# investing in Gold and Silver?



## dinkbuster1 (Oct 28, 2005)

i want to start investing in gold or silver or both here really soon and would like some imput from anyone who might be an expert in precious metals. for as long as i can remember i have never seen gold, or silver drop in value more than a buck or two, it has always been on the rise. figured it would be better acquiring precious metals rather than stashing extra money away somewhere seeing how the dollar keeps falling and how the stock market is lol. i recently closed out and withdrew a bunch of money out of one of my retirement accounts due to it losing a massive amount of money this year already,(a low risk account at that!), i used most of it for a down payment on a new house. i have some gold and silver already but would like to start adding more (havent bought any in years) out of each paycheck if i can afford it. my goal to get started right now is purchasing silver coins, like the American Eagle, Canadian Maple Leaf, or whatever coin from whatever country where i can get the most "bang for the buck" for the value of the silver and/or gold. would it be wise to purchase "token coins" that are much cheaper rather than standard Mint issued coins with the same silver amount? i stopped by a "coin store" today to pick up some cases for old paper money and chatted with the dealer for a few minutes on the subject, but as with any "dealer" it seemed he was just trying to convince me to buy the most expensive coins he had.


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## RareVos (Jul 29, 2007)

Always on the rise?

http://goldprice.org/30-year-gold-price-history.html


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## yonderfishin (Apr 9, 2006)

I dont know what the benefit of buying one type of coin over another would be though I am pretty sure that real legal tender coinage is more desirable that token coins. That is why my dad buys the real ones and saves them instead of life insurance, Im not sure why he does that but I guess his thinking is that with gold and silver continually rising in value then he is gonna be farther ahead. He gets real , uncirculated coins and gave my kids each one. He told them " now if you spend this it is only gonna be a dollar, but if you sold it for silver value it will be 15 to 20 dollars, if you wait until you are grown it may be a lot more". I have been told by others that real coins are more valuable than token coins with the same amount of gold/silver in them also. I dont know if this helps any but its all I know about coin value.


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## Hook N Book (Apr 7, 2004)

Not an expert by any means...But as Rarevos indicates, it is not as stable as you might think. It's high right now just like all precious metals and for sure oil futures.
If you're going to invest consult a licensed investor/broker with a little history and that knows the best return for the money. There's numerous types of investments out there, and an experienced broker can head you in the right direction.


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## Hook N Book (Apr 7, 2004)

Yonder,
He's not talking coin investments here. He's refering to the big stuff like Bullion...!


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## Hetfieldinn (May 17, 2004)

Hook N Book said:


> He's refering to the big stuff like Bullion...!



The little cubes you make soup out of?


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## boatnut (Nov 22, 2006)

I'm a little confused as to how a "low risk" stock investment could of lost "massive" amounts of money this year? so far the market overall is down what...8 to 11 %? If you think that's massive then you really shouldnt be in the market at all. The WORSE time to take money out is when it's down! if anything you should be adding to it. Leave your money in your 401k and leave the precious metal/commodity buying to the pro's.


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## Hook N Book (Apr 7, 2004)

Hetfieldinn said:


> The little cubes you make soup out of?


I really don't think investing in those little guys will make you much money.  



boatnut said:


> I'm a little confused as to how a "low risk" stock investment could of lost "massive" amounts of money this year? so far the market overall is down what...8 to 11 %? If you think that's massive then you really shouldnt be in the market at all. The WORSE time to take money out is when it's down! if anything you should be adding to it. Leave your money in your 401k and leave the precious metal/commodity buying to the pro's.


You're right, Mike. You have to be in it for the long haul. Then buy low and sell high...!


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## athensfishin' (Aug 15, 2006)

Hook N Book said:


> I really don't think investing in those little guys will make you much money.


Actually, mark this as some investing info. With rising gas and food prices, everyone needs to look for the come back of stews and soups. The days of steaks, hamburgers and such are over. Soon will come the time of bullion cubes and whatever veggies you can afford or grow. Look for stock in bullion producing companies to skyrocket. I myself have put 6k into kikoman. Also putting stock in trojan would be good advice too. With people losing jobs and gas prices rising dating is becoming a thing of the past and people are getting right to the deed.


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## seethe303 (Dec 12, 2006)

I pressure can my own soups, so I'm getting a kick out of these replies. 

home brew beer + canned soup = all I need when civilization falls.


