New investor needing advice!

L

lisawesa

Member
Hey guys, ive got some money that's been sitting in the bank doing nothing and have decided that it's time I did something with it. I fear I may be a bit late in the game now but a few months ago I heard that silver would be a wise investment.

I was also told that coins might be more profitable than solid blocks of silver as they're easier to move and can also have added sentimental value. What are ppls thoughts on this?

I have around 10k to invest. How would you invest this money if it was yours?

Many thanks in advance.

Lis
 
lisawesa said:
Hey guys, ive got some money that's been sitting in the bank doing nothing and have decided that it's time I did something with it. I fear I may be a bit late in the game now but a few months ago I heard that physical silver would be a wise investment.

I was also told that coins might be a better than solid blocks of silver as they're easier to move and can also have added sentimental value. What are yourmthoughts?

I have around 10k to invest. How would you invest this money if it was yours?

Many thanks in advance.

Lis
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Invest in Financial Education 1st Then Metal
 
We all have different responsibilities and goals and your likely to get several differing views.

If it were me, and just starting to stack, I would go for 100 x 1 oz coins and the rest in 1 kg bars.
 
Hello Lisa, welcome to SS. :)

With $10k I would probably do something like this:

100 x 1oz assorted koala/kooka/lunar coins. ~$3.45k
15 x 10oz bars ~$4.9k
5 x 1/4oz gold coins ~$2k
 
Thanks for your response Boston and pmfiend! I'm sorry if my ignorance offends some of you as it did cinvalo, I have been trying to my own research the last few weeks which is how I came across this blog. being new to the game I thought this might be the right place to ask the question.
 
Welcome to the boards.

Work out what are you trying to achieve, Gold is more stable then Silver. I see more of an upside in silver at the moment.

If it were me, I would get:

- 100 x 1oz coins
- 10 x 10oz bars
- 3 x 1kg bars

Slam
 
lisawesa said:
Thanks for your response Boston and pmfiend! I'm sorry if my ignorance offends some of you as it did cinvalo, I have been trying to my own research the last few weeks which is how I came across this blog. being new to the game I thought this might be the right place to ask the question.
Click to expand...

Welcome & enjoy the journey.

Bullion bars are best bang for buck.
10oz / 20 oz / kilo bars

Get some gold also.

5 grams is a nice liquid size.

http://www.auroraetluna.com/index.php?act=viewProd&productId=20

There are a few sellers on this site.

Click on the banners that appear on the top right.

hit refresh to change the seller

Where in Aus are you?
 
lisawesa said:
Hey guys, ive got some money that's been sitting in the bank doing nothing and have decided that it's time I did something with it. I fear I may be a bit late in the game now but a few months ago I heard that silver would be a wise investment.

I was also told that coins might be more profitable than solid blocks of silver as they're easier to move and can also have added sentimental value. What are ppls thoughts on this?

I have around 10k to invest. How would you invest this money if it was yours?

Many thanks in advance.

Lis
Click to expand...

Hi Lesawesa. Welcome. I don't know that I'd agree that coins are easier to move than bullion. Certainly there doesn't seem to be any problem moving bullion bars here, so long as they are under 1Kg. Larger ones take a little longer... Silver certainly has been a great investment in the latter part of last year, and the indicators would suggest that this should continue this year. Have you read the books by Kiyosaki/Maloney? I'm sure many here would recommend them, especially Rich Dad's guide to Gold and Silver. (I even know of bullion dealers who sell this one...) The sentimental value attached to the coins can be a trap. Silver, though lovely, is after all a commodity, not a pet. If I was investing 10K at this point? Hmmm... I'd probably wait for the MACD to turn, and then pull the trigger on 5 x 1Kg, 10 x 10oz, and the rest on various coins (kooks, kangas, lunars, etc) because they are, after all, very pretty... :) Anyway, there is my 2gms worth.....
 
Hi Lisa,

I recently invested a similar amount of money in precious metals. As Cinvalo said, do some research first. Youtube is a good place to start however be sure not to get too swept up by what people are saying. Many silver commentators on line can get a bit over excited.

I think what you'll find in your research is that the fundamentals of the current supply vs demand supports a case for continued silver prices rises.


Also find out the pros and cons of bars vs coins. Find out what suits you.

e.g.
-Bars are quite a bit cheaper per ounce
-Coins offer numismatic value so in the event of silver price collapse risk of loss is less than bars
-If prices skyrocket coins might be easier to sell quickly

I ended up going for 1kg and 20oz bars because I wanted the most ounces for my money. I also invested in bit of gold for the long long term.

If you do go with bars, then for the amount of money you are investing you might want to steer clear of 100oz bar and lean towards 1kg, 20oz and 10oz bars. That way as the silver price rises you can sell of portions of your stack. Thus with each sale you can reduce the risk of loss whilst still enjoying riding the silver price upwards with the remainder of your stack. With only a couple of massive bars you dont really have the option to sell off gradually.
 
As a newbie, I would recommend first reading the "Rich Dad's Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future" then look for a mentor or person with like mind to work with. ie Financial Education First.

Then only play with say $1,000 to get comfortable ie meet the dealers go shopping etc before investing the rest of the $10,000 in one hit.

That's the approach I've been taking.

Also, this site is a wealth of information particularly the links in "Online links/resources for precious metals"

Happy Stacking....
 
