|
1oz, 1/10th oz or junk?
I am farily new to GIM and to PM's in general but the advice i've found on this site is priceless and it was the biggest contributing factor into my decision to finaly pull the trigger and start buying.
However, I am on a rather limited spending budget. My wife and I see this as an investment for the long term and so we have come to terms with spending money on it as opposed to putting that in savings or cd's, stocks etc. The problem is that I really only get to spend about 100 to 120 bucks a month of Pm's and I am at a crossroads. I have just 1 1/10 ounce of gold(and i freakin love it!), a couple tubes of 1 oz silver, mostly eagles and prospectors and a few rolls of dimes. So if I buy into one of those options a month, I have to ommit the others, i.e. I buy a roll of dimes, i can only get a couple oz's of silver, or if i buy a 1/10th oz of gold, that all i can really afford for that month. The question is: While i know diversifying is best and I try, which would should I look to putting more of the money into. I want more gold because my plan is eventualy move from silver to gold when we have the funds, but right now i can buy more silver ozs at a time then i can gold. Same with the dimes and other 90% since i usualy dont buy a whole roll at a time. Simply put, Im stuck, im not sure which area i should focus the majority of the funds to and which areas will be less invested into. The goal, like everyone i guess, is to obtain as much PM's as possible before its too late. What are you alls opinions...fractional gold, 90%, silver oz, or just keep the same course? |
Re: 1oz, 1/10th oz or junk?
Put your desires in a priority list and put that list on a monthly rotation.
|
Re: 1oz, 1/10th oz or junk?
So I'm new to this too Heimdhal, and right now I am buying mostly 90% silver. I'm in the same boat as you having a small amount I devote to PMs each month. I plan on trading up to gold in the future when my stash gets unwieldy in size.
One reason for doing this is that you end up paying quite a premium for small fractional gold when compared to buying larger gold coins, or larger quantities, and I can generally get 90% at spot. |
Re: 1oz, 1/10th oz or junk?
Quote:
Also, generaly speaking, if you go to sell, you get your premiums back anyways :applause_ |
Re: 1oz, 1/10th oz or junk?
Just taking a quick sample from Apmex...
A: 1 oz random year gold eagle - 925.75 B: 1/10 oz random year gold eagle - 98.01 Premium over spot for option A: 43.75 Premium over spot for option B: 98 Could you get around this by shopping around? I guess you might be able to. This is just the trend I've seen. Personally I'd like to save the ~$45 but I can see how it may not matter to you in the long run. And you're right, when it's time to sell, you'll probably get the premium back. I can't speak to how much premiums change :). |
Re: 1oz, 1/10th oz or junk?
i buy mostly at local cash and carry shows. I was going to get a 1/10 eagle this past sunday at one(but caved on 4 maples, one with dual year and privy mark and a roll of dimes). One of the more honest and trusted dealers there had them, except the 08's for 93 i believe. 1/10oz krugs he had for something like 90 or 91 i believe as well. And what was spot, like 890.
So yeah, if you shop around you can certainly find a good deals. And its not even really shopping around, you go to the guy and he gives you a price, you like it you buy it, if not, take a 1 foot step left and go to the next one :P Premiums do apparently change, though I dont know how much. |
Re: 1oz, 1/10th oz or junk?
Right now with gold at $881 and silver at $16.78 the ratio is at 52.5. A couple monthes ago it was moving down and down- what did it get too? 47.something or did it hit into 46? Anyways with the ratio being higher I would accumulate silver and if it gets down around 40 trade the silver for gold, you will make out "how should I say?" More better. haha :applause_
HH Mark |
Re: 1oz, 1/10th oz or junk?
buy silver every month.......keep an eye on the GSR....when it favors swapping some silver for gold do so....to much of a markup on the 1/10's
|
Re: 1oz, 1/10th oz or junk?
Continue to accquire silver only....... spread it out over multipe forms.....
Gold is going to have a nice run in a few weeks.......but with the volitilty (45 dollars price swings in 2 days) You can really by default find yourself trying to price the market and TIME IS NOT ON YOUR SIDE. Silver is very boring I will be the first to admit and it takes STRONG HANDS to invest in while gold is doing flips every other day .........silver just lies like a sleeping dog. Dont worry. your top priority is to accumulate volume.... and there is nothing else that will give you more volume than silver period end of story. Think of it this way..... Every mercury dime you get is a bargining chip when the explosion to up side comes....see in your mind eye the day when one of those dimes will sell for 10 bucks each Its coming...... stay with silver for now. T |
Re: 1oz, 1/10th oz or junk?
