Question for the investors.

For the people investing in buying gold, silver, platinum, etc. Do you buy and get physical precious metals in return or are these "on paper" purchases like stocks where you can buy and sell? I am thinking of buying gold and silver when I come into extra cash.
Thanks,
Robert

ebay seller name milbroco
email [email protected]

Comments

  • milbrocomilbroco Posts: 2,454 ✭✭✭

    If I buy silver, is it better to buy silver bars or would it be better to buy coins........Morgan and Peace dollars with common dates and not worn?

    Is there a difference between US silver and Canadian Silver coins?

    Basically, what is the better way to invest? Coins, Bars? Other?

    Thanks again,
    Robert

    ebay seller name milbroco
    email [email protected]
  • derrybderryb Posts: 26,835 ✭✭✭✭✭
    edited October 26, 2018 10:13AM

    I do both.

    Holding physical silver is the best for long term but it has its costs: Sales expenses and shipping expenses. I would never buy physical metal that the seller "holds" for me, not even in an IRA. My personal preference is gold and silver American Eagles and Royal Canadian Mint 10 oz. silver bars. Premiums (additional price over spot price) for physical products vary with quality and ease of resale (demand) being the primary reason.

    I find the best way to trade "synthetic" PMs (paper metals) is with various metal ETFs through an on-line broker. I use TD Ameritrade and pay about $7 for each trade. Advantage to these on-line trades is they are instantaneous, allowing one to play the ups and downs of volatile PMs. This form of trading is great for an IRA, preferably a Roth IRA where all future gains are tax-free. For the not so faint at heart crowd there are "leveraged" ETFs that move at 3X the price of the underlying asset in both upward and downward ("inverse") price moves.

    ETFs are electronic funds that trade just like stocks. I think of them as the "modern mutual fund." They are derivatives based on the price movement of something else. An example is NUGT whose leveraged price movement is based on 3X the movement of GDX, another ETF that is based on the movement of a group of the senior miner stocks. DUST is its inverse counterpart that allows one to collect 3X the downward price movement of GDX. Leveraged ETFs do suffer some minor "price decay" over time, and the mainstream advice is not hold them for a length of time. I hold them as long as the price keeps moving up.

    There are a number of PM related ETFs covering a wide range of PMs. Aside from PMs, there are ETFs for just about everything. While ETFs are "paper promises," so are any stock promises your stockholder holds on your behalf.

    To learn what ETFs are available for trading, here's a good place to start your research.

    All debt-based consumption steals from the future to gratify the present. It is tomorrow’s consumption pulled forward. It signs a perpetual check against an overdrawn future.

  • milbrocomilbroco Posts: 2,454 ✭✭✭

    Hey Thanks for the info. I will check things out........but like I said, I can invest when I have extra cash. Seems like that won't happen for a while.

    ebay seller name milbroco
    email [email protected]
  • derrybderryb Posts: 26,835 ✭✭✭✭✭

    @milbroco said:
    Hey Thanks for the info. I will check things out........but like I said, I can invest when I have extra cash. Seems like that won't happen for a while.

    payoff non-mortgage debt (especially credit cards) before investing. Invest in yourself first.

    All debt-based consumption steals from the future to gratify the present. It is tomorrow’s consumption pulled forward. It signs a perpetual check against an overdrawn future.

  • DrBusterDrBuster Posts: 3,834 ✭✭✭✭

    Nothing wrong with morgans/peace dollars. I like them as part of the pirate chest for sure too.

  • topstuftopstuf Posts: 12,529 ✭✭✭✭✭

    I stack only gold.
    Every ounce of silver I've sold turned out to be a smart move.
    Maybe not "smart" but fortuitous.
    I still have ......some..... but only as an "act of faith." ;)

    Which is ironic because I have NO faith in industrial metals.

    I know it has medical properties because I've personally seen it "cut the heart out" of so many people.

