Author Topic: Gold/Silver newbie  (Read 8251 times)

Offline PolicePrepper

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Gold/Silver newbie
« on: June 09, 2015, 04:55:34 PM »
So I'm looking into purchasing some silver/gold to keep on hand at home. However, budget will allow about $100 a month (alternating silver/gold). I'm probably going to purchase from JM Bullion, because they're a sponsor, but with so many options, I'm not sure which is most practical. Should I go with bars, or coins, or bullets, or what? Also, is copper worth getting for at least one month out of the year "just in case?" Thanks guys!

Offline fritz_monroe

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Re: Gold/Silver newbie
« Reply #1 on: June 09, 2015, 04:57:58 PM »
Short answer is it doesn't really matter.  Buy what you like.  I like the different designs on the various generic rounds, so that's the main part of what I buy.  But I know that some people only like American Silver Eagles, so I also buy some of those.

I don't buy gold.  At $100 a month, it's a very slow accumulation of gold volume.

Offline em ty

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Re: Gold/Silver newbie
« Reply #2 on: June 09, 2015, 05:02:00 PM »
At $100 a month, I'd stick with silver or save up to buy a bigger gold piece as the premium on fractional gold will eat up your investment fast.  If you want copper, collect scrap wiring or bus bars and leave the "investment grade" copper alone.
 
I think silver and gold are a good idea, but make sure you've got at least 2 months of cash on hand first for emergencies, then look at precious metals.  For that level of investment, I'd research what bullion is going for and what junk silver is going for and try to buy when a good opportunity presents itself from a private seller you can meet in person.  Sticking with junk silver will greatly lessen the chance of counterfeit coins.

Offline ncjeeper

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Re: Gold/Silver newbie
« Reply #3 on: June 09, 2015, 05:02:55 PM »
I like silvertowne. You can get free shipping on their generic bars and rounds and it will be at your door in a few days.

Offline PolicePrepper

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Re: Gold/Silver newbie
« Reply #4 on: June 09, 2015, 05:09:31 PM »
I'm fine on cash, food/water, and copper jacketed lead  :), which is why I'm moving to gold/silver. This is going to be a slow accumulation until I can begin investing more, but this is what I can do with balancing the wife's want of home updates lol.

Offline David in MN

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Re: Gold/Silver newbie
« Reply #5 on: June 09, 2015, 05:11:07 PM »
If you're just starting out, buy junk silver. At $100/month you're not really in the gold game. But after a year of bulking up $1200 in silver  :happydance: consider saving up and getting bars and gold. All this assumes your debts are square and you really have the money to play with!

I've got junk silver, silver dollars, bullets, Liberties, uncirculated Liberties, gold (coins, small bars), platinum, copper, etc.

If you've got specific questions, PM me. I love the metals game.

Offline PolicePrepper

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Re: Gold/Silver newbie
« Reply #6 on: June 09, 2015, 05:14:35 PM »
Thanks guys, and yes, I'm debt free (besides the house).

Offline TexDaddy

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Re: Gold/Silver newbie
« Reply #7 on: June 09, 2015, 05:54:33 PM »
I think junk silver is a good idea. 1964 and before US dimes, quarters and half dollars.

Next, I would recommend the American Silver Eagle. After that, Canadian Maple Leafs.

I stay completely away from rounds and bars. There is no easy way to really be sure what they are made of. Actual coins from one of the world's premier mints is, IMO, the way to go. These include the United States Mint, The Royal Canadian Mint, The Royal Mint in the UK, The Perth Mint in Australia and the Austrian Mint.

Offline RyanT

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Re: Gold/Silver newbie
« Reply #8 on: June 09, 2015, 08:29:31 PM »
I do like collecting old coins in decent condition even if that means paying a bit (or sometimes a lot) over spot. It's a hobby I get a lot of enjoyment out of and if society continues more or less 'as normal' It'll be something to leave to any kids I eventually have, to do with as they wish.
If the SHTF well I'm sure swapping a Victorian crown that used to be worth £50 for a chicken that used to cost £5 when we had factory farms and supermarkets will be the least of my worries?

