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 Replies: 31 / Views: 4,985 |
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Valued Member
United States
104 Posts |
CD's and bank accounts are earning zip, my 401 is holding it's own but I'd like to retire sometime this century, :). I've been reading the diff topics on this forum and I have to say, "man am I confused." Between the Math, the abrv. and the fact you guys are obviously way to smart for me, I beg you to talk down to me, ha ha.. Looking to invest $5,000. I'm thinking 2 1oz eagles ( gold) and the rest in silver. Gold first, should I just buy it, or watch for a dip and be ready to pounce? How much more will it go up and will it crash or just descend? LOL, that's the big question isn't it? Seems like gold doesn't ever really crash, is that right? I have looked at the charts as far back as I can. talking about small gold, I assume you mean the smaller denominations? if you can afford an eagle, isn't that best? or is it the pay the fee thing again? Silver, let me see if I got this. You can buy silver eagles, but will also pay a fee of some kind? maybe better to buy dollars, as no fee?, but, how many dollars equal an oz of silver, I think 2? What if I mix between dollars and halves? ( I have fallen in love with liberty's) I already own 2 Liberty's and around 30 pre 64 Kennedy's and more wash .25 than I care to count at this time. unfortunately, I have one Peace, the two liberty's, a gold ten dollar, and a couple Seated half dimes that are worth anything numismatic...and I will hang on to those! but I think I would like to work on the liberty Halves. Is this a good choice to both collect and invest? Or should I mix between common dates Dollars and halfs? do I have my percentage right of buying gold to silver? thanks in advance, I wait for all your response's with baited breath, :)no... really. |
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Pillar of the Community
United States
759 Posts |
Read a couple of articles today about gold. Both analysts basically see gold dropping from current levels. Generally, they see $1250-$1350 as range for next couple of years. Cited dropping ETF purchase demand. Of course, somebody could dig up article where they think gold is going to $3000.
Gold? Personally, I think there's risk at jumping in now. I think a dip is coming. If you're really investing in gold bullion, pick the item with the lowest premium over spot and lowest bid/ask spread. Krugerrands used to be that item. Not sure anymore.
Silver? I'm more positive on it than gold. Think there's a dip coming there though too.
I'd recommend separating collecting and investing in your mind. If you're investing, which bullion item you buy is less important than premium, net price, transaction costs, liquidity, etc.
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Pillar of the Community
United States
3184 Posts |
Diversity is key and so is liquidity. I would get both gold and silver. Also I would get items that easily sellable if you needed the money asap (emergency, etc). So if you were going to get a 1 oz gold coin, I'd probably tell you to get 4 1/4 gold coins that way if you needed some money and had none, you could sell a 1/4th oz gold coin and get some money and still hold .75 oz. If you only had a 1 oz, you would have to sell the entire thing and now own 0 oz of gold.
For silver, some people like govt rounds like maple leafs, silver eagles, etc but they have a large premium. Me, I like 90% silver because you get some perks: history behind it and you can get it for melt or below melt.
Do some more reading,etc so you can figure out what you want to do
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Pillar of the Community
United States
1150 Posts |
Honestly I wouldn't buy any gold right now. Any investment has pitfalls, so do some more research on the up and downsides of each PM (precious metal). You are going to get a different opinion from each forum member, so my humble opinion is this;
A) Do not buy silver eagles. They are nicer, however you are trying to maximize your investment. Go with 'junk', pre-1964 silver AMERICAN coins. I put American in caps due to the fact that foreign coinage is not as easily traded/sold/recognizable to the average Joe in the U.S. as our own coinage is. B) Find a reputable local dealer and buy from them, that way you cancel out any shipping fees from buying non-local.
I would say to buy on a dip day, when silver goes down a bit, but most dealers are not going to adjust their prices on junk coinage to reflect the daily undulations of the market. Most dealers sell by multiples of the coins face value. Right now coins are selling at roughly 23 times face value of coins, therefore a dime will sell at about U.S. $2.30. I would also buy as soon as possible. Don't wait for the prices to raise any more. Any dips will most likely be negligable.
