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Advice on buying silver/gold needed

Discussion in 'Financial Cents' started by abacus, May 13, 2006.

  1. abacus

    abacus Monkey+++

    I'd like to purchase some silver, but I'm very ignorant when it comes to this issue.
    Could someone please point me in the right direction?
  2. Nalos Surith

    Nalos Surith Monkey+++

  3. melbo

    melbo Hunter Gatherer Administrator Founding Member

    Take a look at www.apmex.com
    Click on the Silver link, and find 90% Silver.
    They allow you to purchase in (Face Values) as low as $1.

    Current price per oz is $14.24
    So a 10oz bar will cost you slightly over $142.40 +shipping

    We have a few silver threads in the financial forum that may help you.

    Right now, I can get you about $30 face in pre-65 US coin, (90%) for about $320 + shipping
  4. abacus

    abacus Monkey+++

    Melbo, I just started looking into this so I don't know much about it.
    I've been reading somethings online today, but it's somewhat confusing so far.
    What is the difference between getting a 10oz bar and getting coins?
    Thank you.
  5. melbo

    melbo Hunter Gatherer Administrator Founding Member

    OK. Bear will jump in here later to help me I'm sure ;)

    All I buy is bullion. That means I don't buy anything rare or otherwise overpriced. Bullion means that I try to pay as close to the spot, or melt, price as possible.

    So, 10oz bars, or 1oz bars or rounds or old coins should all be bought for around Spot. Currently at 14.22ish

    I hold the bulk of my silver in pre-65 US coin. I do have some one oz rounds and bars as well as some 10oz bars. That's just cuz I like looking at the different forms. I would suggest 90% Silver coin for starting out. It is just as tradeable as other forms yet has a small denomination that could be used for trade/barter in a SHTF situation.

    I spend some time at www.goldismoney.info for more info on PMs.

    Basically, It really doesn't matter the fporm you buy if you are looking to invest. It's all worth 14.22 an oz right now, Just don't pay to much a premium for 'special' stuff. it isn't
  6. Infidel

    Infidel Guest

    go to goldismoney and ignore the poison some people are spilling. it does not seem to be by design, but someone is feeding the trolls. don't feed the trolls.

    90% Silver is sold at the lowest premium comparatively and at the same time is easily recognizable and hardly worth falsification. do not buy bars. rounds are ok as they are hard to fake too. stay away from numismatics
  7. abacus

    abacus Monkey+++

    Cool. thanks guys. I'm going to try to get a small amount of 90% Silver at apmex.
    I'm also interested in gold coins...
    What is the practical difference between American eagle and South African coin?
    Thanks again.
  8. melbo

    melbo Hunter Gatherer Administrator Founding Member

    Gold is good... But, Silver has the chances to go 10X in the near future.

    As another I know says... Silver is King.

    Forget Gold for now. Buy Silver.

    How much are you looking to spend right now? I can try and get you some Spot price silver with no premium and minimal shipping.
  9. melbo

    melbo Hunter Gatherer Administrator Founding Member

    on AE vs Krugs... I'd go with the SA Krugs as they trade closer to spot than AEs. But, that's just my opinion on it. I actually hold more AEs in 1/10th oz than I do Oz of Krugs
  10. abacus

    abacus Monkey+++

    I was looking to do about $1000-1500.
    I'd like to do more, but I should wait till I graduate first :)

    Thanks a lot for your help. I really appreciate it.
    Well, I guess I should try to think about this a bit more and keep reading too.
    This is more "fun" than thinking about my dissertation. lol.
  11. melbo

    melbo Hunter Gatherer Administrator Founding Member

    One thing I suggest is that while you are thinking... Be buying small amounts.
    A lot of folks are waiting to make that "Big buy" and keep holding off.

    I buy small amounts of both silver and gold weekly. those small amounts add up. AND, if you buy at different price points, you don't worry about the daily price as much.

    So long as someone is willing to trade metals for your paper, take them up on it
  12. abacus

    abacus Monkey+++

    Ah, that's good advice. Thank you.
  13. Bear

    Bear Monkey+++ Site Supporter+++ Founding Member Iron Monkey

    Yup .... I agree with Melbo....
    Buy what you can when you can find it at the price you want....
    Better to Dollar Cost Average at different points to balance out your PMs....
    Like Jim Puplava said this week.... the big boys have enough trouble trying to time the market.... small players probably shouldn't try it....
    Remember... "A bird in the hand is better than two in the bush"....

    Same goes for PMs....

    Someday you'll want it.... and there will be none to be had.... JMHO.....
    smithcp2002 likes this.
  14. melbo

    melbo Hunter Gatherer Administrator Founding Member

    Listen to Jim at http://www.netcastdaily.com/fsnewshour.htm

    What did he say last week Bear? Head to the hills or something?
  15. Bear

    Bear Monkey+++ Site Supporter+++ Founding Member Iron Monkey

    Actually it was pretty interesting.... if you listen to the 3rd hour... (I think... failing memory... senior moment).... Jim actually comes out and says you better start building your "Ark".... to the degree that you can... basically you should review your portfolio and make adjustments according to your take on the world and the markets.... (you should do this at least annually anyway)

    Although this week he says he's bullish on PM's but also at the same time with the hits taken on the market last week.... he's bullish on certain parts of the market as well....

