What do you suggest?

I am brand new to collecting Silver, bought my first coin over the weekend. I am actually making silver a part of my budget (college student, working full-time). My goal is to collect silver coins that are fine silver .999, here is the coin I am looking at starting: http://www.apmex.com/Product/65202/2012_1_oz_Silver_American_Eagle.aspx

I am wondering, is this a good coin to start collecting? I can get about 7 of these per month.

Thanks for any and all help.

 

Thanks, so they are the recommended coin for collecting?

 

Good luck with budgeting yourself just 7 per month. I've developed an addiction and keep breaking my own limit as to how many to buy per month. Seems I love to shop and spend money. But because I'm telling myself it's okay, 'cause I'm really SAVING for the future, I'm constantly broke!

 

My only suggestion is to think about adding some 10oz bars into the mix.
If you save for 3 months, you could buy 2.
You save a little money per ounce, so you get more silver for your dollar.

 

Suggest also thinking about Property. Even after possible/likely crash (inc house prices), your loan value would also be devalued once the printing presses have rolled in earnest (though inflation and even possible hyperinflation)

 

Hi Cain,

Its a good start.. nice honest coin.. you wont make supernormal profits from it, yet the risk is minimal, when you upskill your knowledge in this investment sector then consider getting "better" silver one ounce products.. or do as others say.. get bars, also some fractional and some JUNK (90 fine or sterling silver coins).

Good safe start but youd want to move on as they are not the best in the world. Maybe just get one or two lots.

Good idea allocating a monthly amount.. this is called dollar cost averaging.. may i recommend within each month looking for lows and buying then.. with small amounts it makes little difference but as your spend increases its good to time the market so you can reduce your cost per coin..

Also consider postage costs.. maybe buy twice as much every two months as postage will blow-out your average price per coin (APPC)

All the best

1for1

 

Those ASE's are very liquid though and that may matter in USA in the next few years.

 

Thanks, a lot of help from all of ya. I will do as yall suggest. Also, about property, I live on a farm, and we just bought another house w/ 1 acre and a BEAUTIFUL pond [paid extremely low, like, around here what we paid is what you'd pay in North Dakota (farm joke, north dakota is dirt-poor cheap land, and it's not that bad)]


Also, another question, should I be on the lookout for the older kennedy half dollars like pre-64's that are 90% silver, and 40% silver 65's? I have a few, and a few full silver dollars, and susan b. anthony's, and such. Just trying to figure out how to diversify my money's out-reach for silver. Instead of just buying the same coin, yall suggest getting the best deal, so I was wondering, if I find a good deal on these, should I go for it?

 

Hello Cain and welcome to the forum. As others have said I would definitely start with the ASE's since you live in the states. You stated you are collecting vs investing which is a good place to start as your money spent on a hobby can potentially have returns. No doubt the silver
bug has bitten This is an excellent forum and there are a lot of very intelligent folks here that can help you along your PM journey.

My suggetion would be to stick to buying legal tender bullion coins vs generic bullion rounds to start off. You will pay slightly more but in turn you get more bang for your buck. For every extra dollar spent you will get it back if you have to sell.
I would also try to find a PM dealer that is close to you(a few miles from your home if possible) By the time you buy from APMEX or other online dealer. You have shipping cost's, charges to use credit card if used, if paying with cashiers check/money order you have cost of check and postage+gas burned to and from bank/post office ect. These cost can easily add up close to the price of a 1/2oz. of silver. Since your on a budget of 200-250$ I would make these choices wisely.
Most importantly enjoy what your doing.

 

Try to buy a tube of 20 as it keeps the coins in good condition and it is unlikely that the coins have been handled since minting.

 

As you live in Tennessee (going there in a couple of months by the way!) I'd collect American coins primarily, secondly the Canadian Maple and thirdly everything else.

American coins, specifically the ASE, will have the highest recognition among buyers when you go to sell and could do so easily ie. liquidity.

If you buy less known coins there could be somewhat of an issue in a potential buyer recognising their value.

Buy ASE's to gain exposure to silver price ONLY - they will not gain a collector (known as numismatic) value. The ASE's are usually sold with the least premium over spot price than other coins in the US.

Buying other coins like the Australian Lunar series gives you exposure to BOTH spot silver AND the potential for collector premium BUT are usually sold with a high premium over the spot silver price.

My advice? Buy ASE's and make a core stack of silver but watch buying too often because postage/shipping effectively increases the price you paid for your coins.

Better to do 1 transaction of 21 coins than 3 transactions of 7 coins.

 

Cain,you have gotten some good advice here,all I will add is welcome and happy stacking.

 

Thanks for all the advice. I plan to buy plastic covers for the coins (I cannot explain what they are), does anyone have any advice on the best way to store them, like the coin itself, I am going to put the coins in a VERY secure place, that not even Ocean's Eleven could find.

 

those are not silver, bro. just look at the side - it's a copper nickel sandwich. That's an indicator you can use to determine any silver change in US without looking at the date. Makes for much quicker searching.

As for 1965-1970 40% halves. My local coin guy back in Texas can hardly give those away. That might shed light on why they're so cheap. Stick to 90% unless you can get get the 40% ones cheap enough to profit from (and then buy 90% silver with it ) One thing to be aware of is the the smaller the denomination of the coin, the more wear per dollar face value you have to worry about. Best if you can to buy 90% by weight or else when you're picking through get nearly uncirculated pieces (especially important for dimes).

the plastic covers you're reffering to are either capsules or the mylar flips (make sure you don't use PVC flips, because those damage coins after years of storage)

 

Yea, I was aware they are not silver, just saying I collected them lol, but thanks for the info on them, I will definitely use that.

So basically focus on 90% silver or upwards? Ok, thanks for the advice, I will take it for sure. I just hope I can start collecting soon. I honestly am afraid I am going to take my next paycheck and just order a crap-load of silver lol, I am going to have to be careful.