Gold and silver prices are down

[SquirtGun]

Educate me .. Gold, Silver, Cash

Hi all,

In the past I have had a subscription with the US Mint for several items that I purchased for my kids on their B-days. We all have coin collections BUT...I'm looking for some info (perhaps a Sticky) to explain the ins & outs of purchasing PM. I'm looking to put them away for investment and shtf day.

Where to buy, what to buy, how to pay, strategies....

 

[mclina]

Hi all,

In the past I have had a subscription with the US Mint for several items that I purchased for my kids on their B-days. We all have coin collections BUT...I'm looking for some info (perhaps a Sticky) to explain the ins & outs of purchasing PM. I'm looking to put them away for investment and shtf day.

Where to buy, what to buy, how to pay, strategies....

I've gone several routes, including coin shops, eBay, and different online vendors. This is what I have finally ended up with as a strategy:

Small quantities, like less than 10 ounces, the best deals are usually found on eBay. There are a lot of reputable companies that sell PM's on ebay, and a lot of times they are cheaper there than on the companies website. I mostly deal with MCM, Silver Town and APMEX on ebay.

For larger quantities, I have now gone exclusively to JM Bullion. The best pricing is via check, which slows down the delivery by a few days, but you lock in the price at time of purchase. After enough transactions with them they approve you for electronic checks, which speeds things up a bit more. There are other vendors that are just as good, including APMEX, Silver Towne, etc..., I have just found good service with JM and decided to stick with them.

Other than the obvious 'buy low' advice, the best advice I would give is to watch the premium over spot closely on every deal. Again, JM Bullion has a lot of sales where you can get 10 ounce bars or generic rounds for 99 cents over spot for any quantity. Govt issued coins (American Silver Eagles, Canadian Maples, Britannias, Aussie coins, etc...) are usually more like $3 over spot, but they are considered safer investments. My rule of thumb is to buy generic at no more than $1 over spot and govt. coins for no more than $2.50-$3 over spot.

If you've got spare cash, it's great if you can buy a lot at a time like this, where spot is at a low point. As it fluctuates, I still like to keep up a discipline of buying 5-10 ounces on a regular basis when I can.

I have not yet jumped into gold, so I can't speak to that.

 

[mclina]

One other thing I forgot to mention - once you have a quantity in your safe, you have an automatic supply of birthday, Christmas, and graduation presents for your kids, nieces, nephews, etc...

Silver makes a great gift, and I think it plants the seed for future saving in young people. In addition to whatever else I give my kids for graduation, I also like to give them a small quantity of silver to get them started. When my sister turned 50 this year, I pulled out a 10 ounce silver bar and gave it to her.

 

[Coyote33]

If one were to spend a hundred or so on silver right now, what's the best deal? (online, free shipping a plus)

 

[Varmint]

If one were to spend a hundred or so on silver right now, what's the best deal? (online, free shipping a plus)

5 silver Eagles for $94, hard to top that I think.

http://www.ebay.com/itm/Lot-of-5-20...229?pt=LH_DefaultDomain_0&hash=item58baecf42d

 

[Romokid]

If one were to spend a hundred or so on silver right now, what's the best deal? (online, free shipping a plus)

It also depends on what you are looking for. Silver Maple Leafs and American Silver Eagles are great as they are very recognizable (MCM is a well known seller) as generic silver rounds or bars are more easily counterfeited. If you are just looking bang for buck, meaning generic silver rounds, here are a few more:
Bull vs Bears
OPM bars
Sunshine rounds
RMC rounds

For your first purchase you may want to just pay the few extra bucks to get something recognizable like the ASE's that Varmit posted, but I know quite a few people who are just looking for bullion and don't mind generic. There are many reputable ebay dealers. Look through some of the old posts here to get an idea.

 

[SquirtGun]

mclina....Thank You for all the helpful info...I just ordered 5 lots....Another question, If I wanted to order on eBay and use cash, can this be done...Money order?

