Hello, Newbie And Wanting To Stack Gold, Silver, Both? Helpp

I'm sure you will get a wide, wide range of answers to your questions and there really aren't any correct or best answers since nobody knows for sure what the future holds.

As for me, had you asked this a few weeks ago when silver was still around $27/ounce, I would have recommended a "monster box" (500 ounces) of American Silver Eagles. The monster boxes come sealed by the mint so there's worries about them being counterfeited, they are easily recognizable and trusted (and therefore easy to resell down the road) and also happen to be extremely beautiful. Right now, however, a monster box will run you over $18K, which I'm assuming is out of your price range.

Right now, I would probably go with a $500 face value bag of "junk" silver like this bag of Walking Liberty half dollars available from Goldmart. The premium is much less than Silver Eagles ($0.70 per ounce over spot compared to $2.49-2.99 over spot) and they are also well recognized (and beautiful). And they are also easy to liquidate because you can sell off small amounts at a time, as opposed to, say trying to sell a 100-ounce bar of silver.

I have purchased a small amount of gold and platinum, but prefer silver when buying large quantities. Partially because I happen to believe (right or wrong) that silver has more potential for a percentage increase in value, and partially because I like to actually have a large quantity of stuff to look at when I spend a lot of money instead of just a small handful of coins.

The point about "junk" silver is that it has a low premium when you buy and, as a result, has a low premium when you sell. As for "non-junk" silver, it really depends on what type it is and who you are trying to sell it to. Higher grade ("numismatic") coins like Morgan dollars in AU or BU shape will cost a lot more but there's no guarantee you will be able to get all or even most of that premium back when you go to sell.

I have some BU Morgan dollars in my stack, but that's just because I really love the way they look and couldn't bear staring and ones that are all worn out. I don't expect to ever get the premium I paid on those back, but if silver goes up to $100/ounce it won't really matter.

If you're talking about long-term investment in PMs, you really should just consider the value of the silver since that is a known quantity at any given time. Premiums for collectible coins, on the other hand, can fluctuate wildly. That's why if you are just looking to stack silver, your best bet is to get the most trusted silver at the lowest premium.

Having said that, of course, collectible coins with a higher premium could end up being a hedge in the event that silver values ever plummet. A BU (Brilliant Uncirculated) Morgan dollar that costs $60 today would likely still be worth $20 or so if silver ever went back down to $5/ounce. As I said, though, who can predict the future?

ZELDA!

And congratulations on the upcoming buying opportunity! Over all, your plan to buy some 90% silver and/or silver bullion and a little gold is pretty sound. Keep in mind, though, that bullion coins like American Silver Eagles and Canadian Silver Maples will eventually sell for a better price than an equivalent silver weight in US 90% junk silver.

I personally have about half of my sliver in better quality US 90% silver, with the balance of my stack in ASE's, CSM's, other world silver bullion coins, and a few private mint rounds and bars. My goal here was to balance my high quality silver bullion purchases with descent quality 90% junk silver that was purchased at or just below the silver spot price.

As for gold, the PAMP gold bars you mentioned (sealed with their original assay cards) are well respected. I personally went with government minted bullion coins since that is my preference. Random year Krugerrands from both Provident Metals and Goldmart are VERY competitively priced and are readily recognized world wide. American Gold Eagles are, however, very popular and while they command a much higher premium when purchased, they should also sell for a premium above spot price when they are eventually sold.

Purchasing online is not generally a problem, especially when buying from one of the well known and reliable online dealers: APMEX, Provident Metals, Goldmart, Silvertowne, etc. Just don't forget to consider shipping, insurance, and any banking fees for wire transfers, cashier's checks, and any other costs of acquisition when deciding between PM dealers.

The only other comment I might make is regarding large purchases. I have typically avoided making large PM purchases because of market volatility. If you're looking at buying PMs for wealth preservation and have a long time horizon, this may be less important to you. For me, however, being able to make several smaller purchases over the past several months has allowed me to greatly improve my dollar cost average. Good luck!

I'd also like to add that with all the above Suggestion is put no more than 15-20% of your net holdings into PM, although some analyst that are more bullish on PM would prefer 25-35% net holding.

ASE = American Silver Eagle.

I seriously suggest you hold off until you have read books and articles for 3 or 4 months. You should acquire as much knowledge as you can before investing.

You have to decide if you want to be a speculator or a collector. Putting a large sum of money into PM's is not an investment but is speculation.

With that said I think it is a good thing to speculate on.

I would suggest a good bullion coin such as the ASE or Maple in either gold or silver.

You may want to spread your buys over six months instead of getting it all at once. Just don't blame me if the price goes up each day for the next 6 months. History does show peaks and valleys though.

Please note cash purchases at larger volumes does get you lower premiums.

You don't need a book to get into speculating though you certainly can use a library of books if you want to be a collector. Of course you need to take some time to read and understand what speculating is all about too.

Point to remember usually premiums will hold for each type of MP you buy. For example junk silver may be cheaper but then again it will sell cheaper when you sell it. ASE's premiums may be higher but will keep its higher premium over junk.

You know I use to say this so much I am surprised I didn't say it above. Once you start falling in love with it your in trouble.