For the most part though I go for Canadian maples, Britannia's and American Silver Eagle's as TexDaddy says you know what you're getting. Especially now forgeries are appearing and they're reacting with more intricate designs.   

Offline TexDaddy

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Re: Gold/Silver newbie
« Reply #9 on: June 09, 2015, 08:38:26 PM »
If you really would like some gold, I would recommend the Mexican Dos Pesos.

These are 0.0482 troy oz gold coins. They are smaller than a U.S. dime. Right now, the spot on these is around $57. If you can find one in a coin shop it would go for about $60-$65.


Offline jerseyboy

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Re: Gold/Silver newbie
« Reply #10 on: June 09, 2015, 09:04:27 PM »
One hundred people, one hundred different answers.

Silver is silver. However, how are you going to prove to someone that it is really silver? That is why some people like coins over rounds.

However, any coin can be counterfeited, including Silver Eagles.

So where does that leave you?  Buy what you want.

Another option is silversaver.com which is an MLM site but once you get past that you can do periodic purchases of low dollar amounts for dollar cost averaging. You take delivery once you accumulate 20 ounces. The premiums aren't too bad.

However, if you can make the $100 minimum order for jmbullion they are a good site.

Some people like sunshine mint with their special mint mark to prevent forgeries which would go to prove that the silver is silver which is one of the reasons people buy silver eagles.

Lastly silver eagles do carry some numismatic value and may increase in value over spot if you want to bet on that and find a buyer willing to pay it.

Good luck
Jerseyboy


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Re: Gold/Silver newbie
« Reply #11 on: June 10, 2015, 01:13:06 PM »
I'll join in the chorus of start with silver.  To me, gold remains for large stores of wealth, like for buying land and such in a post SHTF world.  Junk silver and Morgan slicks are a great place to start.  I like buying friends and family silver dollars from the year they were born and giving them as birthday gifts, too.  Some of the slicks I've acquired were just barely over spot, but were still obviously very old silver dollars that just had a century of wear on them.  While they don't have a numismatic value like most coins, they're still easily identifiable and unique in a way that makes me prefer them to bars or rounds.

Offline TheRetiredRancher

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Re: Gold/Silver newbie
« Reply #12 on: June 10, 2015, 08:49:29 PM »
At JM Bullion wait until they have a weeky sale on Sunshine Mint rounds. You can get small lots at bulk lot prices on a round with pretty good anti counterfeiting features.   It will save you $0.50 - $1.00 per round plus their free shipping.

Offline msparks

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Re: Gold/Silver newbie
« Reply #13 on: June 11, 2015, 08:14:03 AM »
+1 on the silver accumulation first.

Think about this. Having a relationship with your local dealer can go a long way. I have 2 or 3 in my area. After building up a relationship he will hold stuff for me, give me deals on stuff he wants to get rid of (I bought a set of Chinese Pandas for spot one time)

Secondly when it comes time to sell, you have a local guy to deal with. Buy all your silver online then go try sell local you will most likely get ripped off because you don't have that relationship.

Just my .$10 (inflation adjusted from $.02)

Offline Chris Gilliam

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Re: Gold/Silver newbie
« Reply #14 on: June 11, 2015, 10:38:54 AM »
Buy whatever you can get closest to spot, cuz when you sell it you're gonna get a little under spot, no matter what it is. ASEs and Maples are great, but the local dealer probably won't pay the premium for them. In your case, I'd buy coin silver, not exactly "junk." Halves, dimes, and quarters. Stay away from the nickels and the 40% stuff.

Offline TexDaddy

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Re: Gold/Silver newbie
« Reply #15 on: June 11, 2015, 04:15:44 PM »
...ASEs and Maples are great, but the local dealer probably won't pay the premium for them...
This is where having a business relationship with a local dealer is good. In my case I have sold ASEs and AGEs to my dealer for exactly spot. He then turned around and sold them for spot plus a premium.

I have always paid some premium over spot when purchasing and the few times I have sold PMs. sold for exactly spot at the time.

