Silver Bullion or Numis Network?

Depending on which TV channels and radio stations you pay attention to, you have probably been hearing about gold and silver bullion lately. It’s interesting to note that the higher end channels have been telling people to buy gold and silver and the lower end channels have been telling you to send them your metals in a little envelope so they can send you some cash. So, I’ve laid down some facts and a fair dose of opinions that can help you make up your own mind about whether you should be buying silver bullion or joining Numis Network…

So, Let’s Start With – What is Silver Bullion?

Silver bullion are bars or rounds (coins) that are pure silver or 90% or higher in silver. The purity does not matter as much as the actual amount in weight of silver in the product. As an example, the American Silver Eagle is .999 pure silver but what is more important is that it is one full troy ounce of silver. Silver Bullion is purchased as an investment and specifically as a hedge against currency devaluation and inflation, which is a very smart thing to do.

What is the Numis Network?

Numis Network is a network marketing company that sells collectable numismatic gold and silver coins instead of the usual MLM product line of shakes, juices or soap. Specifically, they deal in gold and silver graded numismatic coins. These are coins that have been certified and graded by a third party company as to their authenticity and condition. The main product of Numis Network is modern issued Mint State 70 (MS70) graded government issued gold and silver coins.

The Numismatic industry is a $100 billion global industry. That means $11 million dollars every single hour is sold of these numismatics but before Numis Netork came along, this product class had never been sold inside of the network marketing model.

Is Silver Bullion vs. Numismatic coins the real question?

Not to intelligent people it isn’t. If you’re a thinking person, there are other more important questions at the heart of the matter. The reasons people would buy silver bullion vs join “Numis Network” are different. However, you can debate regarding Numismatic coins vs. silver bullion. In fact, it’s an ongoing conversation. Just read this recent article about the volatility of bullion vs Numismatic coins.

Just to be honest and up front, let me just let you know that I personally do invest consistently in silver bullion but my main source of income does come from my marketing business. The reason I share this is that often times people assume that Numis Network is promoting that buying silver bullion is bad and that is absolutely NOT the case. The issue is that silver bullion just is NOT the product of Numis Network.

So, why do people Join Numis Network?

The people who join Numis Network are typically looking for a home based business, an extra income source, home business tax breaks or to create a home business online freedom lifestyle. Buying silver bullion can’t build those things, as we’ll discuss a bit later in this article.

So, if Silver Bullion is NOT the competition of Numis, what is?

The real competition of Numis Network is other MLMs and their product lines such as, fruit juices, weight loss shakes, soap, technology, which are all the usual products that have been promoted inside the network marketing sales model for over 70 years. So the real competition to Numis Network is not the investing world, but rather it’s other MLMs which offer tax advantages, lifestyle rewards and a passive income potential. Bullion is NOT the “competition” at all.

Why do people REALLY buy Silver Bullion?

Silver and Gold Bullion is an investment. Again, betting on the collapse of the dollar would be a reason to diversify and have some precious metals in your portfolio. But, lets ask a deeper question: Why do people invest in anything? Experts would agree that the reason why people invest in anything is to pursue increase and capital gain, right? The concept of of leveraging a smaller amount of money into a larger amount of money. Let’s ask yet a deeper question… why do people want larger amounts of money? We know there’s a few reasons for this,

1) It gives people a feeling of safety and security.

2) It creates multiple options.

3) It can, if used with intelligence, create a lifestyle with more freedom.

So, to recap, people buy gold and silver bullion in an effort to create a better lifestyle. But, were you aware that silver bullion held for over a year is NOT taxed at the standard 15% capital gain but at the 28% tax rate? It is also not possible to generate a passive income by just investing in silver bullion. Not even by day trading it with ETF’s or any other kind of legalized gambling (derivatives). That kind of investing is NOT a passive income vehicle built to create the elevated lifestyle from passive income that most people set out to build anyway.

What about Gold and Silver Bullion in an MLM? Effective Model or Potential Hot Water?

If you like bullion and you want to build a passive income stream, well, why not just have a network marketing company use bullion as the product? Well, that idea has already been attempted many times in the arena. Historically there have been 9 MLM companies that have attempted to market bullion inside of a MLM company, all with a 100% failure rate for varying reasons. It is not illegal to market bullion as a product in a MLM company but the problem arises in two areas:

1) Profit margins and prices charged on commodities like silver bullion.
2) Compensating non-licensed sales people on commodities sales.

