Where do I start?

[joncutt87]

So, there is a ton of information here. Where do I start? I want to start spending some money on pm's as I can afford it. Do I start going to pawn shops, or buying from some of the PM websites? Or are there other options that I don't know about?

 

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[jim4silver]

So, there is a ton of information here. Where do I start? I want to start spending some money on pm's as I can afford it. Do I start going to pawn shops, or buying from some of the PM websites? Or are there other options that I don't know about?

There is no right answer. I would do your own research and come to your own conclusions. I post on another PM bug blog that is filled with whiny babies who profess that those darn PM bull pundits were responsible for making them buy silver when it was $40, instead of taking the blame themselves for their own greedy buying behavior.

You don't want to wind up like them by listening to any poster here saying to buy or not buy, or taking the advice of some guy selling newsletters that says the sky is going to fall next week and to buy silver, etc.

Other than that, get the bullion you like best at the cheapest price. I doubt that will be at a pawn shop unless you are good friends with the proprietor.

Just my opinion.

Jim

 

[joncutt87]

I've been watching the market for a while now, I'm just not sure what my purchasing options are.

 

[Mackaydon]

As Jim said, do your own research, but first get a good handle on your motivation to buy.
By your post, were you implying that your motivation is that you can "afford it"?
If you invest, would your motivation be long term, short term, hoarding or just for the aesthetics of a beautiful piece of bullion coin?
I consider myself a PM investor, but currently (for the last couple of years now, actually) I've been on the sidelines waiting for the PM downturn to reverse. If it continues down, I'll buy silver at $12; otherwise, I''ll stick with 5%+ cash dividend stocks.
Don....

 

[Nitric]

Really, in my opinion there is a lot to it! All the above posts are correct. It's kind of what you want and why.
Understanding each part of it is important too! Example, how they are weighed,purities,refining fees, taxes,or where to sell and how much below spot are you going to have to take. Where to buy, what to buy,how to buy, all play into this too! If you want it for the long hall and are just buying a little at a time? Not much to worry about right now. Just know what you are buying and get it for the best price possible.

Research,research, and know exactly what you are buying and why, know the numbers that go to it. I'm convinced that there is a lot of money to be made, while riding the wave up, or down. A lot of money can be lost too, in a matter of seconds!

If there was a simple one answer fits all? Everyone would be rich! So, most of this is just going off of what you learn and what you think, with what you learned.

Have fun!!! Don't spend more than you can afford! Make a game out of it, not the idea of wealth or safety!

None of this may help! Just some thoughts! I've known guys that have lost more than most will ever retire on! I've also seen the opposite too!

I played the game! Won some, lost some. It's a game! Don't buy into articles or sales pitches!

All the places you mention can be good places to buy! But know what you are buying and why! I can't stress that enough!!! There are deals everywhere at times. You don't have time to think or study when you run into them! By that time they are gone! So, know what it is that you are buying to fit your own theory,beliefs or what you know! Don't buy beyond what you know or can afford to lose!!!!!

Sry, if this was more than you were looking for! From your post I got the impression that maybe? You weren't quite sure. As someone that has learned some very expensive lessons? Hate to see someone do the same! It is a part of the process though! There is no sure safe bet!

 

[TheRingFinder]

I'll just give you the facts -

I called a couple of the big sellers IE: Gold line, USA Gold.
I asked for very specific pieces of gold totaling a "buy" price of $10,000. I called right back and asked to sell the exact pieces and I was offered $7,400. So, they make $2,600 to sell you $10,000. That was pathetic and stealing to me. Yes, they have to make money, but this is ridiculous!!! So, if you buy PM, you'd better hope it skyrockets to make any money at all.

 

[TheRingFinder]

You are much better off finding it!!!!!

 

[Nitric]

I'll just give you the facts -

I called a couple of the big sellers IE: Gold line, USA Gold.
I asked for very specific pieces of gold totaling a "buy" price of $10,000. I called right back and asked to sell the exact pieces and I was offered $7,400. So, they make $2,600 to sell you $10,000. That was pathetic and stealing to me. Yes, they have to make money, but this is ridiculous!!! So, if you buy PM, you'd better hope it skyrockets to make any money at all.

Not to mention taxes on profit! Depending........I disagree about them stealing. You don't have to buy it or sell it back to them. That would be a choice! It's a game! Not a necessity! That is just my opinion though!

The articles and ads just make it sound so simple and sure! If it's so sure? why are they selling it?!!!!!! Ummmm It's not because they are generous and just want to help people!

 

[TheRingFinder]

Yeah, I hear ya Nitric - Maybe stealing was the incorrect word to use. Though, stocks are bought 1 for 1 with a small commission fee. PM selling seems to be a little less then upfront or honest to me.

