Precious metals investing

[jimbo1096]

Don't know how many here are into coin collecting or investing in precious metals. My Dad got me interested in old coins at an early age. He would pick up interesting coins on his travels around the world with the Army Air Force and later the US Air Force and I would play with them as a kid. Everything from the big old English cartwheel penny to India and Greek coins with holes in them and strange writing. And of course he would save any silver coins he ran across and put them in his old cigar tubes or cloth baggies. My grandmother and uncles used silver dollars as birthday presents and sometimes as rewards for us. I saved them all and still like to pull them out and remember the circumstance they were received. In the early 80's I had a job that required collecting money from coin operated equipment. I would also sometimes run the big sorter with the large bags of coin and got to where I could hear the different tone of a silver coin dropping into the bag, stop the machine and retrieve the coin from the bulk bag. It began to happen less and less often but I still carry that memory and the different sound of silver in change gets my attention. I once retrieved an 1864 silver dime and a 1898 quarter from the same machine. That was like a treasure hunt that day. I still have them of course and I am guessing someone didn't realize they had gotten into their coin stash by mistake. Also I still find the silver war nickels, although only 30% silver I put them aside and just found one of them in my change last week. Anyway, I also used to buy 1oz and 5oz silver bars whenever I could afford them, more for a rainy day than investor reasons but never could afford to buy gold. Recently a friend brought up the silver prices and said that it was heading for another low and good time to invest. Don't know if my beneficiaries will know what to do with the stuff. Been thinking of burying it all in the backyard and then creating a cryptic treasure hunters map and let them try to figure it out after I'm gone. Seems that would be great fun!

 

[bogus bill]

I am a expert in how not to do it. Around 1980 I bought silver on margin when the hunt brothers were driving it up. As I recall I lost between 14K and 15K at the most critical time of my life! I have been a "hard sell" on everything since.
You should have seen the plush office and cons working there! I didn't feel worthy to walk in the office. My question to those type people like William Devane now is, if it`s such a good deal and is going up, why do you want to sell me yours?

 

[Bob Wright]

I give my wife silver bullion coins for birthday presents. These are the one ounce silver coins from around the world, as well as coins from the US mint.

I also use the Silver Eagle coin as a reward to kids at my church. Years ago I made a proposition to kids at my church, twelve years of age and under, that if they would memorize the Books of The Bible and recite them to me, I would award them a Silver Eagle coin. Best investment I ever made!


Bob Wright

 

[blume357]

All the 'precious' metal I invest in is steel.... even though some of it is now mixed with Polymers....

 

[Mobuck]

I've got about 50# of nickels hoarded in an ammo box. Beyond that, my trading of "precious metals" will involve the more basic elements.

 

[David LaPell]

I have been in and out of gold and silver for almost seven or eight years. A couple times I had to sell what I had to help pay bills, most often or not I made a profit. Gold 20 years ago was something around $300 an ounce or so, now it's around $1,300 or so drifting back and forth. I have seen silver high, and lower at times. I don't bother with coins for the value of them, I buy silver for the metal itself.
I found that buying a little here or there is the best way to go, getting a 1 ounce round or coin usually runs me about $20 a month for silver. If I want to buy gold, I do it in small amounts, (hard to buy an ounce or even 1/4 ounce at once) so I buy sometimes a 1 gram ingot for $50 or so and keep them on hand. They are pure gold where as gold coins do have a little silver in them to hold them together because gold is relatively soft by comparison. I'm hoping to just keep squirreling some away more and more as I go along. I figure what little I spend right now isn't going to overly break me in the long run.

 

[akbluz]

I'm investing in "precious metals" - brass and lead bullets and primers...

 

[DGW1949]

What is (earthly) wealth if not gold, silver and lands?...
It's always been that way, which leads me to this:
Gold and silver ain't a means to reach a goal, they are the goal.

Leastways, that's how I see it.

DGW

 

[Bear Paw Jack]

Gold is under $1200 now, and Silver has continued to go down, and below $15 now and that's just spot, plus you will pay $2-$3 over spot for it. I only buy blanks I buy just for the metal value itself. Now is the time to buy, Trump has done a good job and the dollar is strong so metals are soft. With Silver most sellers like to sell it in little boxes of 20 ounces each there you go. If it starts to go up they will only buy it up to a certain point because like anything else they get nervous about how quick it may turn back down and they will get caught with a high priced inventory. Last time Silver took off most people would pay up to $40, but if spot was $45, tough, it's hard for them to imagine Silver continuing to go up past $45, so they don't want to get caught. Be careful, especially if you are planning on a short term investment. I've heard Rumors of Trump reorganizing the Fed, and going back to being gold and silver based, which will cause the prices to go up. But you can hear all kinds of things when it's rumors.

