Hi everyone First post, been reading the forums with interest for a while... I am looking to diversify and spend some money on gold or silver, stack it for a while. Initially I thought I would stick with bars but since I have been reading the forums I have become very interested in coins, especially silver. I noticed the Perth Mint is selling 1oz 2014 Kooka proof high relief coin for $104. Obviously I am paying a hefty premium, so what I'd like to know is whether it's worth paying more for high relief coins and whether the are more sought-after?
Hi and welcome if you are just starting out i would forget about coins 5 times spot, focus on a target amount of ounces, as you stack grows i would then diversify into premium coins. If by some miracle silver went to lets say $1000 the question is would you be able to sell that high relief kook for 5 times that spot; highly unlikely.
Well just a thought.... Have you ever wonder why past years high relief coins are still listed on PM website? Numis play is either hit or miss... Some are successful like the Zeus, Wedged tail eagle but most flopped.
Hi and welcome Good to see you did some research on the coins and found what you were after. As the others have eluded to, you have to decide why you are buying -if its for pure investment and your new Id say avoid the high reliefs until you know the market better, if its to collect because you like the coins, go for the h.r.'s
All valid points, thank you. I'll get myself going with a few bars and maybe some coins that tickle my fancy. I think the PAMP 500g bars are awesome but then again I may just settle for the best price per oz. Looking forward the being part of the forum, it's all very interesting.
Depends, some people care, others dont. its cheaper to buy now, and you will prob have to sell at a discount to those with a certificate too. Will depend on market at time i guess
Welcome to the SS forum. I am relatively new to stacking as well...started about 18 months ago and have been very slow to add much to my stack due to financial woes. Try to determine why you are stacking...what makes you believe that precious metals (pm) products are something worth sinking money into. Pardon the expression but it's sort of apropos in the current consolidating silver/gold market. Anyway, if you are buying blobs (common, non-denomination, bullion bars), I would forget about PAMP or any other blobs that carry a high premium. Go for the lowest premium possible and wait to buy when the price is lower. There are some trends in the market because the market is driven largely by sentiment and fear and if you follow it closely (examining past charts and reading current smart objective perspectives), you should be able to more often than not gauge when the price is in the lower ranges. If you are buying semi-numi coins as a short term investment, which is fine, that's trickier in most cases to figure out which coins will be winners and which losers. Hype from noisy used-car-salesmen-like precious metals sellers and stackers certainly can make a horrid-looking, terrible design, overpriced coin like the Zeus, a some what sought after coin. Then there are coins that are very appealing with a great design that may take a while (a couple of years) to get off the ground and sore...like the America the Beautiful 5 oz silver coins (namely the collector version) for example. For me, someone who plans on storing my coins and blobs in the safety deposit box for a long time, diversification will be best for my strategy as I am not convinced that we will see a US dollar currency collapse in my lifetime nor will there be a SHTF scenario in my lifetime. Silver and gold will probably never back a major currency again and so its utility as a backer of a major currency just doesn't exist any more and never will in the foreseeable future. That said though, silver and gold will always be desired by some people and so you will always find someone to buy your blobs but keep in mind that when you sell to a dealer, they knock down the price and give you a dealer buy-back price which is less than spot. So, if the precious metals market takes 20 years to slowly come out of consolidation and you have a need to sell your blobs before then, you may be taking a bigger loss than you think because there are storage costs, taxes or VAT that you may be paying that you probably will not recoop, shipping costs paid, etc, etc. The point is, buying blobs doesn't ensure profit gain. At best, it may ensure that instead of buying that new stereo system that you really didn't need anyway, that you took a gamble on a sort of insurance policy that may be worthwhile if the pm markets recover and hold at the time you are planning to sell. There's plenty of arguments on both sides about whether or not pm's are worth buying...get informed about all the arguments and be weary of the permabulls (those who are always telling anyone who takes them seriously that silver and gold prices will go to the moon very soon) and those who always assert that the value of gold and silver are dead forever. You can bet that both these extremists have a vested interest in pushing their rhetoric/propaganda. Read different sources and get as wide a range of smart opinions as possible. Most importantly, enjoy the conversation here on the SS forum and take advantage of some of the many level-headed people here!
I find that although we are generally good with our money, we seem to spend ridiculous amounts every month on frivolous things. I think buying gold or silver and stacking it is better than peeing it into the wind, even if I get slightly less when I sell it, I still have more than what I would have had if.
Hi JDLP and welcome to the forum. I agree with your last point, try asking the wife to put everything she has bought in the last month in a pile in the middle of the room... thats right all those $10s, $20s and $50s add up and there is nothing to show. Where as physical makes a nice little shinny pile no matter how small.