Confused Newbie Advice Needed

I'm totally new to silver and pm's. I caught a little bit of the silver fever and bought 25 oz's ( a few different auctions and different size bars) on ebay for well over spot and it will need to hit $30 to make a few dollars profit. I tried to look for a good deal but thats the best I could do at the time. I also did it so I could get my feet wet and establish my self as a collector/investor and say ok I'm in the game. I chalk it up as a newbie lesson. I have already found a site where I will be buying from ( can anyone share any good site's to buy from) but as far as bars go I need to buy 50 bars because some of the smaller quantity are sold out ( I'm interested in 1, 5 and 10 oz bars right now) and they are selling it for less than 1 dollar over spot. I don't know what to do next. I know I'm late to the station but I don't want to miss the bus especially if its going to be a long trip up. I will be in it for the long haul but I know I will not have a problem selling some to make a profit along the ups and downs. My question is should I wait until it hits $30 or where I can break even and start fresh and see if this pullback happens. Even a small drop to $19 or $20 or keep buying. Really not sure what to do at this point in time.:rollling:

 

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First of all welcome to the forum. There are tons of great threads in the bullion section I would suggest you read read and read some more. Like with any investment rushing to jump in and spend your money is more likely to be a bad idea than a good one.
PM investing can be extremely volatile.
If you are buying generic rounds and bars you must also be careful whether or not they actually contain the amount of silver claimed. Buy from reputable dealers. Apmex, Provident metals to name a couple. I personally only buy ASE or 90% silver US coins for investment. The ASE sell for a premium over spot, but at least I am sure the silver content is consistent and that I am less likely to have a problem selling if I ever do.
Mostly you need to figure out what your investment goals are, Long/short term before you make a mistake that could do serious financial harm. JMO
Ps. There are lots of people on this forum with way more knowledge than me and many wildly different opinions on investment strategy. Everyone is different. And remember just because they are posting members of an internet bullion forum doesn't mean they always know what they are talking about.

 

Getting Wet

Good choice. Welcome A~board and along for the ride.

Now that you have your feet wet you have a better chance of knowing

"Wet with What!"

 

You say you are in for the long haul, but then describe a trading plan to lower your average cost. Normall, this confusion ends up meaning that if silver prices drop, you'll hang on and lose most of your capital; and if silver rises, you'll sell to break even or make a little money and lose your position when the dip you hope for never happens. So you need to decide what you want to do. If you want to hold for the long haul because you think silver will go a lot higher, then don't sell. If you want to trade to take advantage of the volitility, then develop a trading plan and stick to it. If you try to mix the two, you'll probably fail at both.

And I would stop buying from Ebay, but that's just me. Others like it.

 

Silver coins are collectable and profitable too. They are a lot of fun to collect and the higher the graded, MS66 to MS70, coins can be financially rewarding if bought at decent prices. But the enjoyment comes in admiring the designs and workmanship and preserving them for your heirs

 

I guess it depends on what money you are using to but the bullion, If you are playing with money you need to pay next months bills stop now!. But if you are using money you dont need for a few years or decades keep buying. You do need to get a little smarter in the buying however. I my experience Ebay is probably the worst place to buy bullion, it almost always gets bid up way over its actual value.

 

You should be very careful buying silver bars on eBay, especially if you are "totally new to PMs". If you aren't careful you may end up buying a bar of lead or copper that has been silver plated. There are several threads here about plated silver bars. A new, young member bragged about buying a gold bar for well below spot; when it was pointed out to him that the bar was base metal plated with gold (and not X ounces of gold) he cancelled the purchase.

 

Thanks for the info and taking the time to help. Yeah I know I'm done buying off ebay. I have account set up with apmex already.

 

Good move. APMEX is a much better source of bullion than eBay.

 

You have very good points and thank you for your input. I guess I'm just trying to make good on my mess up. I thinking about putting it back on ebay because I can basically get my money back and turn right around and buy from a site that I found and get 2 more oz's. for what I paid. and still have $7.36. As far as eaby I'm done buying there. So as far as long/short term there is no in between.

 

Thanks for everyones advise so far. It has been helpful

 

there is nothing wrong with e-bay at all...just set a price limit on what you buy and if it goes higher walk away from it...just cause it's for sell doesn't mean you have to buy it...just wait for other deals as they come around...

basically it's about knowing what you are buying and and never bidding more then your limit set on it.

 

I always bought bullion directly from a broker or dealer. The higher volume dealers have a set margin for buying and selling based on the ticker tape spot price. It seemed to be the most economical way to purchase and the highest return on a sale. I preferred 100oz Bars. They are heavy enough for a doorstop or paperweight and can still fit into a small floor safe. Coins always have a numismatic value that creates a premium that can fluctuate depending on demand the coin.

The same holds true for gold of course, except bullion coins like the ML's and KRands are often sold near spot.

NEVER, EVER, allow seller to vault your coins or bars ! Always take possession and remove them yourself to a location you control. Dealers have been known to sell vaulted coins to many different customers and disappear when called to deliver them.

 

rdwarrior,

Not to derail this thread, but the medal you use for your avatar is really nice. Can you tell me anything about it?

Chris

 

* local purchases are better than online. premiums tend to be cheaper and S/H are not added to your spread.
* when you purchase... ask the dealer (either local or online) what their buyback price is. this will give you an idea of what percentage of premium you 'lose' when you sell. they say silver is silver and it is but when you add in other factors(premiums, S/H, priced in FRNs) you have to take all into account
* PMs in general are not an investment but insurance... plan for the long term
* again, build a relationship with a local dealer.

the best to you

 

1874 Swiss Shooting Thaler, St Gallen

 

Thanks for the advise, I live in a small town and there ae no dealers around but I think there are a couple about 45min away. I'm going to look in to that.

 

even at that distance... you can order locally and when you are able, take pocession of your goods.
S/H adds up overtime. The only online dealer I'm aware of that assists in limiting S/H is... http://www.bulliondirect.com/
they will hold for you and then ship when you are ready. You can accumulate and then have it sent which lowers the S/H cost. This is a second option when you do not have a local dealer.

 

Thanks for sharing. Yeah, I setup an account with apmex and I thought the shipping was to high for me. I think it was like $20. I know I won't be buying for a week or two but I think my next purchase I'm going to give tulving a try. So at bullion direct I would pay for each small amount I wanted and then say I have 20oz's then I could ask them to ship all at once?

 

IMO... tulving is the better online dealer but his buying limits are on the high side, 500 Ozt Ag and 10 Ozt Au if not mistaken.
Yes... @ BD you can accumulate before you ship. You then pay a one time S/H when you are ready to hold. I still prefer buy and immediate hold.