Investing in precious metals...

[Finch]

With the dollar free falling and no end in sight, I was thinking of buying up some gold and/or silver with some of my savings. Has anyone here invested in gold or silver? I was thinking about purchasing 15 ounces of gold and a dozen 10 ounce silver bars. What do you think about the prospect of prescious metals given our current political climate?

[Brad Johnson]

Metals are at almost historic highs.   That's usually not the best time to buy, investmentally speaking.  It's called "chasing a return."  However, there's several folks here that keep up with metals a lot more closely than I.  I'm sure they'll be along shortly.

Brad

[Finch]

Metals are at almost historic highs.   That's usually not the best time to buy, investmentally speaking.  It's called "chasing a return."  However, there's several folks here that keep up with metals a lot more closely than I.  I'm sure they'll be along shortly.

Brad

Yeah, I thought about that. But I want to do it more as protection than profit, if that even makes sense. I figure if it does slow down I can always resort to some dollar cost averaging.

[thebaldguy]

Here's a good site for historical prices and charts.

http://www.kitco.com/

Holding precious metals is a good thing; it's diversification of assets. Don't put all of your eggs in one basket. Financial Advisors/Planners/Brokers will steer you to mining companies and precious metal mutual funds. Why? Because they won't get a commission if you buy gold and silver American Eagles or other bullion. The returns maybe greater with bullion, but the risk is as well.

I don't know if it's too late to get into the precious metals game. My hunch is no. I think prices will continue to go up for a while. I've been doing some reading and I think we may see $20/oz. silver and $1000/oz. gold in the next few years if our economy keeps going downhill.

[Finch]

Holding precious metals is a good thing; it's diversification of assets. Don't put all of your eggs in one basket. Financial Advisors/Planners/Brokers will steer you to mining companies and precious metal mutual funds. Why? Because they won't get a commission if you buy gold and silver American Eagles or other bullion. The returns maybe greater with bullion, but the risk is as well.

I'm certianly look to buy physical metals and not a certificate or anything similar. Just something about the physical possesion of it.

[280plus]

If I were you I'd watch them for a while, like a year, and see what they do. I agree with Brad, prices are high and that's USUALLY not a good time to buy.

[280plus]

I'll tell you what though, I'd like to go down to the coin store and see the guy that told me not to buy platinum when it was at $900 an ounce so I can kick him right in the ass. 

 

[Brad Johnson]

I wish I haden't been dirt poor, straight off a divorce, watching gold hover at $270 and knowing without pause or doubt that it was going up.

Brad

[Manedwolf]

I have been making some good metals purchases lately, actually. A number of antique stores with consignment booths have had sales, up to 50% off.

Now, if a booth has 50% off a bunch of "collector's items" that aren't worth anything, that's nothing special.

If, however, the booth owner appears to have agreed to the markdown over the phone or the like, and probably forgot they had some Silver Eagles in there that were priced at about spot before the markdown... 

[Matthew Carberry]

I have been making some good metals purchases lately, actually. A number of antique stores with consignment booths have had sales, up to 50% off.

Now, if a booth has 50% off a bunch of "collector's items" that aren't worth anything, that's nothing special.

If, however, the booth owner appears to have agreed to the markdown over the phone or the like, and probably forgot they had some Silver Eagles in there that were priced at about spot before the markdown... 

Is that coins or scrap gold?

[Manedwolf]

Silver Eagles are 1oz .999 silver US coins. They typically go for about $1 or less over spot, unless they're ones that numismatists have a particular interest in.

They're very easy to sell, since all dealers know what they are.

Didn't see any gold, unfortunately, especially at half off! I was looking carefully for any sleeved part-ounce coins and the like.

[Matthew Carberry]

I had made up a bunch of silver 1 oz. challenge coins a few years back.  Bought them at $8 per.  Sold them back a couple months ago for spot (the lady likes us).

Now of course, I'm thinking I should have held on to them, 50 oz of silver is nothing to laugh at.

[zahc]

Where's the best place to buy real metal coins...thrift and antique stores?

[Brad Johnson]

If all you want is metal coins and don't really care what they are, hit some coin dealers.  They will have a box full of valueless clinkers they are darn near giving away.

Brad

[280plus]

Auctions are good too, in the past I have picked up quite a few silver coins at auction for next to nothing, for example an entire roll of silver dimes for $15, they are now safely tucked away. Caveat emptor of course.

[pistolchamp]

I have been in the precious metals busines for over 40 years, from mining, refining to retail sales and I think the prices are just beginning to move.

I buy all of the gold and silver I can find... at spot or below.

I keep an ad in the newspaper about 1/2 the time and pay about 1/2 spot for junk gold and silver.  This is not something for the unprepared.  You will need to be able to be certain of the metal content.  Remember 12 carat gold is only 1/2 gold and 1/2 something else.  You can't pay gold spot for it an make money.

I send all of our mined gold and silver from Tanzania to the Royal Canadian Mint where they refine it to 99.99% pure and pay me in gold or silver Maple Leaves.

Keeping the metal is okay, silver can become a burden due to size and weight of large quantities, gold is easier.  Many dealers will sell you "junk" coins that are pure silver.  Often for close to spot prices.  These are just coins that are not collectable due to wear or commonality.  They are silver and have metals value.  Don't buy foreign coins, they are hard to sell.  Coins are much easier to sell than bullion bars.  With bullion you could easily be required ot pay for an assay and remelt before anyone will buy it.

Metal stocks and other securities are, of course, subject to the stock market and those fluctuations as well as the price of metals.  I do not buy metals stocks.

Also remember gold and silver have never been worth nothing, they always have value.

[Manedwolf]

Keeping the metal is okay, silver can become a burden due to size and weight of large quantities, gold is easier.

Silver can always be melted down and sandcast into ingots for easier storage. The only issue is that in doing so, you lose the proofmark, and it'd need to be either re-assessed and stamped or recast by a recognized authority. AFAIK.

[zahc]

If all you want is metal coins and don't really care what they are, hit some coin dealers.  They will have a box full of valueless clinkers they are darn near giving away.

To clarify, I'm interested in them only for their metal content, in reasonable, tradeable sizes.