Edited by mitchhailey
03/22/2011 2:06 pm
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Valued Member
Canada
442 Posts |
I can't answer if PM's (Precious Metals) is the right investment for you, but alot of people buy PM's as a way to hedge against inflation. Also, the volatility is a nauseating roller coaster. If you have a strong stomach, go for it! Gold? If you can afford some, than yes. Can it go up? most think it will. Can it go down? some think it will. But unlike stocks, I highly doubt it will go to absolute zero worth. Silver? Might be hard knowing that you are buying at its 31 year high, but alot of people are saying its still undervalued. My personal goal is to eventually trade some of my silver for gold once the GSR (gold silver ratio) is close to 1:20 The ASE's (American Silver eagles) cost more than what silver actually is, or the spot price of silver. It's not really a fee, but a premium. Kind of like buying Coke instead of your generic cola brand. Advantage is its recognizable and easy to liquidate if needed. Disadvantage is you are likely to pay +$2 spot for an oz. Buy a mix of ASE's and regular bars and you should be ok. Dollars and halves are normally referred to as junk silver, and contain 90% silver. The premiums are much less and can even be found roll hunting if you have the time! Their might be a few with numismatic value too. best of luck! |
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Pillar of the Community
United States
3670 Posts |
But, if gold keeps on the rise, econ etc., then may wanna get a couple oz of gold, and that last 2 grand could get you about 50 oz of silver, nice core start IM(novice)O.... The Krugerrand you said was at least one time closest to spot, and I find that it and the Phil Harmonic are priced fairly at Provident, say 1466 plus freight, not to shabby. It says the Krugerrand is just 22k, but durable and it is mixed at (.9167) mix of copper an gold, and it makes it again more durable then 24k, something to consider perhaps, and its color seems effected by it, as they appear more copper in color, this sound right guys? http://www.providentmetals.com/1-oz...culated.htmlA bit more at 1476 on the Phil.... http://www.providentmetals.com/bull...-g-phil.htmlAnd again, a wee bit more at 1492 for the beautiful Eagle American. I think that is the one you make refrence to Sunny in NC.... http://www.providentmetals.com/2011...culated.htmlI like the China Panda at 1489 and the Australian kangaroo/nugget much as well at 1474.... http://www.providentmetals.com/1-oz...culated.htmlhttp://www.providentmetals.com/aust...culated.htmlYou would have to be pretty patient in most cases to find better prices on ebay for example. Good luck, with what ever path you choose.... Edited by Silverhawk74
03/22/2011 2:47 pm
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Pillar of the Community
United States
1450 Posts |
One really important comment to start,gold is best used to protect wealth,not generate wealth! It will move up and down daily as currencies adjust but it really doesn't "make" money for you. If you are primarily interested in protecting your capitals buying power,gold and silver work well. That said,gold coins will vary in their premiums based on popularity and supply. In the end an ounce of gold is an ounce of gold. Many folks buy a coin with a higher premium thinking they will sell it at a higher premium,that has not been my experience by and large. Smaller denomination coins will be easier to liquidate but you pay a premium on each coin so you get less gold for your dollars with lower denomination coins. Junk silver is a good deal if you can find it at a reasonable price,I have had no luck locally so I only have what I have gleaned from circulation. No one can say what PM's will do,but for me,and I hate risk,metals look like the closest thing to a sure bet in the short term just because of world economies and civil uprising. Buy,be vigilant in watching the markets,and most importantly,rely on your gut to tell you what to do,at least that way if you are wrong you only have you to blame. DO NOT believe everyone else's analyses,usually they are presented with some agenda behind them . Listen to all viewpoints,determine what risk you can handle in exchange for the perceived benefits,and do what you think is best for you and your family. Food with a long shelf life may be a better investment before precious metals. Just sayin'!
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Valued Member
United States
307 Posts |
PRECIOUS METAL may not be for you if you have to check the spot price often. It is only one of the hedges that are available as we watch the world monies crises. My biggest fear is that the USD will lose recognition as the world currency. If this happens and it is a very real threat, the dollar will plunge and we will be at the mercy of the new currency. The precious metal will always keep its value no matter what the currency is. The price of gold and silver will rise but short term by silver, long term gold.Just my opinion. Good luck
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Rest in Peace
United States
9104 Posts |
Quote:
Right now coins are selling at roughly 23 times face value of coins, therefore a dime will sell at about U.S. $2.30 I see two major buyers at just under 25x. |
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Pillar of the Community
United States
1026 Posts |
I get mine from APMEX.com check them out just got more 80ea 1/2 ounce round APMEX coins I usually get American Eagle 1oz but just got smaller bullion this time they sell just a little less then silver eagles. Gold is good but I feel silver will have a bigger markup in the next couple years and because you can buy more with your $5,000 you will make more with the larger number of ounces. (just my 2 cents) |
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Rest in Peace
United States
9104 Posts |
After the gubmint banned the importation of millions of Krands, they came out with AGE in exactly the same dimensions and purity as the Krands. That way, all the jewelry fittings and other holders could immediately be used.
There is no other explanation for the US to make a 22k coin, when everything else we have is 90% (21.67k).