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## Mushijobah (May 4, 2004)

athensfishin' said:


> Actually, mark this as some investing info. With rising gas and food prices, everyone needs to look for the come back of stews and soups. The days of steaks, hamburgers and such are over. Soon will come the time of bullion cubes and whatever veggies you can afford or grow. Look for stock in bullion producing companies to skyrocket. I myself have put 6k into kikoman. Also putting stock in trojan would be good advice too. With people losing jobs and gas prices rising dating is becoming a thing of the past and people are getting right to the deed.


Your posts are hilarious...whether you believe them to be truths or not..


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## Fish-N-Fool (Apr 12, 2004)

Don't you mean you put 6K in Del Monte, since they own Kikimon corporation?
I enjoy reading athenfishin posts as well. I think he has a little witty fun on-line; although it is my opinion he does believe some of what he types.

Dink - as the others have said I would be very careful with your new strategy. Not that owning a little precious metals hurts a portfolio, but to put all your eggs in that basket is shaky to say the least (you never said you were planning to do this - just pointing it out). 

My grandfather was not allowed to bring his M-1 back with him from Korea. He loved that gun like no other as it saved not only his life, but also the lives of some of his comrades. He fought in the front lines with the US Army 25th infantry. When he got back to the states (I believe it was 53) the first thing he did was order a brand new M-1 from Sears. It was delivered in the original wooden box for the price of $14. He recently sold the gun for over $1800 with original crate. 

I use this story when explaining to the wife that I am "investing" when purchasing quality firearms If she catches me talking about buying a gun she now tells me "don't buy any junk, buy top of the line"; what a great wife I have


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## athensfishin' (Aug 15, 2006)

The post was tongue in cheek I wasn't going to take the effort to look up the actually company that produces it


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## dinkbuster1 (Oct 28, 2005)

thanks for the replies so far. beleive me i am not "keeping all the eggs in one basket", should have explained myself a little better. i'd just like to collect some precious metals over time (say the next 40 years), not a major "investment" so to speak. just wondering the values of token coins vs mint, gold vs silver and so on.


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## shroomhunter (Aug 6, 2004)

dinkbuster1 said:


> i want to start investing in gold or silver or both here really soon and would like some imput from anyone who might be an expert in precious metals. for as long as i can remember i have never seen gold, or silver drop in value more than a buck or two, it has always been on the rise. figured it would be better acquiring precious metals rather than stashing extra money away somewhere seeing how the dollar keeps falling and how the stock market is lol. i recently closed out and withdrew a bunch of money out of one of my retirement accounts due to it losing a massive amount of money this year already,(a low risk account at that!), i used most of it for a down payment on a new house. i have some gold and silver already but would like to start adding more (havent bought any in years) out of each paycheck if i can afford it. my goal to get started right now is purchasing silver coins, like the American Eagle, Canadian Maple Leaf, or whatever coin from whatever country where i can get the most "bang for the buck" for the value of the silver and/or gold. would it be wise to purchase "token coins" that are much cheaper rather than standard Mint issued coins with the same silver amount? i stopped by a "coin store" today to pick up some cases for old paper money and chatted with the dealer for a few minutes on the subject, but as with any "dealer" it seemed he was just trying to convince me to buy the most expensive coins he had.


www.kitco.com They are a large resource for gold and silver bullion. I have dealt with them for a long time. Just my own opinion here but now seems a better time to sell than buy. Now is a better time to invest in collector coins as they have dropped off their highs a bit. Good luck with your investing, it is a good idea!
Also as far as gold and silver, look at the historical data gold and silver were low for a number of years before this last climb, I bought gold at $240/ounce and silver as low as $3.50/ounce. I believe it will eventually drop off from these highs but don't let my OPINION scare you off, I could be very wrong.


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## Fish-N-Fool (Apr 12, 2004)

athensfishin - I was just busting your chops - I like reading your posts so keep on posting! I only knew Del Monte owned Kikomon because I use a few kikomon products myself around the kitchen and my wife brought it to my attention in the not so distant past.


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## MLAROSA (May 20, 2004)

dinkbuster1 said:


> i want to start investing in gold or silver or both here really soon and would like some imput from anyone who might be an expert in precious metals. for as long as i can remember i have never seen gold, or silver drop in value more than a buck or two, it has always been on the rise. figured it would be better acquiring precious metals rather than stashing extra money away somewhere seeing how the dollar keeps falling and how the stock market is lol. i recently closed out and withdrew a bunch of money out of one of my retirement accounts due to it losing a massive amount of money this year already,(a low risk account at that!), i used most of it for a down payment on a new house. i have some gold and silver already but would like to start adding more (havent bought any in years) out of each paycheck if i can afford it. my goal to get started right now is purchasing silver coins, like the American Eagle, Canadian Maple Leaf, or whatever coin from whatever country where i can get the most "bang for the buck" for the value of the silver and/or gold. would it be wise to purchase "token coins" that are much cheaper rather than standard Mint issued coins with the same silver amount? i stopped by a "coin store" today to pick up some cases for old paper money and chatted with the dealer for a few minutes on the subject, but as with any "dealer" it seemed he was just trying to convince me to buy the most expensive coins he had.


