New to silver - almost running scared!

J

johnnyblackau

New Member
Hi all

I need some advice in answering these couple of questions... if anyone wants to help that'd be very much appreciated.

I watched a youtube video from Mike Malone who showed the Chinese countfeits and said it's becoming more common in the smaller sizes (1 oz coins) as well.... is this a common thing to come across... and what are the places i should be purchasing from... currently my very limited knowledge is Bullion Burse (Not sure really about these I don't know anyone who uses them) and Ainslee bullion here in Brisbane. - Are these safe suppliers? with guarantees?

Also, i'm not financially well off and i'm pretty much limiting my purchases to using the money that I had allocated to other purchases from (the carton of weekly beer) so although it's small it's something... so is buying 1 oz coins better than 1 oz bars?

What's the story with PAMP bars being so high... if i was interested in the spot price only is it worth only buying silver that is closest to the spot price? if i was to sell the bars back do they pay only the spot price or do they include the premium of the mint/ refinery?

I'm sure i'll have more questions as i come along... but thank you for the time to answer these ones so far.

Kind Regards

Blackie
 
Yes the counterfeits are becoming better but stay away from places like eBay and buy from reputable dealers (who buy buy directly from the mints) such as Goldstackers, Bullion Bourse,Ainslie and site sponsors on here. Also buy yourself some cheap testing kit so you can ensue it's genuine.

Coins vs bars is upto you, what your preference is and what you're looking for long term. Basically you get more silver for your $'s with bars but with coins you have a better chance of achieving higher premiums when you want to sell.

PAMP are the 'Rolls Royce of bullion' so you pay the extra premium but you will usually get this back when you sell. PAMP's are very easy to resell. If you're only interested in spot price, buy the cheapest silver you can get your hands on. Selling back to a mint or refinery will get you the least amount of $'s for your silver. Better to sell in eBay sometimes or here for the best price.


Have a look at this thread- http://forums.silverstackers.com/message-623189.html#p623189

And welcome to SS :)
 
Every Australian supplier I have dealt with has been excellent but you'd need to read their FAQ's or contact them directly to ask about guarantees.
Silver is probably a better investment than beer.
I've spent about $150.000 on beer and other grogs during my now defunct 35 year drinking career. I have nothing to show for that.
If I'd bought silver instead of beer I think I'd be a little better of financially than I am now, about $500,000 better off I'd say.
Higher premium bars are more elaborate in design and presentation and might cost more to produce and market than lower premium products it seems. Hence the higher prices.
Silver closest to spot includes predecimal Australian coins and other low premium products that are highlighted as same on most online retailers websites.
Selling your silver back to a dealer is no different to selling a car back to a car dealer. Bullion dealers including Perth Mint often publish their "buy back" policies on their websites.
You'll normally get a slightly better price if you sell to a friend or via forums such as this.
 
Hi Blackie...I started the same way as you. A few 1 oz purchases a month. I regret not understanding what premiums were all about and bought product that I will never see a return on. Start with 1ozers from the Perth Mint as close to spot as you can get.

GF
 
swoydaz said:
Higher premium bars are more elaborate in design and presentation and might cost more to produce and market....
Click to expand...

I drink at the Horizon Bar. Always a queue, but the views are terrific.
 
Thanking you all for the quick response... yeah i've been picking up 1 oz bars and coins where i can, so hopefully as things get easier around here will be able to get something a little bit more impressive... is there a way to "swap/ trade" small stuff for a larger bar?

Thanks again and what a warm welcome!

Blackie
 
but wouldn't that be a good deal for the guy trading the 10oz bar since the coins are'expected' to have higher premium? it would be easier if silver was just silver, but it's not it seems. something i've quickly found out when i started this stacking caper. personally there's no way i'm buying a coin alot over spot when i can buy a cast bar a little over spot. oz's for my buck matters to me.
 
