Advice on first time PM purchase took the plunge-how'd I do??

BobS · February 7, 2011 3:07AM

Hi guys. Card forum guy here.

I'm not really into coins, but would like to SLOWLY add some PM to my investment holdings.

I have one full ASE set that my grandfather started in the 80's that was handed down to me a few years ago. Since then, I've bought one each year to keep it going.

So, I have about $1,000 right now to start with and imagine doing 2K next year, and 3K the years after.

Is this even enough $$ to get going?

What direction would you suggest? Any advice would be helpful.

Thanks in advance,

Bob

piecesofme · February 7, 2011 3:38AM

Whatever the guy says on the other side of the counter at the coin store, it's too high, don't pay it. Always work him to do as close to whatever Spot is at the time.
Cost avging is the key. Dont buy too much all at once. With the amount you're working with ($1k/yr), keep an eye on what Spot is doing and by 5 oz's a month. Try to time it with what it is doing that month keeping in mind the current range it's in for that month.
If it seems like it's really taking off, go ahead and buy because the longer you wait, it just costs that much more.
If it seems like it's on a downward trend, dont buy...maybe buy 10 oz's the next month if it bottoms out at some point.
Most importantly, you ultimately have to do what is comfortable for you because you have to live with it.

Hope this helps and best of luck.

morgantype · February 7, 2011 3:47AM

If you are thinking of holdingfor the longer term. Say 2-5+ years just head on down and get something that pleases you. Be aware of the current spot prices and the premiums asked on some items (i.e. Silver eagles, maple leaves) and make it happen.

Stay with well recognized types of bullion, it will be easier on the resale.

I like this strategy because it is quicker, and doesn't dilly dally around with following the spot price and making multiple trips to the B&M store. Frankly the only two prices that matter are what you buy at and what you sell at. If you are holding for the long term the daily fluctuations won't make ANY difference other then to amuse you.

If you want to try and flip it, or shorter term, I think buying on the dips selling on the highs is the way to go.

Have fun, and enjoy yourself.

storm888 · February 7, 2011 3:54AM

Since you have a little "emergency" stash with your ASE collection,
go slow.

Add a little each time you have some extra cash.

Don't buy coins with "collector premiums;" stick with bullion and
pay as close to SPOT as possible.

Add some fractional AGEs when the price appeals to you.

Slow and steady will build a good stash.

Good Luck.

BobS · February 7, 2011 3:54AM

Thanks so far, good stuff.

A few things - I will be holding for approximately (hopefully) 15 years (retirement).

I intend to buy on-line.

57loaded · February 7, 2011 4:03AM

you may find that you could sell the ASE set for a premium and turn around and buy 90% near melt.

it's not too late to get started.

do you have cards that you know are dogs that you have already made a good $$$ and buy PM's with? (just a thought)...i don't know what the card market is doing.

just curious what kind of cards do you collect (in 20 words or less...)

pmcollectour · February 7, 2011 4:03AM

ebay

BBQnBLUES · February 7, 2011 6:46AM

Welcome to the PM Forum Rob !

Like yourself, I purchased American Silver Eagles each year (filling holes in my Dansco). Also bought Maple Leafs, Libertads & Pandas each yr..

After realizing I could convert them into MORE ounces by selling to a BST member, I decided to trade for 10 oz bars. You may want to consider this too.

10 oz bars don't carry big premiums over spot & you'll like the "feel" of a big ol' chunk of Silver vs. 1 oz rounds.

Go to a local coin shop... explain what you're trying to accomplish & see if they have any 10oz'ers 4 sale. Expect to pay around $2 per ounce over spot..

ALSO check out the BST (Buy Sell Trade) forum daily, you may snag a better deal buying from one of us

Konahead · February 7, 2011 8:12AM

agree with the rest of the crew here. We have all been doing this for a long time. Buy on the dips, I would add some gold (AGE) eagle fractionals like 1/10th or 1/4 ounce coins along with the silver. There are many places to go on line. I have had alot of luck with Apmex and give them alot of my business. I have found in the past 6 monts that most sites have not lowered the prices as quick with the spot price dips as the dips only last for hours or maybe a few days. Mexico and Canda have some nice bullion to mix it up. You are only looking to invest so silver is silver, get the best price you can and beware of ebay sellers and fake coins. Enjoy! It has been a fun ride thus far.

Steve27 · February 7, 2011 7:33PM

<< <i>Thanks so far, good stuff.

A few things - I will be holding for approximately (hopefully) 15 years (retirement).

I intend to buy on-line. >>

Since you intend to buy on-line, IMO you should wait until you have enough cash to by from one of the big guys (e.g. Tulving LINK), and then wait for a dip.

gsa1fan · February 7, 2011 8:22PM

BST is very good for buying online. Buy popular gold & silver to make selling easier.