 

[Nitric]

Yeah, I hear ya Nitric - Maybe stealing was the incorrect word to use. Though, stocks are bought 1 for 1 with a small commission fee. PM selling seems to be a little less then upfront or honest to me.

Don't get me wrong! I don't think anything about PM's or stocks are upfront and honest! And they may be trying to steal! But they can't if we don't let them, is what I was getting at. I kind of worded that wrong too....

I've had this debate a lot with friends, and I forget on the computer sometimes, that we all don't really know each other! So it wasn't meant as picking on you at all in any way. Just a topic I like to think about!

 

[joncutt87]

I'm only 28, so a long term investment sounds nice. I would like to have a 100 ounce bar to sit on, but buying and selling/trading occasionally sounds more like the ticket for me. What kind of local shops would normally carry silver, other than pawn shops?

 

[usandthem]

Coin shops, flea markets, yard sales, ect. Online and Ebay but know that shipping and such can add up.

 

[TheCoinKid]

Jon....

In my opinion, US 90% coinage and government issued silver bullion coins (American Silver Eagles, Canadian Maple Leafs, Great Britain Britannias, etc...) are the way to go. I'm personally just more comfortable with these than generic rounds or bars. The quality (content) is more reliable, thus, easier to sell. The US 90% stuff is carrying too much of a premium for my blood right now, so I'm into the govt. bullion coins at the moment. These days, I only buy full rolls or tubes, as premiums are normally much lower than buying individual coins.

Personally, I often find the best prices at local coin shows. I have a good one that comes to my area 4-5 times a year.

I also like Ebay, but with a caveat. To get good prices on Ebay, you have to be very patient, checking several times a week, sometimes for weeks at a time. Generally speaking, the best price available most days on Ebay is not acceptable to me. I monitor certain large volume sellers (MCM, Liberty.Coin, APMEX, etc..) and buy only when they put on special deals that meet my pre-determined parameters. I also look for the occasional private seller that lists at a below-market price. You have to check regularly to find these, because the listing doesn't last very long. But they do exist. For some reason, I've found Sunday evening listings to have more of these than at other times.

Flea markets and antique stores have never been good to me for buying silver, but I have picked up the occasional collector coin in these venues. I have never bought from stand-alone PM websites. Invariably, I can beat their prices at coins shows or, with patience, on Ebay. Pretty much all of the local coin shops around here come across to me as flat out unreasonable. Jim4silver appears to have much better luck with the LCS's in his area by establishing raport and long-term relationships.

Addressing your original question, I think you are getting good advice from those that have already posted. My suggestion is to absorb as much research as you can on PM investing, and REACH YOUR OWN CONCLUSIONS. I would also suggest that you study graphs of historical prices. Silver in particular, has been very volatile over the years (around $50.00 in 1980, down to $4.00 in 2001, back up over $40.00 in 2011, now currently under $15.00). Much more volatile than most other investments. There's no guarantee that silver will ever reach $50.00 again. I also suggest that you not put all of your eggs in one basket. Balance your PM investments with other types of investments (stocks, bonds, cash, real estate, etc..) No one knows what the future holds; being diversified is the best hedge against an unpredictable future.

As others above have said, do your homework, buy what you like, and keep the premiums to a minimum.

Good luck,

TCK

 

[Chizzy]

I buy silver.....there's less downside if the prices slide the wrong direction. My purchases come from pawn shops (junk silver coins at .50 over spot) and coins shops (ingots and Eagles). Other than that, I'm still finding the odd piece here and there from CRH............
Good luck..............

 

[joncutt87]

Correction, my wife just informed me that I'm not 28 yet.

 

[bradley1719]

I'm glad to see that others are jumping in warning you to make up your own mind and do your own research. There is a LOT of misinformation about silver and gold and you don't want to fall victim to it. Use logic and common sense.

I'll also give my typical warning: Do not go with questionable sources just to save a couple of pennies per ounce. Pick reputable sources. Online sources like APMEX and Provident Metals may be just a little bit higher. But they are reputable. It pains me to see people spend countless hours searching around on eBay or on PM websites just so that they can save 10 cents per ounce on a 10 ounce purchase. That's a whopping dollar worth of savings and you wasted a bunch of time AND took a huge risk by buying from a non-reputable source.

Unfortunately, there are a lot more fakes out on the market today than there used to be. It really only takes one fake coin/round to wipe out any savings you could be getting from going to a non-reputable source. Twenty years from now you won't give a rat's ass whether you paid $14.75 per ounce or $14.95 per ounce when you go to sell. But you WILL worry if you go to sell and are told that most of your silver is counterfeit. Be careful. This is also why I stay away from pawn shops. First off, the pawn shops around me are all thieves. Second, unless you are buying US junk silver coins, you can't be sure that those pawn shop owners can adequately spot fakes (and that they aren't knowingly selling fakes).