Offline bri

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Re: Gold/Silver newbie
« Reply #16 on: July 05, 2015, 06:54:44 PM »
As others have pointed out, junk silver might be a good option and has some unique advantages:

-Very divisible - a silver dime contains less than 1/10 of an ounce of silver.  This is great for "making change" in barter transactions.

-Easily recognizable - everyone knows what quarters, dimes, and halves look like.

-US currency with a face value - no matter what it will be worth at least the face value.  Since they are US currency people are discouraged from counterfeiting due to the harsh penalties.

-Increasingly rare - Obviously no new junk silver is going to be produced, so what exists right now is all that will exist. Over
time junk silver's premium over the spot price may increase.

-Condition not a large factor in value - If you drop some junk silver and it gets a little scratched up, it really isn't a big deal
since it is generally in circulated condition. You can let children handle junk silver coins and not stress that the coins
are going to get scratched or dinged up.  Compare to American Silver Eagles or other coins that must be very carefully handled and stored.

I actually wrote a whole book on junk silver - "The Complete Guide to U.S. Junk Silver Coins" that covers EVERYTHING you need to know about Junk Silver.  It is available on Amazon if you are interested. 


Offline OhCanada

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Re: Gold/Silver newbie
« Reply #17 on: August 03, 2015, 09:54:30 AM »
Stay away from art bars if you just buy for barter. Silver bugs will know what art bars are but for the Avg Joe it will look like a trinket. You can't go wrong with ASEs, junk silver is good for change but laminate a card with the dates of silver, and the amount of actual silver for each coin type: dime, quarter, .50 and $1.

It is good to have a mix if you can get low above spot prices. A guy like me would buy your bars just as much as I would your ASE and junk silver; some others may only buy ASE.

Offline Carl

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Re: Gold/Silver newbie
« Reply #18 on: August 03, 2015, 11:29:45 AM »
Stay away from art bars if you just buy for barter. Silver bugs will know what art bars are but for the Avg Joe it will look like a trinket. You can't go wrong with ASEs, junk silver is good for change but laminate a card with the dates of silver, and the amount of actual silver for each coin type: dime, quarter, .50 and $1.

It is good to have a mix if you can get low above spot prices. A guy like me would buy your bars just as much as I would your ASE and junk silver; some others may only buy ASE.

I think when silver is used for money...the value of silver in a coin will have little meaning as the dollar will be TOAST.

Offline Sunshine

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Re: Gold/Silver newbie
« Reply #19 on: August 03, 2015, 12:38:14 PM »
Good suggestions.  I've been told that if you do buy rounds, buy from a reputable, somewhat recognizable vendor, although that may not matter depending on who you're dealing with.

Personally I've concluded that a mix of several different types of silver is best for us... YMMV.

Offline sams

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Re: Gold/Silver newbie
« Reply #20 on: September 29, 2015, 01:29:26 AM »
I am a bit late to the Party, but here are my 2$:

So just you know: I started prepping as a student and I don't live in the US.

First I bought a British 1/4 ounce Sovereign, for no other reason that I was eager to START and it was available, then after starting working I got full ounce Kruggerands and an Ounce of a Silver coin for curiosity.

I noticed that I had a lot of money tied in the coins and couldn't readily convert them to liquidity and even then at a -40% to -20% penalty, because the gold dealer discriminates against small coins for buy backs and pay below spot price so that shiny "1200$ per ounce" is an illusion, and the junk gold buyer is even worse. Basically I need gold at +2000$ to make any profit at all. But in any case selling a physical coin is a bit of an ordeal for me because I have to travel to another country by car to get the best prices. So I bought a coin and have it in storage at my dealer, so if I need emergency liquidity I can just ring them and have the cash deposited in any account in the world in the home country currency. So this is a bit of a Bug Out Stash.

Lastly Silver Eagle Silver coins are BIG, and having recently been inspected at the border as security was tightened because some jackass tried to cross with 100.000$ in a bag, I am not confident that having 1000$ worth of American eagles isn't going to noticeable to a zealous border guard.

Most people talk about SHTF, but think about what would work if you just had to cross a border to travel by card, aren't 100 Silver coins going to be suspicious ? For this reason I prefer gold.

