I am looking to invest about 70k in PM and would like to ask you guys with more experience than me what you would suggest and why? - coins v's Bullion Bars - Silver v's gold (or a mix) - Cast or Minted - one 20oz or twenty 1oz - any advice ?? At this stage was figuring less of the larger Bars to keep overheads down, storage at the Perth Mint, and a mix of Silver and gold - but would love to hear from some of you longer term investors for any ideas. Thanks, oh and I hope this has not been discussed to death in previous posts Drew
Hi Drew, Welcome to the forum. Couple of questions first - is this a personal investment or part of a SMSF, and what's your rationale for investing in precious metals? What's your exit strategy? cheers
Yes is part of a SMSF and I guess a bit of a safety net when all else fails pm is still worth its weight in .... and i guess a way to hedge inflation of a not so healthy paper money, No real exit strategy - I am more looking at a longer term investment.
Welcome Drew Id suggest - ( my opinion but do your due diligence ) 80% silver 20 % gold With the silver get 1 % of total stack in coins less than 1 oz ( aussie predecimal or 50 Cent pieces perfect ) 10% of total stack in 1 oz coins 10% in 10 oz bars 29% in 1kg bars 50% in larger than 1kg bars and similarly with the gold have from the small to the large. Good luck
You're going to end up with 100 different answers. No way would I be heavily weighted in physical silver for my super.
Depending on your age and how long until retirement. For my superfund, I went 66% silver and 33% gold. I have a long time until I retire =D. So far, silver has netted me 25% gains in 4 months. When the ratio is right, I will trade Silver for gold. I would stack 1oz coins, 10oz and 1kg bars for Silver. Slam
80% gold,20% silver (10 oz perth mint bars) and sleep well. All this money and possessions thing is to increase quality of life. If it doesn't , you have completely missed the point.
drew You should have an exit strategy first, it's a long term plan which will guide your buying and selling behaviours. Thucy has outlined a good breakdown of what your investment should contain, however, it's too heavy on silver for my liking. This means you have to decide the amount of risk you want to take. 1. Work out your long term goals, that is, what do you want your PM investment to provide by the time you retire. Mine is gold and some property (commercial or residential) to maintain an income stream. 2. How do you get there? With $70 K buy $30 K in gold as a store of wealth and $40 K of silver to be traded for gold in the future. Current GSR is hovering around 37 -38. Decide that when GSR is at say 30 you sell a portion (maybe 1/4) of your Ag and buy Au. When GSR is 25, sell more and buy more Au, you might decide to get out of Ag when GSR is 20, or you may sell a portion and wait till GSR is 15 (if it gets there) before getting out. 3. Now you've got most if not all your PM's in Au you look to use most of that to purchase an income stream (property) at an opportune time. 4. Who are you going to sell to? Mainly dealers because you need a paper trail. So you'll be selling $1000's at a time. 5. What do dealers want most? What the future buying public will be demanding, small to medium sized chunks of silver (taking into account that the prices in 10 years might make it impossible for the average person to afford a 5kg bar of silver) and small cast gold bars. 6. Then you buy: $30 K of gold - 6/7 x 1 oz Perth Mint and 3 x 5oz Perth Mint cast bars. Good product, good reputation, cheaper than mint bars. Buy $40 K of silver - 300 x 1oz Kooks(or Lunars), 20 x 10 oz Perth Mint bars, 10 x 1kg Perth Mint. You'll start selling mainly the bigger stuff first, leaving mainly the smaller stuff till the end. Don't forget to keep buying Ag and Au as part of you regular, non-super investment strategy. It's the stuff you'll use to get you out of the shit if you need to, or buy the pleasures of life or keep forever and have pleasant dreams while you sleep on it. Of course, this is only the PM side of your super, no doubt you've already got a plan for the other investment classes
Guys, even at $200 silver there will be buyers for 1000oz bars. Don't be afraid to hold the big stuff - just limits your liquidity in exchange for more ounces up front. Honestly I don't see the point in holding 1oz coins or smaller in super unless it fits with your exit strategy (or it's to buy Lunars and hope for numismatic growth above and beyond spot price growth). Consider the storage costs of physical super over the lifetime of the investment though - SMSF is one place I would absolutely consider a product like Perth Mint Depository - liquidation is literally a phonecall away. If you're taking possession of some physical gold, consider safe deposit services for storage, and using spare space for silver storage - but dealing with more than 50-60kg of physical silver is a logistical pain for delivery, storage and disposal. Work out the holding costs for different formats over say a 10 year timeframe. Lastly, this is not financial advice - DYODD. But absolutely work out your exit strategy first - perhaps when a certain ASX/spot ratio is reached, or median housing prices in ounces falls so many percent below the mean, or your disposal value hits "x"% of the purchase price of another asset you would like to buy via SMSF etc. Don't just buy PMs and wake up one day in 10 years to find China has gone onto a gold standard and we've pegged our currency to the renminbi halving the price of gold overnight in AUD, or Phase Three finished last week while you're still getting around to getting into your flooded SDB because we had the third once-a-century floods in the CBD in a decade etc and it's been inaccessible for a month.
Or maybe send a PM to stellaconcepts, he did a similar thing ( well he sold his house started renting and the proceeds were dunked into mainly silver ). im sure he would have something smart to say, as he has already been there and my guesstimate is that he is even younger than drew.
OR just buy some gold.... 50oz Cast AUD 69,936.53 from the PM thats just 1.5kg...easy to hide...dont forget where you hide it!
My advice is it's addictive. You'll end up checking the price daily, and like a moth to the light, you'll be drawn to any news that supports precious metals.