Recently (in the last 6 months or so) I have become heavily invested in PM's. I highly reccommend kitco as mushroomman has said. They have a forum on their web site with alot of GREAT information. There are some wack-o's there who believe the world is ending, but generally some wise people.

Also, I think before you buy into PM's you need to set yourself goals. You need a "stop loss", and a "stop profit". Mainly it depends on your age I guess. How close you are to retirement. Me? I'm 20-25 years away, so my "stop loss" is very low, and my "stop profit" is very low too. For example the begining of Feb I bought gold at $910 and ounce and my "stop profit" was $1000. When gold hit $998 I sold, even though it went all the way to $1022 before falling back to $845ish.

Don't spend more than you can afford to loose. And decide what it is you want to invest in, 90% silve (old coins) SAE's, Gold, bars...? The list goes on forever. My personal experience is I can buy 90% silver below melt value, so I do, but I also have a few old gold coins (1850's-1860's). The down side to this is storage. A couple thousand dollars worth of face value silver halfs, quarters or dimes takes up ALOT of room.

If your in it for the short term (3-5 years) becareful, if your in it for the long term (20-30 years) buy all you can. This bubble will burst sooner or later, and there will be another one.

Check out coinflation.com for current melt value of coins.

Also look into mining stocks. I hear they are doing REALLY well right now.

And I think good money can go into realestate right now. In a couple years you could make a fortune.


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## yonderfishin (Apr 9, 2006)

Just get ya a few uncirculated gold coins and some silver and put them away, forget you have them. A lot of people have said that to be the best way for us little people to invest in precious metals. Low investment, easy maintenance easy to sell off if you need to.


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## MLAROSA (May 20, 2004)

One of the problems with that is that golds ceiling is much lower than silvers, imo.

For instance, many investors are predicting gold to hit $2,000 an ounce in the next 3-5 years. Well thats a little better than 100&#37; return. If this is the case, we should see silver in the $40-$50 (which would be around a 200% return) range to maintain the present ratio.

Currently gold is $878.50 an ounce

Silver is $16.61 an ounce

Which leaves a gold to silver ratio of 52.89. The ratio floats between 40 to 1 and 50 to 1 consistantly since we have been removed from the gold standard.

Also, historically (when our money was backed by gold and silver) our government set the ratio at 15 to 1. 15 ounces of silver got you 1 ounce of gold. This only tells me that silver, not gold, is about to explode. According to the historical ratio, the POS (price of silver) should be around $58 an ounce RIGHT NOW.

It should also be noted that Gold gets recycled in industrial use, while silver gets consumed. Thus the more gold mined, the more gold there remains above ground. Silver on the other hand gets consumed, so mining is essential to industrial use of the metal.

I willl say that having some gold coins laying around IS better than not having anything. I just personally see greater potential for silver. I also see great potential for gold, 100% return is still great!


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## fishinjim (Aug 9, 2006)

your broker must not have given you good advice. My broker has me in oil, natural gas, gold, and now uranium related companies - I've done pretty well.

I don't trade in coins, I trade in stocks, ETF's, mutual funds.


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## MLAROSA (May 20, 2004)

fishinjim said:


> your broker must not have given you good advice. My broker has me in oil, natural gas, gold, and now uranium related companies - I've done pretty well.
> 
> *I don't trade in coins, I trade in stocks, ETF's, mutual funds*.


And unfortunatley your stocks, etf's, and mutual funds can become worthless.

There is a strong arguement to be made in holding physical currency (not paper).

Although it seems like your set up pretty well right now. Your paper could become worthless any minute (take bear sterns for example).

Also, I've read recently that 95&#37; of our country's currency is nothing more than computer inputs. Digits. Make believe. If you have ever tried to cas out $10,000 from your stocks you would understand. It may take you a week to recieve the check, and another week, or two to get your hands on the paper. Sometimes even longer.

I just prefer, hard currency, that will always be worth something.

