What is best to buy in the PM world

OperationButter

So with QE3 here, I want to add to my "portfolio". I collect platinum coins as it is, I have a few age's but not many and only a handful of ASE's. I dont have a large budget, but I want to add to what I have. Would it be best to purchase junk silver, gold coins or what? I want to stay far away from GLD and SLV etf funds, I dont trust it. Just looking to preserve the little wealth I do have Look forward to the thoughts, and thanks in advance!

guitarwes

Should've bought last month, but since we're at today, that's all you can go with. Can't go wrong with good 90% silver and Silver Eagles for spot or a little above. Stick them away and forget about them for a long time.

I still think silver has the best % jump over gold long term.

tneig

What is the best time to buy.... "When it was a lower price than now.."

but to answer the text part:
I'd buy the pure metal in silver coins and bars as close to spot as possible, including dimes/quarters, 90% silver coins. Some like ASE's in minted condition in the tubes, which have a bit more premium, but should return that same later, as a well known items. More volume for the buck. Both methods are choices you have to make. Silver is good for the price and less expensive than gold, so more buyable.

Be careful, as the price went high again (buy low, sell high). You risk more now, as it can and does go down too. Think long term holding.

I'd recommend spreading out purchases for only the best/cheapest deals and times, when spot has a dip or a long low period. If you start buying now while its higher, figure out a cost averging method, esp with less money to buy bulk. Now if you can save for a larger amount of say ASE's and buy tubes or bigger for cheaper premiums, at a time when spot price is low, thats good saving for.

I buy most of my stack at a pawn shop that sells close to spot. Base silver bars, coins, etc for $1 or less, and ASE's for $2 over or less. With the price higher, I look for poured silver bars now that may have extra value. If buying now, extra value or cheap deals is what to focus on.

Unless you know exceedingly what to get, don't get slabbed or rare coins. (ok kill me guys, but if inexperienced, a person likely will buy unwisely or can't get the real quality return type items. )

Yes, buy all means stack. But realize the price just went up. Look for deals, look out for scams, or wait.

jmski52

For silver, what guitarwes said - Silver Eagles or 90% silver coin. For gold, the American Eagle denomination that best fits your budget. Be steady and don't try to time your purchases, since days like today will only frustrate you. If you become discouraged by paper gains & losses, you might forget that the goal is to gain financial security over time.

PTVETTER

you can use apmex.com as a guide that may help!

OperationButter

Thanks guys for the input. Im not a total novice to collecting but looking to diversify and I know there are many smarter than I on this board. I thank you for the input. I am trying to "diversify" my inflation plays and looking to add slowly, over time. I realize today is not the best time to buy and I probably should have clarified a bit more in my original post. I have been coin collecting (at an amatuer lvl) since I was 5 (thanks grandpa!). For the past 23 years, I have bought and held onto a majority of my coins. Not all were winners, but a few were I have amassed a moderate (in my eyes) amount of junk silver over the years that I have mostly pulled from circulation for someone of my age and means.

I work in real estate finance and have a solid foundation of the methods of investing, preservation of capital/financial freedom, and I have the mindset of long term vs short term and am planning accordingly.

My main question, which probably poorly written, was other than what I currently collect, would it be more beneficial to be purchasing more junk silver, silver bars, fractional gold etc. Some of you have given some solid insight and I thank you for it. If any others have more to add, please do so. I am worried about my fiances and my future and where we will end up after all this sh*t hits the fan (which we all know it will). Only time will tell, but I would rather be safe than sorry. Currently, outside of everyday expenses, 80% of my discretionary income is going to coins/pm's and real estate.

Thanks again.

bestmr

I'm a big fan of 90%. Silver plus historic. Atm, I'm kinda hooked on the America the Beautiful silver rounds..if I can find one for the price I want.

morgantype

It sounds like you have a good grasp of the concept and fundamentals behind investing etc.

With that being said, I would go with 90%, ASE's and JM/Engelhard 1oz. bars.

Don't bother to avErage in, just go for it. That's how I roll, especially if you are really buying forthe long haul.
Like Guitarwes said, just forget about it.

Have fun, good luck, and get ready to ride the rocket ship.

jmski52

Don't bother to avErage in, just go for it. That's how I roll, especially if you are really buying forthe long haul.
Like Guitarwes said, just forget about it.

Have fun, good luck, and get ready to ride the rocket ship.

I'd add one caveat if you are truly thinking long term. The alternative to buying a little at a time - is to save up enough to make a larger purchase from time to time. This is less time-consuming but takes a little more conviction, especially if the price is jumping all over. I like to wait it out and make larger purchases simply because the accounting becomes simpler and you don't end up with a bunch of assorted odds & ends.

derryb

for the long term? quarter ounce AGEs

LukeMarshall

I would like to hear your reasoning behind that statement derryb...

Just curious

derryb

<< <i>I would like to hear your reasoning behind that statement derryb...

