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Best form of silver/gold/platinum to stack away for max returns/ease of sale - 20 year time horizon

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  • CoinshowmanCoinshowman Posts: 148 ✭✭✭

    I buy a couple of ASEs at every coin show assuming I can get them at or below 20% premium. I also buy Morgans and Walking libertys as I can, assuming I pay 25% or less premium over spot. I don't worry about the premium because when the time comes to sell, I'll get a similar premium on that end. Silver is bulky and I'd prefer gold in the form of generic, certified $20's, but the gold/silver is so out of whack, I figure silver will spike first. I'm patient; I have a better chance with a good return on the stacked bullion than I'll get with a savings account or CD and it's more fun.

    Successful Forum transactions in the last couple of years with: jwitten, liefgold, goldcoin98. Older transactions with shortrgapbob, abitofthisabitofthat, Duxbutt, Morgansforever, Elkevvo, Dunerlaw, Pwrful4, Billet7, AUandAG, pragmaticgoat, MPLunatic, Rob41281, holeinone1972, AnkurJ, OregonCityGold, Inditonka, Colorfulcoins, cohodk, Mission16, kieferscoins
  • jmski52jmski52 Posts: 22,850 ✭✭✭✭✭
    edited June 26, 2018 4:11AM

    @cohodk said: There is much more to know. And what you do know must be put in context and held in relation to other assets.
    You may want to research the terms "step-up" and "survivor option".

    I love the approach that the "financial management" industry always takes. You hand over a pile of your own cash. They hand you a contract and promise to pay you back according to the set of terms & conditions. Then they charge you fees for doing that and pretend as if they are doing you a favor. Of course, everything is designed and structured with legal and financial nuances that you would necessarily have to go to school for a few semesters, just in order to be up to speed on what you've just bought.

    This is fine, as long as you either have no idea about how to manage your own finances or you simply have zero time to devote to managing your own finances - which is only a good thing if you're simply spinning off more money doing your thing than you will spend by hiring out the management thereof.

    Yes, any financial contract can be engineered to do different things, and marketing can be pumped up to go sell that feature. That doesn't mean it's a good idea. Too many financial institutions exist to milk their own clients in ways that don't begin to benefit the clientele. To wit, Goldman Sachs referencing their own clients as "muppets", while being bailed out from their AIG losses with taxpayer money. Never forget.

    I briefly dated a widow who was being sold annuities that were fairly complex and generated some steep fees. Her broker really loved her business. She puzzled over the terms and cash flows and deadlines and limits and was still confused enough that she didn't know whether to renew for another 10 years or not. I'm sure this happens all too frequently.

    If I were going to buy a financial contract, it would be a simple one from a local institution where I could walk into the lobby and have a face-to-face with someone that I could track down personally if the thing turned out to be a fraud. That's where things are headed.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • ranshdowranshdow Posts: 1,441 ✭✭✭✭

    @derryb said:

    @cohodk said:
    20 yr Cds are paying over 4%

    will the issuer still be there in 20 yrs.? The only thing I see worse than a paper promise for metals is a paper promise for dollars.

    Am I locked in at 4% for 20 yrs. while rates rise?

    If you buy a brokered CD there's a chance you could get a bid if you needed to, but you're subject to interest rate risk if you have to sell.

  • topstuftopstuf Posts: 14,803 ✭✭✭✭✭

    I bought 1st mortgages on low grade borrowers instead of CDs.
    Appraised the properties as "land and lumber."
    High returns and I had claim to the property.

    Had bonds while yield was over 5%.

    Now.... too old to bother.
    Just cash and bullion for me. VERY little silver. Had a lot but I don't consider silver to be a future fallback.

    This was my wife's and my plan from long ago.

    Get old, have gold, have cash.

    Works for me. I do not like silver due to the widening of spreads when demand occurs.

  • ShadyDaveShadyDave Posts: 2,199 ✭✭✭✭✭

    @jmski52 said:
    @cohodk said: There is much more to know. And what you do know must be put in context and held in relation to other assets.
    You may want to research the terms "step-up" and "survivor option".

    I love the approach that the "financial management" industry always takes. You hand over a pile of your own cash. They hand you a contract and promise to pay you back according to the set of terms & conditions. Then they charge you fees for doing that and pretend as if they are doing you a favor. Of course, everything is designed and structured with legal and financial nuances that you would necessarily have to go to school for a few semesters, just in order to be up to speed on what you've just bought.

    This is fine, as long as you either have no idea about how to manage your own finances or you simply have zero time to devote to managing your own finances - which is only a good thing if you're simply spinning off more money doing your thing than you will spend by hiring out the management thereof.

    Yes, any financial contract can be engineered to do different things, and marketing can be pumped up to go sell that feature. That doesn't mean it's a good idea. Too many financial institutions exist to milk their own clients in ways that don't begin to benefit the clientele. To wit, Goldman Sachs referencing their own clients as "muppets", while being bailed out from their AIG losses with taxpayer money. Never forget.

    I briefly dated a widow who was being sold annuities that were fairly complex and generated some steep fees. Her broker really loved her business. She puzzled over the terms and cash flows and deadlines and limits and was still confused enough that she didn't know whether to renew for another 10 years or not. I'm sure this happens all too frequently.

    If I were going to buy a financial contract, it would be a simple one from a local institution where I could walk into the lobby and have a face-to-face with someone that I could track down personally if the thing turned out to be a fraud. That's where things are headed.

    For the most part, annuities are scams for middle-class customers. Unless you're VERY wealthy, and have assets that would exceed the estate tax limit, or a large amount of liquid assets, annuities and complex insurance policies are most likely not the best option.

    I spent the better part of a decade of my career doing securities compliance for financial service companies (registered principal) and auditing suitability on various types of financial transactions. It made me sick seeing how financial service companies, Broker/Dealers and trusted agents convince people into these products that have 15% surrender fees, justify putting 50%+ of peoples assets into these products and convincing FINRA, state departments of insurance and the SEC that they weren't doing anything wrong. Yuck.

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