Buying Silver

[rhino]

I've been buying from Provident Metals also. Silver was down below $16 this morning, and jumped up at about 2:00PM, presumably from that one-word change in the statement of how soon the fed will change the interest rate. In any case, I buy in 10 oz lots. I can't buy on your scale, Sailor. But, for my wife and I, we can't lose. We do jewelry. If we don't need it for shtf, then we can make jewelry with it.

Hmmm... I didn't get my email to alert me.

Must check my settings.

 

[ScouT6a]

The first thing you should stop and ask yourself is, if the dollar is so weak and on the verge of collapsing, why are these guys taking your U.S. dollars for their gold?
Two: If PMs were such a good deal do you think you would be able to buy them? The Bill Gates and Donald Trump of the world would be buying it up and little guys, like you and I, wouldn't be able to touch it.
Three: IF the dollar tanked and there was a monetary collapse, who would set the value on PMs then?
Four: Are you going to carry around a pocket full of gold coins, a pocket scale, tin snips, and a file?

I am willing to bet that if the SHTF, my lead will be worth as much as some guy's gold and silver. If you want barter materials, invest in liqueur and smokes. They won't cost you $1500 an ounce.

 

[Sailor]

All you have to do read some history. People lose faith in fiat currencies backed by nothing and turn to PM in times of deflation.

WHEN the dollar continues its decline the prices of PM will increase.

A reasonable portion of PM is a good thing for any portfolio.

 

[pudly]

The first thing you should stop and ask yourself is, if the dollar is so weak and on the verge of collapsing, why are these guys taking your U.S. dollars for their gold?
Two: If PMs were such a good deal do you think you would be able to buy them? The Bill Gates and Donald Trump of the world would be buying it up and little guys, like you and I, wouldn't be able to touch it.
Three: IF the dollar tanked and there was a monetary collapse, who would set the value on PMs then?
Four: Are you going to carry around a pocket full of gold coins, a pocket scale, tin snips, and a file?

I am willing to bet that if the SHTF, my lead will be worth as much as some guy's gold and silver. If you want barter materials, invest in liqueur and smokes. They won't cost you $1500 an ounce.

One: You are confusing their business with their personal investments. They buy/sell PMs to produce an income, part of which is used to buy more PMs for their personal investments. Likewise, grocers don't sell their own food. They buy/sell food to generate an income to purchase some for themselves. I can't speak for all of the major PM businesses but I know that both Mike Maloney (goldsilver.com) and Peter Schiff (Euro Pacific Capital) operate this way.

Two: I can't say if/how much Gates and Trump specifically have in PMs, but they buy/sell in the same market as everyone else. Any major player would pay the same amount as the peons, but would just have the ability to buy a larger quantity. Exactly the same as buying stocks. We can invest in exactly the same public stocks as them, just not in as large chunks.

Three: The dollar standard has already failed three times in the last 81 years (1933, 1944, 1971) since we left the classic gold standard. Each time, the new dollar was devalued and it took more of them to buy gold afterwards. International trade is rapidly de-dollarizing with many countries now trading directly in their own currencies rather than using dollars. China has created a new Asian Infrastructure Investment Bank providing direct competition for the US-backed World Bank. Many US allies (England, Germany, Italy, France, etc) have announced that they will be supporting the AIIB. As for how the value of gold is determined, it is nominally a free market thing. Gold has values in all currencies. Even in the extreme event of hyperinflation of the dollar, gold likely wouldn't change in value, only the fiat currency would change in value.

Four: Not of any significant amount, because in desperate times a single one ounce gold coin would be enough to get killed over. Then again, I wouldn't carry around stock certificates or guns or other collectables either. If you want to read about survival in a real economic collapse, silver and even individual gold links from chains were used for purchases. That said, although I am expecting a collapse of the dollar, I don't expect the same situation as Argentina. Instead, I believe that the dollar will be seriously devalued, tragically harming those holding bonds, CDs, cash, etc. Holding some PMs is a way to protect part of your wealth.

 

[longbow]

I went to a local coin shop to get some silver eagles. He would not sell for less than $24. I walked away. It is the guy by the old Marsh on the south side of Bloomington.

 

[pudly]

Wow. That isn't remotely competitive. Leave it for someone who doesn't know any better.

 

[M88A1]

I've bought from Silvertown always reasonable and offer the best prices over spot. I go with the silver bars. Yes its taxed inside Indiana but free shipping on almost everything.

 

[sdtech58]

If you don't mind a little drive, Fairfield's in Fort Wayne always treated me well. Great selection of gold and silver coins, as well as silver bars. Many sizes. They'll have what you want and at a good price. My financial advisor says it doesn't hurt to have 5-10% of the value of your 401k stocked away in PM's, as long as you max your 401k and Roth IRA first. If you still want to save more, he recommends real estate and PM's. They are tangible assets and should retain "some" value in a total economic collapse. If you want a "real" investment, i'll sell you some Iraqi dinars...LOL

 

[d.kaufman]

I buy from Provident metals. Prices are good and shipping is cheap n fast

 

[Slawburger]

Silver is $16.99 this morning.

