Gold & Silver Forum - A Long Story for whom ever wants to read it!

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- - A Long Story for whom ever wants to read it! (http://goldismoney.info/forums/showthread.php?t=172967)

A Long Story for whom ever wants to read it!

I have been a reader for the past couple of weeks and need help and would like some opinons!

I am an avid vintage watch collecter (since about a year ago) and went to estate sales, garage sales, coin shops, anitques stores etc. looking for watches. I have always seen silver and gold at these places cheap but ignored them focusing on watches. (ex. face value for walking liberties and .75 cents for 14k gold necklace)

One time I picked up a .25 cent 14k bracelet and that was the start of it. It took me 6 months to realise that $2 a gram for 14k jewelry and .15 cents for a gram of .925 was a bad deal selling them to a bullion dealer and now use a refiner for such things. I figured that this stuff is not investment grade or good when TSHTF(learned that here) situations.Am I correct?

After reading your guys posts I went and bought silver went it hit $11 a while back. My dealer had it clocked at $11.50 an oz and I bought 1 10oz. old pour engelhard at $12.50 an oz., 1 circulated silver maple for $12.50, and one silver eagle circulated for $13.50. Also he sells 90% U.S. junk silver coins (halves,quarters,dimes... doesnt matter, he lets you pick any kind you want) at melt ($.90 a silver dime, etc.) So I got a couple of those too.

Am I heading down the right road? Was I taken at the deals above? Should I buy all of his 90% junk inventory?

Thanks for reading and your consideration!!!

Re: A Long Story for whom ever wants to read it!

Quote:

Originally Posted by Robarons (Post 721508)

:wavey: Welcome to GIM Robarons! Here is a paragraph from Frugal's that might interest you:

Quote:

GOLD!!

Someone hit me in the head please because I messed up about the gold issue.
Everyone wants to buy gold! “I buy gold. Pay cash” signs are everywhere, even on TV! I can’t believe I’m that silly! I just didn’t relate it to what I read here because they deal with junk gold, like jewelry, either stolen or sold because they needed the money, not the gold coins that you guys talk about. No one pays for the true value of the stuff, so big WARNING! Sign on people that are buying gold coins. Since it is impossible to determine the true mineral percentage of gold, small shops and dealers will pay for it as regular jewelry gold. What I would do if I were you: Besides gold coins, buy a lot of small gold rings and other jewelry. They should be less expensive than gold coins, and if the SHTF bad, you’ll not be loosing money, selling premium quality gold coins for the price of junk gold. If I could travel back in time, I’d buy a small bag worth of gold rings.
Small time thieves will snatch gold chains right out of your neck and sell them at these small dealers found everywhere. This is VERY common at train stations, subways and other crowded areas.

So, my advice, if you are preparing for a small economical crisis, gold coins make sense. You will keep the value of the stuff and be able to sell it for its actual cost to gold dealers or maybe other survivalists that know the true value of the item. In my case, gold coins would have been an excellent investment, saving me from loosing money when the local economy crashed. Even though things are bad, I can go to a bank down town and get paid for what a gold coin is truly worth, same goes for pure silver. But where I live, in my local are small time dealers will only pay you the value of junk gold, no matter what kind of gold you have. So, I’d have to say that if TSHTF bad, gold jewelry is a better trade item than gold coins. Forgive me for not talking about this before, but I didn’t realize this until today, when I visited my local market warehouse and saw a “Buy Gold” sign.

Feel free to tell us more about your ideas and questions. GIM has a lot of Members happy to offer their opinions. Because of the Labor Day Weekend they might be a little slow in responding.

Here is one interesting old thread: http://goldismoney.info/forums/showt...t=Gold+Jewelry

Again...welcome to GIM!

Re: A Long Story for whom ever wants to read it!

Quote:

Originally Posted by Robarons (Post 721508)

After reading your guys posts I went and bought silver went it hit $11 a while back. My dealer had it clocked at $11.50 an oz and I bought 1 10oz. old pour engelhard at $12.50 an oz., 1 circulated silver maple for $12.50, and one silver eagle circulated for $13.50. Also he sells 90% U.S. junk silver coins (halves,quarters,dimes... doesnt matter, he lets you pick any kind you want) at melt ($.90 a silver dime, etc.) So I got a couple of those too.

Am I heading down the right road? Was I taken at the deals above? Should I buy all of his 90% junk inventory?

Thanks for reading and your consideration!!!

Greetings, and Welcome to GIM!
With silver at $12 per ounce, the 0.72+ ounce of silver in an uncirculated collection of dimes, quarters, and halves totaling $1 face would be worth $8.65. Since the coins the dealer sells are circulated (so they have some wear and weigh a percent or two less), the silver value of $1 face of those coins would be a little lower depending on the amount of wear. If you are spending only a few dollars in each purchase, then buying some of the silver coins from that dealer would not cost much more than fair value for the silver. If you want to buy $100 face or more, then you could save a little money by buying from a larger dealer like APMEX. Either way, you will be very happy to have whatever you bought at $12 silver when silver costs more than $20! Just make sure that you have a safe place to keep the "collection", and try not to tell many people who can find you what you have. Better for them to not know why you are so happy than for the people they talk with to know how to quickly get happy too! :coolbeer: