Why Buy Pm's? - Coin Community Forum

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Author	Replies: 6 / Views: 1,943
AgCoinAu Pillar of the Community Canada 3049 Posts	Posted 11/26/2014 3:58 pm For each individual there is a different reason for getting into PM's... I simply have my reasons and thought I would share to create some healthy dialoge on the subject. I look at gold as hedge against inflation for the most part and my window for investing in gold is around 20+ years. Silver I see as a more erratic metal that has multiple uses and one can invest in silver with a shorter time frame in mind. I personally will buy and sell the metal as many times as possible within a time frame spanning 20 yrs or more but I will not put myself in a position to buy and hold for that duration. I love diversification in my personal portfolio. And that is what I'm comfortable with. Some people are big advocates of putting their eggs in multiple baskets.. some say to capitalize on returns you are better to lump them all together in one. The one basket theory has it's merit but I am neither smart enough, nor in tune with the market, nor do I have the aversion towards risk as putting all eggs into one basket... so I don't. My employer has a matching pension benefits program that I contribute to for the maximum allowable.. I also have a small percentage of RRSP's (invested income that will not be taxed in your current year of earnings but will be taxed upon withdrawal at retirement) as well mutual funds. After mortgage, bills and discretionary expenditures what ever may be left goes into an account which I occasionally will buy some silver and gold. (I try to buy around 200 ozt of silver and 1-3 ozt of gold a year) I have a tax free savings account (TFSA) but I do not currently put any money in there. I'm 38 with two children under 3 yrs old... my house and all debt will be paid off in 5-6 yrs. This will leave a much great portion of my income for disposable means. My plan is to remain at my current status invensting until we (my family) are debt free (that 5-6 time frame) .. at which time.. while there will be more funds required for the children's activities such as sports, music, dance etc. etc... there will also be more money left over in the disposable account which will be available to invest. 0-5 yrs become debt free... 5-10 yrs .. work on maxing out my RRSP eligibility and contributions with the tax returns going towards the TFSA 10-15 transistion funds towards the TFSA hopefully maxing out the amount I am eligible to put into the account 15-20 depending on the market continue with investments or start investing pretty heavily into PM's Retirement 25+ yrs - It is my understanding that one can "will" or gift RRSP contributions upon death and the taxes on the RRSP's will be marginal if they are part of the estate... so I want to use the funds in my RRSP's only after all other sources of income are exhausted. My hope is that I will use the money I had saved in my mutual funds and my TFSA as well as my company pension and funds (if any) from the governement until the funds are exhausted... Once the TFSA and mutual funds are exhausted.. I will supplement my retirment with Solely on the basis of my RRSP's and supplementing that income with sales of my PM's... It is my hope that sometime prior to "the big long blink" the majority of my savings will have been spent including my RRSP's and the only thing left will be my PM's... Why? you ask? Because I can "give" my PM's to my family members prior to my own death.. and let them know easily where they're stored... incase of an earlier demise.. and my family will get a larger portion of the wealth the I have/had remaining and have to pay absolutely no estate tax on their "gift/find"... Thank you for reading this... I look forward to reading your thoughts, opinion, or corrections where I may have made any errors. Report this Post to the Staff

MontanaCMR Pillar of the Community United States 606 Posts	Posted 11/26/2014 4:03 pm The estate tax exemption is 5.43 million per person. By the time you retire, it will likely be around $10 million per person. If you are married, congrats if you will have over 20 million and have to worry about estate taxes. I wish I had that same problem. Report this Post to the Staff
yup7676 Pillar of the Community United States 3789 Posts	Posted 11/26/2014 6:08 pm I am going to give my view of PM's- per the posters question- Why Buy PM's- Here is how I buy them. There is a time to buy them, there is a time to sell them (as in selling them short to profit when they decline in value) and a time to do nothing at all with them. I do not see the point of buying when they are declining or even doing anything because I know I can find somewhere else to make money and have it protected. From my perch, it is impossible to know if there is inflation, deflation, stagflation and whenever economists talk about it, they are always wrong and behind the curve. I do not believe in having big amounts of money being in the market all the time. The vast majority of the time my assets are in cash unless there are assets that are trending. This way I have a very limited downside risk exposure and at the same time can deploy cash to effectively capture opportunities such as trends that develop in commodities, currencies, bonds, or equities to name a few assets I follow. outside of that, I only buy PM's to collect. Early in collecting I enjoyed the various world bullion silver and gold coins. I have in the past few years cut back on those buys and concentrate on specific coins, such as a focus on Somalian gold and silver coins. For now, I look at PMs to sell short as they fall down in price, whenever this changes, I'll be a buyer again. Report this Post to the Staff
Libertad Pillar of the Community Canada 3692 Posts	Posted 11/27/2014 8:52 pm Talking from experience, PMs are the same as gambling. You can become debt-free faster doing other things, like saving your money. I got lucky because I saw a good thing coming at the perfect timing with silver and it paid off my college ALONG WITH hard work and lots of scrimping. Silver helped but it didn't do it on its own even with the price boom which was talked up and hyped by the internet pundits. Where are they now? These days I don't gamble with my metals. As an investment vehicle they don't work for you all by themselves; you need the knowledge to manipulate them yourself regardless of what people say the price is; and this is day to day buying and reselling, working the metal by hand, restocking maybe every week depending on demand. If you want to fight inflation, PMs are funny. Go for coins that will maintain their value due to rarity and collector demand. Research. Knowledge is KEY. Exploit your knowledge and keep it your business to know more than the other guy. One other thing, your whole plan rests on the linch pin that you will somehow know when you will die some time in advance. This is not always the case. Your family may also fight for your possessions - do you want that? Report this Post to the Staff
CopperCastle Pillar of the Community United States 1132 Posts	Posted 11/27/2014 9:33 pm I buy PM's that I think are "pretty". Such as Eagles, Reverse proofs (including Maples), and the occasional art bar (such as the silvertowne donkey dude). I have no doubt that if/when I sell my 2012 S Eagle set they will have no problem fetching the $148 (OGP & Cert) I have in it. I bought a reverse proof maple snake privy for $20...an easy flip & Libertads...because... well...I'm embarrassed to say. Let's just stick with "pretty". Edited by CopperCastle 11/27/2014 9:40 pm Report this Post to the Staff
Bertensgrad Pillar of the Community United States 1192 Posts	Posted 11/27/2014 11:58 pm I get the ones that I think look good, but I limit myself to ones minted by a national mint with a denomination. I get no pleasure looking at rounds. Report this Post to the Staff
kg5 Valued Member Australia 496 Posts	Posted 11/28/2014 02:11 am Why PM's because I want a collect a set of bullion coins. I was asked what I would like for Christmas/Birthday this year. So on the 2nd of Jan if the stars line up. The Perth Mint will get a silver bullion coin order for a 2015 set kg, 10oz & 1oz Kookaburra coins. Have been looking at a set to collect for some years now and it does look like the stars are going to line up for such a buy. Time will tell! Edited by kg5 11/28/2014 02:12 am Report this Post to the Staff
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