Thread: Bullion purchases

The premiums tend to be high percentage wise.
I have a couple hundred pounds of wire copper shot chops in bags. Each bag weighs in about 10 pounds. I use to buy in #60 pound shipments in a USPS flag rate box.

I happen to like the copper shot. I would rather sell it than my coins when times get rough. I no longer buy the bars and rounds due to the extra prem over shot.

If Copper drops to the two dollar range, I will like load up on copper again.

Originally Posted by Papatsfan

Whats worth investing in?

Just like my Uncle Rick (rickmp) said - the list goes on and on and on!
But this is how I do mine (mind you, I am still learning myself) :

40% on pretax-401a (+ 100% matching 403b) and after-tax ROTH-IRA - I didn't put all into PM because of 100% return on 401a into 403b - Even better after 3 years vesting - it goes to 150% and they are all mine!

60% on precious metals (gold bullion, gold numismatic, silver bullion, silver numismatic and platinum numismatic) - I am thinking of expanding to palladium (waiting for American Palladium Eagle here so badly .... )
Of the PM investment; right now I put 40% on gold, 50% on on silver, and 10% on platinum in terms of dollar amount. When palladium comes, silver will get knock down to 40% and the 10% goes to palladium.

In near future, I am also planning to purchase a house - so the above percentage will vary accordingly.

Just keep in mind: do NOT put everything into a single basket!

I believe that there's a time coming when a lot of wealthy people will have to dump their collections (of all kinds) in order to maintain their standard of living, accepting fire-sale prices.

That sort of casts a pall over "investing" in coins, although I'd certainly want to be holding coins instead of baseball cards, Longaberger baskets, NASCAR stand-ups, or bobbleheads, etc., etc.

Everybody's going to head for the Exits at the same time, in the frantic search for liquidity. The amount of household wealth ALREADY lost in this country is staggering, but there's more downside to be dealt with.

• 
  

"WASHINGTON — The typical American family lost nearly 40% of its wealth from 2007 to 2010 as the Great Recession reduced household net worth to a level not seen since the early 1990s.

The net worth of the median U.S. family — one with an equal number of families richer and poorer — fell to $77,300 in 2010 from $126,400 three years earlier, after adjusting for inflation, the Federal Reserve said in a new report Monday."

This lost wealth is never coming back. We blew it.

Originally Posted by doug444

I believe that there's a time coming when a lot of wealthy people will have to dump their collections (of all kinds) in order to maintain their standard of living, accepting fire-sale prices.

That sort of casts a pall over "investing" in coins, although I'd certainly want to be holding coins instead of baseball cards, Longaberger baskets, NASCAR stand-ups, or bobbleheads, etc., etc.

Everybody's going to head for the Exits at the same time, in the frantic search for liquidity. The amount of household wealth ALREADY lost in this country is staggering, but there's more downside to be dealt with.

• 
  
  

"WASHINGTON — The typical American family lost nearly 40% of its wealth from 2007 to 2010 as the Great Recession reduced household net worth to a level not seen since the early 1990s.

The net worth of the median U.S. family — one with an equal number of families richer and poorer — fell to $77,300 in 2010 from $126,400 three years earlier, after adjusting for inflation, the Federal Reserve said in a new report Monday."

This lost wealth is never coming back. We blew it.

I agree on coins over baseball cards and others. Even though coin collecting isn't an investment - but in a way I personally think that it preserves your wealth. I used to buy useless designer clothes and latest gadgets, but in 2010 everything changed. I turned to 401/403 and PM.

On the other hand, what I am doing maybe bad for the economy??? On one hand, I am saving for my future but, on the other hand, I am spending less and less ...

Amen Doug444.
I wish you were not so prophetic. I feel you are right.

At Bio, we have never been real big on high fashion or high tech, but did travel, and give more away. It is scarey that fire sales are so clearly in the future. I have one pair of work/daily pants, a couple tops, one skirt, and several dressy outfits. That's about it. As I grow fatter, I only buy one or two items to wear - if I want to look fashionable again, it will be due to losing weight. Clothes just cost too much. I have had the same purse for over 10 years. It cost under $10 too.

Originally Posted by doug444

I believe that there's a time coming when a lot of wealthy people will have to dump their collections (of all kinds) in order to maintain their standard of living, accepting fire-sale prices.
.

Doug, key word there being "wealthy" people guess the income bracket that has actually increased its net wealth in last 5 years?

Originally Posted by jjack

Doug, key word there being "wealthy" people guess the income bracket that has actually increased its net wealth in last 5 years?

I am lost.

You are lost due to lack of punctuation. Revised:

"Doug, key word there being "wealthy" people.

Guess the income bracket that has actually increased its net wealth in last 5 years?"


[Answer, the already-rich]


Now you are "found" again, eh?

[QUOTE=doug444;1505796]You are lost due to lack of punctuation. Revised:

"Doug, key word there being "wealthy" people.

Guess the income bracket that has actually increased its net wealth in last 5 years?"

--------------------------------------------
Not sure where this is going. Any thing "wealthy" sounds good to me. The more weathly people the better. Of the few wealthy folks I have know personally, and from personally acquaintances, all had one theme in common - they had businesses that created jobs for others. They gifted out a lot personally. They were rather spiritually content people (not all church going), and had a good outlook about life and people in general.

Originally Posted by doug444

I believe that there's a time coming when a lot of wealthy people will have to dump their collections (of all kinds) in order to maintain their standard of living, accepting fire-sale prices.

That is what happened to the numismatic market when the financial crisis hit. It took a plunge.

But I will say that numis does have its place within holding assets as bullion. It is generally more resistant to spot metal increases and declines than straight bullion because most of its value is derived from rarity factors rather than metallic content. For example, the spot price of silver could decrease by 50% or increase by 50%, but a roll of CC morgans will not increase or decrease that much (at least I think it won't). But it is a lot easier and faster to dump normal bullion than numis. because you have to find a buyer that's willing to pay what it's worth (or what you think it's worth).

Agreed in principle. But liquidity is the name of the game; collectors are unlikely to dump their coins unless they need CASH right NOW.

Bullion coins can be replaced, tomorrow; the numismatic material you have lovingly gathered for half a lifetime, all those coins' stories known to you and gleefully recounted to your cronies -- cannot.