    I believe "poor man's gold" fits silver very well. :#

  • jmski52jmski52 Posts: 19,498 ✭✭✭✭✭

    It would be an interesting analysis - "the number of days that silver has made money for it's holders" over a 1 year, 2 year, 5 year, 10 year period. The alternative analysis would be "the number of days that silver has lost money for it's holders.

    It would be interesting to know this type of data, simply using the day charts.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • AUandAGAUandAG Posts: 21,138 ✭✭✭✭✭

    Canadian, US, bars, rounds, just buy the cheapest at the moment. I have done them all. I usually stop at 10oz for bars.
    bob :)

    BST deals: Dozens of buys/sells. Will provide a list upon request.
    Registry: CC lowballs (boblindstrom), [email protected]
  • rte592rte592 Posts: 362 ✭✭✭

    Buy what you like and its always a PLUS if you can be fortunate enough to sell at a profit.

  • rickoricko Posts: 66,621 ✭✭✭✭✭

    I prefer ASE's and AGE's....Often they can be acquired for little over current spot....that bodes well for future profit (Yes, it will happen). I do have some one ounce art bars and many Morgan dollars....some peace dollars also. That being said, I like the ASE/AGE's for stacking and some smaller denomination gold would also be wise. Cheers, RickO

  • topstuftopstuf Posts: 12,529 ✭✭✭✭✭

    @jmski52 said:
    It would be an interesting analysis - "the number of days that silver has made money for it's holders" over a 1 year, 2 year, 5 year, 10 year period. The alternative analysis would be "the number of days that silver has lost money for it's holders.

    It would be interesting to know this type of data, simply using the day charts.

    The days that silver has made money are the days after the holders have sold. :D :D

  • jmski52jmski52 Posts: 19,498 ✭✭✭✭✭
    edited October 27, 2018 3:12PM

    The days that silver has made money are the days after the holders have sold. :D :D

    Not always, my friend. Not always. Silver has been good to me, multiple times. And more to your point, it has never hurt me badly. That's a pretty good track record over 40 years. I did get a little slap on the wrist in 1981, but it didn't matter at that point.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • meluaufeetmeluaufeet Posts: 491 ✭✭✭

    There's a thread in this section every month that members buy and sell from each other. I would follow that thread, going back as far as you have the time for. There are people that sell every month... watch what they sell, and the prices others are willing to buy, noting how long it takes for listings to sell. I'd contact them as your journey continues for purchases. Get friendly with local B&M's and understand what they are willing to pay vs. spot for each type of pm's whether its bars or coins.

    Listen to both sides of the arguments when it comes to pm's, come up with a plan that makes sense to you and you can live with.

  • TwoSides2aCoinTwoSides2aCoin Posts: 40,441 ✭✭✭✭✭

    Don't think the banker will reward you for cash you keep in his house. There are no fees on the metal you're holding, (only the premium paid for acquisition ) . Banks come with fees. Digital and crypto currencies also have fees. Investing isn't how I view the metal. It's nice to have an array of tools in the shed. Then, when you need a special tool...

    We need a law to combat hate. But who would make love a law ?

  • SmudgeSmudge Posts: 3,789 ✭✭✭✭✭

    @derryb said:

    @milbroco said:
    Hey Thanks for the info. I will check things out........but like I said, I can invest when I have extra cash. Seems like that won't happen for a while.

    payoff non-mortgage debt (especially credit cards) before investing. Invest in yourself first.

    Pay off all interesting bearing debt before buying PM's. That is the best investment.

  • topstuftopstuf Posts: 12,529 ✭✭✭✭✭

    @jmski52 said:
    The days that silver has made money are the days after the holders have sold. :D :D

    Not always, my friend. Not always. Silver has been good to me, multiple times. And more to your point, it has never hurt me badly. That's a pretty good track record over 40 years. I did get a little slap on the wrist in 1981, but it didn't matter at that point.

    Congrats! You are in a distinct minority among physical buyers.

  • jmski52jmski52 Posts: 19,498 ✭✭✭✭✭

    Somebody's gotta do it.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • MsMorrisineMsMorrisine Posts: 22,786 ✭✭✭✭✭

    Never ever buy physical metal and let someone hold it for you in their facility.

