Silver Purchase - Thoughts and suggestions welcome!

wilkes

wilkes

Member
Hey all,

I am contemplating 'backing up the truck' and going all in silver. (When I say all in, I mean all available cash reserves and less than maybe 5% of total investment value.) We are however talking $50k+. My plans are to purchase $50k plus, sit on it from 3-5 years (or more depending on price) make a descent profit whilst protecting myself from economic crisis. Let's face it, in economic meltdown we would all rather be holding PM's than dollars anyway.

I want to state a few reasons, ask a few questions and get a few thoughts.

Brief reason list:
- AUD sitting in an offset account not doing much.
- Great hedge against oncoming inflation.
- No immediate or even mid-term need for the money.
- I can't find a more worthwhile investment. I already own some gold and will stack more, but silver seems to be the real winner. It's potential as an investment is incredible.
- Silver is CHEAP right now.
- Silver is a finite resource and demand is constantly growing. Second most used commodity in the world.

Here are a few questions:
- If you were to spend $50k on Silver, what would you buy and why?
- How would you store it? Storage facilities are quite expensive (possibly worth the money, yet expensive.)
- Would tax be payable on such a large amount of PM's when selling? I have read a few articles in time past yet my mind isn't clear on this. I thought that investment grade bullion avoided tax. If it does, can a trust fund be used? Any other ideas?
- Where would YOU buy from? We all have our reasons for purchasing from someone/somewhere whether it be customer service, great advice or a good deal. If you were to spend this money, how would you do it?

I have considered these things but think this will help re-enforce my decisions or even give me a point of view I hadn't thought of. Thanks for the time you will put into any/all responses!

P.S. If any dealers are reading this looking for a buyer, please contact me with any reasonable offers. I will no doubt contact many of you ;)

Wilkes.
 
Can't tell ya what to do.... BUT I can tell ya what I did.

70% PMDP, 20% 1kg coins and 10% in 1oz coins (some loose change in pre dec, '66 50s)
 
tax is a capital gains tax event on the profit. half tax from your current tier if held for more than twelve months.
 
50K? Maybe 20-25k Split between Gold and silver.

Gold; 1oz & 1/2oz forget about the extra premium on the 1/2s, you'll get the premium back when you sell, plus adds a tad extra liquidity.

Silver; Split evenly between 100, 10 & 1oz Premium for 1oz is negligible.

Now, you have say 25-30k left. price moves up buy 10k more, moves down same thing.

Better not to buy all at once because PMs can move down and you will want to have fiat if it does.

This is what I would do, or have done on a much lesser scale. I have no 1oz gold or 100oz silver :(
 
wilkes said:
Hey all,

Here are a few questions:
- If you were to spend $50k on Silver, what would you buy and why?
- How would you store it? Storage facilities are quite expensive (possibly worth the money, yet expensive.)
- Would tax be payable on such a large amount of PM's when selling? I have read a few articles in time past yet my mind isn't clear on this. I thought that investment grade bullion avoided tax. If it does, can a trust fund be used? Any other ideas?
- Where would YOU buy from? We all have our reasons for purchasing from someone/somewhere whether it be customer service, great advice or a good deal. If you were to spend this money, how would you do it?

I have considered these things but think this will help re-enforce my decisions or even give me a point of view I hadn't thought of. Thanks for the time you will put into any/all responses!

P.S. If any dealers are reading this looking for a buyer, please contact me with any reasonable offers. I will no doubt contact many of you ;)

Wilkes.
Click to expand...

1) I would buy whatever takes my fancy and whatever's priced well. I tend to dislike Liz, so I'd probaby go for Lizless coins or bars. But if those can't be had, Liz would make it in the collection. If you like to actually look or admire the silver now and then, perhaps you want a mixture of bars and coins of different designs that suit your tastes. Smaller pieces like 1oz coins will probably cost more than poured bars (ounce for ounce) but they will command a greater price when selling too, so it's pretty even when selling.

2) I would store it secretly at a friend's house or dig it up somewhere rather than give it to some third-party to handle for me. Either way, if ordering online, it would not be at the same address used to receive it.

3) Capital gains is part of your taxable income.

4) I would buy from any dealer with half-decent prices (including delivery prices) and who is easy to deal with. With the amount you are spending and the ID you need to be presenting, you need to trust the dealer with your information and you could probably do some serious bargaining if buying from a single dealer. You could also go the other way and spend at several different stores under $5,000 and not have to present your ID. Personally this would be the approach I would take since I don't trust any store's security procedures with personal information.
 
half in 50c rounds 1966, then about 10 1kilo bars, 10oz bars,
any left over is 1 oz coins. in that kind of order.
if you are in OZ. I would not buy gold, may be 1 or 2 oz.
 