Just curious >>


Gold is much less volatile in price. Gold has proven itself to withstand fiat currency failures for centuries. Much less storage space required than for silver, you can be on the move with a lot more $ in gold. When gold eventually hits $5K it will be a lot easier to sell a quarter ounce coin than it will be to sell a one ounce coin. I advise my clients to seek top two TPG graded MS69s (very little increase in premium), authenticity may become questionable in the future as higher prices tempt more counterfeiters.

LukeMarshall

Thanks for the response derryb,

To the OP, I would recommend getting some tubes of silver eagles since you stated that you don't have that many.

OPA

"A cup of 1/10 and 1/4 oz bullion AGE's.. with a mix of bullion ASE's rolls and a pinch of PAMP specialty bars".

PerryHall

I look for good deals, especially on the BST and from fellow coin club members where the price is close to melt. I'll buy ASE's, AGE's, silver bars (recognized refiners only), 900 junk silver coins, etc. I avoid Happy Birthday, Merry Christmas, etc rounds and bars since they usually don't have the refiner identified.

OperationButter

<< <i>I want to stay far away from GLD and SLV etf funds, I dont trust it. >>



From Ed Steer's Daily:

Even more horrifying is the thought of where the authorized participants are going to get all the silver that SLV is owed. Not including the current short position in SLV, which stands at 13.13 million ounces as of the end of August, my back-of-the-envelope calculation shows that the authorized participants owe something north of 10 million ounces to SLV as of the close of trading yesterday. That's more than five days of world silver production...and more that 25% of annual silver production in the United States.

TwoSides2aCoin

I bought some gold dentures the other day. It's best to buy what one can buy when the opportunity presents itself.

Julio

OperationButter; 1st. welcome to the madness. All the thoughts posted so far sound good. Pick the one

that fits your budget. Just remember that it can go down. If your horizon is long term you should be fine.

Good luck and Take care. jws

ShinyThingsInPM

My strategy - buy some low-mintage collector coins as close to melt as possible.

This way you get also relatively low-cost option with no expiry date on the rarity factor.

So far it worked out well - limited downside with good potential upside (which what is an option all about)

I bought some 2006-W PCGS MS69 Burnished Platinum 1/4 ozers at approx 25% above Pt melt

NumbersUsacom

A diversification of" 1,5,10 and Kilo (32.15) troy oz Silver Bars

pursuitofliberty

Welcome to the fray OB

I want to stay far away from GLD and SLV etf funds, I dont trust it.

Good call. My take is stack physical.

Plenty of good answers here so far. My 2c ...

Depending on how much Platinum you have, what resources you have, and where you want to be, I would consider a plan to get near equal-weighting on the three metals. Your goal may be much different.



Silver ...

Rounds; I'd stick with ASE's, Maples, Libertads and Philharmonics for rounds when resonable premiums are available. Figure about 5 - 9% over spot on these, but you should recover some to most of that when selling (IMO).

Bars; I'd stick with known refiners (JM, Englehard, Silvertowne, NWT, Sunshine and a few others I missed) in 1, 5 and 10oz sizes. Try to stay in the spot to plus 5% range and you should be fine.

90%; I'd look for Circulated Washies and Frankies at melt +/- a couple percent.

All of these should be easy to sell if you need cash, and most would be small enough to sell (trade) in smaller amounts.

Space and weight is a problem though, comparative to Au and Pt. The same dollar amount in Ag is going to be +/- 50x the weight.

Here's a couple useful (hopefully) links;

Compare Siler Prices Coinflation


Gold ...

Low MS certified 10's and 20's seem to work well, with $20 Saints bringing only a modest premium to 64. I'd stick with the top two TPG's here.

Like derryb, I'm a big fan of 1/4 AGE's, for the same reasons. Throw in some 1/10ths if you can get a deal, maybe a 1/2 or a 1oz'er here or there. Might be worth the small premium to get AGE's as 68's and 69's slabbed, as derryb also suggested.


Since you already collect platinum, you know that game.


Good luck!!

OperationButter

Appreciate the ongoing conversation. Its fascinating to hear how different people are collecting/hoarding or w/e you want to call it. I have decided to start with a purchase of ASE's in mint tubes (3 so far) and will be adding over time when funds are available. Would it be better to add bars or 90% or will ASE's suffice?

I like the idea of equal weighting of all three metals. As it sits, I am roughly distributed as 90% plat, 8% silver, 2% gold (in terms of $). I just added some ASE's which might shift that a tad bit more in silver but not much (maybe 10% silver). I also like the idea of adding some more gold (1/4s AGEs) and will prob be my next purchase towards the end of the month (next payday!).

The one thing that I keep thinking about is space, accessibility and protection. Silver in mass quantities possess significant threat if I needed to move quickly. Gold and Plat would offer more ease in this situation, but more $ concentrated in one piece. A healthy mix is prob the best answer... Just always second guessing myself on what is the "best" way.

Thanks again to all

coinkat

PM World?

There are opportunities if you really look - especially with World coinage