Author Topic: So HOW do I invest in metals?  (Read 7038 times)

zahc

  • friend
  • Senior Member
  • ***
  • Posts: 5,815
So HOW do I invest in metals?
« on: December 21, 2007, 01:04:14 PM »
Say I want to buy some gold or silver, right now. This may or may not be a good idea because gold is so high, but it's also increasing. But anyway, I save a portion of my paycheck every time I get paid. If I want to spend some of it on gold, how? Can I just go to Amazon and buy a half ounce at current prices and they'll send it to me UPS? Because if it was that easy, I would totally do it. I just don't know where you go to buy gold. It's not like it's at Wal*Mart next to the oil filters, you know?
Maybe a rare occurence, but then you only have to get murdered once to ruin your whole day.
--Tallpine

Headless Thompson Gunner

  • friend
  • Senior Member
  • ***
  • Posts: 8,517
Re: So HOW do I invest in metals?
« Reply #1 on: December 21, 2007, 01:17:03 PM »
Buy bullion coins from a coin dealer.  Or mail order 'em.  Surely there are lots of internet coin dealers that'll sell you some generic gold or silver coins.

Brad Johnson

  • friend
  • Senior Member
  • ***
  • Posts: 18,146
  • Witty, charming, handsome, and completely insane.
Re: So HOW do I invest in metals?
« Reply #2 on: December 21, 2007, 01:19:40 PM »
Look in the yellow pages for Precious Metals or Gold and Silver.  If that doesn't work, try a couple of coin shops.

Always buy ingots from a well-known refiner like Johnson & Matthey or Englehard.  They can be counted on for purity and weight.  They will also be at spot price plus margin, not some esoteric "rare production" or "limited quantity" price.

Brad
It's all about the pancakes, people.
"And he thought cops wouldn't chase... a STOLEN DONUT TRUCK???? That would be like Willie Nelson ignoring a pickup full of weed."
-HankB

zahc

  • friend
  • Senior Member
  • ***
  • Posts: 5,815
Re: So HOW do I invest in metals?
« Reply #3 on: December 21, 2007, 01:27:55 PM »
http://www.usbullionexchange.com/BullionProducts.cfm

What about this place? It's close by. Do you think buying the bars is stupid or should I go for eagles? the margin on silver seems high for eagles.
Maybe a rare occurence, but then you only have to get murdered once to ruin your whole day.
--Tallpine

Scout26

  • I'm a leaf on the wind.
  • friend
  • Senior Member
  • ***
  • Posts: 25,997
  • I spent a week in that town one night....
Re: So HOW do I invest in metals?
« Reply #4 on: December 21, 2007, 01:30:34 PM »
Send all your money to me.  I will send you genuine Gold Ceritficates (they might look like Carbon Offsets, but trust me they're the same.)  

If that's not good enough I can send you genuine gold ingots, but if you scratch the surface with your fingernail you will destroy their paintjob value.  Just place them carefully in your safe or other secured place.   Do not attempt to trade or redeem for at least 40 years.

I eagerly await your reply...

Your Nigerian Friend,
scout26

 rolleyes grin
Some days even my lucky rocketship underpants won't help.


Bring me my Broadsword and a clear understanding.
Get up to the roundhouse on the cliff-top standing.
Take women and children and bed them down.
Bless with a hard heart those that stand with me.
Bless the women and children who firm our hands.
Put our backs to the north wind.
Hold fast by the river.
Sweet memories to drive us on,
for the motherland.

Brad Johnson

  • friend
  • Senior Member
  • ***
  • Posts: 18,146
  • Witty, charming, handsome, and completely insane.
Re: So HOW do I invest in metals?
« Reply #5 on: December 21, 2007, 01:43:15 PM »
http://www.usbullionexchange.com/BullionProducts.cfm

What about this place? It's close by. Do you think buying the bars is stupid or should I go for eagles? the margin on silver seems high for eagles.

Don't base it on the outward appearance.  Go strictly by content, and only for .999 Fine.  Increments are incidental.  The per-ounce price is set by the market.  Ane ounce or ten, the price is the same.  Seller margins vary by quantity.  The smaller the unit, the higher margin.

