| Author |
 Replies: 24 / Views: 2,731 |
|
Valued Member
United States
297 Posts |
*** Moved by Staff to a more appropriate forum. ***I'm thinking of picking up some silver now that the price is down to $31 an ounce. What is the cheapest "unit" way to get in, but atthe same time the most profitable way to get back out with said "unit" I guess I could call a stock broker (or who ever sells metals on paper) but then they would take a commission buying in and cashing out. I don't know what the going rate on a trade is and how quick if the market tanks you can get out. I could go with the physical metal in hand with coins, bars, or Silver Eagles. Silver Eagles on ebay or APMEX are going for a minimum of $3 over spot per ounce and generic rounds are going for a minimum of $2 over spot. Junk Silver coins on ebay seem to be going for spot if you wait out for the right lots (and as a plus you might find some keys but unless you sell them you are taking away from the amount of silver in your "portfolio") Now for the getting out part. How do you get your spot or better money back? For Junk silver coins ebay seems to sell for spot (which is what you paid to get in initally) but ebay and Paypal take 13% off the top. Silver Eagles seem to be selling above spot (above spoit is also what you paid to get in) and ebay and Paypal still take 13% off the top. I guess you could try Craigslist but you might sit on the stuff for a few days and with prices changing daily you may not be able to unload it for maximum profit. The other problem I would have with buying junk silver coins is as a collector I might become to attached to them and not be able to part with them when it comes time to sell. Any suggestors from investor type members vs collector types?
|
|
|
|
Pillar of the Community
United States
3540 Posts |
I buy 90% US at the low cycle and sell on the internet (NOT ebay). Buy AU/Unc if possible. |
|
Pillar of the Community
United States
2424 Posts |
yea, I ask here in the CCF forum first, then check my local coin shops, then I would do ebay.. stick to 90% UNC or +-5% bullion |
|
Pillar of the Community
United States
564 Posts |
If you have a brokerage account you can buy SLV. I pay $10.00 commission to buy any amount of stock and it costs nothing to sell. That would be the best way to maximize profits if you think it will go up. Also you can buy and sell when ever you want and it take no time. The one downfall is that you can't hold the silver in your hand.
|
|
Valued Member
United States
333 Posts |
It really depends on how much money you have to buy and sell with. The lowest premiums are with larger orders. If you can afford buying a monster box, go to tulving. As far as I know, they have the lowest prices, but you need to buy a large amount. You could also buy silver in larger bars to minimize premium. That makes it harder to resell in small amounts when the market increases. I'm guessing you'd rather sell slowly on the way up, not all at once.
Selling is easy enough, but getting the premium back will be difficult unless you sell to individuals. Most online dealers will only pay spot when you sell back to them. This is one of the advantages in larger bars because then you aren't losing a whole lot of premium to begin with.
It all depends on your strategy and why you are doing it. Do you believe that silver will keep increasing over the next X years? If so, maybe it doesn't matter how you buy, just when. If you are planning on trying to time the market, you need to figure out logistics first and then what you want second.
|
|
Valued Member
United States
350 Posts |
I'd consider buying morgans as close to spot (I sometimes have even found below) as possible. Buy locally and sell by any means possible.
|
|
Pillar of the Community
Canada
1502 Posts |
The absolute only way to buy in at around spot and get out at close to the exact moment you are hoping to for max profit is to buy paper silver.
|
|
Valued Member
United States
302 Posts |
If you have the time and patience, buying 90% off Craigslist can work. However, not all areas have CL, and some of those that do don't have much in the way of PM. I watch CL and sometimes advertise there. You can pick up under spot depending on what the dealers and pawnshops pay in your area.
Right now I would buy at 19 times face. Local dealers and pawnshops are paying 16-18 times face. Then when ready to sell, I would sell at spot, currently 23 times face. Dealers are selling 23-25 times spot FACE.
When prices get low and I can't find any on CL, I buy at spot from the dealers and wait.
My aim is insurance, so I only flip part of what I buy. The rest goes in my stash.
Edit: Error correction.
Edited by mmerlinn
11/27/2011 03:28 am
|
|
Pillar of the Community
United States
2661 Posts |
If you do decide to go the "paper" route I would open an E*Trade or Scottrade account. Both offer flat trading rates and it can all be done with a few mouse clicks instead of driving around hauling stuff here and there and cuts out prep/cost for shipping.
On the other hand, I too would buy 90% silver coin. You have a numismatic value as well as a bullion value. Besides, if your like me you will also find a good deal on something to add to your collection at the same time.
|
|
Pillar of the Community
United States
648 Posts |
For your strategy, paper trades might be the way to go. In particular, SLV. I would do this, and use the paper profits to add to my core bullion collection that's not so easily to liquidate.
|
|
Pillar of the Community
United States
4008 Posts |
Quote:
Dealers are selling 23-25 times spot. REALLY? Wow! Those guys really know how to charge!  |
|
Valued Member
United States
302 Posts |
Quote:Quote:
Dealers are selling 23-25 times spot. REALLY? Wow! Those guys really know how to charge!  Oops. Should say 23-25 times FACE. Error corrected. Edited by mmerlinn
11/27/2011 03:32 am
|
|
Pillar of the Community
United States
4008 Posts |
I figured that was the case but could not resist a small tweak.  |
|
Pillar of the Community
United States
2168 Posts |
The local dealer I go to charges 3percent over spot at the time of sale and will sell any face amount no minimum purchase. He also buys back. I have never had a problem buying even when the price went down below 30 spot
|
|
Pillar of the Community
United States
4008 Posts |
Angel... it sounds as if you have a good local place to buy and sell. If he has a decent variety and quantity of coins or bars, then his shop is quite an asset.
I also have a good local shop for price and can often get F-VF quality US 90% silver coins at the spot price. Don't know what premium he would charge to buy, though, because I haven't sold any of my silver hoard. My only complaint is that he doesn't have a lot of volume or variety. What he does have it usually pretty good, though.
|
|
Pillar of the Community
United States
2168 Posts |
Yes I am lucky. I wish I knew about his shop 2 yrs ago. I wanted to buy some junk silver and the online dealer I called would only sell 1000 face then (now 250) but would only take wire trans and deliver in 2 to 3 wks. I really didn't want all that through a delivery co. I just think the fewer involved the better. Well needless to say I could kick myself now for not really looking locally at the time but instead I decided to buy the 2009 double relief gold eagle. The dealer I buy from does do ebay but no clue on name there. Not the shop name I don't think. I really don't do the ebay thing. |
| |
Replies: 24 / Views: 2,731 |
Posted 11/25/2011 9:23 pm