As for buying and selling over the short term, that is the quickest way to lose a lot of money. If you really want to try and make money on the short term swings in silver prices, invest in a silver ETF. Just be aware that taxation on a silver ETF is not the same as taxation on a stock. Know the differences and be prepared to report the taxes correctly.

Good luck.

 

[billjustbill]

So, there is a ton of information here. Where do I start? I want to start spending some money on pm's as I can afford it. Do I start going to pawn shops, or buying from some of the PM websites? Or are there other options that I don't know about?

As I stop and talk each time, this month he said he is seeing silver shortages of both scrap silver and silver coins minted before 1965. He also said the refineries, who used to deduct 10%-20% for refining fees, are now playing $2.50 an ounce OVER the current silver market price in order to get people to sell what they have.

If you haven't gotten time to store silver coins or 1oz. silver bullion (.999 pure) coinage, it appears the time to find and buy is short. Here is a source for silver I can offer as a reputable company I have personal experience with . It appears to be a respected company on this forum and has the inventory and lower pricing. :
2015 Buffalo 1oz 999 Silver Medallion by Silvertowne Lot of 20 | eBay

In the past two weeks, I sold $366.00 in scrap brass, copper and aluminum found at garage sales at a cost of under $100.00.

Putting the proceeds toward silver, I bought two 20 coin rolls on different days from Silvertowne. One arrived in a safe and timely manner, the other was lost for over a week at the UPS Processing Center in Ft. Worth, Texas. I called UPS and was promised some one would look into it. "Oscar" promised that a UPS rep. would call by 8:00p.m.....Never got a call. When the small packaged arrived it had been tampered with and coins could be heard clinking against each other. It was lighter than the first identical purchase, too. I refused delivery. The Rep from Silvertowne tracked the package, verified it's returning route, and before the tampered order got back to their company, using USPS this time, they quickly sent me a new roll of 20 that arrived yesterday in excellent condition with "2nd Day" delivery.... With the sale of the scrap metal, I got my original $96 back and the profit made the two rolls of Buffalo bullion get a $135 "discount" on each one with Silvertowne's competitive Ebay pricing. Wouldn't you consider buying two rolls of bullion coins out of your "household budget" for $201.52 each ($10.08 an ounce) a bargain with the rest of the money actually being paid by "someone else"?

Look in other areas to see what can be "used" to offset buying costs. In some of my posts, I've said that collecting and selling garage sale copper and brass for "double or more", and having our own garage sales, also help me buy parts, equipment, materials, and copper wiring for my solar electric project. I've been working on assembling all the items for two years and ten months. During that time, I used Ebay vendors to buy 12v/135w Kyocera panels, Outback solar controllers, and other items like MC3 and MC4 wiring/panel connectors, DC breakers, and solar panel hold-down clips. I'd completely forgotten about PayPal's rewards points. When I realized what worth the points totaled, I'd acquired enough to buy two Ebay gift cards; one for $100.00 and one for $25.00. Since I have all the equipment and materials I need, I found an Ebay sale from Apmex on "Philharmonics". With the rewards points, a roll of twenty cost me $229.00 (and 229 new points are added to PayPal's reward program). (Plus all my solar equipment expenditure receipts will allow me to get a 30% tax credit, dollar for dollar, toward 2015's IRS tax bill.)

So look around in your personal and financial world to see what reward programs, scrap metal, and profits from your own personal garage sales you can find to help fund your PM investments. It's time well spent.

Bill

 

[Spaceman Spiff]

Billjustbill has some good advice here, just as the others do. My approach has been to keep any silver in circulation I can get my grubby mitts on, and buy based on what appeals to me, usually a round or coin at a time. I have a bunch of stuff I've collected over the years that brings me no joy; carded action figures, comic books I won't read again, odds and ends of stuff that I thought I was going to enjoy forever. So I'm going to slowly liquidate that stuff and replace it with AG. I think of silver as a super long term investment. I'll sell it next to last if the situation is dire enough- my guns would be the very last thing I'd sell. And if I make it Judgement Day without having had to sell off my lovely shiny AG, I'll consider that a win.

 

[joncutt87]

I decided to start by talking the wife into some new-fangled silicone wedding rings. So I can put my 2 .925 silver rings in the safe.

 

[joncutt87]

I was able to pickup a few fractional bars off of eBay last night. I paid a little more than I was wanting too, but that's ok.