    All in all.... I think it would be best for a person to really decide for themselves why they would even purchase physical PM's.... There's also paper PM's in the form of "majors" and "Juniors"... as far as mining stocks go.... Make a decision and understand why you are doing it.... then you won't have the emotional anxiety that many had this past week....

    IF you're a great investor and have analyzed your PM or commodity picks then maybe paper is the way to go.... PM's are volatile... just ask anyone who didn't time their "investments" well back in the 80's when gold hit $800 and also back when silver hit $50... lots of tears shed back them I would guess..... remember ... the greater the potential gain in a short period... the greater the potential pain in that same period...

    If however its a preparedness thing.... just like other long term preps.... it may be wise to disengage your thought process and emotion from the daily peaks and valleys of this market... commodities are violent and vicious on the small investor.... if you're building your "Ark" for that "just in case" scenario.... then despite what happens or what people say.... you'll know why you're doing what you're doing despite the criticism that will come from those around you and the occasional "why did I do this ?!" from that person in the mirror.....

    It just doesn't make good sense to me when you're building and stocking the "Ark".... to get worried about the daily, weekly, monthly, yearly swings, or analyze and fret over the fundamentals and how they keep changing depending on the rise and fall of investor emotions given the geopolitical landscape, market manipulation and mother natures fickle moods on the planet.... "Stay the Course"......

    PM's for planning purposes are like life insurance, flood insurance, fire insurance, car insurance, disability insurance etc.... you either believe in it or you don't..... then get it at a minimal or maximum level.... like health and dental coverage..... these other's are sort of optional to the degree to which you purchase them.... Either way... you plop money into them and if nothing happens you get piece of mind for that time period .... but you don't get any of your money back.... However if you do need them.... its a real good feeling knowing its there.... At least with physical PM's.... you own it.... you're money doesn't vaporize with that good feeling of not needing that insurance coverage.....

    So I'd say minimum insurance in this analogy is holding your FRN's in the bank savings, CDs, IRA's, savings bonds and keeping your well balanced portfolio in the market or contributing to your 401k..... additional "insurance".... at least one example.... is when we get into physical possession of PM's.... and there's all kinds of degree's to that.....

    When you have loads of discretionary income and the "Ark" is built and stocked.... then in my opinion... go fool around with the volatile stuff... Paper Stocks... Las Vegas.... that way if you lose it all .... it wasn't like you lost the house and savings....

    Don't "gamble" and then expect any kind of sympathy from the prudent folks who don't...

    Waiting for the right time to dump a large amount of money into anything and then hoping for a great result in a short time frame is gambling.... Remember that Gain/Pain index?

    Back to my "Bird in the Hand" analogy.... Don't expect to even be able to get it when it hits your rock bottom trigger range.... there are alot of folks who are already watching this and buying .... Checked APMEX lately.... generic rounds always seem to go out of stock when market is volatile.... no generic rounds and 4 bars left as I write this.... Difference between the low generic stuff and an AE is @ $1.35.... my guess is there are alot of folks out there who are going to purchase more to either cost average their holdings down or just because they know at some point no matter what the ticker says..... they either won't be able to get it... or their going to pay that premium that we all hate....

    Be prepared to be unpreprepared and always expect the unexpected..... when you're ready to buy.... you won't be able to find it at the price you want to buy it at.... or worse... you won't be able to find it at all..... Just in Time management works fine for some, but it definitely has its delicate balance.... don't bet on it for you and your family.

    Better as Melbo says.... get it when you can on the dips.... when you cost average all your holdings... its gonna be lower than the peaks.....

    I remember when I was fretting over purchases at the $7 range.... because I should have bought more when it was in the $6 range.... seems kinda dumb now.... but I'm doing the same thing now with the market where it is.....

    I'm still buying..... my fear like so many other things I want is when I finally make the decision to buy it... or when I think its finally a good deal..... that it will be sold out!

    This is one situation when I would say actually having a small amount is light years ahead of saying you will have a large amount later.....

    What was that old saying ?.... the smallest action is better than the grandest intention....

    Don't just talk about it.... do something.....

    Nuff said....

    Party on!!!!! [boozingbuddies]
  16. Amatore1

    Amatore1 Monkey

    About ready to dip a toe into buying a little silver.
  17. Kingfish

    Kingfish Self Reliant

  18. T. Riley

    T. Riley Monkey+++ Site Supporter++

    That's what I found..purchased from JM Bullion last time. Free shipping.
  19. Kingfish

    Kingfish Self Reliant

    My silver bars are going up on ebay big time. 28 minimum now. I see lots of them selling at 36 to 48 dollars each. Now that Northwestern mint is closed they may become a rare bar. I can sell right now and make between 5 and 10 bucks a bar .
    T. Riley likes this.
  20. ghrit

    ghrit Ambulatory anachronism Administrator Founding Member

    Good thread resurrection --

    I've bought from Monarch. Deal went smoothly. I don't think I did the best possible deal, but I'm not looking for rapid turnover, looking longer. Will ride the swings, yes, I will.
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