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • perkdogperkdog Posts: 18,544 ✭✭✭✭✭

    For Me Cash is king. Payoff and try to avoid CC debt, and try to always put a little in the bank first THEN invest in physical PM’s, stacking takes up space but in hand is better than anywhere else.

  • metalmeistermetalmeister Posts: 3,677 ✭✭✭✭

    Do both! I like playing the 3x leveraged plays on Gold and Oil. Short term trades. Real estate is a big winner with the $500,000 Tax free gain. Cash is King as at 3% CD's for a portion.

    email: [email protected]

    100% Positive BST transactions
  • perkdogperkdog Posts: 18,544 ✭✭✭✭✭

    @metalmeister said:
    Do both! I like playing the 3x leveraged plays on Gold and Oil. Short term trades. Real estate is a big winner with the $500,000 Tax free gain. Cash is King as at 3% CD's for a portion.

    I do like my 3% CD but hate that I need to claim the interest as income 😩

  • derrybderryb Posts: 26,835 ✭✭✭✭✭

    All debt-based consumption steals from the future to gratify the present. It is tomorrow’s consumption pulled forward. It signs a perpetual check against an overdrawn future.

  • drei3reedrei3ree Posts: 3,209 ✭✭✭
    edited April 20, 2019 5:25PM

    @perkdog said:

    @metalmeister said:
    Do both! I like playing the 3x leveraged plays on Gold and Oil. Short term trades. Real estate is a big winner with the $500,000 Tax free gain. Cash is King as at 3% CD's for a portion.

    I do like my 3% CD but hate that I need to claim the interest as income 😩

    ...unless you buy them in your IRA. The HSA and Roth IRA are gifts that shouldn't be overlooked!

  • dagingerbeastttdagingerbeasttt Posts: 517 ✭✭✭

    Physical is my personal preference

  • dagingerbeastttdagingerbeasttt Posts: 517 ✭✭✭

    Great read, very informative.

  • mariner67mariner67 Posts: 2,738 ✭✭✭

    “Advantage to these on-line trades is they are instantaneous, allowing one to play the ups and downs of volatile PMs.”
    This is Day Trading.....impossible to do on a consistent basis. Almost everyone gets burned badly doing this. derryb is extremely lucky at this point if he is ahead of the game using this technique.
    Just sayin’

    Successful trades/buys/sells with gdavis70, adriana, wondercoin, Weiss, nibanny, IrishMike, commoncents05, pf70collector, kyleknap, barefootjuan, coindeuce, WhiteTornado, Nefprollc, ajw, JamesM, PCcoins, slinc, coindudeonebay,beernuts, and many more
  • derrybderryb Posts: 26,835 ✭✭✭✭✭
    edited April 21, 2019 9:34AM

    @mariner67 said:
    “Advantage to these on-line trades is they are instantaneous, allowing one to play the ups and downs of volatile PMs.”
    This is Day Trading.....impossible to do on a consistent basis. Almost everyone gets burned badly doing this. derryb is extremely lucky at this point if he is ahead of the game using this technique.
    Just sayin’

    This "day trading" is the only safe way to own paper PMs, unless you are big enough to play the COMEX. Your safety is completely in your hands and not in those of someone who holds the gold while you hold the paper. If you know the market you are investing in It can be as safe as your "year trading" with physical metals. If you don't know the market you are investing in, you should not be investing in it. The point is, the safety is dependent on you and your decisions and not on the stranger who claims he is holding your metal for you.

    OP asked about physical and paper trading. This is my two cents (worth a nickel) on the best and safest way for those who wish to trade without physical ownership. And yes, I got me a big ole stack buried in the yard, but to take advantage of the short term volatility at minimum expense I use PM ETFs.

    All debt-based consumption steals from the future to gratify the present. It is tomorrow’s consumption pulled forward. It signs a perpetual check against an overdrawn future.

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