new investor - silver or gold?

Discussion in 'Coin Chat' started by firebird, Jul 30, 2012.

  1. andrew289

    andrew289 Senior Analyst

    With $6,000 a year to invest, I'd stay away from any gold under 1 oz. The premiums just doesn't make sense. Nothing motivates you more than to hold a full 1oz coin in your hand. I suggest with $6000, you buy 2 1oz buffalos ($3600 depending on spot) and 3 rolls of Silver eagles ($2,400 depending on spot). These are sensible purchases that will get you started. Save up each month until you have enough to cover the costs or wait until the end of the year and buy all at once to lower shipping fees (if not available locally).
     
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  3. Prime Mover

    Prime Mover Active Member

    If PM's keep up with inflation, then you're about equal from now until then, at least in terms of purchasing power, and you haven't "lost" anything by doing so. You have something that is as good as cash, and has not lost any of it's ability to buy. You can take your 1oz ASE from today and buy a $25 Blu-Ray disc, or 10 years from now if it kept up with inflation, you might still use that same 1oz ASE to buy a $50 Blu Ray disc. You haven't gained anything by holding it, but it's more just steady insurance. This is the basis I use for keeping PM's as an investment, if it keeps with inflation, then I've not lost anything and have something to fall back on.

    However, the idea of investing is to beat inflation, so that your money today outperforms and allows you to have more wealth in the future.

    Ask those who bought at the peak of silver when it hit around $50/ounce, and is now back down to mid-20's. Yes, they still have the silver, but it's worth a lot less, 50% less in fact, and there's no guarantee it'll go back up to that point. There's also no guarantee it'll stay suppressed at these levels, and not double in value again.

    Not necessarily, in fact possibly the opposite. There is a physical cost to mine and refine PM's, which no matter what happens with policy keeps a cost to a certain minimum level, and unless those factors also go down, it won't have any impact on lowering the cost. If QE3 passes, people may see less need to invest in PM's, and less is bought, thus increasing stockpiles, thus driving the cost down.

    Personally, I believe that PM's are a good long term investment, and I will be spending money in that regard as well.
     
  4. BadThad

    BadThad Calibrated for Lincolns

    Personally I don't see PM's as so much as an "investment" but as a hedge. With Europe in the mess it's in, there's really nothing wrong with holding cash as the value of the dollar keeps inching up.

    As far as the stockmarket, lots of people make mistakes but, with experience, you can get great returns. I've been trading stocks for 25 years now and it's treated me very well. Then again, I put a LOT of time and effort into it....every day. The market certainly isn't for everyone but if you know what you're doing, you can consistently come out on top. I'm a mod for a stock forum, drop by and see what's going on if you've not completely given up:

    http://www.stockmarketcats.com
     
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