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9/23/2020 3:47:02 PM
Posted: 4/13/2008 3:57:10 AM EDT
Ive thought about investing in some precious metals at some point but hd a couple questions.  

1.  I have seen where you can buy it in various sizes fom coins to bars but hoiw easy is it to really get?  

2.  If i decided to sell it how could i recoupe my money when someone buying it probably wouldnt offer me its full value?  I know a pawn shop or jewlrey store wouldnt give you full value.

3.  If you can get full value for your metal of choice where do you go to sell it?  

4. Lastly how liquid is it really?  Seems like it would take some time to get rid of it if you really need to but didnt want to lose too much on it.  

Thanks and let me knoiw what you can?

Major  
Link Posted: 4/13/2008 2:49:17 PM EDT
If you buy it and take physical possession it is not very liquid at market price.  If you buy it on paper it is fairly liquid.  If you have never done this before it may not be a good time to start with gold near historic highs.  Buy low, sell high.  
Link Posted: 4/13/2008 3:02:05 PM EDT
SLV and GLD.
Link Posted: 4/14/2008 11:37:08 AM EDT
People who really want to do this buy companies that make metals.  There are index funds for those industries, might be the best way to address risk.
Link Posted: 4/14/2008 1:33:57 PM EDT
If you want to take posesson of the metal, you'll want to deal with a place like The Northwest Territorial Mint .  I've bought from them multiple times with no problem.  Their website lists both the selling prices and the buy prices for the different types of bullion.  There may be something closer to you that may work better but there are several others on the web that offer free shipping (when you buy).  As for selling, if it is a bullion coin, you'll have no problem selling them at any online dealer or your local coin dealer. And lastly, those who think metals are a bad investment because they're near all time highs, must also think we're going to see lower oil prices in the future and completely lack any understanding of why metal prices are so high today vs. the early 80's.
Link Posted: 4/14/2008 3:37:40 PM EDT

Originally Posted By headpulper:
If you want to take posesson of the metal, you'll want to deal with a place like The Northwest Territorial Mint .  I've bought from them multiple times with no problem.  Their website lists both the selling prices and the buy prices for the different types of bullion.  There may be something closer to you that may work better but there are several others on the web that offer free shipping (when you buy).  As for selling, if it is a bullion coin, you'll have no problem selling them at any online dealer or your local coin dealer. And lastly, those who think metals are a bad investment because they're near all time highs, must also think we're going to see lower oil prices in the future and completely lack any understanding of why metal prices are so high today vs. the early 80's.


I am not saying they are one or the other.  I am saying that for someone with little understanding, it may not be the best time to buy.  If you understand the market and have a sound reason for what you are doing, then go for it.  In my opinion this is not the time for a newbie to buy PM's.  maybe a mixed bag of PM/PM stocks WITH THE ADVICE OF A PROFESSIONAL.  And I do think we will be seeing lower oil prices in the future.  I just can't tell you when.
Link Posted: 4/15/2008 4:03:29 AM EDT
[Last Edit: 4/15/2008 4:08:04 AM EDT by greenranger]

Originally Posted By Major_98:
Ive thought about investing in some precious metals at some point but hd a couple questions.  

1.  I have seen where you can buy it in various sizes fom coins to bars but hoiw easy is it to really get?  

2.  If i decided to sell it how could i recoupe my money when someone buying it probably wouldnt offer me its full value?  I know a pawn shop or jewlrey store wouldnt give you full value.

3.  If you can get full value for your metal of choice where do you go to sell it?  

4. Lastly how liquid is it really?  Seems like it would take some time to get rid of it if you really need to but didnt want to lose too much on it.  

Thanks and let me knoiw what you can?

Major  


1) Look in the phone book for coin shops...ebay...many other places online like goldline, kitco, etc.

2) You rarely get "full value" for anything you resell. That includes guns, land, etc. Money is normally left on the table, this is because both sides feel like they got "the better deal".

The funny thing is, people always say "AU and AG aren't easy to sell" but when is the last time you walked up on the street and sold someone a share of GE? You have to go through the dealers to sell that, too, and they get their cut.

3) Same place you buy it.

4) It is there if it weren't no one would own any.

As for "paper gold", I think there are more paper promises for gold out there than the actual gold behind it. My point? If you can't hold it, you don't own it.


GR
Link Posted: 4/15/2008 10:58:55 AM EDT
There are several vehicles for investing in precious metals:

1 - physical possession.
2 - ETFs.
3 - mining stocks.

