The case to be made for gold vs silver

Discussion in 'Bullion Investing' started by Jason.A, Jul 16, 2017.

  1. LA_Geezer

    LA_Geezer Well-Known Member

    I got this Spam email today from online coin dealer, Monument Metals, that claims that they are selling AGEs at 2.49% over spot. I took the link to their site to see the actual prices, and they aren't bad; it's just that checking eBay, there are a few bullion sellers there who have even lower prices on AGEs. One of those sellers is almost $20 per coin cheaper than the advertised price at Monument, but I know this price may change tomorrow... and even later today for that matter. Just wondering if I should pull the trigger on a couple of these before the seller raises his prices back to something closer to the eBay norm.
     
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  3. Jason.A

    Jason.A Active Member

    Don't bother. Silver will likely drop a couple dollars per ounce this fall/winter. Plus, gold's a smarter buy, anyway.
     
  4. moneycostingmemoney

    moneycostingmemoney Yukon Coriolis

    That doesn't seem bad for an AGE. It all depends on your investment strategy though. If you're looking to make a move to hold for long term I'd say go for it.
     
  5. Jason.A

    Jason.A Active Member

    How does it "all depend on his investment strategy?" This is like not giving advice at all. There are people literally this week discussing buying pennies once again because they are worth 2 cents each instead of 1 cent. *face palm*

    There are people who buy penny stocks. People who invest in pyramid schemes. Housewives who get suckered into selling books and makeup.

    There are lots of bad investments. Silver may not be a "bad" investment compared to those other idiotic things I mentioned, but if one is to buy precious metals, gold is superior to silver as CLEARLY established in this thread. If buying silver, there are far safer and savvy ways than American Silver Eagles with lower premiums.

    I think it's incumbent on us to use our wisdom and our math to discourage other PM investors from making mistakes like hoarding overpriced silver bullion.
     
  6. Argenteus Fossil

    Argenteus Fossil Active Member

    Unless I'm reading it wrong, LA_Geezer was referring to American Gold Eagles (AGE), not American Silver Eagles (ASE).
     
  7. Jason.A

    Jason.A Active Member

    You're completely right! I was wrong. My mistake.
     
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  8. LA_Geezer

    LA_Geezer Well-Known Member

    Right you are.
    Yes, one eBay seller is offering SINGLE AGEs at prices lower than even his own other offers. You could save about $400 over his price for a roll simply by buying 20 random date singles. It's the lowest I've seen — and has no strings attached; buy as many or as few as you wish. Frankly, I don't get it.

    One of my credit cards offers 5% cash back on online purchases during the Christmas season, starting October 1. Then I remembered that eBay is excluded from that offer. I was thinking, at first that I would hold off another 36 days in anticipation of that offer, but in the end it "macht nix" for that. Also, the gov forces us to take money out of my IRA/401K accounts once a year, so I have lots of cash to spread around in December. That's my "investment strategy," such as it is, @moneycostingmemoney .
     
  9. Santinidollar

    Santinidollar Supporter! Supporter

    It does depend upon one's "investment strategy." I would suggest that discussion start with whether one is putting all his eggs into PMs -- or whether PMs are a small hedge in a strategy including stocks, bonds, real estate etc.

    These bullion threads have a lot of communication problems because PMs are impossible to discuss intelligently in a total vacuum.
     
  10. moneycostingmemoney

    moneycostingmemoney Yukon Coriolis

    Its a real shame that you got nothing out of a response to someone else. If I was tailoring it to you I would have used a picture with colors and shapes. There is a difference in purchasing metals for short term and purchasing metals for long term. There is a difference between silver and gold. The same difference between an AGE and an ASE. If you note that the two middle letters of the acronyms are different that's because the one with the S is made of silver and the one with a G is gold. If you by some odd chance feel something trying to hold back the diarrhea you hold as pertinent knowledge, go with it. My son knows better than to speak from the hip like that and he's 5. But another comparison for this post would be growing up and being raised.


