Investing in PMs

[Junior314]

Looking for a good place to start with potentially investing in precious metals.

I tried the google machine but a lot of what I find just seems.... scamish. I am sure there are some here who have bought precious metals before and I am looking to be pointed in the right direction.

 

[FPrice]

One suggestion for a forum is PMBug (www.pmbug.com). Smallish with not much traffic but you can pick up some ideas from reading back posts.

I started by getting onsies and twosies on eBay but quickly graduated to buying from the big companies.

A lot depends upon what you want to do. Pick up small amounts on a regular basis or go big. Most people that I see strongly advise to buy physical PM, not stuff that a company will "store" for you.

I seem to be stuck on Aydin Coins & Jewelry (Aydin Coins & Jewelry, Buy Gold Coins, Silver Coins, Silver Bar, Gold Bullion, Silver Bullion - Aydincoins.com), but there are quite a few others.

Just a few random thoughts. If you have any specific questions post them and someone is sure to answer you.

Oh, DON'T plan on getting rich this way.

 

[enbloc]

Here is my advice.
1) Make sure that you carry no debt before buying even 1 oz of Silver or Gold.
2) Make sure that before you buy that first oz, your family is well-fed, well-clothed, and has been to the dentist.
3) Before that first oz, make sure that you have ample (1 year minimum) liquid cash for emergencies.
4) When you decide you want to invest, make sure you set a budget and stick to it... feverishly.
5) After budgeting for "investments", don't put all your eggs in one basket. Spread it around to stocks, bonds, mutual funds and yes, your 401k, before PM's.

After you meet 1-5, then find a reputable and cost-effective vendor for your PM's. It may be via the big houses on the internet, it may be a small local mom & pop coin store or it might be from other "stackers" of PM's who don't just Buy & Horde, but also sell. Sometimes you can get the best deals from someone who wants to move a hundred oz of silver to buy a much-wanted gun with, or a couple of oz of gold for a daughter's first used car. They are out there...

When you start purchasing, you may get bitten by the PM Bug. Don't give in! If you budgeted for 4 oz a week or a month, or a year, stay strong.
If you need to "sell" because of an emergency, try selling on Classifieds like here on NES. You can sell for SPOT, which can get you a dollar/oz (or more) for silver than you would get selling on-line or locally. The buy is happy because they can save a buck or two at purchase. More for Gold. This develops networks and relationships. Both are as Good as Gold...

~Matt

 

[Brewer]

I've got a couple gold coins I intend to offload for spot. Send me a message for details if interested.

 

[WanMan99]

A second nod for Aydin coins. I buy from them once a month or every other. I usually buy a 5 pack of American Eagles. I bought one yesterday for $89 with free shipping. This way it is short money to slowly build up a stockpile. When money is better I buy a roll of 20 at a time. I only buy Eagles or Maple leaves but you may have your own preferences.
I agree with Enbloc that being debt free is a better investment but you can diversify a bit without breaking the bank.
I am an advocate for some physical PM's in case the electronic world goes poof...

 

[enbloc]

I've got a couple gold coins I intend to offload for spot. Send me a message for details if interested.

This is where some of the best deals in PM's can be found. Among small buyers and sellers and at a personal level.
~Matt

 

[enbloc]

I agree with Enbloc that being debt free is a better investment but you can diversify a bit without breaking the bank.

Paying down debt, and thus interest paid out, is where the real investment is wrought. Every time you pay someone to use their money... you lose. Well, not every time.
~Matt

 

[Fritz the Cat]

Paying down debt, and thus interest paid out, is where the real investment is wrought. Every time you pay someone to use their money... you lose. Well, not every time.
~Matt

Pretty much every time.

 

[enbloc]

Pretty much every time.

Yeah. I was thinking of house buying, to put a roof over your head and your family's. If done correctly and you didn't buy a McMansion when all you can afford is a Double-Wide, then over time the interest paid can be small potatoes compared to the total amount of Rent paid out over a lifetime with zero equity earned..

 

[Fritz the Cat]

I have had good luck with JM Bullion for online buying.

Home

 

[Love Machine]

I used Kitco in the past.

 

[Brewer]

Had good luck with Gainesville Coins. On the subject, do you guys think sealed and serialized gold bars from a reputable source (like PAMP Suisse below) are as liquid or less liquid than gold Eagles? Maybe it's the dwarf in me but there's something I prefer about bars over coins, even if it's ultimately the same weight.

 

[Fritz the Cat]

Had good luck with Gainesville Coins. On the subject, do you guys think sealed and serialized gold bars from a reputable source (like PAMP Suisse below) are as liquid or less liquid than gold Eagles? Maybe it's the dwarf in me but there's something I prefer about bars over coins, even if it's ultimately the same weight.

IMO they are equally liquid. I would accept either for services rendered. As a barter item, gold is gold.
I've never tried selling any PM so I don't know what a dealer would think but it shouldn't matter to them.
I do agree the bars are pretty.

 

[Rob Boudrie]

Check the buy/sell spread as a % of price paid for both coins and bars at the PM brokerage you are using.

 

[Matt-CZ]

Most of the scammier vendors will try to push "collectible" coins. The scammier cable-news gold vendors would try to push collectible coins on the poorly informed at tremendous markup.

Just stick to buy ordinary PM coins or bars that are purely commodity and have no collectible value. Shop around the more reputable vendors and price compare. Unless you're buying face to face, expect to lose some on the transaction fees.

 

[Fritz the Cat]

Yeah. I was thinking of house buying, to put a roof over your head and your family's. If done correctly and you didn't buy a McMansion when all you can afford is a Double-Wide, then over time the interest paid can be small potatoes compared to the total amount of Rent paid out over a lifetime with zero equity earned..