I highly doubt your broker, or anyone else's is going to tell them to invest in PM's either. For the simple fact they loose out on the commision. If you go to kitco, apmex, ebay, or even craigslist to buy your investments, your "advisor" isn't going to make any money.


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## buckeyeguy (Aug 20, 2006)

A guy from work is real into silver. I asked him about it one day and he went on and on about how it was one of the better investments that you could make. Well, I started to do a little research and found that it isn't that bad of an investment. Its cheap to get your hands on. Just go into a local coins store and ask for a couple raw uncirculated silver eagles. It should cost you about $20 a piece. There is more and more talk going on about a silver shortage. Do the research and you might be surprised with what you find out. 

I agree with MLAROSA, don't go crazy with it, just invest in what you can afford.



> your broker must not have given you good advice. My broker has me in oil, natural gas, gold, and now uranium related companies - I've done pretty well.


So does that mean you can complain about record profits of the oil companies? Check out USEC (ticker: USU) might be a good one to look into.

Hetfieldinn, I got that one! LOL


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## yonderfishin (Apr 9, 2006)

wow,...the guy just asked peoples opinion on types of coins and weve come all the way up to bullion, big investments , and trading on the stock market.


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## Master Angler (May 26, 2004)

Yonder,

You should have titled your post " sell low, buy high?". I am not going to go into great detail here but trust me, do not buy bullion coins now. Anyone hyping gold to 2000 is a charlatan. Other than really rare coins ( Sothebey's auction level) there are very very few coins that are truly "investment" grade. I have done extensive research and have collected all sorts of coins and paper money over the years and believe me when I say do not buy into the hype. If you factor out inflation and check out the 10, 20, 30, even 50 year returns on gold and silver you will see what I mean. After all of my efforts I have a nice list of 2 dozen or so investment grade coins that run from $100 to a few thousand dollars. Please note that any mint products are simply "collectables" and are in essence bullion. If you want to collect them for fun go ahead but do not think for 1 minute they are investments. If you want to build a small, fairly liquid nest egg I suggest laddering a few short term Cd's. Remember, whether it is stocks, bullion, coins, etc. the dealers are making money both ways regardless of price. The transaction costs tend to be huge so you should have a long-term time horizon. 

MA


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## MLAROSA (May 20, 2004)

yonderfishin said:


> wow,...the guy just asked peoples opinion on types of coins and weve come all the way up to bullion, big investments , and trading on the stock market.


He asked for advice in investing in Silver and Gold. What kind of responses did you expect?

Do you have anything positive to add to the thread?


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## fishinjim (Aug 9, 2006)

>>So does that mean you can complain about record profits of the oil >>companies? Check out USEC (ticker: USU) might be a good one to look >>into.


Well, I don't hold forever. I buy/sell and most of the time make a nice profit. The losses are taken care of by greater winnings. I don't complain too much of record oil company profits, but I also don't drive far to work, and get decent gas mileage in my cars.


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## yonderfishin (Apr 9, 2006)

MLAROSA said:


> He asked for advice in investing in Silver and Gold. What kind of responses did you expect?
> 
> Do you have anything positive to add to the thread?


Hmmmm,. ..dont get upset now, but he did stipulate coins and the difference between mint and token. Then in a later post he even clarified it even more and said he wasnt looking for big time investment just thinking of buying a few coins now and then over time. And I did add some positive information to the thread, since he was just talking about picking up a few coins now and then. But I was just making an observational comment, not meant to ruffle your feathers.


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## yonderfishin (Apr 9, 2006)

And the recommendation to buy coins is based solely on the gold and silver sell weight alone, for your average guy not looking into stock market or big time investment.....uncirculated gold or silver coins are what to look for. Collectible, or rareity value have nothing to do with the weight or sell value of precious metals. In other words, buying one ounce uncirculated silver coins...they can be then sold later as one ounce of silver since it has lost no weight due to wear and tear on the coin. And its also backed by the US mint as well.


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## MLAROSA (May 20, 2004)

yonderfishin said:


> Hmmmm,. ..dont get upset now, but he did stipulate coins and the difference between mint and token. Then in a later post he even clarified it even more and said he wasnt looking for big time investment just thinking of buying a few coins now and then over time. And I did add some positive information to the thread, since he was just talking about picking up a few coins now and then. But I was just making an observational comment, not meant to ruffle your feathers.


I hate to dissappoint, but I wasn't upset. I was just asking a question.