I have some gold and will get more or trade silver for it once GSR is more favourable.

I am not a huge fan of the 66 50c, they just seem like junk silver. I favour the prettier bars and coins.

Great info so far guys, keep it comin'!
 
Put the $50K into Perth mint unallocated pool silver using a trust.
It used to be just Unallocated without any fees provided you had $50K at least with them. I think they do charge now though. Real easy to buy/sell (simple phone call) once set up. Can be converted to physical at a later date if need be at a cost but at least you don't have to worry about storing it!
As you are spending $50K+ (thats about 1590oz at current price) I would be buying physical 10oz bars/coins and 1oz coins with the $+. Depends how big amount the $+ is... Maybe lots and lots of 10oz bars.
 
wilkes said:
- If you were to spend $50k on Silver, what would you buy and why?
- How would you store it? Storage facilities are quite expensive (possibly worth the money, yet expensive.)
- Would tax be payable on such a large amount of PM's when selling? I have read a few articles in time past yet my mind isn't clear on this. I thought that investment grade bullion avoided tax. If it does, can a trust fund be used? Any other ideas?
- Where would YOU buy from?
Click to expand...

Firstly I'd try to buy any 999 or 9995 silver at as close to current spot as possible - I'm a buyer up to $37/oz, subject to ongoing review. If I had $50k to play with I might consider allocating 1/3 gold, 2/3 silver - definitely no exotics like platinum or palladium or numismatics. I would also consider allocating say $10k into an established rare earth metal producer such as Lynas (ASX:LYC, which I hold to the tune of around 100k shares) or Molycorp in the US, but obviously I'd feel more comfortable investing in AUD$ rather than USD$. I'd be buying 5oz or 10oz au bars and 100oz & 1kg ag bars - nothing else. I'd keep a portion in a secure location probably a safe and the remainder buried, likely not on land owned by me - on a friend's acreage perhaps - (just don't forget where you buried it!)- NOT in a bank secure storage owing to the possibility of confiscation (check the history books - it has happened in the past). You might also consider making a written record (securely stored, witnessed & dated even by a friend) that you have used the metal as ballast in your sailing dinghy, which might be unfortunately lost in a non-fatal boating accident, should any issue of possible confiscation arise. Keep a record of what you buy, how much it cost & receipts for purchases which you can use should the ATO or your accountant request it & so that any CGT liability may be calculated at sale date. You can put investment grade bullion into your super but this would require secure storage, likely in bank custody. Talk to your accountant on this point. Right now I would be buying from every source possible, on here is a great place to research, and do scour the various dealers for best prices & offers.

I like your style - balls to the wall n'all... ;)

VRS ;)x
 
Well some would say, get what you can, coz you won't be able to buy any more soon!

You will be limited to what you can buy in quantity - most have limited supplies of perth mint bars and certain 1 kilo coins. You might just have to get what you can take.

Always good to remember, if you have the idea that 'silver's going to the moon', if you see the $100 an ounce price, will you want to have to offload 100oz bars or 5 kilo or even 1 kilo bars at a time? I like the idea of kilo bars and coins if you have that much cash to spend.

Don't undervalue the importance of having gold in your stack. The price of silver could very easily bottom out and even though you say you don't need the money now, your mental fortitude will be tested to prevent yourself from further losses... having gold or extra cash will enable purchases when silver seems to be in a really bad place. As we all know, a bad place for silver is a great place for someone with gold or cash to mop up the drastically undervalued metal.

We all seem to expect pms to be the saviour, BUT I think the best addition to a stack is that of a mindset that if it all goes pear-shaped and it doesn't happen like you want it to, that it AINT the end of the world. That's my mentality, anyway.
 
fishball said:
RetardedMonkey said:
I understand lots of stacking techniques.

But I still don't get 1966 50s.
Click to expand...

Liquidity and low barrier of entry.
Click to expand...
I've just always wondered how they get the premium they seem to get and haven't just dropped into the junk silver category.
 
Excellent feedback!

I will be accumulating more gold for sure.

This investment can fall to pieces and we will survive, no problem there. I don't see silver dipping below current prices in the 5 year timeframe anyway.
 
wilkes said:
Excellent feedback!

I will be accumulating more gold for sure.

This investment can fall to pieces and we will survive, no problem there. I don't see silver dipping below current prices in the 5 year timeframe anyway.
Click to expand...

Haha, yeh I hope not! Keep up the reading.
 
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