Physical Possession
------------------------------
Pros: it's in your hands
Cons: theft risk, tax liabilities (no such thing as long term gains with selling precious metals)

Exchange Traded Funds:
------------------------------
Pros: same price movement as holding metals directly, highly liquid, eligible for LTCG if you hold long enough.
Cons: same price movement as holding metals.

Mining Stocks:
------------------------------
Pros: generally outperform underlying metals
Cons: hard to find a good one, at least for me.

The only real reason to take physical possession is if you are really worried about the SHTF and not being able to access your brokerage account, etc.
Link Posted: 4/15/2008 11:54:16 AM EDT
[Last Edit: 4/15/2008 11:57:00 AM EDT by v8unleashed]

Originally Posted By Major_98:
Ive thought about investing in some precious metals at some point but hd a couple questions.  

1.  I have seen where you can buy it in various sizes fom coins to bars but hoiw easy is it to really get?  

2.  If i decided to sell it how could i recoupe my money when someone buying it probably wouldnt offer me its full value?  I know a pawn shop or jewlrey store wouldnt give you full value.

3.  If you can get full value for your metal of choice where do you go to sell it?  

4. Lastly how liquid is it really?  Seems like it would take some time to get rid of it if you really need to but didnt want to lose too much on it.  

Thanks and let me knoiw what you can?

Major  


I assume we're talking about physical holdings here...

1.  There is probably a shop that does significant business in precious metals somewhere near you.  If not, you can try kitco, APMEX, COMEX, ebay, etc.  Ebay can get you some great deals several dollars under spot, or you can get screwed.

2.  A dealer will usually sell junk coins a little over spot, and buy a little under spot.  Maybe 50cents either way.  That's how they make money.  Eagles and the like have a higher premium to them, $2-2.50, but that's also factored in when selling.  You have to factor the "spread" into your thinking when buying and selling.

3.  You'll probably never get "full value" as in spot price, but you'll get what it's worth fairly easily.

4.  Gold and silver are very liquid, and very easy to get rid of.  Probably the only things more liquid are cash, and ammo listed on the ARF EE boards.

ETA:  You shouldn't think of precious metals as an investment.  You can get burned pretty bad trying to buy and sell on the highs and lows.  And you'd better be lucky rather than good.  You should be buying in for the long term (a decade or more).  PM is a store of wealth, and a way to preserve buying power in a bad economy.  It's not about how much money you're going to make, but how little you're going to lose.
Link Posted: 4/15/2008 1:56:27 PM EDT

Originally Posted By Drakich:
Physical Possession
------------------------------
Pros: it's in your hands
Cons: theft risk, tax liabilities (no such thing as long term gains with selling precious metals)



Tax liabilities?  As long as the transaction size is below $10k, there is no reporting....Use cash, keep transactions below 10k and there are no taxes unless you're feeling generous. Also, the IRS has no real law concerning precious metals (especially US minted bullion coins that carry a face value) and the taxing thereof....recent case law has revealed this loophole.  The quandry the .gov (or Treasury specifically) is in with respect to them is establishing the value of their paper money.....think about it.
Link Posted: 4/20/2008 7:53:10 AM EDT
Depends why you are buying. PM's are generally buy and hold. With current inflation (gas/milk 3.50 a gallon), what PM's will do is maintain the "value" of the paper currency.
Example - 1964 a gallon of gas was 27 cents - 3 dimes (silver) bought you that gallon. Today a gallon of gas is 3.50 - 3 1964 or prior dimes are worth  approximately 4.00 - they will still buy a gallon of gas. Paper money has and is loosing its value due to the end of the gold standard and excessive printing....
Anyways as others pointed out - buy from local coin shops. The dealer charges you a small premium over current "spot" prices - when you sell back he gives you just under "spot".
Prices can fluctuate daily - that is why it is buy and hold. It is hard to say where the prices will head, but the general opinion is in the long term they will continue to rise - Gold may hit 1200-1500 oz and silver may go to 30.00-50.00 oz.
Looking at other commodities such as food and oil and other metals (copper, aluminum, platimun etc.), the sky is the limit.
As for size, buy 1 ounce or smaller gold coins, silver - pre 1964 US coins are cheapest if you buy "circulated" coins. Or you can buy bullion which is just the pure metal - again one ounce or snaller gold, and silver 1-10 ounce.
Generally, gold and silver prices move sideways during the summer months.
Investors suggest investing from 20-30% of your savings in PM's as a hedge.
Do some research - I find it funny, most americans have never held a gold coin - yet all our money USED to be made of silver and gold until the federal reserve act - a PRIVATE entity selling money to the government for a % over face value.
Google "coinage act of 1792".
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