And to your second post, typically people who invest in PM's prefer to buy as much PM as they can for the least ammount of $'s. Which normally is circulated silver coins.


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## yonderfishin (Apr 9, 2006)

MLAROSA said:


> I hate to dissappoint, but I wasn't upset. I was just asking a question.
> 
> And to your second post, typically people who invest in PM's prefer to buy as much PM as they can for the least ammount of $'s. Which normally is circulated silver coins.


Yes, you are right. And I am by no means a coin expert but it would seem to me that an uncirculated coin holds a higher value for its condition and can be sold for a little more, but if it comes right down to melt value for the precious metal alone there shouldnt be much difference between the two.


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## MLAROSA (May 20, 2004)

yonderfishin said:


> Yes, you are right. And I am by no means a coin expert but it would seem to me that an uncirculated coin holds a higher value for its condition and can be sold for a little more, but if it comes right down to melt value for the precious metal alone there shouldnt be much difference between the two.


Many people who are thinking of investing in PM's or who are invested in PM's do so because they believe the economy is collasping, thus they are "investing" in hard currency, in other words, the are investing in metals that have always been worth something, gold and silver. 

There are solid arguements for investing in uncirculated coins, and solid arguements in investing in bars, circulated coins, or just misc rounds. Basically what you, as an individual choose to invest in is your prefrence.

Maybe I should have been more clear, in that I invest in circulated coins because there is no premium, infact I buy them below melt value most of the time. Where as, uncirculated coins end to have a high ($3-5 an oz for silver, and $30-50 an oune for gold) premium. I simply want the most bang for my buck, so I buy circulated coins in good shape.

Maybe when I have some more time I can give a more detailed explanation, with some dollars to weight figured in. I have a flight to catch in 20 minutes, so I'm a bit short right now. But for now, here is an example of what I mean.

If you have $1,000 to invest, buying circulated coins you might get 75 ounces of silver, where as uncirculated coins you might only get 65 ounces of silver, because of the premium.


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## ironman172 (Apr 12, 2009)

I have missed the buying of gold and silver......maybe to late....but I didn't miss the investing in jacketed lead


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## ohiojmj (Apr 16, 2004)

Booking a loss and buying another investment at near record highs? I would re-assess my tolerance for risk and adjust my investments at the appropariate time. With a 40 year horizon, there's plenty of better times to diversify into some precious metals unless the whole world is coming unglued.


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## shroomhunter (Aug 6, 2004)

Morgan and Peace silver dollars are being sold and melted down in record numbers. When this rush is over there will be fewer of these increasing their value to coin collectors. Anything 1964 and older in dimes, quarters, halves and dollars are considered silver and are becoming more rare as family coin collections are sold to gold and silver buyers. I am not a "pro" by any means but as I come accross these coins at flea markets, auctions, etc. I am picking them up if the price is right. 

"THEY" say that silver is going to hit $40 an ounce, I think "THEY" are the ones selling it.
I agree with the old Indian in The Outlaw Josey Wales when he said to the carpetbagger
"You drink it" referring to the bottle of cure all he was selling. 
There's nothing like cash in a mason jar well hidden in the basement, barn or buried in the yard, dig it up before you become forgetful!!
Only time will tell....good luck with your investing.


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## dinkbuster1 (Oct 28, 2005)

well, first off i never intended to get rich quick, or even make gold or silver an investment to rely on at all. just wanted to build up a "Stash" that i would keep adding to as time goes on "just in case" and something to keep in the family and pass on. all my research shows the gold, or silver over the years has went up and down but in the long run has always went UP in value. i really have no confidence in the future of our dollar and it could crash and become worthless at any time. anyone remember the Germans hauling wheel barrels full of their money to buy a loaf of bread? 

BTW, bought around $8000 worth of Gold not long after i started this thread at $950 an ounce. 

last i heard its around $1200 an ounce and may reach $1300 before years end.


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## fallen513 (Jan 5, 2010)

Nice.




Guns, gold & silver. I got lots of 'em. Lots of it. Get some if you can, tangible value is hard to come by.


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## JamesT (Jul 22, 2005)

For the first time in my life(and its something I'm well aware of, I have a nice coin collection), I received a silver quarter for change today. 1960. Steak n' Shake. It sounded different when he handed my change to me. Then I noticed it looked different. It is in excellent condition. . Once my friend got a 1964 quarter and once in elementary school I remember someone getting a buffalo nickel for change. Yeah Baby!


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## fallen513 (Jan 5, 2010)

Wait 'til gold hits $600, then buy.