The biggest problem is number one. There is very little profit margin in silver bullion as opposed to numismatics. It is extremely competitive and any “price adjustment” to create profit in a product highly scrutinized and regulated, well, historically has not fared well for the past gold and silver bullion mlm’s. There is one gold mlm out there right now that has you not receive your product physically as they “conveniently” store it for you out of the country. Now, I don’t know about you, but I sure as heck am not interested in sending my hard earned money offshore to some stranger outfit, so I can trust that they are storing “my precious metals” conveniently in their warehouses. And I’m sure other government entities would approve that as a model either.

So, Are Numis Network Coins Overpriced?

Here is the fascinating reality that I have noticed. You have about 2-3% of the population at least slightly educated, that know it might be a good time to buy gold and silver. The rest of society is more focused on who’s in bed with the Kardashian sisters or with who’s on “Dancing With The Stars” or whatever the preferred media distraction of the day is. I am a HUGE proponent that people should become more educated about the times we are in.

Ron Paul’s book “End the Fed” would be a good start to get up to speed. However, those that are slightly educated on gold and silver have learned about bullion and assume that all other forms of buying gold and silver is “beneath them.”

However, wise people through time have said that true intelligence is the ability to make distinctions. This is an area of non-intelligence for most people because they fail to make important distinctions.

FACT: The numismatic industry, according to the American Numismatics Association (ANA), is already a $100 billion a year industry. Larger than the pet industry and an average of $11 million an hour is sold in collectible coins each hour.

No MLM company even comes close to how gigantic this industry already is.

So, the smarter question is this…

Are Numis Network products competitively priced in this industry?

Well, let’s do a little due diligence and see just how competitive Numis Network products are relative to the “real world” (non MLM) competition. Below I’ve listed a few products and their prices from a recent review:

Example 1: 2011 MS70 Silver Libertad (1 Ounce of Silver) – Apmex Price – $349 – Numis Price to members – $119

Example 2: 2010 PR70 Silver Disabled Veteran (1 ounce of silver) – Govmint Price – $149 – Numis price to members – $129

Example 3: 2001 MS70 and PR70 Buffalo Silver Dollars ((2) 1 ounce of silver coins) – Home Shopping Network Price – $1499 – Numis Price to Members – $1099

You can also check pricing on graded gold and silver numismatic coins at First Federal, ShopNBC, Franklin Mint, as well as the three mentioned above. Numis Network is NOT the low price leader of every coin ever minted, but all in all, the prices are competitive, which, is what you really want to have in a business.

And let’s also compare apples to apples here for a moment and consider the price differences of the usual MLM product line comprised of juices, lotions, potions, pills and vitamins…

I’m sure we can all agree, that if I went to WalMart, Costco, GNC and any other grocery store or merchant that sells these types of products outside of MLM, we would see that the MLM companies sell their products at abnormally high pricing. In fact, the issue is NOT that health and wellness is not a good thing… it’s a critical thing.

But it’s also true that I can buy outstanding “health and wellness” at my local whole food store and Costco and pay a fraction of the cost that an MLM would charge. That’s just reality. We all know the biggest products that people are paying for when they join those MLMs is the compensation plan and the “environment” and the “dream.”

In fact, I’ve experienced what happens inside of those MLMs when the company decides to drastically alter the comp plan… all of a sudden, people just don’t find the product that high in quality compared to their next “deal” and that’s the funny thing about that side of the MLM industry. If we can all be honest with each other, it’s pretty darn funny to witness again and again as it happens. :0)

So, What Do You Do? – Guideline to Bullion or Numis Network

Well, I can assist you in trying to come up with a decent review of options you can consider:

- Do you have tons of cash, need no tax breaks or residual income but want to hedge against the dollar? Buy bullion, oh, and congratulations on being so independently wealthy too!

- Do you need an income stream? Are you interested in building a passive income stream? Consider joining and building Numis Network as bullion can only give you a capital gain when you sell, and cannot, by it’s own, create an income for you.

Let’s Consider Something Else Too

Bullion is more volatile than Numismatic coins but that does NOT mean I am anti-bullion, quite contrary actually. I buy a lot of silver bullion every month but it is from money I made from my home busines. One neat thing that Numis Network offers is a 5 year buyback guarantee on their coins shipped through autoship.

That means if you are unhappy with your coins or coin values 5 years after you receive them, you can sell them back to Numis for 100% of what you paid. Now, most places that sell silver bullion will buy your coins back but at the market price. So, if the mere chance that Silver dropped significantly (like it just did), the bullion companies would NOT pay you what you paid but what the market is at the time you want to sell.

And remember, if you compare this with Numis Network’s REAL competition, which is other MLM’s that sell juices, potions, lotions and pills etc., you can’t even make this comparison.

There is no other MLM product in the industry that you can choose to mail back to the company and get a check for what you paid for it. Don’t even try it. So Numis Network is the only company in the MLM arena that takes that risk away from you. Pretty cool.

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