Silver is the better bet long term I think.
|
Re: 1oz, 1/10th oz or junk?
oh yeah........
For the love of saints...... dont talk about the logistics or the amount of your stash........ EVER......... that is your business and your business alone. From now on when you talk just say: we have a very small stash by our standards that's it anybody presses you for more information you threaten to throw a bowl of hot grits on there @$$ for being nosy. Bottom line: we are living in times were we have to be beyond cautious. T |
Re: 1oz, 1/10th oz or junk?
Matter of fact cut and paste to the fridge.......any questions I would be more than happy to answer.
Ten Commandments For Buying Gold & Silver: I. ALWAYS TAKE DELIVERY! NEVER let the firm store it for you! Do not place them in a safety deposit box. They can be frozen pending litigation or national emergency. II. Never buy premium if you can avoid it. (Hint:) Most precious metals being sold on TV or Radio are at premium or much higher. III. Buy bullion for business, numismatics for fun. IV. Buy silver first, then gold. You get more for your money with silver and the reasons are the same. V. Buy small gold first, then large. It is always wise to hold multiple denominations and forms. VI. Never buy exotic coins or modern rarities or ANYTHING YOU DO NOT UNDERSTAND. When it comes time to sell, it is very likely you will not get the price you paid. Remember that Rarity and thus value is in the eye of the buyer not the seller. VII. Know your dealer. This relationship will be invaluable as time goes on.( It is wise that you form several independent of each other). A true dealer will take time to educate you and answer All your relevant questions without putting a hammerlock on you to buy something. VIII. What governments can't find, they can't steal, nor tax And lawyers can't sue thus the ULTIMATE in asset protection. IX. NEVER talk to anyone about where you store your physical metals or the amount you actually own, Loose lips sinks ships. X. There is no need to ever break the law. Because the laws on the books will ALWAYS Favor those who are rich because it is them write the law in the first place. XI Always do your own independent due diligence. If a deal is sound it will remain sound until after you research it. TRUST, BUT VERIFY ALWAYS. |
Re: 1oz, 1/10th oz or junk?
Quote:
If your final goal is to convert your holdings over to gold then I would recommend that you just stick to buying gold. More often than not, when you sell something in order to purchase something different you will be taking a loss. If you can be happy with just buying silver and not converting it then I might suggest that silver would be fine for you. |
Re: 1oz, 1/10th oz or junk?
Wise choice to buy PMs. If you think about it, all you are really doing is save money. But your saving real money instead of paper money. I don't mean to digress here, but while ironing a shirt for work this morning, the news program ran a piece about a guy who got a metal detector for his birthday and got a strong signal. He proceeded to raze the barn and what did he find? A steel box with about $1700 in depression era FRNs. (Please play the trombone muffler here "wah-wah.) If only he had found 1700 silver dollars in that box.
But that is the point. If all your getting back is more FRNs, then it would be a lousy way to save money. Oh, and the FED will replace those bills at face value. It isn't like they have to go to any trouble. As far as your question is concerned, I say this: follow the advice of Franklin Sanders (It is worth it to read his story) and buy silver first, then gold. By small gold first, then big gold. Tuesday June 3 The Ten Commandments of Gold & Silver Buying ( If you only read one thing, then make it this page . ) Ten Commandments For Buying Gold & Silver : I. Always take delivery II. Never buy premium if you can avoid it. III. Buy bullion for business, numismatics for fun. IV. Buy silver first, then gold. V. Buy small gold first, then large. VI. Never buy exotic coins or modern rarities or anything you don't understand. VII. Know your dealer. VIII. What governments can't find, they can't steal. IX. Never swap bullion coins for U.S. $20 gold pieces. X. Never break the law. And: If you have $5,000 or less to spend put half in US 90% silver coin, and half in British Sovereigns, French 20 Francs, or 1/4 oz. American Eagles. (All references to �ounces� below mean troy ounces of 480 grains or 31.1034 grams). More in the link. http://the-moneychanger.com/commandments.phtml |
Re: 1oz, 1/10th oz or junk?
With a budget of $120/month, I'd buy a roll of Mercs and put the rest into quality 1 oz .999 rounds, from an established minter (Englehard, Sunshine Mint, etc). Maybe throw in a couple of SAEs or Maple Leaves, if you can get a good price. This is a case where diversity is actually good!
|
Re: 1oz, 1/10th oz or junk?