Too many people have a house that is a liability. Buy beyond their means then borrow against the equity to buy new furniture; big TVs; new car.
A house should be an asset that is run as a homestead to help offset the costs of living, perhaps even turn a profit every month.

 

[NHCraigT]

Too many people have a house that is a liability. Buy beyond their means then borrow against the equity to buy new furniture; big TVs; new car.
A house should be an asset that is run as a homestead to help offset the costs of living, perhaps even turn a profit every month.

True, those also tend to be the same sort of people that carry alot of balances on their credit cards, take fancy vacation trips that they should not be doing, eat out far too often, and generally handle their finances pretty badly all around.

That does not mean that buying a house (using a bank loan) is a bad financial investment.
As with everything else = it should to be done strategically, wisely, with sound-financial planning & thinking, and then paying-it-off as quickly as possible (and NO equity loans taken = IMHO).

 

[richc]

Watch eBay. Stick to vendors with 99.9% successful transactions and above.

And watch for specials. Some days eBay will offer 10% plus or minus off certain items to a max of $100. Sometimes you'll get the $100 in the form of eBay bucks, that I use to buy a little more in the future. These generally exclude gold bullion coins. But... often times it will include Pre 1934 gold coins, like the St Gaudens.

In July I bought a St Gaudens coin, PCGS rated MS 62 (uncirculated), for less than the value of the gold in them (with the 8% off that day).

You'll sometimes see silver bars for short money above spot silver prices. And you can pay with a credit card and earn miles, a bonus.

eBay can be your friend with PM's. Be patient and watch the specials.

At the moment there are no smoking deals I saw on eBay. Generally that's an indication that the dealers are expecting prices to move a bit higher. And smoking deals tend to come when they think the price is going lower.

FYI NES member Varmint has written about this and I learned from him.

YMMV...

 

[67ray]

If you are buying for speculation, then all everyone said above applies. Or if you are buying for prepper reasons.

If you are buying appreciation, seriously look elsewhere. PM had never outperformed the market and there are several other investments that outperform precious metals.

If you do decide it's for you there is Boston Bullion in Burlington and online apmex.com is reputable.

 

[richc]

In another thread someone mentioned that Boston Bullion's Burlington location is closed.

If you are buying for speculation, then all everyone said above applies. Or if you are buying for prepper reasons.

If you are buying appreciation, seriously look elsewhere. PM had never outperformed the market and there are several other investments that outperform precious metals.

If you do decide it's for you there is Boston Bullion in Burlington and online apmex.com is reputable.

 

[enbloc]

I think that internet sales with free shipping is killing local PM dealers, but I could be wrong...

 

[Wickedcoolname]

I've been hording aluminum. I buy small units but I get 30 at a time. They are thin walled and cylindrical and there's not too much metal in them but each one comes with 12 ounces of beer!

 

[Upland]

JM Bullion – 10 oz Silver Tube Starter Pack

Not a bad place to start. Good company too.

 

[oldgunner]

I've been hording aluminum. I buy small units but I get 30 at a time. They are thin walled and cylindrical and there's not too much metal in them but each one comes with 12 ounces of beer!

I love the way you think!!!

 

[richc]

I've bought from JM Bullion a few times. Their packaging has always been suspect but no problems until the last order.

The silver coins I ordered were in plastic protective capsules. But they were simply thrown in a box with some paper on top. The coins were left to bounce around inside the box.

Every plastic capsule had cracked. Several had broken. And the coins damaged. This happened in the past month.

JM Bullion took them back without an issue. But I'd be careful with them. They don't use the same care that Apmex always has.

PM me if you want a pic.

JM Bullion – 10 oz Silver Tube Starter Pack

Not a bad place to start. Good company too.

 

[enbloc]

I've been hording aluminum. I buy small units but I get 30 at a time. They are thin walled and cylindrical and there's not too much metal in them but each one comes with 12 ounces of beer!

I love the way you think!!!

#MeToo

 

[FPrice]

BGASC (Buy Gold and Silver Coins) Has 1 oz Buffalo Rounds at $16.00 (Check or Wire) or $16.67 (CC). That's about $1.50 or $2.00 (approx) over spot.

1 oz Silver Rounds Buffalo Design by Jet Bullion .999 Fine | BGASC.com

 

[Romokid]

I've had good luck with APMEX both directly online and thru their ebay store as well as Bullion Exchanges. Here is one of their deals now, a tube of 2018 ASE for $344.40 with free shipping Roll of 20 - 2018 1 oz Silver Eagle Coin BU | Bullion Exchanges

 

[Junior314]

Lots of great information in here. Thank you.

To answer some questions.... Debt - wife's student loans are nearly paid off. Doing double payments a month now and the mortgage. No other real debt to speak of.

I am buying strictly for "doomsday" scenario. I have been prepping in other areas, food, supplies etc. and figured it only made sense to be prepared with PMs if needed. I have no interest in PMs as far as collectibles. I simply view them as potential currency if needed. Someone suggested a place and I bought a couple 1oz silver bars to get started. Not looking to drop serious coin, figure maybe a hundred bucks a month to get some built up.

What does "spot" mean? Sounds like I have a lot more research to do. Thanks for the advice, NES comes through as usual.

 

[FPrice]

Lots of great information in here. Thank you......What does "spot" mean? Sounds like I have a lot more research to do. Thanks for the advice, NES comes through as usual.

Spot Price - "The spot price is the current market price at which an asset is bought or sold for immediate payment and delivery. It is differentiated from the forward price or the futures price, which are prices at which an asset can be bought or sold for delivery in the future."

Most of your retail purchases will be "spot" plus some mark-up.