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 Replies: 11 / Views: 1,603 |
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Bedrock of the Community
United States
10982 Posts |
I'm being offered 63 ounces of silver at $42/oz tonight. Would you do it if you could? Here's my issue: I'm a student (at 46) living on unemployment (that can run until August) and finishing up my MBA in 3 weeks (no job lined up yet). The $2,646 this lot will cost is a variety of foreign and U.S. silver and some generic rounds. I trust the seller completely but this is a lot of money for me and I don't have anything I want to sell at the moment. Of course I'd try to flip at least 43 ozs of this lot but that could take a while. Hard to pass up at almost 10% under spot but what do you think?  UPDATE: I backed out most of the foreign silver and bought the following 45 ounces for $1870 delivered: 1- Lincoln Unc. S$1 Commemorative 1- 1989 S$1 Commemorative set 1- 2006 Washington Mint $100 bill..one ounce silver 3- 1988 Canada Maple Leaf 2 -2010 Britanna Proofs 2- 1990 Australia Kookaburra1- 2007 Chinese Panda 14- one ounce .999 silver rounds 1- five ounce .999 silver round 1- two ounce .999 Mexican Round 7- one ounce .999 bars 7- Modern Commemoratives 7 x .77 3- 1971 Ikes, proofs 1- Olympic medal set, one .999 silver ounce 1- .999 silver oblong ounce in silver holder |
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Pillar of the Community
United States
1388 Posts |
Remember it is also easier to flip U.S. silver... Non-U.S. silver could prove tougher to rid yourself of when/ if the time comes... But I don't think silver is going to go down anytime soon, but I'm not an expert nor an invester, just a collector...
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Pillar of the Community
United States
721 Posts |
I would try to determine how much of the coin is 90% silver. A lot of foreign silver is a lower percentage and I'm unsure as to how well these might sell again.
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Pillar of the Community
United States
931 Posts |
As long as you have enough savings to feed yourself and keep a roof over your head it all boils down to your firm belief that silver is going to at least stay close to it's current level. I for one think that it is on the way to $75 by year's end. All of the metals that I am buying at these levels comes out of my mad money. I would probably not buy all of it if money is tight. If your degree puts you in a high demand position then that would fall under consideration too. I've heard that foreign silver may be a little harder to unload, so try and estimate what percentage of this bundle is good ol' US issued coins. That is, back when we had a good ol' US of A!
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Pillar of the Community
United States
4008 Posts |
That is a tough question, BH. I agree that US silver coins are a lot easier to unload than foreign coins, though. The one exception to that would be Canadian Maple Leafs. They seem to be well recognized as being every bit as valuable and liquid as US coinage. If you are going to buy and flip, this could work, though. I understand your reticence to spend this kind of money while you are unemployed. I would feel uneasy about that too. Still, if you can flip this for a decent profit in 30 days or so why not go for it and make some extra money on the deal? I'm sure that you could use it. Finding ANY silver coins below spot is quite a trick these days. |
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Pillar of the Community
United States
1064 Posts |
Wow, using unemployment to buy silver - the American dream! Hope for your sake it doesn't go down!
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Pillar of the Community
United States
2589 Posts |
Depeding on what the foriegn silver is it might be very difficult to get rid of it even at 10% under melt. There is also the risk aspect involved. I was in a similar situation when the UHRs came out in 2009, but I ended up buying an extra one that I couldnt afford on a credit card. I was fairly certain the prices would go up and that I would make a profit but the risk was rather large. I ended making a nice profit and selling the coin which graded as a ms69 proof like two months after and made a nice profit. The long story short is that yes its probably possible to make a profit of the transaction in question (the us silver and .999 should be easy to dispose of at close to melt), but you need to weight that possibility on the risk associated with the transaction and the situation your in as well.
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Pillar of the Community
United States
1659 Posts |
That's a tough call especially considering your financial position. I don't like tying up that kind of money in any product that I can't afford to sit on for a while. I never invest money I can't afford to lose.
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Bedrock of the Community
 United States
10982 Posts |
Quote:
Wow, using unemployment to buy silver - the American dream! Well the unemployment is paying my bills at the moment. I have plenty of cash and $30K in precious metals and $10K in numismatic coins at the moment. I do have about $300K in farm ground coming also, but no access to that for the time being. It's a tough call because I'd really regret it if silver drops back to $30/oz and pretty much quit buying at $40/oz for that reason. 10% under melt is hard to pass up though. |
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Valued Member
United States
234 Posts |
How does one get that gig?
I thought unemployment was there to keep you afloat until you find a job not finish your MBA.
Lost a 100K job 18 months ago and can't get five dollars of unemployment. Would be thankful if I could find a job at half what I was making, but haven't been able to do that either. Living on the remnants of years of socking retirement away in my 401K.
Lord, I only wish I could have your dilemma to deal with.
Heck, looks like you've beaten the system so go for it ... you're playing with the houses money.
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Bedrock of the Community
United States
10982 Posts |
Quote:
Heck, looks like you've beaten the system so go for it ... you're playing with the houses money.
You're close. Sorry to hear about your situation. When I was laid-off in 2009 there was an offer of up to 2 years of unemployment compensation with no job search requirements if you enrolled in a degree seeking program working towards a "high-growth" occupation. It essentially took me out of labor force for 2 years (not counted as unemployed but collecting unemployment) while I got my MBA. I'm now 3 weeks from graduation and the job market is MUCH better so I expect to land a good job this summer. I have 21 years experience as a manufacturing engineer but want to get out of manufacturing and into a new field. |
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Pillar of the Community
United States
3670 Posts |
BH1964 I would normally say don't buy if you are not working an have income coming in, but you are in a unique situation.....
I tell you what, I am no where as smart as most on this site or as experienced, but if someone gave me say 100 grand like in a will, I would be scared to death to keep that money in the bank, savings, CD or whatever. I believe in net worth now, and I would do whatever I could to turn that money into silver and some gold no doubt, asap....
Now then, since you already have nice net worth with what you mentioned (if you get into trouble, you can always sell some), and you will graduate soon an most likely find a solid career, I think the silver buy is a no brain-er. If I would hesitate at all, it is the non US silver factor as most mentioned, but hey you can't beat that price, and if this silver craze continues as I expect it will for some time, even the non US silver should be movable when the time comes....
Edited by Silverhawk74
04/21/2011 11:01 pm
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Replies: 11 / Views: 1,603 |
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Posted 04/21/2011 8:31 pm
