Just Started Silver Investing- Seeking Opinions And Advice

Hello ATS

So I started investing in Silver a few months ago. My reasons are numerous.

Mainly, I figure this. Any savings a person has, needs to be diversified. That is, it's not smart to save only cash.... It's better to have Silver over the long run.

As an hypothitical example, if a person 10 years ago put $1,000 under his mattress, and a different person put $1,000 worth of silver at that time, under their bed.... Today, the silver guy is in a much better position.

Simple example and I'm sure many people here know where I'm going with this, but this is a simple main reason.

Now, onto my purchases.

I researched prices and how it works buying, and what's worth what, and such.

My main thing is that I "stack" with Silver that is * only 1oz .999 pure silver * ......... (I also bought magnets, a scale, and a stone / silver testing acid)

So I started buying some bars I got online. Found local coin shops and such.

While eagles and bars are most of what I have... I buy various 1oz .999 silver commemoration coins.

Here is my favorite:

The front


And back


_________


Anyhow, what any opinions and advice from those more knowledge ?

reply to post by Confusion42


First of all, I would like to say I got into metals in 2001, when gold was in the $200 range and silver was in the $12 range. Of course I bought gold at that time, which I kept for about 5 years, then with maturity and critical thinking moved over to solid silver investments instead of heavy on the gold and light on the silver. The most indispensable website for metals investing is by far 321Gold. They guys on this website rock, especially Moriarty the owner. I've got 10+ years in this market and never found a better resource for metals market information.

Secondly, buying. Getting started with gold, I wanted the hugest chunks I could get. Reason being: say gold is $500 per ounce and you buy an ounce for $515, paying a $15 surcharge. Or, you buy ten 1/10th ounce pieces at $55 each. So either way you end up with an ounce, but if it's in one chunk you paid $15 over spot price, and if it's in ten chunks you paid $55 over spot price. So, it's cheaper to buy in large chunks rather than small ones.

What you have to consider, is WHY you are investing. If you are doing this as a buy low, sell high type deal, by all means buy the large chunks, keep your investment as small as possible. If you are doing it to have a currency in a SHTF situation, you are of course going to want smaller pieces. By far the way to minimize the surcharge you pay on small pieces is to buy in bulk. Don't by one 1/10 ounce at a time. Buy fifty 1/10 ounces, even if it means you buy less often.

Thirdly, finding it. Yes, you can get bars. But you can also get coins. I suggest you read and study up until you have memorized which coins contain what percentage of silver. Once you know this, it will just become habit for you to spot them and you will find things easier. You can go into a bank (yes, today) and ask the tellers to trade you current coins for older silver coins in their coin trays. They will do this. It helps to be really friendly with the tellers. You can explain how to spot them and they will start setting aside coins for you when they recognize real silver.

Another way to find silver is to buy on eBay. You can (once you understand about the coins, etc. if you don't already) sit around on eBay and place thousands of dollars in bids for what would be considered a good price. You won't win all the auctions, because everyone looking at them knows the value of silver. But, you might win a couple. And every little bit will help.

Yet a third way would be to find silver scrap in the form of jewelry. If you can network with a jeweler they will melt it into balls/bricks for you. In this way you will have the least amount of dollars spent for your silver.

Too Long Didn't Read:

Review 321Gold daily.
Know how to spot coins that are real silver.
Know how to buy to minimize the surcharge you pay on each piece.
Network with jewelers and tellers.

Originally posted by Confusion42

While eagles and bars are most of what I have... I buy various 1oz .999 silver commemoration coins.

You've taken responsible steps to prepare and diversify, and I applaud you for your effort.

Everyone has different opinions on investments. We each have our "favorite" metals, and I put away a little silver myself. If I need to use some for trade, their relatively small value gives me flexibility in payment, compared to a gold coin with huge worth. in essence, I can use a silver piece to barter small luxuries and goods, however it would be overkill to pay for a few supplies with a gold eagle I paid $1,700 for.

The novelty coins are fun, however I prefer to stick with bullion. It's easy to prove potential worth and purity with a certificate.

reply to post by Confusion42


too late, you bought it at the wrong time.

i have solid information that the price of silver and gold is overinflated and over the next few months will drop down to their actual values.. *hint* less than half its current value.

so sell now sell it all now while you can!!







p.s. i dont have any information, i am just kidding.

I am heavily invested in physical silver and the best piece of advice I can give you is to NOT buy big bars. Buy smaller, easily transferable, spendable, recognizable pieces. Small coins, wafers whatever.

Why?