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## Nikster (Mar 14, 2007)

Back in 72 or 73 I had the opportunity to buy gold at the going rate & a bit below market value. I don't even remember what I paid for these bars?

To make for an interesting read here's a short story;

A neighborhood tailor shop always dabbled in jewelry. He bought up a lot & sold a lot. He wpould buy like gold teeth & other gold items, with the pieces he didn't sell he forged his own gold bars. When retiring he sold off his bars to neighborhood people that he trusted & moved to Arizona.

Every-one in the neighboorhood respected this guy for his honesty & wisdom. Just a real "SHARP' educated man. There wasn't anything this guy didn't know about. Highly educated from Europe but loved his tailoring shop. A neighborhood bookie also. 

Every now & then it feels real good to handle gold bars in my grubby paws. I'm real tempted to start selling these bars at the way prices are going. I keep waiting & waiting. I think i'm going to give it a few more months??????? 

Nik,


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## MLAROSA (May 20, 2004)

Nikster said:


> Every now & then it feels real good to handle gold bars in my grubby paws. I'm real tempted to start selling these bars at the way prices are going. I keep waiting & waiting. I think i'm going to give it a few more months???????
> 
> Nik,


You should understand why metal prices have risen in the past few years. Once you understand the fundamentals of what controls metal prices it will be easy to tell when to sell.


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## shroomhunter (Aug 6, 2004)

mushroomman said:


> Morgan and Peace silver dollars are being sold and melted down in record numbers. When this rush is over there will be fewer of these increasing their value to coin collectors. Anything 1964 and older in dimes, quarters, halves and dollars are considered silver and are becoming more rare as family coin collections are sold to gold and silver buyers. I am not a "pro" by any means but as I come accross these coins at flea markets, auctions, etc. I am picking them up if the price is right.
> 
> "THEY" say that silver is going to hit $40 an ounce, I think "THEY" are the ones selling it.
> I agree with the old Indian in The Outlaw Josey Wales when he said to the carpetbagger
> ...


It did hit $40+ this week, glad I bought more when I did, now let's see how high it does go.


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## dinkbuster1 (Oct 28, 2005)

Gold approaching $1600 per oz....Silver approaching ($49 couple days ago) $50 per oz! 

http://www.kitco.com/charts/livesilver.html

i cashed in some 20yr savings bonds about 10 months ago which were doing poorly and took the money and bought Silver at $26 an oz. 

if silver hits $52 an ounce i will have made the same in 10 months as waiting 16 more years for those bonds to mature. 

if it gets to that point, more likely closer to $60 i will be very tempted to cash in my Silver.


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## Orlando (Apr 12, 2004)

My invest in ammo


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## LadyFisher (Apr 19, 2011)

Years ago, I began investing in and collecting loose gemstones. It was a good idea at the time, but when the Recession (sp?? LOL) happened and after, I think they are a moot point. They were worth something once upon a time, but the market has really gone down. I have several diamonds, tanzanite(which is fairly rare and pricey, as its only found in one place in the world) and many others. I give them as gifts, and have jewlery made, and sometimes give THAT as gifts. 

I would love to invest in gold right now, with the prices... but my luck, it would be like another gemstone venture in a few years. LOL


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## MLAROSA (May 20, 2004)

There is an old saying in the metal market.

"Sell in May and go away".

If you are looking to get in on metals, watch the prices over the next month or so and if you see a dip buy then. We are long over due for a big correction.

Personally I have a real hard time buying any metals at the "record prices".


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## boatnut (Nov 22, 2006)

MLAROSA said:


> There is an old saying in the metal market.
> 
> "Sell in May and go away".
> 
> ...


I just finished reading "investing in Gold and Silver" by Michael Maloney. Very educational read about the history of money/currency. He does not recommend investing in "numismatics" or collectible coins due to dealer premiums and market conditions. Do you concur? I would think their would be a huge learning curve to understand circulated coins vs newly minted silver or gold coins.


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## MLAROSA (May 20, 2004)

boatnut said:


> I just finished reading "investing in Gold and Silver" by Michael Maloney. Very educational read about the history of money/currency. He does not recommend investing in "numismatics" or collectible coins due to dealer premiums and market conditions. Do you concur?


Personally yes I agree with him, but for only one reason, my wife says I already have enough vices. 

Coin collecting or investing in numismatics are much like "collecting" anything else - baseball cards, art, autographs etc. Numismatics are valuable usually due to low mintage or mint errors. Their prices generally fluctuate with the economy, much like other collectibility. When people are having a difficult time filling their gas tank up, paying the mortgage or putting food on the table the "collectables" usually go down in price. When people have a lot of extra cash laying around, prices usually go up. Simple supply and demand.

