Small Stackers Will Find It Harder in 2011

At the start of 2009 and with the price of silver around the $10/$12 mark a small stacker with a budget of say $2000pa would have had high expectations of stacking 170 to 200ozs.

At the start of 2010 with the price of silver hovering around the $16/18 mark a small stacker with the same amount would have had expectations of stacking 125ozs.

Now what about the start of 2011. Silver at $29/$30 oz. With a budget of $2000 60 to 70ozs could be the target.

For the stacker who commenced in 2009 He or She would have a nice little stack of around 300ozsto start off the new year of 2011.

Now lets turn our attention to those that want to start now. The best you could do in a year providing the price stays at $29/$30 would be around 70ozs. Now if you decide to stack 1oz kooks at say $36 dollars you could 56coins. 66 fifty cents at $11 you could stack 182 or just over 60ozs.

Now this is when I turn the discussion over to the learned stackers on this site to give their advice and encourage new stackers of limited means to start stacking and not to be discouraged. Remember from small things big things grow.

This site has grown rapidly and it is indeed hearting to see so many younger members join.

Regards Errol43

 

You could take the risk and buy some numismatics...
like baby kangaroos, lionfish, tasmanian tiger, brown snake.
Then flip the coin for a profit.
Then use that profit to buy bullion.
As with anything there is the risk of it not going up in price.

 

You are close to the mark. I started in early 2010 an have a round 110 ounces being a pensioner i have a bet on the horses an when they win i have been buying some silver.So i spose i will have to start winning more.

 

I started this year and have about 11 oz to show for it, i'm now considering going for bars instead of coins at the 10oz range to increase my stack a fair bit. I've found buying coins one by one is an expensive way to do it, when postage etc is added.

I hope to have over 100oz by mid next year.

 

I think in 2011, 1/2 oz silver coins will become popular.

 

Thanks for raising the issue errol43, I'm a noob who has 36 oz's in transit & I've been madly checking costs of coins to bars, AUD exchange rate ver's the premiums asked for by places like the Perth mint etc. Taking into account shipping, fee's etc.

I was lucky enough to catch a small dip in the price & a stronger Aussie dollar the other night & took the plunge.

I'm still looking for the best way to make the most gains in the short term to get some volume under my belt on a budget. The 10 oz bars seem to be better value for money at the moment & i really want to only stay with the bullion at the moment as i honestly don't know enough to venture into numismatics etc.

All advice is greatly appreciated by myself & I'm sure many others.

 

I've found the 1oz Morgan bars/Buffalo/2oz/5oz coins from Bullion Bourse are good bang for your buck in lower denominations. Then it's 10oz/20oz & 1kg bars from there

 

Thanks Kram, ill check em out along with the associated costs, i see they charge 2.5% for using Paypal but intend to ditch Paypal altogether soon. Anyone know what they generally charge in the way of postage / freight to Brisbane?

 

From memory it's $9.50 for a 10oz bar (ie <500gms), then 2kgs ~$15, 3kgs ~$20 to Bris (don't quote me, hazy memory). You can see the postage costs prior to completing your order

 

If I were to start from scratch and my budget was $2000 pa, I'd only buy a few 1 oz lunars (maybe a 10 or 20 pack a year) and focus on 10 oz bars till I got a minimum of 250 oz. I wouldnt buy each pay check, I'd pick a purchase goal (say a 10 oz bar) and save for it as quickly as possible. After you reach 250 oz, buy whatever coins/bars start to interest you, whether its kooks, 66 rounds or kg bars.

But, my main focus would be bringing in more income and lowering expenses within reason. Since your saving $2k after all expenses, every extra dollar will just add to this.

 

Are you taking the value of the dollar into account (for Australian members)?

 

Small silver stackers only buy in very small amounts . They do not source supplies outside Australia and sometimes not outside their own city or town. To them it is irrelevant what the exchange rate is between USA and the Auzzi dollar. You are right though for bigger stackers and it can be of great financial gain to purchase overseas when the Auzzi dollar is strong.

What I am trying to do is head the smaller stackers in the right direction. As one person has already stated postage can be a big problem if you are buying say 1oz silver. It is not very good buying a 66 fifty cent round on ebay for $5 (not that you can) but postage and handling expenses are 7 or 8dollars .

There are several options available to buy silver at spot or below but lets be honest I don't expect silver stackers to give away an advantage that can quite easily close when everyone jumps on the bandwagon. When I first joined this site I innocently asked some questions about $10 state coins and within days ebay was swamped with sellers who obviously lurk on sites such as this.

From what I have observed on this site that all the site dealers seem to have a good reputation for buying and selling and the wheeling and dealing amongst members seem to be fair and honest. However when you find a niche in the market you don't feel inclined to disclose it as they are so hard to find.

All I'm trying to say to new small stackers is go out there with an open mind and search. There are treasures out there believe me.

Best of luck.

Even though I might seemed biased towards small stackers I assure you that I do think that large stackers are doing the right thing with SMSF and buying PM in large amounts to protect their wealth. In terms of wealth compared to the wall street stackers they are small players also.

Regards Errol43

 

When just starting out on a budget you need to get the best bang for your buck. This being the case, I'd suggest buying junk silver coins and higher weighted bars as these have less premiums attached than the 1/2 oz and 1oz coins. Doing this will allow you to get maximum oz's for your dollars. Once you've built your stack, then you can start looking at other options, such as the higher premium coins.

If you're prepared to take a litte risk, then the other option is to trade silver on the markets and use your profits to buy physical, but this should only be done with money you're prepared to lose. You can do this by opening an account with a CFD provider to gain maximum leverage with your dollars. I won't go into this option here as it's a risky strategy and perhaps not relevent to this forum.

 

Another method is to scab up all the metals people do throw away. Copper, aluminium and steel are thrown away in VAST quantities. I probably average $5-7 grand a year just taking peoples rubbish from verge pick-ups to recycling depots. There is a shit load of free money out there, but many people would rather bitch about rich bankers stealing their money and manipulating markets, than to do the work and carve out their own futures.
Anyone who is unemployed, or working casually, has the time to do a bit of recycling. Once you do it for a while, you know what items give the best returns. Tax free, cash in hand.
As long as there are scrap merchants and wasteful consumers, there is literally money lying on the ground everywhere.

 

I may be wrong but in Australia I think that Australian silver coins are the preferred collector items for your average person. Crowns, Florins and 50c are all very recognisable, good content, some good numis potential and you can often find them cheap. Last september I saw Crowns for $30 and since then it's $35-40 everywhere I look. Those sort of bargains can be found. So if your funds are limited I'd suggest predecimal Australian bullion silver coins. They add up quickly and sometimes you can get them for little. Just start asking who has them stored away and if they'd sell them. You'll be surprised.

 

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