How Strong of an Investment is Silver?
- Thread starter USSSAlabama
- Start date
Hi Jordan, welcome to SS.
If I were you being ready to invest a little fiat into silver and since your in the U.S. I'd go with ASE's buy on dips and dollar cost average as you go. You can branch out from there.
You'll find as you accumulate that a bug will bite and you'll be wanting every pretty shiny coin and bar you see. Beware of high premiums on bars and coins. Just do the math before you buy.
What's better coins or bars=neither
Enjoy the forum this is a great place with a wealth of knowledge and probably more information than you'll ever want to know on PM's.
If I were you being ready to invest a little fiat into silver and since your in the U.S. I'd go with ASE's buy on dips and dollar cost average as you go. You can branch out from there.
You'll find as you accumulate that a bug will bite and you'll be wanting every pretty shiny coin and bar you see. Beware of high premiums on bars and coins. Just do the math before you buy.
What's better coins or bars=neither
Naphthalene Man said:
Enjoy the forum this is a great place with a wealth of knowledge and probably more information than you'll ever want to know on PM's.
ironwood said:
^^^ This.
...and Gold Nuggets.
Hi there,
Just keep everything is perspective....sure the price could drop into the teens but with the world as it is at the moment, it would not be there very long.
Looking at your purchasing rate, you are really only going to miss out on a couple of hundred bucks in the long run....not worth sweating over.
It would be different if you were looking at thousands of ounces in the next 9 to 12 months.....then you would want to do some serious research.
The strike rate of most gold bug analysts predictions is not so good so beware....don't be fooled by the .".....the triple choc wedge formation confirmed by the double bingo ball breakout means that barring a reverse polack seesaw down thrust , silver will form a pie warmer pattern indicating the previous 5 celery stick events have been negated and as such it would be advisable to hedge against it..."
Just keep everything is perspective....sure the price could drop into the teens but with the world as it is at the moment, it would not be there very long.
Looking at your purchasing rate, you are really only going to miss out on a couple of hundred bucks in the long run....not worth sweating over.
It would be different if you were looking at thousands of ounces in the next 9 to 12 months.....then you would want to do some serious research.
The strike rate of most gold bug analysts predictions is not so good so beware....don't be fooled by the .".....the triple choc wedge formation confirmed by the double bingo ball breakout means that barring a reverse polack seesaw down thrust , silver will form a pie warmer pattern indicating the previous 5 celery stick events have been negated and as such it would be advisable to hedge against it..."
tolly_67 said:
That was EPIC! LOL so Hard.
Let me give it ago.
Don't Be fooled by the.".....Silvers heading into a Pants drop, vertical plunge upward tea cup handle reverse snap off cheap china shiiiite direction. All signals are Flashing a fake reverse red light, busted bulb warning dip. Volume sales are showing a Fantastic Super Wedgie, Beaver Shaved close call double bubble barney rubble pattern............. (^.^).......... ".
USSSAlabama
New Member
Lol Thanks guys! I really appreciate all the advice and insight. I am going to buy because I like the way it feels when I attain new Silver. It's and investment and doesn't hurt that it's shiny and fun to look at
Welcome Jordan,
It great to see new members of SS close to home.
Correct the US does have confiscation of gold orders on the books from 1933, but there are a few exemptions in particular "gold coins having recognized special value to collectors of rare and unusual coins." This means that were the US ever to try and Reinstate this executive order ( http://en.wikipedia.org/wiki/Executive_Order_6102 ) then "Collectible gold coins would be exempt"
As for Using Silver as an investment, I'd say many people wouldn't be here if they didn't think it was a good one, but I keep in mind that an investment must be sold at one point so ease of sale is a factor as well.
Everything can be sold easily to some we buy gold place at a loss but you will find that some forms of silver move faster and/or carry higher premiums than others. 90% junk silver dimes, quarters, & halves,Morgans & Peace Dollars & American Silver Eagles are very desirable. Usually you can buy 90% for close to spot, sometime under if your lucky but the silver dollars and eagles carry a premuim to spot that you usually get back at the time of sale.
They also have generic rounds and bars usually in different themes that are just .999 silver. You can make up your own mind on these but be careful of alot of fake chinese crap that they are putting out. I would look into investing into a small portable scale to make sure of correct weights. Beware of fake Morgan and Peace dollars too... not all of them stick to a magnet.
