Gold Or Silver or ratio of both
tander123
Posts: 550 ✭✭✭
My dad feels like he has too much cash on hand. He has stocks/bonds, etc... but is looking at $40K-$50k in precious metals. What would you do in today's market?
Excellent BST board members who complete their deals: WONDERCOIN, DABIGKAHUNA, GEMSTATECOINS, FIVECENTS, SILVEREAGLES92, NEWMISMATIST, GTOster, SCHMITZ7,
0
Comments
This is subjective. For me I am looking to buy a couple silver Eagle monster boxes. Hoping in goes down a dollar per ounce though. Some gold is a good way to go... but I feel silver lobgterm( 10 years) has more upside.
The last crash shows the most upside is currently with silver. Be selective in what you buy, the premiums over spot are there for a reason. Buy in bulk from a reputable dealer, I currently buy from dbscoins.com
The most bang for your buck with quality is probably in 90% silver US Coinage (pre-1966). My preference is American Silver Eagles or 10 oz. Royal Canadian Mint bars.
Tell Pops to keep an eye on the market, could continue to move sideways for a while. No need to buy all at once, buy the dips. Safe storage is important. If kept at home, keep it a secret. Also, save all the purchase receipts for capital gains taxes upon resale.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
6 Month Treasury Bills. Current Rate is at 1.23%. (Tax exempt from State Income Tax.) No sdb or safe required for storage
My advice would be to stick to something low premium, as it is always a challenge to make it up on the back end. Also, the US Mint backed products have great track records (ASE's, AGE's) when it comes time for resale.
I like what others have said about ASEs and AGEs.
I would do 2 monster boxes of ASEs (1,000 ounces), and the remainder of the funds on fractional AGEs (1/4 and 1/2 ounce pieces) and a few MS69 1 oz.ers.
MY GOLD TYPE SET https://pcgs.com/setregistry/type-sets/complete-type-sets/gold-type-set-12-piece-circulation-strikes-1839-1933/publishedset/321940
Thanks for the advice everyone. I’ll have a sit down with him in the next few days and read the posts with him. Feel free to keep the opinions coming.
DBScoins has yet to answer two emails with a simple question of what was the year on the roll of silver eagles that I bought from them. The roll direct from a new monster box [no year noted] had the top coin tails up and I'd rather not remove the top coin to find out.
I'm not impressed.
There are money markets out there offering 1.25% or better.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
If your receipt doesn't show a date for the random year roll, then DBS probably thought it best for you to be the one to carefully flip the coin over. Were you pleased with the price and the overall transaction?
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I always hesitate to give advice in these cases....so many variables....I do read the advice by others (as above) and often learn something. My personal preference has been ASEs and AGE's.... simply because of quality and liquidity. Predicting PM's is less reliable than predicting weather...by a large margin. So, if I gave any advice at all...it would be 'Have some gold and silver.'.....
Cheers, RickO
How would they know it was flipped if they didn't open the roll? They were supposed to be unopended rolls from a new monster box. The box has a year on it and others who bought from the same deal said that their rolls arrived with stickers noting the year. Frankly, I've never seen a mint roll with the top coin tails up.
Otherwise the transaction and price were ok. If I resell, I usually state that the coins were never removed from the roll, but in this case I can't.
I'd call, but I really don't want to have a CS rep spend tons of time looking it up while I'm on hold. If I was in their shoes, I wouldn't appreciate a call like that either. Even a sorry can't help you response would be better than no response.
You should be receiving a communication from David at DBS shortly. Having referred him because of all the great service I get from DBS I reached out to him with your concern and he immediately replied that he will contact you.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I would for sure not put it all in silver unless he has a super strong stomach. Personally I would buy 10k in silver and the balance In gold
mark
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
Not State Tax exempt.