It's good that you're buying precious metals, but beware of some of the "gurus" on youtube. At the end of the day, Maloney operates a business so you can hardly receive non-biased information from him.

It's like asking a winemaker whether his wine is good or bad.

Buy silver as close to spot as possible. That usually means forgoing the smaller quantities of silver and moving up into the 1kg range (buying with bulk removes some premium).

Best of luck.
 
prince_of_sales said:
Buy silver as close to spot as possible. That usually means forgoing the smaller quantities of silver and moving up into the 1kg range (buying with bulk removes some premium).
Click to expand...

That's correct. Get as much silver for your dollar as possible. But, counterweigh that with the issue of there being fewer avenues to sell/trade larger bars than smaller bars. Supposing that silver is $50 per ounce, then a 1kg bar is about 32 * 50 = $1600(min). As the outlay/trade gets larger, there are fewer customers with the funds.
 
I would advise you do not reduce your beer intake.You will become too mentally alert and start to think you are wise and write 200 word posts on SS and argue with everyone about things no one knows about nor controls.

The next step then when you take yourself too seriously is that you will be banned most likely.

Stick with the beer.
 
thatguy said:
stick with 2/5 oz lunars from the perthmint... should avoid any counterfeit worries
Click to expand...
Why 2/5 oz lunars? I'm about to start buying lunars. Is there any particular reason that makes them more special than a 10 oz or a 1oz lunar?
 
The larger the size of the coin or bar generally the lower the premium. If you are starting out or on a lower income my advice is to choose a premium that you are happy to buy that will give you the most metal. Stick with bullion and don't go for proofs\colours or such unless they have a low premium.

I'd suggest to stay away from pamps and other higher premium products that are more expensive than perth mint bars... Until you build your stack and then want to diversify.

Bar or coins... Just play the spot price market for a while then think about the premiums on certain coins. Ie stay with recognised low premium bars, or coins if you find a bargain or two.

My other advice is to stay away from the themed coins that the various mints sell. Some will be good collector items but most won't. These are also things to look at once you are more knowledgeable and have built your stack a bit. I won't touch thesr at all.

Good luck
 
Start stacking 1966 50's as a safe alternative and may suit your stacking budget
 
johnnyblackau said:
Naphthalene Man said:
Ie stay with recognised low premium bars, or coins if you find a bargain or two.
Click to expand...

Which bars / coins are recognised as low premium?
Click to expand...

Check out goldstackers website for their low premium silver.

The closer price is to spot, the lower the premium.

Australian predecimal coins in average condition are normally low premium, and often at spot.

Same goes for redundant silver coins from other countries.

But such coins in perfect condition or if uncommon may be of higher value.
 
Not sure where you are Johny but if you're in the USA I've found JMBullion.com to be the CHEAPEST so far for me.

I got their rounds and bars of OPM at around just ~$2.50USD above spot BUT they offer FREE shipping in the USA?!?!?!
So while another site may only be $2.00 above spot they charge shipping and that eats up your savings and more with that site, so...

And that's for the 1oz bars and rounds (Cheaper price on spot for larger ozs)
 
I think your question has been pretty much answered.

Two additional snippets of information:

1. Keep good records. Can be a notebook, can be a spreadsheet. How much, when, what was spot, who from - all that jazz. Gives you a far better insight later. There are spreadsheet packages out there which will track spot in Gold & S1lver.

2. Storage - find somewhere secure to keep it. Your bank may allow storage of a cash tin for a fairly nominal fee. Lots of discussion threads on safes, purloined letter approaches and so on.

Finally, it's a lot easier to start with as close to spot as you can get, but allow a certain amount for 'fun' purchases - the set that really appeals, or the coin that relates to an occasion. That way you will almost imperceptibly gain a little numi knowledge - enough to spot a bargain, perhaps. Some people specialise in a single coin (Sovereigns, for example) - you can pick 'em up as bullion, or you can find specimens at astronomical prices.

Have fun!
 
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