my reason for buying silver, sound familiar to anyone?

nascarticketstubs

A little about me, I work at a bank, I'm 33 and in addition to my 401k, I've been buying physical silver. My gamble, if you call it one, is that silver by the time I retire, will be worth more than what I've been buying it for. I view it simply as a "placeholder" for some of my money and feel like it will at least hold its value, if not gain some over the next 20 years or so. One of my investments is thru my employer who matches my 401k, dollar for dollar for the first 8% which is awesome. IRA's are nice too but I want to save/invest more (hence the silver). I'm also a prepper and feel like having a nice supply of silver and 90% silver coins will come in handy someday IF anything ever happens. This is why I cap everything at 1oz. I feel like it should be easier to liquidate 1oz. coins/bars than trying to sell a 100 oz. bar. Your target audience is much much greater.

I've bought a lot of 90% "junk" silver over the years for the exact silver value at time of purchase i.e. no premium over spot. Plus working at a very busy bank, I've come across a lot of silver for face value.
I've also purchased Silver Eagles, Maple Leafs, other "world mint" coins, and 1 oz. silver bars by Johnson Matthey and APMEX. I do a lot of business with JM Bullion and watch for their specials. By working for a bank, I get my cashiers checks for free, and JM offers free shipping and no tax so I can truly maximize my dollar.

I don't invest very heavily in silver, I'm currently at 400+ ounces and look to purchase anywhere from 100-200 oz. a year ***unless*** I have to pay over $20 an oz. for it. When it goes much above $20, I purchase ammo/firearms because like silver, they are an excellent placeholder for money and are very easy to liquidate when/if you need cash. I just like having it in person, theres something about it that you can't put it down sometimes.

I do have a question though: Does anyone here purchase any private mint 1oz silver rounds or bars because of the low premium over spot? SilverTowne comes to mind.

I've held off on buying any because I feel when it's time to sell, they will be worth the spot price with a very small premium as opposed to better known rounds and bars which should command spot price plus a nice premium. Plus, people might be reluctant to purchase something like a silvertowne bar as opposed to a silver dollar or silver eagle or even a maple leaf due to familiarity.

Honestly, to me, 1oz of silver is 1oz of silver but in the real world, premiums seem to be all over the map.

Anyway sorry for the rambling, hope it wasn't too much of a bore to read.

I enjoy reading here and haven't posted on this forum before. I usually post on the sports/memorabilia forum due to my ticket collection.

derryb

Ease and quickness of resell is important. For this reason I pay the little extra for American Silver Eagles - much larger pool of potential buyers.

OPA

<< <i> My gamble, if you call it one, is that silver by the time I retire, will be worth more than what I've been buying it for. >>



I'm willing to bet, that by the time you retire, most everything will be worth considerably more. The secret is, what will appreciate the most. I have serious doubts that PM's will. I would limit my portfolio to no more than 5- 10% in PM's ... diversification is the secret. Good luck, keep a clear head and don't succumb to the "gold or silver" fever, that some are cursed with.

yellowkid

<< <i>

<< <i> My gamble, if you call it one, is that silver by the time I retire, will be worth more than what I've been buying it for. >>



I'm willing to bet, that by the time you retire, most everything will be worth considerably more. The secret is, what will appreciate the most. I have serious doubts that PM's will. I would limit my portfolio to no more than 5- 10% in PM's ... diversification is the secret. Good luck, keep a clear head and don't succumb to the "gold or silver" fever, that some are cursed with. >>



Diversification, and good luck.

rawteam1

Thread: my reason for buying silver, sound familiar to anyone?
Created On Saturday 8, November, 2014 3:14 PM by nascarticketstubs

Nope...

RedTiger

Hard to say if there will be similar premiums when it comes time to sell. Best to stick to more liquid items. I made the mistake of buying some foreign coins (not the 1 ounce silver ones) and they are hard to sell. Melters pay a much lower rate for them.

As for silver only, keep in mind that if things really go to heck, about half the time it is better to leave than stay. Think of scenarios such as The Sound of Music, where staying was not an option, or some kind of chemical or biological contamination making staying extremely unpleasant. In those cases, gold is better, because it is much more portable. A single roll of gold coins might be enough to try and start life over in another country. If not for you, then for kids or grandkids. I think too many preppers are too focused on food, water, guns and ammo. None of that stuff would have helped the Von Trapp family and that is about half of the historical cases of bad times. Again, sometimes it is better to go.

Silver may be in for another long bear market. It may be early in the bear market. No one knows, but don't be surprised if silver bought for $20 is dead money for another decade. A decade where interest rates might return to higher levels, making the opportunity cost for holding at the same price rather substantial. There are government folks that want to regulate, and tax the stuff. The biggest issue might be some kind of intangibles tax on holdings. Pay a tiny tax every year or face confiscation, and lose your rights to sell the stuff. Sound impossible? No, to me it sounds like a good way for governments to get their paws on the individuals with holdings, and their dealers. Those that risk civil disobedience might risk losing their entire stash. The government likely already has lists of most individuals with significant holdings of metals, just like it does of guns. Anyone that ever bought direct from the U.S. mint, or from one of the big dealers by mail is likely on a list. Paranoid? No, not nearly as paranoid as most. Just common sense logic. Even posting on this forum might get a person on a list.