On another note some have done very well buying gold & silver US mint products.

BBN · February 8, 2011 12:23PM

Steer clear of the PM forums at Kitco. Some of those people are complete whack jobs. My only advice.

BBN · February 8, 2011 12:30PM

<< <i>Thanks so far, good stuff.

A few things - I will be holding for approximately (hopefully) 15 years (retirement).

>>

Great move. I've been buying fractional AGE for a little while. Little bit each month. Will supplement my other retirements. Cash in a 1/4 AGE each month at retirement if/when I need it.

BobS · February 8, 2011 11:02PM

Again, thanks for all the advice.

I think I'll start real slow. Maybe a purchase from apmex - a 1/10 AGE and either a few 1 oz silver bars or 1 5oz bar.

Anyone here want to let go of these and sell to me?

To answer the earlier question about cards - the oldest ones of the most popular hall of famers in the highest grade I can find.

I think that's ony 17 words.

Cheers, Bob

BobS · February 15, 2011 1:33AM

So, after doing a lot of on-line window shopping I decided to stop by the local B&M here by work.

Picked up a 2009 silver proof set (year my son was born). plan to get 1 every year for him. Paid $81
picked up a 3oz silver bar and 5x1oz silver bars (mix of englehard, silvertown and Agor S.A.). Paid $1 over spot.
Picked up a 5gm gold Pamp bar, in an assayer card for $255.

So, did I do great, good, alright, slightly-horrible or should I stick to cards?

Cheers,

Bob

chumley · February 15, 2011 1:38AM

bob.....I see that you have good taste in that you picked up an argor chiasso bar...talk about classy

mkman123 · February 15, 2011 1:55AM

nice choice on the silver bars and the gold. As for the silver proof set, try and hit up flea markets.....you might be able to get them cheaper! But this was your first time! Keep on stacking.

BobS · February 15, 2011 1:55AM

Actually, the 3oz'er and one of the 1oz'er are argor. What's the deal on these?

morgantype · February 15, 2011 2:09AM

I think you did a great job!

I don't know much about the Argor bars but I do have a 3oz. The embroider bars are good quality and well recognized. If you could find some Johnson Matthey bars for the same premium I would be all over those.

The pamp Suisse 5gm is a pretty good price. The premium is greater than purchasing a 1 oz bar but I prefer the smaller sizes myself. Also, the smaller size means that you can cash/trade a smaller amount at a time.

One thing I pursue is to build a set of the smallerfractional size silver and gold I.e. 1 gram, 5 gram 10gram etc of each manufacturer. Credit Suisse, pamp Suisse, emgelhard. Etc.

Have fun!!!!

DrBuster · February 15, 2011 2:25AM

Did good on the metal, I would have passed on that silver proof set though. $81 - ouch.

57loaded · February 15, 2011 2:40AM

aside the sentimental purchase, you done good

HalfStrike · February 15, 2011 3:58AM

For $1000 you can get a 2010 5 coin ATB set of 25 ounces of silver and have money left over for a dinner.

gecko109 · February 15, 2011 4:15AM

<< <i>For $1000 you can get a 2010 5 coin ATB set of 25 ounces of silver and have money left over for a dinner. >>

Or he could buy 31 ounces of Engelhard silver and be 6 ounces ahead of the game.

OPA · February 15, 2011 7:22AM

<< <i>Did good on the metal, I would have passed on that silver proof set though. $81 - ouch. >>

If you must buy Mint issued items, buy them directly from the Mint or in most cases, wait a year & buy it on the secondary market for less than Mint issue price. With a little bid of research, you would have found out, that the 2009 silver proof set is selling between $60-$65 on eBay.

Wingsrule · February 15, 2011 9:33AM

Spot plus a buck for the 3oz Argor is a great deal. Off to a good start!

BobS · February 15, 2011 10:14AM

thanks for the feedback.

I realize I way overpaid for the proof set. It was an impulse buy. Have wanted to get one for a bit, and decided a while ago that the next time I go into a coin shop (I've been a total of 3 times in my life so far) i'd start the silver proof set for my son. i had no choice.

They have 2x2oz Agors there (or maybe they were 3oz). Should I go back tomorrow?

Also, can someone shed some light on the +/- of gold coins (frac AGE, Kugs, maple leafs) vs the Assay bars. Every month I'd like to get a little gold too, and being a newb was just wondering.

I think I'm hooked.

Advice on first time PM purchase *took the plunge-how'd I do??*

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Advice on first time PM purchase took the plunge-how'd I do??