Now, actually may be a good time to pick up a few older rare coins. Might be able to get them for a deal. As always do your own due diligence.

My only goal numismatic wise was to pick up every $1 coin that has ever been produced by the US mint. I thought it would be something neat to show the kids one day. I have almost completed my "set" but a couple of the older coins can go or several thousand dollars. I do have a couple "old gold" pieces including one $10 piece dated 1861, first year of civil war.

My older coins I keep mainly for the uniqueness. I use an 1881 morgan silver dollar for a ball marker on the golf course. It gets people talking. I figure, that coin was 100 years old the day I was born, it has seen much worse then my golf swing. lol 



boatnut said:


> I would think their would be a huge learning curve to understand circulated coins vs newly minted silver or gold coins.


Circulated coins and newly minted coins are not all that different, price wise. For example, you can usually find rolls of 90% (pre 1964) dimes, quarters or halfs for melt value or close to it. The same applies to newly minted .999 silver and gold "coins".

The learning curve comes in the grading of numismatic. For example a 1909 vdb penny can be worth as little as $10 or several thousand dollars depending on condition. Lots of coins with specific mint marks can be worth hundreds or thousand of dollars, depending on condition.

When we purchased our metal, I generally bought as close to spot price as I could, thus I ended up with alot of bars and 90% coins. I did dable a little bit in government issued rounds, but the premium can be steep on them sometimes upwards of $5 per coin for silver and $50+ (I've seen as high as $150) for gold. You can usually get the premium back when you sell, but personally I wanted all the metal I could get for my dollar so I went with bars. I find I get attached to coins a bit to easy as well, so when the time comes, bars will be much easier to sell.


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## boatnut (Nov 22, 2006)

SELL SELL SELL..or is it BUY BUY BUY????

http://www.marketwatch.com/story/silver-price-dives-gold-down-too-2011-05-01?siteid=YAHOOB


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## MLAROSA (May 20, 2004)

boatnut said:


> SELL SELL SELL..or is it BUY BUY BUY????
> 
> http://www.marketwatch.com/story/silver-price-dives-gold-down-too-2011-05-01?siteid=YAHOOB


Like I said previously, there is an old saying in the PM market "Sell in May and go away".

Personally? I haven't purchased any since the mid teens. I feel comfortable with our position right now an probably will not be adding any more, for a long while.

But.....I'm not selling either.


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## Bucket Mouth (Aug 13, 2007)

boatnut said:


> I just finished reading "investing in Gold and Silver" by Michael Maloney. Very educational read about the history of money/currency. He does not recommend investing in "numismatics" or collectible coins due to dealer premiums and market conditions. Do you concur? I would think their would be a huge learning curve to understand circulated coins vs newly minted silver or gold coins.


That is a good book. Puts things in perspective - and you're right - don't buy numismatic. If you melted numismatic, they still have the same melt value as everything else. Coin dealers will want to sell you those, but I wouldn't mess with it.


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## dinkbuster1 (Oct 28, 2005)

when i bought the silver i bought .999 silver bars and coins. the coins were Silver Eagles but oddball sizes like 2 and 8oz and bought them at "Spot" prices plus tax. if i were to buy one of the common sizes, like 1oz i would have had to pay i think $3 over spot. 

it pays to call/shop around, its amazing how much the prices vary from shop to shop. the place i go to has the best deals in town on gold and silver.


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## Bucket Mouth (Aug 13, 2007)

dinkbuster1 said:


> when i bought the silver i bought .999 silver bars and coins. the coins were Silver Eagles but oddball sizes like 2 and 8oz and bought them at "Spot" prices plus tax.


They didn't charge you a premium? PM me the store name.

If you buy in Michigan, there is no sales tax (attn. N.W. Ohio guys).


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## ironman172 (Apr 12, 2009)

Orlando said:


> My invest in ammo


for a GOOD investment...... I would go this route


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## MLAROSA (May 20, 2004)

dinkbuster1 said:


> when i bought the silver i bought .999 silver bars and coins. the coins were Silver Eagles but oddball sizes like 2 and 8oz and bought them at "Spot" prices plus tax. if i were to buy one of the common sizes, like 1oz i would have had to pay i think $3 over spot.
> 
> it pays to call/shop around, its amazing how much the prices vary from shop to shop. the place i go to has the best deals in town on gold and silver.