But in any case I decided not to buy more than 5 ounces of the things, otherwise it is a drag as money is tied in it without us, liquid assets will take the other savings spaces

Offline sams

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Re: Gold/Silver newbie
« Reply #21 on: September 29, 2015, 09:12:25 AM »
I am a bit late to the Party, but here are my 2$:

So just you know: I started prepping as a student and I don't live in the US.

First I bought a British 1/4 ounce Sovereign, for no other reason that I was eager to START and it was available, then after starting working I got full ounce Kruggerands and an Ounce of a Silver coin for curiosity.

I noticed that I had a lot of money tied in the coins and couldn't readily convert them to liquidity and even then at a -40% to -20% penalty, because the gold dealer discriminates against small coins for buy backs and pay below spot price so that shiny "1200$ per ounce" is an illusion, and the junk gold buyer is even worse. Basically I need gold at +2000$ to make any profit at all. But in any case selling a physical coin is a bit of an ordeal for me because I have to travel to another country by car to get the best prices. So I bought a coin and have it in storage at my dealer, so if I need emergency liquidity I can just ring them and have the cash deposited in any account in the world in the home country currency. So this is a bit of a Bug Out Stash.

Lastly Silver Eagle Silver coins are BIG, and having recently been inspected at the border as security was tightened because some jackass tried to cross with 100.000$ in a bag, I am not confident that having 1000$ worth of American eagles isn't going to noticeable to a zealous border guard.

Most people talk about SHTF, but think about what would work if you just had to cross a border to travel by card, aren't 100 Silver coins going to be suspicious ? For this reason I prefer gold.

But in any case I decided not to buy more than 5 ounces of the things, otherwise it is a drag as money is tied in it without us, liquid assets will take the other savings spaces

I know that buying a gold coin and having it in storage is dealing in "Paper Gold" worthless in SHTF scenario, but if gold hit say 3000$ it is easier to cash in on my paper gold gain and more discrete, nobody will see me at the local store, nor will they know that the money hit my bank account.  ;D

Lastly it is also a means of diversifying, as some gold is physically hidden somewhere people can steal, but in storage nobody is going to get it. personally I do 4/5 physical and 1/5 in storage.

I recommend you buy big coins, known coins like Liberty, Krugerrands or British sovereigns, they are recognisable and the premium is not bad.

Offline Another Joe

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Re: Gold/Silver newbie
« Reply #22 on: December 23, 2015, 06:26:59 PM »
I'd echo silver, for a lot of reasons. Much depends on your long-term goals though.

Right now the au/ag ratio is about 75:1 or so. It's been hovering in this range for a while now, but that generally only happens when we get close to a bottom. A spike might get to 100:1, but timing is tough. Because of this, IMO, silver is the place to be.

In fact, trading gold for silver at this ratio might be a great way to concentrate on building ounces over the long-run. I wrote about this under the same handle (Another Joe) on Seeking Alpha not too long ago. When the market moves back up (whether next year or next decade), you can watch the ratio move closer to 30:1 (or hopefully even it's longer historical average of about 15:1) and swap your silver for gold. You'll lose a small amount so the dealer can profit, but will end up with twice as much gold as if you'd bought gold at these ratios.

Also, consider that anything with less than a 10% premium (numismatic value) has taxable gains. If it has numismatic value, the increase isn't taxable (last I heard). If it's less, then all gains must be reported... blah blah blah. Of course, if you're working privately or with a local coin shop, they might not require you to fill out the paperwork. Most large companies will though, and will issue a 1099 or similar statement.

You might consider a little palladium and even rhodium while you're at it. It's speculative, but might be fun in the next run. Generally, unless there's something you really want, I'd stay away from anything with high premiums. They'll move eventually, but tend to lag the spot movement.

What you buy is also largely dependent on where you get it and what sort of relationship you have. I have a friend who deals in coins, and he'll call sometimes when he has something unique. Sometimes I'll trade for it or buy it, just because I like it. He always gives me a good deal. As has been noted, developing a good relationship with a nearby reputable dealer could be priceless.