Finally be careful of premiums attached to certain bullion items, a lot of times they arent realized at the time of resale.
Hope this helps
*spelling
It great to see new members of SS close to home.
RainbowSixSh33P said:
Correct the US does have confiscation of gold orders on the books from 1933, but there are a few exemptions in particular "gold coins having recognized special value to collectors of rare and unusual coins." This means that were the US ever to try and Reinstate this executive order ( http://en.wikipedia.org/wiki/Executive_Order_6102 ) then "Collectible gold coins would be exempt"
As for Using Silver as an investment, I'd say many people wouldn't be here if they didn't think it was a good one, but I keep in mind that an investment must be sold at one point so ease of sale is a factor as well.
Everything can be sold easily to some we buy gold place at a loss but you will find that some forms of silver move faster and/or carry higher premiums than others. 90% junk silver dimes, quarters, & halves,Morgans & Peace Dollars & American Silver Eagles are very desirable. Usually you can buy 90% for close to spot, sometime under if your lucky but the silver dollars and eagles carry a premuim to spot that you usually get back at the time of sale.
They also have generic rounds and bars usually in different themes that are just .999 silver. You can make up your own mind on these but be careful of alot of fake chinese crap that they are putting out. I would look into investing into a small portable scale to make sure of correct weights. Beware of fake Morgan and Peace dollars too... not all of them stick to a magnet.
Finally be careful of premiums attached to certain bullion items, a lot of times they arent realized at the time of resale.
Hope this helps
*spelling
USSSAlabama
New Member
Luke that helps a ton I appreciate it... Do you have any recommendation for bars? Maybe Engelhard, JM, etc? being able to capture some of that premium back.. And I'd like to know your thoughts on Scottsdale Silver?
Jm and Engelhard 1 oz bars are preferred for me for sure. The only thing is that the Engelhard bars are no longer produced which makes them a bit harder to find.
Be aware that these companies also have old poured bars floating around but some have very high to extreme premiums to them. That's more of a "collector market "though.
For .999 I also like Canadian maple leaves and older Mexican .999 onzas... (the newer libertads have a bit of a steep premium ).
As far as Scottsdale I think that they have some nice products, and seem to be pretty popular on this forum, I've never bought from them though.
I would check out the we buy gold places in your area and any LCS (local coin shop) and build a little relationship with them by buying an oz or few every week or so
Sometimes you can catch some nice things too... at one place I've caught 3 pamp suisse bars for a couple bucks over melt.
Best of luck
Be aware that these companies also have old poured bars floating around but some have very high to extreme premiums to them. That's more of a "collector market "though.
For .999 I also like Canadian maple leaves and older Mexican .999 onzas... (the newer libertads have a bit of a steep premium ).
As far as Scottsdale I think that they have some nice products, and seem to be pretty popular on this forum, I've never bought from them though.
I would check out the we buy gold places in your area and any LCS (local coin shop) and build a little relationship with them by buying an oz or few every week or so
Sometimes you can catch some nice things too... at one place I've caught 3 pamp suisse bars for a couple bucks over melt.
Best of luck
samboyellowsub
Member
Some people say stay away from numismatics. Maybe yes if you're talking about some stupid painted unicorn dragon coin in a special box that you paid triple spot for.
It's good to hedge your bets during the process of hedging your bets - diversifying between old coins and bullion.
For someone in the US, if you can get silver dollars for about $27-$30 a piece and they are not slick pieces of junk, then I'd be a buyer all day long at that price. Even though that is 3 or 4 dollars over melt, the going rate for an average silver dollar is about $30. They just don't make them anymore. There is a certain premium that they've always had and for the foreseeable future, always will have. I've got a good source of Morgan and Peace dollars that are always around $3 under whatever the spot price is for an ounce. I can turn around and sell them to the public for $30 - $35 if I need cash. So I can at least get the premium back. Check out craigslist in your area.
With old coins, if it looks good then the potential for increase in value is good. If you deal with coins a lot, you'll get a good eye for what a good coin looks like. My suggestion? Find some OLD GUYS that are in a local coin club or something and learn some shit. Definitely has worked for me. There were a lot of old coins melted between the late 60's and early 80's and again now so if you can get this stuff for close to scrap price or even a bit more then good on you.
