  any silver bars that are sold back to the dealer in 1,000 oz or greater, the dealer is required to report. The dealer will need to get your social security number so they can fill out a 1099b form. See p. 174-176 of Mike Maloney's Guide to Investing in Gold and Silver for more on privacy.

3) Sell Back Process

Understand what kind of sell back price you can expect on this product and also be sure to factor in the shipping costs and transit time if you plan to sell it back to the dealer you purchased it from. In an emergency situation, it may be more convenient for you to sell the product in your local area if that is an option for you.  

Remember at the end of the day, you get what you pay for and we believe you will have far better results based on the time and effort you put into your research.

Original source