Hey, this is my first post. I'm really sorry if this type of question gets posted a lot, but I'm after a range of advice and opinions. I've basically been wanting to buy silver for the past one and a half years, for the purpose of making a profit and saving safely at the same time. I'm only 19 but I decided to get a job and save money, I figure investing in silver could be a once in a life time opportunity. In the next 12 months, I plan on saving $10,000 I want to put a large portion of this into silver mainly. Should I buy on the way, or wait 6 months to buy into silver? My thoughts are that if the EU collapses, it will drive the USD higher and then later when the US economy is affected by the EU crisis, silver will be low. This is the theory me and my friends have decided on anyway, but I'm obviously going to be very disappointed if the right time to buy is right now. Also, what is the recommended ratio for gold to silver for investment purposes? I plan on buying Perth mint bars, as it's the cheapest way I can find at the moment. Thanks in advance!
You should definitely wait - we haven't hit the top yet. You'll know the time to buy, it's when your taxi driver tells you to. /end sarcasm Most people here would advocate buying as much as you can afford, and as much as you are willing to risk. For some people that might be 1oz of gold or silver per year. For others it might be hundreds of ounces. However, there was a similar thread recently that may assist you: Gold or silver ? http://forums.silverstackers.com/topic-31116-gold-or-silver.html I even offered a possibly helpful response as comment #6. Or for the big spender, another recent thread: http://forums.silverstackers.com/topic-7716-advice-on-pm-investing-for-a-first-timer.html But the best link of all: http://forums.silverstackers.com/search.php
It's a tough call in my opinion, you have QE just announced and yet I wouldn't rule out another 2008. I think it's good that at 19 you're questioning whether it's a good time to buy because that's exactly what you should be asking yourself. Short term I wouldn't be surprised if PMs rose or dived. I know that's sitting on the fence but that's just how I feel at the moment. If you're not familiar with the 2008 crash it would be wise to ready up on it and see how PMs fared through it. As for the GSR you should look at how many ounces of Silver it takes to buy 1oz of gold and invest accordingly. You shouldn't have any problems finding suggestions on how to play the GSR on the internet
Welcome, Planning on saving $10k over next 12 months ?! Would that look like $400 per fortnight or there abouts? If yes, and you really are starting from scratch ( ie. zero stack and the decision to pump money over a period of time into silver/gold ) Start off with silver only ( irrespective of if you are bullish on silver or gold ) - silver is the cheaper out of the 2 and your $400 doesnt give you much room to be picky. And also, with silver and gold - you have to live the fortnights in order to live the years ( ratio of 26:1 - which is the average of GSR from where we are now and where it is probably headed/where we have been ) 2 options 1 x 10 oz PM silver bar, and for the rest of the $400 either keep for next fortnight purchase until you reach the fortnight where you actually buy 2 x 10 oz silver bars, or you can put the rest into 50 Cent coins. You can also consider buying stuff from Gold stackers and choosing delivery every 2 months or so. Once you have accumulated more than 50 oz of silver, than start buying some gold ( something up to 0.25 oz agw ) . . . Above is my biased opinion. Good luck with whatever you choose and welcome to the forum and precious metals ownership.
Cheers for the replies so far! Maybe buying as I go is the best plan of action, but it does cost about $18 each time to ship from Perth, I remember figuring out that shipping from Perth to Queensland was still the cheapest, but is there a better way? I'm totally okay with getting 1KG bars, but I know they'd be harder to sell in the event of the world ending (lol). Although, I do understand it's best to be diverse, are 50 cent coins good value for their silver content? Not too sure on the best value coins, suggestions are welcome for this! As for starting from zero, I already own a few silver coins from when I was a kid, but definitely no more than 2 oz. I've got about $1200 (USD) in a trading account that I do not use for the moment, one part of me wants to keep it there just in case, the other wants me to buy a glorious 1KG silver bar. Is there a good method on deciding whether to buy say now, or in 30 days? Maybe I'm a little too obsessed with getting it as cheap as I possibly can haha. Thanks again!
I am not a fan of "buying as you go" I have had much more success waiting for dips. Let's face it, Silver has gone up quite a bit in the last month so a pull back shouldn't shock anyone. Again, not telling you to wait but I'm not buying at the moment. I would strongly suggest forgetting about the Perth mint and buying through this website, the cheapest way to buy silver is off the members or Site Sponsors. 1kg bars are good, all the site sponsors sell them, Pamp or Perth mint are the easiest to resell. I haven't got a bad thing to say about any site sponsor, they're all fantastic, just see who's cheapest at the time. 1966 50cent coins are about 1/3oz of Silver each. If you buy 3 at $12 each (going rate atm) then you are effectively paying $36oz. I have never understood the fascination with them and personally would rather invest in 999 bullion. Going bang for buck doesn't always turn the most profit, that also has to be said. I am not sure how much you know about semi numismatic coins but learning about kookaburras, lunars and Pandas is a must if you plan to be a longtime stacker. These coins tend to age quite well and bring very nice premiums. No, not really. Do you know how to read charts? do you know about key resistance points? that's probably a good place to start reading. Other than that you really have to keep an eye on sites like marketwatch.com for economic news - unemployment stats ect ect.. What you don't want to be doing is getting your news from doomtard permabulls. Know of their existence and stay clear, that's the best advise I can give you
if you want to save on postage, find out when your local silverstacker meetup is.. plenty of bargains and knowledge to be had
Hello zerz and welcome. Firstly, if you are only 19 then I would assume you do not have any credit cards or credit card debt. If you do, get rid of them. Credit cards are for parents only. Not for kids. Secondly, if you are 19, do not go for a walk in the light green. Thirdly, silver is a risk. It is a gamble. You need to balance the risk with some collateral. Contrary to most advisers you hear, I do not believe that young people should risk their meagre first incomes. Play safe and store your wealth. You do not have the rest of your life ahead of you, you only have the here and now. You have little skill and little knowledge. Mainstream advisers will have you believe that as you are young, you can take on board more risk. Mainstream advisers are the offspring of the devil. They have forked tongues and are sent to beguile the innocent and the naive. Mainstream advisers will also have you indebted to a lifetime of servitude as they know no better. If you happen across a mainstream financial adviser, hold fast and utter this mantra - "Satan be gone!". If say you plan on stashing $200/week, I would put 50% into cash under a mattress and 50% into gold. Give silver a big swerve. Get 2-3 G of cash and 2 -3 of gold under your belt. Once you have your emergency stash of stinky dirty fiat, then you may buy some silver as this is a speculative commodity, but keep buying gold, no matter how paltry the amount or how pathetic it may seem in the eyes of others. These are wise words my child and you would do well to heed, my young paduan. Edit to add: Do not use your emergency stash of dirty stinky fiat to buy silver or gold. Keep it. It is your emergency stash of dirty stinky fiat.