You should purchase junk silver every month. I have a dealer who sells me junk silver for spot, and he always has plenty. I have to agree with TA, every mercury dime you have is a potential bargaining chip. Also, look for the older style silver, i.e. mercury dimes, franklin or walking halves. Should the time ever come and you need to barter your silver away, you'll have an easier time convincing people of it's authenticity if it looks old, not like the silver roosevelt dimes or silver washington quarters which have the same design as their modern clad counterparts.
|
Re: 1oz, 1/10th oz or junk?
Quote:
Sounds like a plan to me!! T |
Also from the money changer,
Moneychanger, why do you recommend gold coins like Krugerrands, Austrian 100 Coronaes, and Mexican 50 Pesos, and what are they?
We recommend these foreign coins because they cost less per ounce and give you more gold for your money than the American Eagle gold coin series. All of these coins are well known in the industry and any dealer will readily buy them. The 22 karat South African Krugerrand gold coin contains exactly one troy ounce of fine (pure) gold. The American Eagle copied the Krugerrand’s specifications, and is minted to exactly the same weight and fineness. The Austrian 100 Coronae is an official re-strike from the Austrian mint. It is 20 karat (90% pure) and contains exactly 0.9802 troy ounce fine gold. The Mexican 50 Peso is an official re-strike from the 400-year old Mexico City mint. A 20 karat coin, it contains exactly 1.2057 troy ounce of fine gold. These three coins take turns as the cheapest coin on our price sheet. Why do you recommend older-issue, foreign fractional gold coins instead of modern issues or American Eagle fractionals? Modern issues like American Eagles, Maple Leaves, Philharmonics, and Nuggets include half, quarter, and tenth ounce coins: the smaller the coin, the higher the cost per ounce. With the smallest coins, premiums over the gold content approach 15%. That makes no economic sense because gold is gold. British sovereigns (containing 0.2354 troy ounce fine gold), French 20 francs (0.1867 oz.), Swiss 20 francs (0.1867 oz.), German 20 marks (0.2304 oz.), Netherlands 10 guilders (0.1947 oz.), the whole series of Mexican peso coins, and a number of other gold coins offer lower cost per ounce and good liquidity. Not recommended are gold coins so infrequently seen in this country that you will suffer a big discount when you sell them, such as Iranian Pahlavis (0.2354 oz.) or Saudi guineas (0.2354 oz.). If you can’t sell them, they’re not a bargain." I buy Mexican peso gold coins, 2, 2.5, 5, 10 peso coins are small gold coins. These are all based on the 50 Peso coin 1.2057 troy ounces.:applause_ Currently a 5 Peso coin is .1205 AGW and about $106." |
Re: 1oz, 1/10th oz or junk?
Quote:
Quote:
Ag man- Thats pretty much what i've been doing, and didnt know if i should make the slow push into gold or not. After I got my hands on that first 1/10 oz gold krug, i was just fascinated, but thats how i felt about my first silver too! Madfranks-thank you for the advice. I have about 60% roosevelts and 40% in Mercs cause I never realy saw a difference, 90% is 90% right? Guess I was wrong. I personaly, due to many factors, dont believe that a true barter system for silver/gold for goods is going to happen, even when the shtf depression comes. Too many sheeple would look at you liek "thats just a f****ing dime ya dork!" and it would get real old to sit there and explain for an hour its value every time you wanted a pack of rice. Also, you can bet they'd start talkin real damn fast. But then again, ya never know and its always good to be prepared. thank you to the others(who i didnt quote) especialy TA, ive always headed your advice(with hollow points!) Mind you though, i never did say exactly how many ounces i had, just that i had less than most and its growing. I feel safe enough with mentioning small purchases, but again, notice my avatar...im one of them there former govt pigs, i could be lying, they told me how :smokin::wink: But thank you any who. Any other advice is welcome! |
Re: 1oz, 1/10th oz or junk?
You are in a similiarr boat as I am. I am also buying for retirement. So here's what I do, and it does vary...
Basicaly if there is a coin show near you goto it once a month. Save the 100-120 a week. Then lets say at the end of the month(whenever the show is) you go with lets say 440... Buy a quarter oz of gold - maples or Krugs...less premium... Then buy the difference in silver... or each week take the 100 or 120 and buy fractional 10th ounce, or pesos dos or dosy cinco pesos (2 or 2.5 pesos) then buy some 90% and/or some rounds. 3rd senario....once week buy as much gold as posible or as much silver as possible...check prices and see what's up or down.... granted fractional gold is higher premium, but you know what....the 1/10 ounces I bought 4-5 years ago are worth double..... buy it all...at least you will have it, You said you have 100-120- a week for pms....so to save the premium you have to save 9 months (at current prices) to buy an ounce...and most will agree it will be longer than that cause next year it will be up even more.... |
Re: 1oz, 1/10th oz or junk?
buy silver to gold in ratio of 50 to 1. Silver first after you get 50 ounces buy an ounce of gold. KEEP doing it like the patience of the CHINESE!