Ok, now 17.02.

 

[Sailor]

As USD, and our economic outlook continues to strengthen, gold and silver will continue a gradual decline. It is testing its lower support and will probably rally up to the resistance area around 18-19.00 oz.

I have already closed half my position and moved all my stops up.

 

[rhino]

I have already closed half my position and moved all my stops up.

Translation for the finance-ignorant, please!

 

[Sailor]

I dont want to derail the whole thread. But basically when trading forex, in this example I was long on silver (think its going up) I place a trade for say one lot. Under the current price I will place a stop loss. This will close my trade for a loss but keep me from blowing my acct. As silver goes up, and my trade is doing well, I move my stop loss up to the break even point then further up locking in profits. I also closed half my lot .50 lot for profit and will let the rest ride till I reach my next resistance level.

 

[rhino]

I dont want to derail the whole thread. But basically when trading forex, in this example I was long on silver (think its going up) I place a trade for say one lot. Under the current price I will place a stop loss. This will close my trade for a loss but keep me from blowing my acct. As silver goes up, and my trade is doing well, I move my stop loss up to the break even point then further up locking in profits. I also closed half my lot .50 lot for profit and will let the rest ride till I reach my next resistance level.

Thanks!

 

[prescut]

I collect silver and gold bullion in coin format. I do it for investment as well as SHTF events. SHTF is best served by smaller silver coins. For most items, you want to make an exact exchange. You don't want greenback dollars for your change.

For five years, I have been purchasing silver coins at the very best prices anywhere. I have never seen it beaten. Forget the coin stores! They are in business to sell at whatever market will bear. You need to go to Ebay and buy what is known as "Junk Silver coins". All junk silver coins are 90% silver. Forget the numismatic value. You want silver, not rare coins. No assaying necessary as everyone recognizes US issued silver coins. Nearly all have no taxes and free shipping.
I just looked and (40) silver Washington quarters are selling for around $150 delivered. That's $3.75 each. Silver Half dollars are selling for $8.25. Silver dollars are selling for $18 each. As you can see, it is more expensive to buy silver dollars. The price of the silver you buy is cheaper when you buy smaller denomination coins.
Be patient and take your time. I love to buy rolls or bags. You pay lowest bullion prices, but you get to dig thru the quantity and look for rare or great condition coins. I pull these and resell for numismatic value and then rebuy junk. I did get hooked on different engravers. I love the Walking Liberty half dollar, and the mercury dimes.
I use the completed items checkbox on the left column to see auctions that have closed with a purchase. It reflects the price movement in metals everyday. Some coins have a Buy It Now price that was put up days ago when the price was lower. Get those when you can.
I downloaded a sniping tool that I set up to go off at 7 seconds before the auction ends. My price is set and I'm not there when the auction closes. Never bid until the end. Never get into bidding wars during the auction.
You can buy as much as you like at the price you know is the cheapest if you take your time.
Learn to do metals calculations using Troy ounces.
A wrinkle in silver dollars is that about twenty years ago the US Government started minting a one Troy ounce American Eagle silver dollar at .999 purity, not junk silver at 90%. Their price reflects the current bullion price plus a minting fee. Today the eagle goes for $19.50, but it has 10% more silver than junk.
Bullion today is almost $17 which makes the minting fee around $2.50.
Junk silver as it gets older, is difficult to find at bullion prices. As an example, Older Morgan silver dollars demand a premium.

You've had pages of advice from people who know coin shops. They did you no favors. Your auction purchases are protected by ebay, paypal, and your CC company. Why don't the rest of you know this?
Lost

 

[Sailor]

Both is a good plan. Junk silver is not bullion.

I get my best stuff better than your ebay.

Its free.

Like a solid gold 1878 10 Franc.

All you need is this.

 

[Sailor]

Help me out with my math here on the junk silver.

Each junk silver quarter contains 0.18084 troy oz of silver. X the 40 quarters = 7.233602 total troy ozs. Total cost = $150.00

Lowest cost of .999% pure silver round on PM site is $18.79 x 7.233606 troy oz = $135.91.

 

[pudly]

Your math looks fine.

 

[Sailor]

Junk silver not such a bargain then, except for its inherent fractional silver properties vs, .99% silver rounds.

 

[prescut]

Hey Sailor,
Your math is fine. However, I said US silver coins because of their recognition by everyone. You went with silver rounds which can be tampered with and there is no purity short of trusting an unknown private company. Rounds are great for investing, but not for SHTF events where ordinary citizens will not recognize a round. They have no numismatic valur that I have heard of. Hence they can sell cheaper even with the higher purity.

So I went to Ebay with 1 oz silver rounds and found several closed auctions for $16.75 on ebay and not the $18.79 you found at a precious metals store.

Teach me if I am missing something.

Lost