With bullion or new coins, just be careful to deal with trusted sources. If you have the opportunity to buy a bunch of different things at the same price always try to consider collect-ability, mintage numbers, condition. If you're in this to invest, then you need to think about the fact that silver isn't just one market, it is a lot of markets under one silver umbrella. It takes a lot of education. When you get good at it, you'll start to see your ounces stay the same or go up and your dollar cost average tick down.
It's good to hedge your bets during the process of hedging your bets - diversifying between old coins and bullion.
For someone in the US, if you can get silver dollars for about $27-$30 a piece and they are not slick pieces of junk, then I'd be a buyer all day long at that price. Even though that is 3 or 4 dollars over melt, the going rate for an average silver dollar is about $30. They just don't make them anymore. There is a certain premium that they've always had and for the foreseeable future, always will have. I've got a good source of Morgan and Peace dollars that are always around $3 under whatever the spot price is for an ounce. I can turn around and sell them to the public for $30 - $35 if I need cash. So I can at least get the premium back. Check out craigslist in your area.
With old coins, if it looks good then the potential for increase in value is good. If you deal with coins a lot, you'll get a good eye for what a good coin looks like. My suggestion? Find some OLD GUYS
that are in a local coin club or something and learn some shit. Definitely has worked for me. There were a lot of old coins melted between the late 60's and early 80's and again now so if you can get this stuff for close to scrap price or even a bit more then good on you.With bullion or new coins, just be careful to deal with trusted sources. If you have the opportunity to buy a bunch of different things at the same price always try to consider collect-ability, mintage numbers, condition. If you're in this to invest, then you need to think about the fact that silver isn't just one market, it is a lot of markets under one silver umbrella. It takes a lot of education. When you get good at it, you'll start to see your ounces stay the same or go up and your dollar cost average tick down.
USSSAlabama
New Member
Sam I really appreciate the advice. I can definitely see where you're coming from. I think there's a little advantage to buying silver online because of the tax incurred at coin shops. Here in my town, for some reason, there is one store letting Morgans go for 27-30 and then another shop that has a HUGE premium on their Morgans, all the way up to 37.
I can see how the melt + numismatic value can definitely add security to your investment. I think Morgans, Peace, Old Quarters and Dimes would be good to get at the local coin shop and when I want to drop a little more It might be best to find somewhere online offering free shipping or something of the sort and get some bars from a mint.
Thanks for the info!
I can see how the melt + numismatic value can definitely add security to your investment. I think Morgans, Peace, Old Quarters and Dimes would be good to get at the local coin shop and when I want to drop a little more It might be best to find somewhere online offering free shipping or something of the sort and get some bars from a mint.
Thanks for the info!
.
I've been asking my tellers for odd money (two words) and I take what I can get... not always silver (rare at best) and less and less it seems.
A lot of people are doing CRH and pulling silvers, but less and less
One guy told me he did over 30K in halves, I did a few, but found it not worth the effort
I've been asking my tellers for odd money (two words) and I take what I can get... not always silver (rare at best) and less and less it seems.
A lot of people are doing CRH and pulling silvers, but less and less
One guy told me he did over 30K in halves, I did a few, but found it not worth the effort
Sorry, its become increasingly rare to find it pre 65 silver for face value.
Although this made my day about a week ago... my first (yes first) silver quarter back in change
Source: Chick fil a
the last time I got a silver dime back was two years ago in change, and that involved a bit of a happy dance....
Although this made my day about a week ago... my first (yes first) silver quarter back in change
Source: Chick fil a
the last time I got a silver dime back was two years ago in change, and that involved a bit of a happy dance....
USSSAlabama said:
Depends upon your time frame.
If you buy the right bullion coins now and sell them before silver crosses something like $100/oz, coins should be the better investment. The coins I bought in Sept. 2010 have gained 100-200% in value and I could sell them now and buy more silver with the proceeds than I could have purchased originally.
If you are just going to buy and hold for the duration of the bull market, low premium bars/rounds/junk silver should be the better investment.
Either way, I would still pick up a few ASEs/some junk silver as both are recognizeable and would be the easy to sell in an emergency.