Soon you'll have quite a stash - RULE ONE: H E L D - CLOSE and DEAR and VERY QUIETLY! |
Re: 1oz, 1/10th oz or junk?
Quote:
|
Re: 1oz, 1/10th oz or junk?
1 Attachment(s)
IMO get yourself 50-100 oz of silver first, then start to work on the gold.
After you have the silver, have a look at Austrian Ducats. You'd be able to add one a month to your stash at current prices... |
Re: 1oz, 1/10th oz or junk?
Based on some research I have done, I believe the optimal size is 1/4 oz for Gold and 1/10 ounce for Platinum. I believe this is optimal because these sizes hover around the $250 mark and are much easier to sell. You also don't need to save as much money to buy them.
Don't get fixated on the $250 amount I mentioned. Figure out what that amount is worth in other currencies or what it is worth in real goods. This way you can track what the optimal level will be in future times. |
Re: 1oz, 1/10th oz or junk?
Quote:
My point of view is this: If for what ever reason, I, or any of us, need to leave the U.S. and are able to get out, by that time the dollar will be SO devalued that taking 100k in american money to another country will get you a few 100 bucks worth of their currency(maybe a couple thousand). Now, having a 100k in PM's and going to said country, youll have the equal value of that in their currency or basicaly no loss(or major loss). This is all hypothetical, but i like to cover ever area, even not so likley ones. |
Re: 1oz, 1/10th oz or junk?
sorry then do it every month...also if you have to goto the ATM for whatever, say you have to take out 100.00 stash ten, this will add up. Also don't spend your coins, spend dollars then at the end of the day put the coins in a jar/container this change will add up then you can go and buy silver
|
Re: 1oz, 1/10th oz or junk?
Quote:
I save them now also because i search every last one for 90 and 40%. I got two 90% quarters in one day a few weeks back, so it pays off. 50 cents of change, 6 bucks of silver, cant beat that! |
Re: 1oz, 1/10th oz or junk?
Quote:
Amen....... With hollowpoints:D T |
Re: 1oz, 1/10th oz or junk?
What do you guys think of these fractional gold coins?
Netherlands 1928 1 Ducat Gold Brilliant Uncirculated KM#83.1 Contains .1106 oz of pure gold! - Only $5.00 over melt value! More Quantity: Add 1 to Cart Sell Price: $102.53 Item #: 14246 Availability: Available Colombia 5 Pesos Gold Almost Uncirculated or Better KM#201.1 Contains .2355 oz of pure gold! Dates of our choice. More Quantity: Add 1 to Cart Sell Price: $212.66 Item #: 28464 Availability: Available Colombia 5 Pesos Gold Extra Fine KM#201.1 Contains .2355 oz of pure gold! Only $5.00 over melt! More Quantity: Add 1 to Cart Sell Price: $210.65 Item #: 28467 Availability: Available |
Re: 1oz, 1/10th oz or junk?
Quote:
1-- pay down your credit card debt first 2-- maximize your retirement contributions second 3-- have a home mortgage and deduct the interest 4-- save if you are adding PMs, to that, I would say, the hierarchy is the same but cut in some MONTHLY DOLLAR COST AVERAGING of PMs. Find the coin shop in your area with the lowest markup for junk silver coins, rounds, and raw gold. Stop by every paycheck and only spend your fixed amount. Dont worry about the ups and downs of price. Dont invest more than you can afford to stash and resolve not to sell unless the S really I mean REALLY hits the fan. In my mind PMs are not for investment or speculation but essentially insurance against hyperinflation and severe dollar collapse even worse than what we've seen. I am a net buyer all the past 2 years even at the higher levels. I have probably gone too heavy on gold vs silver. If I were to start over I might go 50-50. ------------------------------------------ a lot of people here think I am crazy because I participate in IRAs and stuff like that and have a SDB. You have to weight the risks though not just of collapse but lost opportunities even if there isnt any collapse. |
| All times are GMT -4. The time now is 04:30 PM. |
Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2010, Jelsoft Enterprises Ltd.
Copyright = None use it and Link to GIM