Again, a few ounces of gold (or rolls) is a potentially a lot easier to hide, ship or smuggle, than a pile of silver.

ricko

Good advice RedTiger......there are many potential scenarios, and a goodly portion will require relocation..Cheers, RickO

jmski52

I agree that generic silver rounds and off-brand items may be harder to sell, but it depends on how scarce the market perceives silver to be when you are selling. Red Tiger has some good points as well.

Silver can become a bulky storage issue over time if you accumulate enough of it. The confiscation question is true for any asset, not just precious metals. Any asset can be confiscated, but precious metals are just a bit harder to track than stocks or real estate.

DoubleEagle59

If you're buying for the long haul (retirement years) then also strongly consider switching to gold when the gold-silver-ratio (GSR) suits it.

Buying silver now, is preferred over gold.

Here's my example:

Currently you have 400 oz of silver, which in today's prices would equal 5.4 ounces of gold (at a current GSR of 74:1)

When the GSR drops to 45:1, you flip this silver into Gold which would give you 8.88 oz of gold.

When the GSR goes back to 70:1, you flip this gold back into silver and now you have 621 ounces of silver, an increase of 55% of your PM's.

A couple of things to consider:

The GSR takes many years to fluctuate between these ratios, so that is why it can only be used when you are investing for the very long term.

Also, flipping just once gets you nowhere, since you have the same 'value' in PM's.

It's only when you flip the PM's a second time is when you start actually increasing your PM oz totals (and a third, fourth and so on increases further).

Moreso, the fluctuating of the GSR works, or can be used to your advantage, in BOTH a downtrending market or one that is appreciating.

'Price' has nothing to do with this, only the 'price relative to each metal' (the GSR) is the figure to keep track of.

Baley

When the GSR drops to 45:1, you flip this silver into Gold which would give you 8.88 oz of gold.

Yeah, that's a really great scheme. Another good one is to collect bottles and cans for a nickel, and run them up to Michigan, where the deposit is a dime.

derryb

<< <i>Also, flipping just once gets you nowhere, since you have the same 'value' in PM's. >>


You can still come out ahead flipping only once if you convert correctly at the top or the bottom of the GSR. By converting to the metal that will have more gain as the GSR reverses you will see more gains than you would have by holding the original metal. In other words, greater gains can be realized by simply switching from one metal to the other metal if the GSR is about to favor the second metal.

Best use of the GSR is to see which of the two metals has a better purchase (or sell) value compared to the other. Currently GSR indicates greater future gains in silver. But then again, maybe this time it's different.

DoubleEagle59

<< <i>When the GSR drops to 45:1, you flip this silver into Gold which would give you 8.88 oz of gold.

Yeah, that's a really great scheme. Another good one is to collect bottles and cans for a nickel, and run them up to Michigan, where the deposit is a dime. >>



If you can turn your nose up on a 55% gain in PM ounces (regardless on price movement) then you must have more money than all of us combined or maybe you just don't understand the strategy.

MGLICKER

<< <i> None of that stuff would have helped the Von Trapp family and that is about half of the historical cases of bad times. Again, sometimes it is better to go. >>



Diamonds! High quality in the 1 carat range.

Baley

<< <i>

<< <i>When the GSR drops to 45:1, you flip this silver into Gold which would give you 8.88 oz of gold.

Yeah, that's a really great scheme. Another good one is to collect bottles and cans for a nickel, and run them up to Michigan, where the deposit is a dime. >>



If you can turn your nose up on a 55% gain in PM ounces (regardless on price movement) then you must have more money than all of us combined or maybe you just don't understand the strategy. >>



I'm not saying a 55% gain isn't great, IF YOU CAN SWING IT.. I'm saying that A. very few people have the discipline to do it, because they fall in love with their stack and can't let any go, and B. There are very few opportunities to do it-- when is the the GSR going to drop to 45:1? You make it sound so simple.

Here's another good recipe: buy a stock, and when it goes up 260%, sell half, recoup your initial investment, pay the taxes on the gain, and let the rest ride for free.

It's really easy to say

MsMorrisine

I'd steer clear of private mint products

When it gets messy in the markets they will be harder to unload

rawteam1

<< <i>

<< <i>When the GSR drops to 45:1, you flip this silver into Gold which would give you 8.88 oz of gold.

Yeah, that's a really great scheme. Another good one is to collect bottles and cans for a nickel, and run them up to Michigan, where the deposit is a dime. >>



If you can turn your nose up on a 55% gain in PM ounces (regardless on price movement) then you must have more money than all of us combined or maybe you just don't understand the strategy. >>


It's been alot more easier to get 300% more silver on the price drop that has already happened ...

renman95

A not-so-simple move to the middle of the Pacific solved my gold or silver dilemma.