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New Member
United States
23 Posts |
I agree with some of the other posters that recommend buying smaller denominations for a first purchase. For $5000 you could essentially buy three gold coins like you said, you could also get 120 ounces of silver. Go for a combination so that, as said, you could sell some if you wanted to, without selling all of it.
No one knows where the PMs are going specifically, if they did, they could be rich. But many are not encouraged by the economic policy of the US which has basically been to print billions dollars per month, loan them almost for free to banks, which then turn around and loan to businesses and people for five, ten, fifteen percent. This has of course guaranteed profit for the banks, cash for business, and buying power for consumers. However, you can't print money forever, and the QE2 program is scheduled to end in June. What will prop up the stock market after that? Will there be another round of QE to support the economy? We are approaching an election season and we have a president who no doubt wants to be reelected, which hinges on keeping the illusion of a recovery intact. If the Fed and government are prepared to go to new extremes to prop up on the economy, gold may well indeed sink from the mid thousand levels. However, what happens when we finally stop printing dollars? The U.S. will soon lose the ability to pay even the interest on the national debt. Consider all these factors. When you buy, you should be prepared to hold on for the long term. No one knows what the PMs will do, but ask yourself, in 20 years, when there are huge middle classes in what are today third-world countries, do you still think an ounce of gold will still be $1400?
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Valued Member
 United States
104 Posts |
Westsea301. No one knows what the PMs will do, but ask yourself, in 20 years, when there are huge middle classes in what are today third-world countries, do you still think an ounce of gold will still be $1400?
Dear west, this statement is interesting and something I hadn't thought of. I understand that China, India, Egypt , and hopefully Tunisia and Libya will begin to have a middle class within the next 20 years or so. Taking this premise as truth, what is the answer to your question and how do you think it will affect/
My thoughts are gold will be up. Since the Pharaohs in Egypt humans have lusted for the stuff, it has no use except to show wealth and that appears to be what most of us are all about. Silver is the same, BUT, it also has industrial applications. I agree with holding gold as a security, and silver to earn, but if this is not what you're thinking, could you please explain in a bit more detail? Thanks.
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Pillar of the Community
United States
1026 Posts |
Well just got done reading an article that in 2005 China exported 100 Million ounces of silver.
In 2010 China bought or imported 250 million ounces of silver.
Also that the Chinese government is encouraging there citizens to buy gold and silver.
As for the middle class in these countries in 20 years I feel silver will be $250.00 per ounce and gold what $3,000 or more. If the middle class grown in these countries not sure may make more demand for PM.
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Valued Member
Canada
442 Posts |
"As for the middle class in these countries in 20 years I feel silver will be $250.00 per ounce and gold what $3,000 or more. If the middle class grown in these countries not sure may make more demand for PM."
The Middle class is indeed growing in China, and India most likely in this decade. I've been to China recently, and the outlook of those that use to salvage and save for a better day have now reached that stage where they can splurge here and there for a better lifestyle, rather than wondering where there next meal is going to come from. Towns that use to have dirt roads and chickens running around in the front yard are now suburbs with large shopping malls. Times for those that use to suffer are definitely getting better.
The wealth is definitely shifting, and I believe that Gold and silver are pretty universal in terms of the language of wealth.
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Pillar of the Community
United States
3670 Posts |
I have often thought if I had a spare 5000 to invest, what would be the best way to break it up into silver and gold....
I would be tempted to get a half dozen 400 dollar Eagles at 1/4 oz, roughly 2400, and put the other 2600 in silver. Spot value of 2600 on silver using the 36 dollar an oz, breaks down to 72 oz of silver. Now then, no way you get nice high over spot silver coins and get 72 oz, maybe if you go pre 64 90%....
I think 42 dollars is real nice average for something like a silver eagle, or at least that is what they cost me up at the local bullion place after uncle Sam gets his cut. You could roughly get 61 oz of silver out of 2600, if you paid an average for 42 bucks via each 1 oz silver coin if you went that way instead of a bar or bars....
I would say 1 an 1/2 oz of gold and 60 oz of silver would be nice mix....
The only other formula I may consider, would be 100 oz of silver, roughly 4000 (a 100 oz bar like Johnson probably around 3800)esp if you went nicer 1 oz coins, and that would leave you with a grand, enough to easily get a couple 1/4 oz gold coins and another 1/10 oz gold coin. A bit over a half oz of gold and 100 oz of silver would also be a nice mix....
Edited by Silverhawk74
03/23/2011 12:28 am
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Replies: 31 / Views: 4,985 |
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Posted 03/22/2011 1:45 pm