    @LA_Geezer thats not a bad move. I have the PayPal/eBay card and when I want to leverage debt for a deal that I can't pass I use that. I forget what the cash back is since it's an eBay transaction but you get 6mo int free to pay it off so that's an option that may help you not have to pass that deal up.
     
  11. Jason.A

    Jason.A Active Member

    I appreciate what you are saying, and I know I could have communicated better in some of these threads, but I think there are some near absolutes and we should be comfortable addressing them.

    For example:

    1. Investing primarily or exclusively in precious metals is stupid because it is overly risky and pays no dividends.
    2. Paying large percentages over spot for any PM is stupid because you will never recover that premium unless the price of gold or silver increases by virtually unheard amounts
    3. Selling your precious metals to a cash for gold dealer for well under melt is stupid when there are ample opportunities to get more money elsewhere.

    etc.

    We should feel free to give advice. We don't want to see people make foolish mistakes. But we should be very careful in reading what they write so we don't actually criticize them because we thought they said ASE when they said AGE, like I just did earlier in this thread!
     
  12. Jason.A

    Jason.A Active Member

    That is a good deal. But, if I were you, I think about how gold prices are relatively high right now compared to other prices during the year. I would also examine things like possible things like why are gold prices higher right now and what factors might contribute to changing prices in the future.

    If I didn't trust myself or others to make that educated guess (which I personally do not), then I would stagger out my gold buying over the year and not get sucked into a "too good to pass up deal" and just buy a set amount of gold over a set period of time. That way, in the long run I will bought around the average price for the year.

    I couldn't blame myself for buying when things were too high or congratulate myself for luckily buying when it was the absolute cheapest. Instead, I would have bought at around the average price by buying over a period of time. And, I would have done so because I am buying expecting gold to increase slightly year after year into the indefinite future. So, I would be holding gold just as a nice little extra investment if I need it.


     
  13. LA_Geezer

    LA_Geezer Well-Known Member

    I just pay my credit cards off in full every month, and I make certain to stay on top of reward schemes where my cash back can be credited directly to my account. By paying the full balance each month, 100% of my cash back credits against my purchases. None of it goes toward any sort of service charge or interest.
     
  14. moneycostingmemoney

    moneycostingmemoney Yukon Coriolis

    Same. Unless I planned to extend payments until the interest kicks in, then I pay off a month before it does. That's more rare than just paying them off, but when I planned to purchase something and I find it before the budget allows for X-25% if I move now...I can pay it off before penalty. Especially if that purchase created/gained more value because of the timing. Then, to me, that's a deal that I cannot pass up.
     
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  15. Johndoe2000$

    Johndoe2000$ Well-Known Member

    After a quick look on EBAY, I saw plenty of 1oz. coins, and bars for only a couple of bucks over spot right now. Daily deals gold bullion.
    It's pretty normal.
     
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  16. LA_Geezer

    LA_Geezer Well-Known Member

    Things over there change daily. The lowest one I saw yesterday is gone.
     
  17. Jason.A

    Jason.A Active Member

    When you're talking about gold bullion and spending thousands of dollars, I don't think ebay is trustworthy enough unless you're buying via a large bullion dealer who also sells on ebay.
     
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  18. Johndoe2000$

    Johndoe2000$ Well-Known Member

    You can find sellers on EBAY "daily deals", such as APMEX for example, that sell for much less than on their own site. Looking to move huge volume for 1day I reckon.
     
    Jason.A likes this.
  19. LA_Geezer

    LA_Geezer Well-Known Member

    Correct and correct.
     
  20. Johndoe2000$

    Johndoe2000$ Well-Known Member

    Finally. I've always told the ladies that I was Mr. Right. :)
     
  21. Santinidollar

    Santinidollar Supporter! Supporter

    I do all my AGE buying on eBay from major dealers such as APMEX doing a deal: lowest premiums and you can use PayPal without the typical stiff surcharge for credit cards.
     
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