The difference between the 2 ounce, 8 ounce and 1 ounce silver eagles is who minted them. The US mint only mints 1 ounce eagles, the 2 ounce and 8 ounce ones you have were minted by someone other then the US mint.

Some people feel more secure in their investment by purchasing metals that were minted by governments. They feel that there is a lesser chance of forgery as long as the metals are government backed. In the event you ever needed your metal for barter, you would have an easier time negotiating with metals that were backed by a government rather then a 'generic' round.

Also government coins typically have a limited mintage. Sometimes that limited mintage is in the millions, but the number is still known. Most private companies that produce coins do not tell their mintage numbers. So there is a collectability factor that goes in to government issued coins. 

These two reasons result in a premium for government issued coins.

FWIW - I'm closing in on 10,000 rounds of lead too. I'm pretty heavily invested in that aspect of the metal market too.


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## catfishnut (Dec 23, 2010)

I've been buying silver bars since about 1998, I waited till I could buy 1000oz bars. The first two I bought were $4990 each, now I have 5 1000oz bars the highest I paid was $5360 per bar. I also have 5, 10 and 100oz bars that I've bought from buddies that needed some cash. As of now I'm holding 6730 oz of silver. I use to have 1000oz bars painted brick red and used them as bases for some planters in the house.LOL Now they are tucked away in a safety deposit box!!! At the current prices I'll just sit back and wait........... The time for buying large bars has passed as far as I'm concerned. When I was buying silver at 4.90-5.40 an oz most of my friends and family thought I was nuts........how nutty am I now?


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## MLAROSA (May 20, 2004)

You must have a huge safe deposit box!

I'd never keep my metal in a bank either, but to each his own.


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## catfishnut (Dec 23, 2010)

MLAROSA said:


> You must have a huge safe deposit box!
> 
> I'd never keep my metal in a bank either, but to each his own.


Sorry my mistake, it's actually a safe box(I always call it a safety deposit box).....and that's parked in a gun safe(not mine) I keep some on hand at home.I too would never think of putting my silver in the bank!!! I won't want to get locked out of my bank should they get in trouble........I just don't trust banks!


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## boatnut (Nov 22, 2006)

Saw this on another site and thought i'd pass it on to you gold bugs. Not sure what, if any implications it will have on the price.


Mexican central bank buys 100 tonnes of gold 
By Jack Farchy in London 
Published: May 4 2011 11:35 | Last updated: May 4 2011 20:37
Mexico has quietly purchased nearly 100 tonnes of gold bullion, as central banks embark on their biggest bullion buying spree in 40 years.
The purchase, reported in monthly data published by Mexicos central bank, is the latest in a series of large gold buys by emerging market economies intent on diversifying reserves away from the faltering US dollar.
China, Russia and India have acquired large amounts of gold in recent years, while Thailand, Sri Lanka and Bolivia have made smaller purchases.
Central banks became net buyers of gold last year after two decades of heavy selling  a reversal that has helped propel the price of bullion to a series of record highs. On Wednesday gold was trading at about $1,510 a troy ounce, down 4 per cent from a nominal record high of $1,575.79 reached on Monday.
As a result of Mexicos purchase, central banks, sovereign wealth funds and other so-called official sector buyers are on track to record their largest collective purchase of gold since the collapse of the Bretton Woods system, which pegged the value of the dollar to gold, in 1971.


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## dre (Aug 14, 2009)

My cousin is a broker for investment in Gold and Silver. If anyone needs any info or is interesting in jumping on board and getting in on this investment, let me know by PM!


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## MLAROSA (May 20, 2004)

Silver has been hammered in the last week. Down $13 (27%) this past week alone. 

If you was looking to get in, now might be a good time, but the drop may continue down to the high $20's too.


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## RiparianRanger (Nov 18, 2015)

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## Snakecharmer (Apr 9, 2008)

RiparianRanger said:


> Interesting that gold has outperformed all other asset classes since the Fed raised rates this past December. It looks like the global upturn in the economy is causing capital outflows from the US and the greenback is falling as a result. Another consequence of the global growth story is palladium, which has industrial application, now commands a higher price than platinum.
> 
> http://stockcharts.com/h-sc/ui?s=$PLAT:$PALL&p=D&yr=5&mn=0&dy=0&id=p26075593491
> 
> ...


Gold still has a ways to go to get back to the $1600 it was in 2011.


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## Dovans (Nov 15, 2011)

Been using www.jmbullion.com


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