Also remember that "good deal" on evil-bay will also have shipping charges tacked on.  Ten ounces of anything is NOT something you just slap a stamp on.  Take the price of the item plus any shipping charges to figure your per-ounce cost.  You might save a few cents an ounce but still end up paying more once shipping is included.

Brad
It's all about the pancakes, people.
"And he thought cops wouldn't chase... a STOLEN DONUT TRUCK???? That would be like Willie Nelson ignoring a pickup full of weed."
-HankB

Art Eatman

  • friend
  • Senior Member
  • ***
  • Posts: 1,442
Re: So HOW do I invest in metals?
« Reply #6 on: December 21, 2007, 01:59:13 PM »
the only silver to buy is what's called "junk silver".  US coins, half-dollars, quarters and dimes, minted 1964 and earlier.  There is 0.712 oz. per dollar of face value.  A "bag" is $1,000 face.  Its intrinsic value is 0.712 times the spot value of silver.  Coin shops will also sell half-bags and will sell lesser quantities.

But these silver "Eagles" and all that BS stuff sell for way too much premium over the spot price--and when you go to sell, all you'll receive is spot.

http://www.kitco.com is a good site for keeping current on prices.  Common metals as well as precious metals...

Gold?  Coin shops or at coin shows.  Whether or not a sales tax is added on depends on both state law and how well a dealer knows you--and if you're paying by cash or check.  Cash at a coin show is usually the least hassle, least cost.

For less than one-ounce coins, there are the English sovereigns and the Mexican gold pesos from 2 pesos on up through 2-1/2, 5, 10, 20 and then the 1.23-ounce 50-peso coin. Smiley  I haven't seen a lot of these around, lately.  And there are the US Mint fractional gold coins.  1/10th, 1/4, and 1/2 as well as the full ounce Eagle.

Original US gold coins minted for circulation carry a fair premium above bullion, and most are actual collector coins...

Given what the Fed is doing with the printing presses, and all the liquidity injections worldwide, there are reasonable odds that the dollar will continue to decline in buying power.  Gold could thus increase in nominal value in dollars.  Silver?  Hard to tell.  I think it might well have more odds for a higher percentage increase than gold since it's an industrial metal.  But, lots of political factors as well as marketplace effects.  I dunno.

China has stated a desire to increase its gold reserves from 300 tons to 1,400, IIRC.  At any rate, the Chinese government has been a strong buyer.  I vaguely recall something like another hundred tons in these last several months.

Art
The American Indians learned what happens when you don't control immigration.

zahc

  • friend
  • Senior Member
  • ***
  • Posts: 5,815
Re: So HOW do I invest in metals?
« Reply #7 on: December 21, 2007, 02:21:04 PM »
Is it stupid to buy some .5oz or 1oz Krugerrands or Eagles from https://www.bulliondirect.com/index.jsp? I might just do that next paycheck.
Maybe a rare occurence, but then you only have to get murdered once to ruin your whole day.
--Tallpine

Finch

  • Member
  • *
  • Posts: 465
    • Fading Freedoms
Re: So HOW do I invest in metals?
« Reply #8 on: December 21, 2007, 02:57:36 PM »
Ebay.

I've started buying up silver in 10oz increments every paycheck I get. You can find some decent prices on there.
Truth is treason in the empire of lies - Ron Paul

Paddy

  • Guest
Re: So HOW do I invest in metals?
« Reply #9 on: December 21, 2007, 03:25:32 PM »
I wouldn't even consider ebay.  Go right to a reputable source. http://www.monex.com/liveprices

Manedwolf

  • friend
  • Senior Member
  • ***
  • Posts: 14,516
Re: So HOW do I invest in metals?
« Reply #10 on: December 21, 2007, 04:32:12 PM »
http://www.usbullionexchange.com/BullionProducts.cfm

What about this place? It's close by. Do you think buying the bars is stupid or should I go for eagles? the margin on silver seems high for eagles.

The price of eagles depends on which ones you get. If you just get them for the silver, you can get not-rare ones for pretty much spot price or very little more. (less than $1 more).

Some are worth more to numismatists, but I could care less about that hobby, I just want the metal. I see no reason to pay more for a rare year or place it was made or whatever it is that they get all excited about.

