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 Replies: 13 / Views: 1,424 |
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Valued Member
United States
99 Posts |
Mine is once a week each month. $200 in savings
$50 in physical gold
$50 in pure silver bullion or 90% silver coins
$50 in federal reserve notes
$50 in numismatic coins
Decent plan?
Edited by David 1974
04/28/2015 8:36 pm
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Pillar of the Community
United States
4809 Posts |
Maybe. The fact you are saving is a good thing.
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Pillar of the Community
United States
1512 Posts |
I think you are going to get killed on premiums buying such small amounts, especially gold. I'd purchase silver each month and color up to gold once you have enough to trade for a whole ounce. Just my thought. I gotta say though, your idea is definitely more interesting!
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Valued Member
United States
211 Posts |
As long as this isn't your actual savings plan, do whatever you want.
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Valued Member
United States
61 Posts |
"As long as this isn't your actual savings plan, do whatever you want."
This
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Pillar of the Community
Canada
3692 Posts |
"$50 in physical gold"
Bad plan. Save up and buy an ounce of .999 fine and then decide if gold is for you. I'd like to know what kind of coin you are buying that costs only $50 and how much gold is actually in it. Sounds like a good way to blow your savings.
You're better off buying junk silver, but then, would you appreciate old ugly used coins? Silver bars, as I've said before and repeatedly, in the 10 ounce form are the best value for the public. Not for the faint of heart. Do it for the long haul because if you're a short term silver trader you are nothing but a gambler.
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Bedrock of the Community
United States
20753 Posts |
Great ideas. However, my suggestion is to change all of those to $49.00 each. Then use that extra $4 to buy a Vodka Martini. OR $47 each and about 3 of those Martini's. After that you would care about the other savings plans.  Just think then someday you'ld sober up and wonder where all the money came from. All in fun. great start for a future. |
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Moderator
 United States
23522 Posts |
I sincerely hope that this is savings in addition to the savings you're planning on for retirement. Aside the insensibility of depending on numismatics for savings, you're purcasing in such small quantity that the dealer is getting half of your long-term profit by wasting so much of your initial cost.
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Pillar of the Community
United States
992 Posts |
I hope you're socking away 10 to 15% of your paycheck for retirement, and already have 3 to 6 months of expenses saved up. If not, I'd drop to $50 a month in coins just for enjoyment, until you have an emergency fund. Coins, silver, and gold are not true 'savings' and are not very liquid when they have to be.
Presuming you have things squared away, though, and this is disposable income, I'd take the entire $200 each month, and allocate it to one of your four items, a different one each month if you want. That gives some purchasing power and hopefully better prices. I'd skip the gold until your cash portion of the $200 adds up to the price of a gold coin, say a Liberty 1/10th ounce coin or two. You can stick with those and get a bunch of them over time.
If you don't spend your entire $200 one month, just add it to the balance next month.
Your numismatic coins should be carefully chosen, for quality and appreciation. Do your research, and avoid anything issued to the collector market.
Edited by paxbrit
04/28/2015 11:41 pm
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Bedrock of the Community
Australia
21786 Posts |
A professional financial advisor said to me that around 5% (no more) of your savings are good to be invested in fine arts, painting coins, stamps or other collectibles is OK.
So long as you know what you are doing, and do due diligence.
Don't let anyone sell you an investment plan for this 5%. In almost all cases, the client knows more than the general financial advisor does. Make your own decisions on what to buy in this area.
Just keep to the nominal 5% limit.
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Valued Member
United States
156 Posts |
Libertad is right. The premium of those fractional gold coins are a killer. Better to save your cash and buy your gold by the ounce.
Also, I am not really a huge face of U.S. Mint gold and silver coins (or Canadian gold and silver). There is too much premium on those coins and few will ever be considered collectible because so many are minted. Better in my mind to buy simple silver and gold bars or rounds which has the lowest premium over spot. When you you cash those in, be they walking liberties or silver rounds, you're going to get at or very near the same price regardless fo whats in your hand.
Check the values of Walking Liberties going all the way back to 1980s. I think with one possible exception, they are all virtually equal in value.
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Pillar of the Community
United States
4211 Posts |
I agree with everyone above...it should be only a small part of your future savings plan after 401K emergency plan etc....but I would say pick up a 10 oz silver bar and maybe a few dollars of junk silver with the balance then put aside the $200 until I had at least enough to buy a half oz of gold. As others have mentioned the fractional gold is just WAY too much "per ounce" to justify purchasing it.
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Moderator
United States
23522 Posts |
Quote:
A professional financial advisor said to me that around 5% (no more) of your savings are good to be invested in fine arts, painting coins, stamps or other collectibles is OK.
That guy didn't lead you wrong. |
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Valued Member
United States
156 Posts |
I would also temper that thought with advising no one to ever invest in something they do not understand. People buy stocks or invest in mutual funds without really understanding what they are investing in or what the loss potential is. They'll buy individual stocks without researching the company and then knowing when is a good time to sell. Some people just do it because that's what they're told to do.
Its a great way to get taken to the cleaners.
A lot of people may disagree with me, and that's fine, the more opinions the merrier, but I think a dedicated numismatist can have more investing success over the years than if that same person put their money in a stock market they did not understand thoroughly. Jus tmy opinion, for whatever that's worth.
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Replies: 13 / Views: 1,424 |
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Posted 04/28/2015 8:34 pm