I've gone several routes, including coin shops, eBay, and different online vendors. This is what I have finally ended up with as a strategy:

Small quantities, like less than 10 ounces, the best deals are usually found on eBay. There are a lot of reputable companies that sell PM's on ebay, and a lot of times they are cheaper there than on the companies website. I mostly deal with MCM, Silver Town and APMEX on ebay.

For larger quantities, I have now gone exclusively to JM Bullion. The best pricing is via check, which slows down the delivery by a few days, but you lock in the price at time of purchase. After enough transactions with them they approve you for electronic checks, which speeds things up a bit more. There are other vendors that are just as good, including APMEX, Silver Towne, etc..., I have just found good service with JM and decided to stick with them.

Other than the obvious 'buy low' advice, the best advice I would give is to watch the premium over spot closely on every deal. Again, JM Bullion has a lot of sales where you can get 10 ounce bars or generic rounds for 99 cents over spot for any quantity. Govt issued coins (American Silver Eagles, Canadian Maples, Britannias, Aussie coins, etc...) are usually more like $3 over spot, but they are considered safer investments. My rule of thumb is to buy generic at no more than $1 over spot and govt. coins for no more than $2.50-$3 over spot.

If you've got spare cash, it's great if you can buy a lot at a time like this, where spot is at a low point. As it fluctuates, I still like to keep up a discipline of buying 5-10 ounces on a regular basis when I can.

I have not yet jumped into gold, so I can't speak to that.

 

[Lignum Vitea]

We're doomed!

 

[Varmint]

We're doomed!

Before i watched that I figured people didn't think the silver was real. But after watching it, not one even asked if it was real, that means they probably don't realize even a real 10 oz silver bar is valuable.

 

[headednorth]

Before i watched that I figured people didn't think the silver was real. But after watching it, not one even asked if it was real, that means they probably don't realize even a real 10 oz silver bar is valuable.

Still hard to believe. It wasnt until relatively recently that I had an idea of what the price of silver was. I remember being surprised at how low the price was. I was never a pm guy and to this day have never even owned a piece of jewelry, so I just assumed it was more expensive than it was. Even if the silver ended up to be fake, they would of only "lost" the value of a single candy bar. Worth the risk for anyone who takes the time to think it through. How many of those people who refused the silver ended up throwing the candy away rather than eating something given to them by a stranger on the street?

 

[the_shootist]

Gold down $32 so far tonight

 

[Imprezah]

Hammer time!!!

 

[jason19711971]

World economy is crashing

 

[SquirtGun]

Ok so I see that the silver is way down...Is there a way to purchase a lot of silver or gold when it hits a certain number. (like the stock exchange) but being able to get the PM in hand. ALSO...can I pay cash? where?

 

[Romokid]

Ok so I see that the silver is way down...Is there a way to purchase a lot of silver or gold when it hits a certain number. (like the stock exchange) but being able to get the PM in hand. ALSO...can I pay cash? where?

If your looking to pay cash then you're most likely going to need to go to a coin shop or a place that sells PM's. Not sure where you are located but there is Seacoast Coin in Hampton NH where you won't pay sales tax. (In Mass you are tax exempt if your purchase is over $1000 I believe.)

ETA: There are probably others as well as some in MA. I haven't been to Seacoast yet but I keep saying I'm going to stop in when I'm up near there on vacation.

 

[Varmint]

Ok so I see that the silver is way down...Is there a way to purchase a lot of silver or gold when it hits a certain number. (like the stock exchange) but being able to get the PM in hand. ALSO...can I pay cash? where?

You can wire money to APMEX - so pick the minute you want to order, lock in the price and then wire them the money within a few days.

 

[CoastieRon]

Missed out on the Austrian Philharmonics yesterday. Damn it! I have a $10 coupon for eBay (LOL)

 

[SquirtGun]

Romokid...Thanks for the contact info. I called and talked to Greg....

Varmit....Can I walk into a bank (or other place) and wire cash


If you had 10,000 in your hand right now...How would you break it up between gold and silver and what specifically would you buy and why?

 

[CoastieRon]

Romokid...Thanks for the contact info. I called and talked to Greg....

Varmit....Can I walk into a bank (or other place) and wire cash


If you had 10,000 in your hand right now...How would you break it up between gold and silver and what specifically would you buy and why?

