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Gold or silver? Which way to go

 
 
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New Member

United States
38 Posts
 Posted 12/01/2018  6:36 pm Show Profile   Bookmark this topic Add rc57 to your friends list Get a Link to this Message
If you had $1200 to put into bullion, which way would you go, gold or silver? Also what type and why. Thinking about a 1oz Buffalo or Eagle or maybe just go all in on silver eagles. Appreciate everyone's thoughts.
Pillar of the Community
Canada
1909 Posts
 Posted 12/01/2018  7:12 pm  Show Profile   Check silverwolf's eBay Listings Bookmark this reply Add silverwolf to your friends list Get a Link to this Reply
i recommend you do way more research before you ask for someones opinion on where to spend your money..

with that being said, the lower the premium you pay the more silver you get in your hands.. if you are paying 2-3 bucks premium for a coin, it has to go up that much for you to just break even.. when you go to sell, you will get spot price for the lower names, where as the recognized brands will usually get you spot plus a buck.. a lot to take in if you are new to buying..

i prefer silver. but to each their own.
Valued Member
United States
488 Posts
 Posted 12/01/2018  7:37 pm  Show Profile   Bookmark this reply Add jst1dreamr to your friends list Get a Link to this Reply
with Silverwolf it is good sound advice.
If it is purely for investment then you should look at the changes in value over the past several years. Like the link below most bullion investment sites will show you changes over the last 5 to 10 years.
I personally think palladium is the strongest investment but that could change with the drop of a hat.

https://www.sbcgold.com/charts/gold-prices/
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United States
6967 Posts
 Posted 12/01/2018  7:40 pm  Show Profile   Bookmark this reply Add Mark1959 to your friends list Get a Link to this Reply
If you only have $1200 then you can't afford a Buffalo or American Gold Eagle 1oz coin. So Silver is your bet.
Completed the Dansco 8166 Album
(1964-2011) Kennedy half w/Proofs on Dec 3rd.

Now working on the Dansco 8167 Album
(2012-Date) Kennedy half w/Proofs.
23pcs, of 28, so far

New Member
United States
38 Posts
 Posted 12/01/2018  8:10 pm  Show Profile   Bookmark this reply Add rc57 to your friends list Get a Link to this Reply
Maybe I should clarify, I already own some of both, I know you would need a few more dollars to purchase a gold eagle or buffalo, but for the sake of conversation I like to here what other people had rather do and the reasons for. Exchanging thoughts on the subject .
Pillar of the Community
Canada
1909 Posts
 Posted 12/01/2018  8:17 pm  Show Profile   Check silverwolf's eBay Listings Bookmark this reply Add silverwolf to your friends list Get a Link to this Reply
last thoughts, the premiums on fractional anything is ridiculous, you have more upside potential with silver ounces, than gold ounces. if you can buy 60 ounces of silver for 1200$, or 1 ounce of gold for 1200$, if silver moves anything ,,you get that times 60 if gold moves anything you get that times 1..
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United States
509 Posts
 Posted 12/01/2018  8:25 pm  Show Profile   Bookmark this reply Add llewellin to your friends list Get a Link to this Reply
From a pragmatic standpoint and ignoring the current market/premiums, I'd go with the ounce of gold. It looks nice, will never tarnish, and is 60 times more compact than gold. Due to its value density it is easier to get rid at jewelry shops and the like and its market is more stable than silver - a better hedge which is what most people invest in PMs for.

Silver is fun because it's easier to buy regularly at close to spot but if you have at least $1200 in cash I'd put it in gold

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United States
3523 Posts
 Posted 12/02/2018  06:59 am  Show Profile   Bookmark this reply Add fistfulladirt to your friends list Get a Link to this Reply
You didn't list your reasons for purchase. If for investment purposes, run, run away fast. PM's aren't what you want.
If for general coin collecting or for maybe wealth preservation, I'd choose silver, mostly in the form of the Walking Liberty half dollar, can find them with general circulation wear for around 11 times face value. You get classic numis/silver value for a low price over premium. Next choice would be the Mercury dime. Another classic and a widely recognized piece of silver to use for barter in case shtf.
When I listen to LED ZEPPELIN...so do my neighbors...reluctantly

Roll hunting since '77
Dirt fishing since '72
Valued Member
Canada
231 Posts
 Posted 12/03/2018  1:07 pm  Show Profile   Bookmark this reply Add vonigohcr to your friends list Get a Link to this Reply

Quote:
You didn't list your reasons for purchase. If for investment purposes, run, run away fast. PM's aren't what you want.


There are investment reasons for holding PMs such as a small % of your holdings for hedge purposes but if that is what you are looking for, look at your preferred vendor and calculate the spread as a % between buy & sell at the volume you are looking for. Often at the sub $2K price point, it is cheaper to buy Silver as you are getting into larger quantities, approaching 100oz so spreads start to narrow vs. a single ounce of gold and volume impacts the spread.

If you are looking for price (capital) appreciation... as noted above, run... don't walk away.

