How to buy gold through KB

We strongly recommend at a minimum everyone commit to a regular monthly savings plan. This helps discipline you to make regular deposits into your savings account. You could call this a "set it and forget it" plan. This also allows you to take advantage of fluctuating prices of gold. 

By depositing a fixed amount every month you automatically buy more gold when the prices are lower and less when they are higher, eliminating the need to "time" the market. This does it for you automatically.

click here for specific instructions on how to fund your account
click here to download the optional savings plan contract.

The benefit and goal of a monthly savings plan is to lower your total average cost per gram, giving you, the depositor a lower overall cost for the amount of gold purchased over time. This strategy is called "dollar cost averaging."

Here's an example. Let's say you are a farmer and have budgeted $200/mo to buy cows.

The first month cows cost $100 each so you purchase 2 cows. 

The next month the cow market goes crazy and cows jump all way up to $200 so you can only buy one. Bummer.

Then the market levels off at $200 per cow but you are committed to your budget so you buy another cow.

Then suddenly, without warning the bottom drops out and cows go all the way down to $50 per cow. Everyone's running for the hills and getting out of the cow business but again, you have made a commitment so you buy 4 cows.

It stays at $50 for another month. You buy 4 more cows.

Then it recovers and levels back off to $100 per cow so you buy two more cows.


The Market stays flat at $100 per cow but you are tired of all the ups and downs. The cow business just isn't your cup of tea, so you get out of the farming business and sell all your cows.

So let's look at what has happened.

Budget $200 a month

Number of cows purchased per month

1st month. 2 cows
2nd month. 1 cow
3rd month. 1 cow
4th month. 4 cows
5th month  4 cows
6th month. 2 cows.

Total number of cows purchased =14
Total spent over 6 mo @ $200/mo = $1200
Average cost per cow = $85.71 (1200 spent divided by 14 cows purchased)
14 cows sold at the original price of $100 per cow = $1400 (not including the milk ;o) ] or a $200 profit.

The above scenario assumes fluctuations with prices leveling off to the same price you began with. Even with the starting and ending price being the same you still made money, though there wasn't a consistent or steady rise in prices. 

Obviously if you "exited" the market when prices are low you would not fair as well. But even then, if the market had dropped to $90 per cow when you got out ($10 below where you started), you would still be ahead of the "game" at $1260 i.e. 14 x 90. 

If, however, you exited when prices were at $125 per cow you would walk away with $1750.  Not bad for a $1200 contribution.  

So timing of exit is important unlike timing of purchases while on the plan. Any way you slice it, with "dollar cost averaging" you are "forced" to buy more when prices are low and less when they are high, thereby increasing potential gains and minimizing risk. With this strategy the fluctuations in the market actually work in your favor. 

So what are you waiting for? Regardless of the ups and downs, the dollar isn't getting any stronger!! Turn your dying FRN's to gold now while they are still perceived to be worth something! 

Turning something worthless into something of value is always a smart choice, regardless of the price.