 

[Bob Wright]

What is (earthly) wealth if not gold, silver and lands?...
It's always been that way, which leads me to this:
Gold and silver ain't a means to reach a goal, they are the goal.

Leastways, that's how I see it.

DGW

Well, I don't have much money, though I get by fairly well. I do have a loving wife, and can go to bed at night with a clear conscience. I enjoy the things I have and have a very good church family with mutual respect from men and women I respect.

This plus a mansion in Heaven.

Bob Wright

 

[Pyromike]

Several years ago wife and I put some money with a broker (family friend). He guaranteed precious metals was where to invest so I let him. After losing about $4k, I pulled the money and fired him. He kept telling me it was the place to be. Proved him wrong. Might not seem like much money but when you're young and hope to have nest egg it hurts the pocketbook.

 

[DGW1949]

What is (earthly) wealth if not gold, silver and lands?...
It's always been that way, which leads me to this:
Gold and silver ain't a means to reach a goal, they are the goal.

Leastways, that's how I see it.

DGW

Well, I don't have much money, though I get by fairly well. I do have a loving wife, and can go to bed at night with a clear conscience. I enjoy the things I have and have a very good church family with mutual respect from men and women I respect.

This plus a mansion in Heaven.

Bob Wright

Yes, there's a big difference in spiritual things and physical (earthly) things. Sorry I wasn't more clear about that in my post.

DGW

 

[Ka6otm]

Precious metals aren't an investment, other things are like houses and stocks and bonds and so on.

Precious metals are mostly for those who see it as insurance against TEOTWAWKI. I disagree with them, as I feel that food, medicine, booze, cigarettes and ammo would be more sought after commodities in those conditions.

 

[jimbo1096]

I see precious metals as a fun investment but not as a mainstay of funds for retirement. More for a bit of a hobby for any extra funds. I can do like Mr. LaPell says and put a hundred or two in silver bullion or just buy a few 1oz bars or rounds at about the same price as a box of ammo. I wouldn't buy bigger bars or anything difficult to sell, as the more something cost, the harder it is to find a buyer. Honestly, I've bought silver at 6 to 9 dollars an oz. and as much at 15. I buy a roll of mercury dimes or just a couple of quarters if the price is right. I always look through my change jar before I roll it up at the end of the year and cash it in for Christmas spending money. I have found silver occasionally mixed in. I've never sold anything I've bought over the years but If it goes back up to $45 I might be tempted to sell some and buy another Ruger. I'm not sure there is anything out there you can expect to have increase enough to make any real money with, so it's more for the hobby aspect than investment. Plus it's fun to heft a troy pound of silver, all bright and shiny, and play pirate for awhile.
This has been a good dealer, FWIW
https://www.apmex.com/category/20000/silver

 

[ronto]

Precious metals are not an investment, it is speculation in a commodity and like all commodities they are subject to a severe downside risk and not a place for amateurs.

 

[jimbo1096]

so is my 401K

 

[Rick Courtright]

I'm investing in "precious metals" - brass and lead bullets and primers...

Hi,

I have strong positions in those same ones...

Rick C

 

[wolfee]

Jimbo, don't overlook the Platinum Eagles. Right now platinum is selling at 2/3 the price of gold. This is an historic low. Typically platinum will be at about 1.3X the price of gold. It is about 10X more rare, is more noble and has infinitely more industrial applications. btw, google an image of the 2012 Platinum Eagle and ask yourself how obama ever let that one get through. It is an image of a Pennsylvanian clinging to his Bible and his rifle! btw, if you aren't aware of it, anyone messing around with bullion or precious metal coin should visit kitco.com once in a while.

 

[GunnyGene]

Jmho, but unless you dig it out of the ground yourself, or find it laying in the walmart parking lot it's not a good investment.

 

[exavid]

I have the same opinion as already expressed here. If it's such a great deal why does someone want to sell me some of theirs? By doing so they are proving they don't believe it's going worth more.

 

[#1rugerman]

Several years ago I bought some silver and gold, it promptly went down, broke me from that .

 

[Bull Barrel]

As long as the price of these metals is tied to the dollar, when a dollar is worth zero what is the metal worth?

 

[GunnyGene]

As long as the price of these metals is tied to the dollar, when a dollar is worth zero what is the metal worth?

People would need to stop using the dollar (or other fiat currency) as the unit of measure, and instead use the weight and purity of the metal itself as the unit of measure. For example; how much food or other stuff will 1oz of .9999 silver get me in trade/bartering. A lot of folks would have a hard time making that conversion.