If however, you are looking for NCLT with small premiums, follow what you like. Personally, I have accumulated a number of world Silver and a few Gold coins from bullion dealers and have enjoyed the collectible aspect of the coins... They aren't proofs but some are very attractive with small premiums and so will often beat traditional NCLT which will often "rehash" familiar themes or stretch into the arcane such as Glow in the Dark or adding Glass ornaments. (Another Canadian Maple Leaf, Arctic Fox or Polar Bear anyone) A broad diversity from Elephants to Tigers to Mermaids to Landmarks of London...

Enjoy what you collect but invest for the future.
Pillar of the Community
United States
1753 Posts
 Posted 12/03/2018  9:55 pm  Show Profile   Bookmark this reply Add thq to your friends list Get a Link to this Reply
One common pre 1933 US $20. Better value for your money buying sovereigns or 20F's, but I like US gold coins.


"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
New Member
United States
38 Posts
 Posted 12/04/2018  09:12 am  Show Profile   Bookmark this reply Add rc57 to your friends list Get a Link to this Reply
I do enjoy both the gold and silver eagle programs, beautiful coins and while I'm not trying to get rich on them, I would like to leave my grandsons a little something, hopefully many years down the road. When the spot price is down and you can find decent prices I try to pick up something. On my collection side I love Morgan's and Peace dollars and just about any type coin. I really enjoy reading everyone's opinions.
Valued Member
United States
69 Posts
 Posted 12/05/2018  03:24 am  Show Profile   Bookmark this reply Add edthelorax to your friends list Get a Link to this Reply
I firmly believe silver will out-perform gold on the longer timeframes. With the GSR or Gold/silver ratio being at 86 (86 ounces of silver =1 oz gold) it is the third highest in the history of, ALL human history. This is only exceeded by a spike above 100 in 1939 and 1991-2 period when it reached 99 in Feb. 1991. Historically, up until about 100 years ago, the ratio was around 16-20. It is said there is about 16-19 times the amount of silver in the earth's crust as there is gold. Something like 90% of the gold ever mined is still around in coin, jewelry or bullion form. About the same 90% of the silver ever mined is gone! Non-recoverable uses like film, electronics, medical and plating have consumed the majority of above ground stockpiles. The US exhausted it's "Strategic Silver Stockpile" somewhere around 2001. Silver has vital, irreplaceable industrial uses like the tiny bit that goes into every cell phone. This is very inelastic as a double in the price of silver will have zero effect on how many phones are made. There is far less industrial demand for gold. The majority of silver is mined as a by-product of other metals and a sharp increase in demand will not be followed by an equal increase in production. This is because there are very few primary silver miners that can ramp up production anywhere near what would be required to adjust the market. Finding new silver deposits not only take a lot of time to bring online, but are quite rare as most primary silver deposits have already been located and mined due to their tendency to be located near the surface of the earth's crust.
It is my opinion that during your grandkids' lifetimes the GSR will revert to the very long term average of 20, if not overshoot it. The best time to buy something everyone needs is when no one wants it. As long as you have the patience to wait it out and do not trade paper silver using leverage, silver is a no-brainer. Just my humble honest opinion.
EdThelorax
Pillar of the Community
Canada
966 Posts
 Posted 12/05/2018  12:39 pm  Show Profile   Bookmark this reply Add 1cent to your friends list Get a Link to this Reply
Gold is the money of the king, silver is the money of the peasants. You want an ounce of gold. I really do hope the GSR does eventually swing back to a more favorable position, I'll be more than happy to drop every last ounce of silver I have for gold.

If an investment is more what you're after, start piling money into a dividend paying stock(s) with solid company(companies), and roll the dividends back in, to buy more stock.

PM's are a hedge and will help you sleep at night, but you aren't going to retire from them.
New Member
Canada
16 Posts
 Posted 12/06/2018  1:23 pm  Show Profile   Bookmark this reply Add Silvercoin2011 to your friends list Get a Link to this Reply
You exit strategy will always define you entrance strategy with a B plan.

If you have only 1200 to spend you can go with silver it has more ROI especially with semi numismatic (limited mintage). Or you can buy silver and fractional gold (higher premium).

I like silver for the ROI and collection (pandas, kooks,..) but when you reach thousands of ounces thats not good if there's an emergency to leave. Thats when gold is bettwr !
Valued Member
Canada
231 Posts
 Posted 12/07/2018  12:22 pm  Show Profile   Bookmark this reply Add vonigohcr to your friends list Get a Link to this Reply

Quote:
Gold is the money of the king, silver is the money of the peasants

A fair amount of emotion in this statement. If your goal is collection, Silver, Gold, Platinum, Seashells... Whatever you enjoy.


Quote:
If an investment is more what you're after, start piling money into a dividend paying stock(s)

This I agree with... at least to the extent that PMs are not an investment. There are a large number of instruments from CDs/GICs, bonds, stocks, options and futures which are investment grade, each with their own risks and returns. PMs just don't factor into that list.


Quote:
when you reach thousands of ounces thats not good if there's an emergency to leave

This is a real concern. Given what you have in your house or even your local bank... How would your collection survive if you experienced what occurred in Paradise, CA a few weeks ago. Tragically there were lives lost and that is never recoverable but assuming all you are doing is leaving due to a natural disaster and lives can be protected... Fire, Hurricane, Earthquake... How would you look out for your collection?
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