Not tied up for six months.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Tru dat!!!! Better to tie it up for 6 years!!! Haha
Knowledge is the enemy of fear
Liquidity has its virtues. six years is a little interest and a lot of devaluation/loss of purchasing power.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Not a bad time to be buying metals, but I would recommend "buying in" with at least 2 separate purchases, spaced out at least 3 months apart.
If he has no precious metals holdings at this time, I'd go with about a 50:50 mix of ASEs or 90% pre-1965 US silver coins and American Gold Eagles - denomination(s) of his choice.
For that size purchase, I'd also limit the variety of holdings as much as possible for future ease of tax accounting. Buy in bulk, liquidate as needed. For record-keeping purposes, boring is good.
I knew it would happen.
@jmski52
I think you are correct in saying:
For record-keeping purposes, boring is good.
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb
Bad transactions with : nobody to date
I think you missed my point.
Knowledge is the enemy of fear
Tell your dad I can get him in cheaper than buffalo chips.
What about the I-bonds? they are available in smaller denominations . They have actual paper bonds you can buy with tax refunds and electronic ones also
I gave a $100 I Bond to each grand kid at Christmas & Birthday from date of birth until age 18. 4 down 1 left.
Experience as bullion dealer says I would NOT count on silver as much of a percentage.
Silver cut the hearts out of more buyers than I could count.
Gold is money.
Silver isn't.
My suggestion is 10% silver, 90 % gold.
Great, thoughtful gesture @OPA
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb
Bad transactions with : nobody to date
@topstuf
I assume the percentages are dollar values ?
Am I correct, thanks
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb
Bad transactions with : nobody to date
Yes. That's correct. Silver's best gains are the most temporary of the two metals.
They're both money when they are sold. A dollar of income from silver has the same value as a dollar of income from gold. While silver is more volatile, it is currently poised to provide much greater percentage gains than gold in a bull metals market. The gold to silver ratio agrees. A review of current spot prices vs. all time highs confirms as well.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
It only needs to go up for a day.
Knowledge is the enemy of fear
or an hour
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Silver cut the hearts out of more buyers than I could count.
It's never cut my heart out, but I usually don't try to jump onto a moving train either, at least not when it's moving real fast.
My ex went to law school and we bought an A-frame in a resort development with the proceeds from my silver buys in the late '70s. I didn't sell at the absolute top, either. I sold my gold at $600+ before the blowoff, and I sold my silver around $36 a month or two after the blowoff.
My silver buys in '98, '99, '03, '06 and '08 don't look bad now, either. I can liquidate anytime and balance any current trading loss positions with a small piece of those holdings. I sold some silver around $35 or $36 in 2011 to buy a Large Cent. Now, THAT might have been a mistake!
The point remains that if you buy gradually, spread some of that market risk around over time - it's more likely that you'll end up being the beneficiary of prices that did rise in the long term. Yeah, silver is pretty jumpy sometimes, but other times, it can bore you to tears. If silver were a woman, I'd go with jumpy sometimes.
I knew it would happen.
@jmski52
I think you are correct,** dollar cost averaging**
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb
Bad transactions with : nobody to date
In MY opinion, silver isn't worth accumulating for speculation.
BUT if ya gotta, stick to American Eagles and TEN ounce bars.
I could always find a buyer for either.
The other "stuff"...... nope.
put it all in modern US nickels, they're only five cents each and the next precious metal.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I prefer to make larger purchases, which means that my "dollar cost averaging" is less than perfect, because I tend to start "shopping" when I find that I have too many dollars floating around. They start wailing, in unison "save me, save me". That's when I get more serious about spreads and premiums etc.
I knew it would happen.
And get a storage shed.
@topstuf
If you saw my 1 year anniversary give a way post , you know that I am mathematically challenged, so
Based on your recommendation [for your situation] a 10%:90% split would be ?
silver = $20 gold = $1300
65 oz silver per 1 oz gold ?
Just trying to learn here
thanks
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb
Bad transactions with : nobody to date
Yep.
m
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......