investing in Gold and Silver?

Discussion in 'The Lounge' started by dinkbuster1, May 14, 2008.

  1. 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.
     

  2. 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.
     
  3. Hook N Book

    Hook N Book The Original Hot Rod Staff Member

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    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. ;)
     
  4. Hook N Book

    Hook N Book The Original Hot Rod Staff Member

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

  5. The little cubes you make soup out of?
     
  6. 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.
     
  7. Hook N Book

    Hook N Book The Original Hot Rod Staff Member

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

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

    athensfishin' Fighting the Man

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    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.
     
  9. seethe303

    seethe303 Senior Executive Member

    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.
     
  10. Mushijobah

    Mushijobah Urban Angler

    Your posts are hilarious...whether you believe them to be truths or not..:)
     
  11. 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:)
     
  12. athensfishin'

    athensfishin' Fighting the Man

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    The post was tongue in cheek I wasn't going to take the effort to look up the actually company that produces it:)
     
  13. 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.
     
  14. shroomhunter

    shroomhunter USMC 1979-1983

    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.
     
  15. 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.
     
  16. MLAROSA

    MLAROSA Loving Life

    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.
     
  17. 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.
     
  18. MLAROSA

    MLAROSA Loving Life

    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% 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!
     
  19. 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.