Are you Debt Free right now? This is what I would do:

$100 bag junk silver

after that, 75% silver, 25% gold.

Your mileage may vary. If I had $10k laying around, it would go towards any interest bearing debt I owed.

 

[Tweed]

If you had 10,000 in your hand right now...How would you break it up between gold and silver and what specifically would you buy and why?

I'm waiting for $12 silver. see what gold is at that time

 

[Romokid]

Your mileage may vary. If I had $10k laying around, it would go towards any interest bearing debt I owed.

This +1.
I try to pay down as much debt as I can (mortgage and home equity, credit cards are paid off every month) then I try to save extra money besides regular savings for "toys" (guns, PM's and whatever else I can think of)

 

[CoastieRon]

This +1.
I try to pay down as much debt as I can (mortgage and home equity, credit cards are paid off every month) then I try to save extra money besides regular savings for "toys" (guns, PM's and whatever else I can think of)

Exactly. I have other savings I am trying to accomplish as well. I've gone so far as to create a spreadsheet projecting forward earnings, average utilities, average credit cards (we don't use cash for everyday purchases, except for silver), and then, once everything is satisfied, and I have put away savings for the pay period, THEN I buy silver. Usually I don't have much left over, but it's enough to get at least 10 coins a month.

 

[Romokid]

Exactly. I have other savings I am trying to accomplish as well. I've gone so far as to create a spreadsheet projecting forward earnings, average utilities, average credit cards (we don't use cash for everyday purchases, except for silver), and then, once everything is satisfied, and I have put away savings for the pay period, THEN I buy silver. Usually I don't have much left over, but it's enough to get at least 10 coins a month.

We are pretty close, except I don't usually buy monthly and I know I shouldn't but sometimes if I find a great deal on silver I'll put some on the credit card, but never to the point where I get myself upside down.

 

[Varmint]

Your mileage may vary. If I had $10k laying around, it would go towards any interest bearing debt I owed.

Yeah, I'd pay off debts before buying PM, except for mortgage. You don't want to ever be forced to cash out your PM to pay your debts.

 

[CoastieRon]

We are pretty close, except I don't usually buy monthly and I know I shouldn't but sometimes if I find a great deal on silver I'll put some on the credit card, but never to the point where I get myself upside down.

Meh, I've done it too. Never upside down though.

 

[ToddDubya]

I'm waiting for $12 silver. see what gold is at that time

Considering the online brokers are advertising blowout sales leads me to believe they think the price is going lower. That's based on no actual experience.

Also based on my 0 experience I'd say when they start advertising they want to buy your unwanted gold/silver it's about to go back up.

These are just my theories. YMMV.

 

[Varmint]

Considering the online brokers are advertising blowout sales leads me to believe they think the price is going lower. That's based on no actual experience.

Also based on my 0 experience I'd say when they start advertising they want to buy your unwanted gold/silver it's about to go back up.

These are just my theories. YMMV.

I'm seeing the opposite on Ebay, very few sales the last week or two - the spot prices are coming down of course, but sellers still want $100 over spot for gold coins and $4 over spot for silver coins.

 

[Coyote33]

...This is what I would do:
...
$100 bag junk silver

I'm seeing ... and $4 over spot for silver coins.

Is this online? Be specific as to what to get, and why.

 

[the_shootist]

Considering the online brokers are advertising blowout sales leads me to believe they think the price is going lower. That's based on no actual experience.

Also based on my 0 experience I'd say when they start advertising they want to buy your unwanted gold/silver it's about to go back up.

These are just my theories. YMMV.

Which blow out sales are you referring to? The premiums are huge

 

[ToddDubya]

Which blow out sales are you referring to? The premiums are huge

APMEX has a "48 BLOWOUT SALE" going on right now (2 hours remaining). At the moment it looks like the sale is on a few 5 oz rounds at only $19.99 over spot per round. That doesn't sound like much of a deal, but they're making it sound like you need to hurry up and buy. On eBay I'm seeing rolls of ASEs for ~$376 which works out to about $4.10 over spot at current prices.

My buying finger is getting itchy.