When you need to spend or trade, the smaller pieces are easier to maneuver and hide. If people see big bars, you're a target. If you need to buy a sack of flour, who has change for a pound of silver? Think of your silver as small coins.

And visit my thread www.abovetopsecret.com... for advice from many more knowledgeable members on the subject before you buy or trade.

#1...DO NOT BUY PAPER PROMISES! Buy coin in hand.

Peace

I saw a video on here around a month ago, it was a guy explaining how he bought these coins off ebay, they were half copper and half silver and he explained a way of extracting the silver from the copper using a chemical reaction. I think the principle was that, he was getting the coins dirt cheap.. It seemed like a lot of work for a bit of metal but hey, maybe it could help you in some way...

Originally posted by GaVinCe
I saw a video on here around a month ago, it was a guy explaining how he bought these coins off ebay, they were half copper and half silver and he explained a way of extracting the silver from the copper using a chemical reaction. I think the principle was that, he was getting the coins dirt cheap.. It seemed like a lot of work for a bit of metal but hey, maybe it could help you in some way...

I have magnets, a scale, and silver acid testing solution w/ pumice stone (definitive test)

reply to post by Ameilia



I appreciate the tips :-)

When the opportunity arises I snap up 1oz .999 at plus or minus a buck of spot.

Usually, unless your spending a few grand, 1oz or 10oz price is same or negligible. For solid investment in big amounts it's a different story tho.

I like to stick with 1oz .999 at spot or close, especially one's that carry re-sell premiums, such as eagles. 10oz+ bars / rounds seem like they would be harder to sell.

For example, in my original post, those CFTC coins... I can (but wont I like them) sell them for a very good premium :-)

Originally posted by choos
reply to post by Confusion42

 

too late, you bought it at the wrong time.

i have solid information that the price of silver and gold is overinflated and over the next few months will drop down to their actual values.. *hint* less than half its current value.

so sell now sell it all now while you can!!







p.s. i dont have any information, i am just kidding.

You mis-understand.

I buy knowing that within a 5 year window, sure the price can drop.

But I'm buy silver as a store of value + hedge against inflation + investment for a 10+ year window

If the price went down in half in a year, I would buy more :-)

reply to post by Confusion42


No I think you have misunderstood.

It wasn't for testing the metal

It was for buying metal coins that were made up of half silver and half copper. The chemical reaction seperated the copper from the silver, leaving you with a pure silver nugget or whatever. So, in other words, he bought the coins, cause they were cheaper than buying pure silver on its on, then he would chemically react the coins in a chemical solution which would seperate the copper from the silver leaving you with... silver.

Hope I've clarified it for you

Originally posted by choos
reply to post by Confusion42

 

too late, you bought it at the wrong time.

i have solid information that the price of silver and gold is overinflated and over the next few months will drop down to their actual values.. *hint* less than half its current value.

so sell now sell it all now while you can!!

Would you care to share your source for this "solid" information.
I am sure the OP would be interested in this as would I.
Thanks,

PEACE,
RK





p.s. i dont have any information, i am just kidding.

another source for coins would be State Unclaimed Property Auctions

see this link, as just an example:


chicago.cbslocal.com...

Among the items up for bid at are baseball cards for Ryne Sandberg and Wade Boggs, a rookie baseball card for Michael Jordan, an $8,000 gold charm bracelet, and gold coins worth an estimated $12,000.

different States have different requirements for making bids and securing shipping/handling... this is one way to avoid the 'Premiums' above spot prices--- but will not always be a hassle free way to secure product/silver/gold/etc

reply to post by Confusion42


What you plan to use the investment for depends on what you buy. If you want to buy and hold for years (such as putting silver away to fund a kids college education, since historically silver will fare better than fixed rate investment and volatile equities) then I would suggest bars. They are easier to organize and hold in larger quantities of weight.. they go nicely in a banks vault, which is where it should be kept once you have a few bars.

For monthly/yearly trading coins are the best option because they are so easy to move around, trade, etc..

I always advise people not to keep large quantities of metals in your home. If you frequent coin shops someone may notice. If you constantly get little boxes delivered to your house... someone may notice. If you don't plan on immediately trading the metal, there is no reason to keep it on you, put it away somewhere. I've actually known someone who had over $60k in gold and silver stolen right out of his office.. since it was the only thing they took, we assumed someone watched him for a while at the coin shop he used. Followed him back to his house.. and easy pickings.

I would suggest though, if you want to frequently trade back and forth metals, not to use physical but to use an exchange.. yeah, it's not "real" metal, but the profits are real enough.