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Ten Commandments For Buying Gold & Silver

I. Always take delivery

II. Never buy premium if you can avoid it.

III. Buy bullion for business, numismatics for fun.

IV. Buy silver first, then gold.

V. Buy small gold first, then large.

VI. Never buy exotic coins or modern rarities or anything you don't understand.

VII. Know your dealer.

VIII. What governments can't find, they can't steal.

IX. Never swap bullion coins for U.S. $20 gold pieces.

X. Never break the law.

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Comments

  • TavernTreasuresTavernTreasures Posts: 1,262 ✭✭✭


    << <i>IX. Never swap bullion coins for U.S. $20 gold pieces. >>



    Why?
    Advanced collector of BREWERIANA. Early beer advertising (beer cans, tap knobs, foam scrapers, trays, tin signs, lithos, paper, etc)....My first love...U.S. COINS!
  • jmski52jmski52 Posts: 22,824 ✭✭✭✭✭
    << IX. Never swap bullion coins for U.S. $20 gold pieces. >>


    Why?



    See "II", above.image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • tydyetydye Posts: 3,894 ✭✭✭
    VIII and X conflict
  • DoubleEagle59DoubleEagle59 Posts: 8,308 ✭✭✭✭✭
    added...

    XI Buy on every dip.

    and most important...when to SELL!!

    XII Sell PM's when Gold = DJIA.
    "Gold is money, and nothing else" (JP Morgan, 1912)

    "“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)

    "I only golf on days that end in 'Y'" (DE59)
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Sell <1/3 on strength, buy <1/3 back on weakness. In this way you are increasing your ounces all the time without laying out additional funds. And I'd amplify that by stating that make those moves 2X per year when the metals are nearing extremely overbought or oversold levels. Happens every 6 months or so like clockwork.

    Since gold is more widely recognized as money, for those that can afford to buy ounces of gold I'd say accumulate gold first for stability, then go after silver. For those who don't
    have as deep pockets silver might be the only cost effective way to go.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • WeissWeiss Posts: 9,941 ✭✭✭✭✭
    I disagree with II. Never buy premium if you can avoid it.

    The implication is that generic is better than brand-name, or that material of unknown origin, date, karat, and weight, be it bars or coins, is better than known purity modern ounce-based material.

    I don't think that's the case. I don't believe it's true in good times, and it certainly isn't true in SHTF times.
    We are like children who look at print and see a serpent in the last letter but one, and a sword in the last.
    --Severian the Lame
  • gsa1fangsa1fan Posts: 5,566 ✭✭✭
    Never "PAY" premium would be a better choice of words for #2. IMHO.

    When it comes to selling nice stuff sells much better, I have found out.
    Avid collector of GSA's.
  • CaptHenwayCaptHenway Posts: 32,119 ✭✭✭✭✭
    Commandments should stay valid over time.

    Many years ago common circ. $20 Libs were selling retail for melt +$25 at a time when we were selling single gold eagles for spot +$30. We would have gladly swapped your eagles for our $20's even up.

    TD
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • jmski52jmski52 Posts: 22,824 ✭✭✭✭✭
    II. Never buy premium if you can avoid it.

    To me, it means not to buy Double Eagles when you can buy American Gold Eagles because the premium for Double Eagles will likely be higher for the same amount of gold. Obviously, if you know more of the nuances in the marketplace and if you know what you are doing, some of these rules don't apply as readily.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • WeissWeiss Posts: 9,941 ✭✭✭✭✭


    << <i>Never "PAY" premium would be a better choice of words for #2. IMHO. >>



    That could in fact be one interpretation. But I'd still take exception to it.

    You have a choice between a 1-oz gold coin, like the coin club round indiananationals posted about:

    image

    for melt. Or you can have a krugerrand for spot + $30.

    Which would you pick? The case against the poorly marked generic has already been presented: indianationals picked it up for $10--from someone who buys and sells coins professionally.

    I'd much rather pay a small premium for a clearly marked, globally recognized piece. The premium is about 2%. I think it's worth it, and I'd say the same to a newbie.

    We are like children who look at print and see a serpent in the last letter but one, and a sword in the last.
    --Severian the Lame
  • gsa1fangsa1fan Posts: 5,566 ✭✭✭
    I agree Weiss. Silvertowne would only offer 98% melt for a Credit Sussie bar in package but pay $25 over for 1 oz AGE.

    This was last show I attended. Dealer's want to buy what sells.
    Avid collector of GSA's.
  • OPAOPA Posts: 17,119 ✭✭✭✭✭


    << <i>Sell <1/3 on strength, buy <1/3 back on weakness. In this way you are increasing your ounces all the time without laying out additional funds. >>



    Absolutely....



    << <i>I'd much rather pay a small premium for a clearly marked, globally recognized piece. The premium is about 2%. I think it's worth it, and I'd say the same to a newbie. >>



    Weiss, you hit the nail on the head with the above statement
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • mhammermanmhammerman Posts: 3,769 ✭✭✭
    "I'd much rather pay a small premium for a clearly marked, globally recognized piece. The premium is about 2%. I think it's worth it, and I'd say the same to a newbie."

    I'd rather, and do, for that very reason.
  • jmski52jmski52 Posts: 22,824 ✭✭✭✭✭
    And I agree with Weiss as well.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • percybpercyb Posts: 3,324 ✭✭✭✭
    Commandment #1 SB-- Buy and don't sell. Simply buy regularly and stash it away. Do not trade...it's a waste of time trying to time the market and on top of that you only owe more in taxes and you eat up profits by paying commissions in and out to your broker.
    "Poets are the unacknowledged legislators of the world." PBShelley
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