Finch

  • Member
  • *
  • Posts: 465
    • Fading Freedoms
Re: So HOW do I invest in metals?
« Reply #11 on: December 21, 2007, 04:32:37 PM »
Eh, there are a lot of reputable dealers on there. Stay away from those with no feedback, but other then that I have been happy with what I have gotten.
Truth is treason in the empire of lies - Ron Paul

Manedwolf

  • friend
  • Senior Member
  • ***
  • Posts: 14,516
Re: So HOW do I invest in metals?
« Reply #12 on: December 21, 2007, 04:34:07 PM »
Eh, there are a lot of reputable dealers on there. Stay away from those with no feedback, but other then that I have been happy with what I have gotten.

There's a lot of dealers on eBay who have lots of positive feedback...all shills out of China.

Caveat emptor buying any metal on there. There's lots of con artists. Plus good luck getting your money back through PayPal if they just screw you.


atomd

  • Member
  • *
  • Posts: 145
Re: So HOW do I invest in metals?
« Reply #13 on: December 21, 2007, 05:36:45 PM »
I think you should send all your money to a prince in Nigeria. He needs it so he can gain access to his safe that contains millions of dollars which he will share with you! IT'S FOOLPROOF!!!

Tallpine

  • friends
  • Senior Member
  • ***
  • Posts: 23,172
  • Grumpy Old Grandpa
Re: So HOW do I invest in metals?
« Reply #14 on: December 23, 2007, 06:06:48 AM »
Invest in brass and lead Wink
Freedom is a heavy load, a great and strange burden for the spirit to undertake. It is not easy. It is not a gift given, but a choice made, and the choice may be a hard one. The road goes upward toward the light; but the laden traveller may never reach the end of it.  - Ursula Le Guin

K Frame

  • friend
  • Senior Member
  • ***
  • Posts: 44,790
  • I Am Inimical
Re: So HOW do I invest in metals?
« Reply #15 on: December 23, 2007, 06:43:22 AM »
I've taken a slightly different tack.

I've been investing in Vanguard precious metals mutual funds.

I've done really well this year. Luckily I got into it before it was closed to new investors.

Over the past three years it's averaged just above 40% return a year.
Carbon Monoxide, sucking the life out of idiots, 'tards, and fools since man tamed fire.

thebaldguy

  • friends
  • Senior Member
  • ***
  • Posts: 789
Re: So HOW do I invest in metals?
« Reply #16 on: December 23, 2007, 07:33:42 AM »
In my American Rifleman magazine they always have adds for gold and silver American Eagles; they are limited to first time customers only however. My American Legion magazine has the same thing. I use a credit card just in case something goes wrong; I can always get my money back if it's a ripoff. I have not had any problems with the US based coin/bullion suppliers. Make sure you have you have signature requirement on receipt to your house; I have had the post office leave coins on my doorstep even with signature requirements. Use FedEx or UPS.

You may want to avoid the older numismatic Eagle bullion coins; they will charge you double the value of the metals for a coin a few years old. Some of these dealers will call you up trying to sell you older gold/silver Eagle coins at inflated prices for their supposed rarity. I prefer to buy current coins today, and "age" or hold onto them myself for a few years; my neighbor does this with wines. Why pay someone else to store and age products for years when you can do it yourself?

Moondoggie

  • friend
  • Senior Member
  • ***
  • Posts: 523
Re: So HOW do I invest in metals?
« Reply #17 on: December 23, 2007, 10:39:34 AM »
APMEX or Ebay for me.  APMEX is a good site to check on the spot price, and they have info about PM's.

Bought several lots of silver Eagles on Ebay with nary a problem...it's just like buying anything else there.

You can also just buy silver "Rounds"...1 oz coins minted by various mfgr's simply for their silver content.  They're commonly traded, they just aren't actual currency/coinage.

Known from coast to coast, almost!

The Rabbi

  • friend
  • Senior Member
  • ***
  • Posts: 4,435
  • "Ahh, Jeez. Not this sh*t again!"
Re: So HOW do I invest in metals?
« Reply #18 on: December 23, 2007, 11:21:26 AM »
I've got a Krugerrand I'd probably sell.
Fight state-sponsored Islamic terrorism: Bomb France now!

Vote Libertarian: It Not Like It Matters Anyway.