its all great advice ^^^^^ my only advice is to lose some money its a great way to learn what not to do, then maybe that will lead to what to do i sure hope so. i lost at the start and now i do what i didn't do before , hope that makes sense. in this game money does buy experience
Hi Zerzura, Welcome to the forum. Deciding to get a job is a good start. Have you actually got one yet? Planning to save $10,000 in 12 months is also a great idea, but a little hard if you don't have a job I think the best time to buy is when you actually have a job, and have savings in excess of your living costs, The question of what to buy and when is moot if you have no money.
Welcome to Stackers Congrats for finding this site 19 is young and a good age to be actually thinking about your investment future. Geez at that age all I was thinking about was which pub to waste my money at (come to think about that hasn't changed too much) Personally you cant just say that you want to buy X amount of bullion bars in 30 days as you can't know for sure what the spot price will be. If I was you I would be watching the spot price daily and getting in on a spot smackdown/dip when it goes back down to around $28 - $31 AUD not too sure when it will dip down that low again though. In the mean time I will probably be leaving my spare cash in a high interest bank account (everybody insert your banks are the devil comments here) or the old mattress bank As for your strategy that is entirely up to you. From what you have said so far you definitely sound like a cheapest per oz purely bullion bar sort of stacker if you like that sort of stacking then go with the 10oz bar each month or fortnight or whatever and make up the difference with some low premium bullion coins like american eagles, buffalos or maples. My personal strategy would be to get the bars and low grade bullion when spot is in one of its dips eg high 20's low 30's (hey we can hope right). But I would also look to supplement the low grade bullion with some semi-numismatic silver to diversify your stack a little bit. Would do this when spot is up a little like at current sort of prices eg $34 (ok $33.85 to be exact) - $36 AUD. I would go for the lunars, Kooks or RCM Wildlife series (feel free to add to this list of good semi-numis bullion I would like to know some more too). These coins will generally not change in price too much with spot unless there is massive movements up or down eg the lunar mouse & rabbit 1oz silver bullion coins have a limited mintage of 300,000 and eventhough spot has gone up almost $8 in the last month or so (don't quote me on exact figures but it is something like that) these coins have been available for the same price $42 - $45 the whole time and as a long term hold could be valued much higher in the future due to their limited mintage and the lunar series' large international collector base. I think gold is slightly overpriced right now and you may have just missed the boat on platinum in the last month so would probably hold off for a few weeks to see what it does before getting into some small fractionals think 1/20oz, 1/10oz & 1/4oz with your current spending ability. Silver Stackers is good to get cheap prices Iceblue at South Gippsland Bullion (sponsor section below) is always doing group buys to get the best possible bulk buy prices. Also one thing I have learnt the hard way is don't overextend on PM's. It is easy to leave yourself short of fiat scrapping to get by just so you can have a nice big shiny bullion stack/collection and once the bullion bug bites that is extremely easy to do. You have to constantly remind yourself as to why you got into bullion in the first place was it because you wanted to collect? or was it to invest? Was it purely for short term gains? or are you looking to hedge other longer term investments? Once you know the answer to that you have to try to remember to stay true to your goals.
Can I assume you're buying direct from the mint? If so, I highly recommend buying from the site sponsors or from traders on here instead. You'll save premium usually. Personally I like http://bullionbourse.com but there are plenty of other excellent site sponsors like http://goldstackers.com or http://bullionmoney.com.au/ for example. There really are heaps. In my opinion, the Perth Mint is only worthwhile to buy direct from in certain circumstances, or if you're buying allocated. And goldstackers provides that too.
Of course I don't have any debt, I hate debt with a burning passion. I'm not sure I want to avoid silver, but I do understand that it's best to be diverse. To DanDee: Yes I do have a job, I live at home so I don't really have any expenses, I really want to start saving now so I feel much better about going to Europe and blowing a whole lot of cash. I actually planned on doing that this time next year, but decided on saving instead and going in 2014. I guess I still could do it next year, if I'm fiscally a cool dude. To PeeZapp: I was thinking of buying 1KG when it was in mid 20s..... well here I am now
I recommend looking for fellow stackers or dealers in your area than shipping from Perth. You could be surprised how many live near you and it is usually cheaper in goods and shipping cost to deal w fellow stackers.