 

[5of7]

My question to those type people like William Devane now is, if it`s such a good deal and is going up, why do you want to sell me yours?

That has always been my question too when it comes to people selling precious metals.

 

[DGW1949]

My question to those type people like William Devane now is, if it`s such a good deal and is going up, why do you want to sell me yours?

That has always been my question too when it comes to people selling precious metals.

No big mystery to it...it's a business, that's why.

DGW

 

[vito]

My favorite story about precious metal investing happened over 30 years ago when I was stationed in Texas and had a young E-7 who worked for me who was really hoping to really retire when he hit his 20 years in the Army. He was always seeking ideas for how he would invest and make big bucks that would supplement his military pension and let him really retire at a young age. One day he came into work and told me that he just invested $2,500 (worth a lot more in 1985 than it is now) in silver and how it was sure to go up and make him a good profit. I asked him how many ounces that money bought, and where was he keeping it for safekeeping. He said he didn't actually have the silver in hand, but had a certificate certifying what he now owned and how it was kept for safekeeping in the company's vault. So I said "so they have your $2,500 and you have a piece of paper. Doesn't sound so safe to me". He laughed and said I was being too suspicious. A bit later he told me that the sales person he had been dealing with called him and said the price of silver had jumped, but since he (the Sergeant) was already a customer, he could buy more silver at the original price. He told me he immediately invested another $2,500. So I said "ok, now you have given this company $5,000 and you have TWO pieces of paper". After a day or so he told me that he had thought about what I said, and decided to call the investment firm and have them ship him his actual silver, even if there was a shipping fee involved. So he called them and then waited for his precious metal to arrive. And waited, And waited. After numerous phone calls, he admitted to me he was really worried now, especially when his phone call got a "no longer a working number" message. Finally he tried to actually track down the company and found it was in Montreal, Canada. Further efforts with Montreal authorities revealed the company had vacated its offices and left no forwarding address. Needless to say, this young Sergeant never got his $5,000 back, but I guess he still has those two pieces of paper.

After this story occurred, I was never even tempted to "invest" in so-called "precious metals".

 

[mohavesam]

Rule #1of investment sales: sell a commodity for which the mark, er... Investor, know nothing about setting instant pricing.

Buy wholesale, sell retail. Manufacture nothing.

 

[Prescut]

Metals are like anything else. They go up they go down.
If you buy low and sell high, you make money. Metals are no better or any worse than any investment.

The idea that metals are only going up in the future is patently false.

I personally have invested in junk silver coins and in gold coins by using ebay. Ebay closely reflects metal price cycles without the broker markup.
I also invest in gold miners in the stock market. Timing is everything and that's the hardest game to play in the market.
I believe the price of gold is heavily manipulated. Gold prices take the stairs when going up, and the window when going down.

My largest metal's single gain from buy low philosophy has been with lead in bullet form. I stocked up 7 or 8 years ago and am still shooting bullets that cost me $.30 and sell for $.75 today. Remember though, I didn't MAKE any money, I shot the savings up.

Thinking that there is a magic formula to investing is like waiting for the white knight to charge in and rescue you. It's a pipe dream.


Prescut

 

[Pal Val]

This is how an Economics professor explained the value of gold to us in a class: 600 years ago, an ounce of gold would buy you a nice suit of clothes made by a tailor and a fine pair of shoes made by a cobbler. Today, an ounce of gold will buy you a nice suit of clothes made by a tailor and a fine pair of shoes made by a cobbler. Gold has never changed its value, only its price.

 

[Ale-8(1)]

These threads are always interesting.

Assuming one is playing with "metal" as an investment vehicle, I guess it's all up to the individual as to how deep he plays, just like any other investment vehicle. Watching the market and establishing how long-term he will be playing is the secret.

If, on the other hand, one is stocking up for the EOTWAWKI, I try to imagine how one imagines using "metal" in the bartering sense. It would seem that he would need a lot of very small-denomination bits of metal for the daily transactions, say silver dimes and/or quarters, just to avoid having only full-ounce stuff which would limit his flexibility. Full ounce stuff could be handy for large transactions but would possibly attract unwanted attention. And the biggest question would be . . . "what's it worth" in a trade? How would any semblance of consistency be established in a chaotic setting post-Armageddon? Any attempt to relate "value" to failed fiat currency wouldn't play. So I can't help but wonder what a silver dime "buys" when the whole thing has come crashing down and we're all travelling in heavily-armed groups to protect the "metal" we're obviously carrying.

Just pondering . . .