| Author |
 Replies: 8 / Views: 2,710 |
|
|
Valued Member
United States
364 Posts |
Okay, fellas. I'm interested in junk silver as a long term investment. I have a lot already, but recently freed up $500 to do either half hunting or to buy more junk silver. Given the state of the market, do you think I should play (continue hunting halves) or pay (buy more junk and just hold that stuff).
Can't make up my mind, and silver is moving up -- course that could (though I hope not) mean we're in imminent bubble territory.
|
|
|
|
Pillar of the Community
United States
2120 Posts |
if we knew what silver was gonna do, we'd all be rich. You're right in assuming its gonna move though.
I'd vote just keep searching. that is guaranteed profit (to an extent). think of it this way too.
if you buy $500 worth of silver at todays price ($21.40ish) you can get a little over 23 ounces of silver. say silver pushes up to $23/oz after one month and you sell it all for profit. you make $29. but if it goes down the same ($to 19.8/oz) you lose about $45.
Now if you search halves and over the course of the next month at the rate of 2 boxes a week, and find an average of 2 90% halves each week. (assuming there is 4.5ish weeks in a month) you would have 9 90% halves. If silver is at $23/oz you've made $75 and if it drops to $19.8/oz you've made $65.
Granted, one way costs time but has no risk, the other costs no time but has risk. personally with only 500$ you would need to expect silver to go up $5-$6 and ounce for it to be enough worth investing.
Personally, I would just search with it... Or better yet, buy a single, high grade low mintage coin/type coin and hold on to that.
/2 cents
|
|
Pillar of the Community
United States
672 Posts |
If its just 500$ I would just buy silver. The reason I say this is that to really make half serching worth your time, you have to search lots of boxes, like 6+ per week as some half hunters on the forum do. You need more money freed up to truly seach halves for profit. Your best time vs return is CWR, when they have them and thats it. Half hunting is just kinda for fun, with the gas and time I use I probally loose money, but its fun. As for sliver, I do think it is in a bubble, but in a bubble that wont pop for 12-18mo. I dont believe holding silver much longer than that, but that is just my opnion. Luckily silver is easy to buy either on the forum, ebay, or from a dealer. Thats my 2 cents. Edited by Americanamafia
09/25/2010 3:47 pm
|
|
Valued Member
 United States
364 Posts |
Thanks, guys. I appreciate the advice. I think I'll play for now.
|
|
Bedrock of the Community
United States
19930 Posts |
I would only consider putting money in PM's if you're planning on holding a long, long time....just MHO. You have to face the fact that if it goes down, you'll be stucking holding the bag, so make sure you won't need that money right away. Personally, I'd rather buy one really nice coin.  Lincoln Cent Lover!VERDI-CARE™ INVENTOR https://verdi.care/
|
|
Pillar of the Community
United States
508 Posts |
I try to buy an oz of silver each month, this way I'm not going to loose much when the price fluctuates. Once silver hits 18/17/16 an oz again I will increase the amount I buy. But until then $20 a month is sufficient, I leave the rest of my money so I can do 3/4 boxes of halves per week.
|
|
Valued Member
United States
187 Posts |
You didn't say when of if you are going to sell. I am not a big fan of buying junk silver. If you definitely are going to sell and take a profit you may do OK, but if you are going to hold and hold and hope, you may not. My way of thinking would take the $500.00 and buy one, or some key date coins that will hold value even if the silver price moves down. Here again that is only my thought, and many will disagree.
|
|
Pillar of the Community
United States
3294 Posts |
I don't buy junk silver. I search the dealers junk silver bins for non-junk.
|
|
Pillar of the Community
United States
757 Posts |
"
You didn't say when of if you are going to sell. I am not a big fan of buying junk silver. If you definitely are going to sell and take a profit you may do OK, but if you are going to hold and hold and hope, you may not. My way of thinking would take the $500.00 and buy one, or some key date coins that will hold value even if the silver price moves down. Here again that is only my thought, and many will disagree."
yes, and well it depends on your strategy. if you're saving as a hedge against, say, massive inflation, etc. can we really be sure that, even if numismatic value rises with inflation, anyone would be at all interested in one very expensive piece with only 1 oz. or so of silver in it?
other thing to consider with this outlook, is whether you'd be able to find one BIG item to buy so that you don't have to cut up your coin or deface it, etc. more and smaller seems better in this scenario, i'd argue.
|
| |
Replies: 8 / Views: 2,710 |
|
Posted 09/25/2010 3:46 pm