2 x 1 oz gold lunar/nuggets and 7 x 1 kg silver bars.
Keeps premiums to a minimum and you won't have any trouble at all selling them.
I have a few coins, but I'm not really a coin collector so they just cause drama in the safe. Premiums on coins are also quite high.
 
silvertongue silver rise 75% during 2010. Sugar , coffee, soya beans, cotton also rise alot. One of them rose close to 90%, outperform silver. (Sorry i don't have the source at the moment). Silver stocks and Gold Stocks will also perform well, potentially outperform silver also in 2011.

Sorry if i am trying to make you skeptical where to park your wealth but you really need to get educated first. Remember this is going to be a roller coaster you are riding. A solid fundamental means a safety belt. A possible scenario will be a 3 year deflation death spiral 1st, means silver price will lag gold or pull back, then hyperinflation. Uneducated investor might sold or force to sell Ag and move back into paper and got unbuckled from the roller coaster in the middle of the ride....

If you have a look at Rich dad Guide to investing in Gold and Silver, it is not really a book about gold and silver, it is a book about global economic and monetary history. Excellent read. Another good read is "Why an economic grows and why it crash", by Peter Scriff. This should make you very informed in the shortest period of time. Subscribe to wealth-cycle and reading CPM report, download the finanical statement of the reserved bank of Australia and read it with a suspicious eye (2.8% inflation rate??). Get informed. Ride with us in the roller coaster. Welcome abroad. :)
 
Keep your head on your shoulders. Don't take anything that anyone says on face value.

Cross-reference information that you do get and always look for the opposite view and then try to figure out which is right.

Educating yourself financially about how the economy works and the history and evolution of money can take time but is actually very rewarding and makes you feel like you have an edge over most others out there.

Also, learn about historic credit bubbles and the hows and whys of how they come about.

The Gold and Silver Mike Maloney book is a good starting point but there's a few aspects in there that I think are a bit questionable, but that can be said of any book. Overall it is very worthwhile.

Good luck!
 
Cinvalo said:
silvertongue silver rise 75% during 2010. Sugar , coffee, soya beans, cotton also rise alot. One of them rose close to 90%, outperform silver. (Sorry i don't have the source at the moment). Silver stocks and Gold Stocks will also perform well, potentially outperform silver also in 2011.
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Quite right - I wasn't trying to say that silver was a better performing investment than others, but that it did enjoy a historically excellent run in 2010. And certainly sugar and cotton have performed well, and should continue to do so (Although maybe not so much in north QLD this season... :/ )
Cheers.
 
Heya Lisawesa! You FIRST purchase should be :

51nD9g4q17L.jpg


http://astore.amazon.com/silvestack-20/detail/0446510998

Nearly every stacker here has this book. Highly recommended reading & at $12, a bargain investment.

With 10k, I'd be going for a real mix, including both Gold AND Silver.

Bars are VERY VERY liquid, I assure you! 10oz & 1kg Bars especially, you can move here in the blink of an eye.

If I were to go shopping on Bullion Bourse today with 10k, this is what I'd personally get :

2 x 1 oz Perth Mint minted 99.99% gold bar AU$2,876.82
100 x 2011 silver Kookaburra coin - Perth Mint AU$3,451.00
5 x 10oz 99.9% Silver bullion bar AU$1,640.00
2 x 1 kilo Perth Mint .999 Silver Bullion Bar AU$2,050.00
Total : AU$10,017.82

By all means DO YOUR OWN DUE DILLIGENCE! But if *I* had 10k to invest today, this is what I'd be in for. 2oz in Gold, 200oz in Silver - great start to any stack!
 
Auspm said:
Heya Lisawesa! You FIRST purchase should be :

http://ecx.images-amazon.com/images/I/51nD9g4q17L.jpg

http://astore.amazon.com/silvestack-20/detail/0446510998

Nearly every stacker here has this book. Highly recommended reading & at $12, a bargain investment.

With 10k, I'd be going for a real mix, including both Gold AND Silver.

Bars are VERY VERY liquid, I assure you! 10oz & 1kg Bars especially, you can move here in the blink of an eye.

If I were to go shopping on Bullion Bourse today with 10k, this is what I'd personally get :

2 x 1 oz Perth Mint minted 99.99% gold bar AU$2,876.82
100 x 2011 silver Kookaburra coin - Perth Mint AU$3,451.00
5 x 10oz 99.9% Silver bullion bar AU$1,640.00
2 x 1 kilo Perth Mint .999 Silver Bullion Bar AU$2,050.00
Total : AU$10,017.82

By all means DO YOUR OWN DUE DILLIGENCE! But if *I* had 10k to invest today, this is what I'd be in for. 2oz in Gold, 200oz in Silver - great start to any stack!
Click to expand...


Very well typed Auspm.

Not an error in spelling or maths.

good graphics.

Cold hard facts answering all points.


10/10............:)

Also high marks for all other posters with good wide info.
 
boston said:
We all have different responsibilities and goals and your likely to get several differing views.

If it were me, and just starting to stack, I would go for 100 x 1 oz coins and the rest in 1 kg bars.
Click to expand...

+1 if your just after silver.
 
lisawesa said:
Thanks for your response Boston and pmfiend! I'm sorry if my ignorance offends some of you as it did cinvalo, I have been trying to my own research the last few weeks which is how I came across this blog. being new to the game I thought this might be the right place to ask the question.
Click to expand...

I haven't got much to add, Boston and pmfiend pretty much nailed it. Whatever you do, make sure you have some variety in your stack.
 
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