Investing in bullion -- should I do silver or gold?

I'm thinking about starting to invest in bullion, and I would like to know: would you say it's better to buy lots of silver, or just a little bit of gold? Right now I would barely have the money to buy one ounce of gold. Or should I go with palladium, which is somewhere in the middle in terms of price? Platinum is out of the question, but hypothetically speaking, how would it rank among the other metals in terms of investability?

Also I remember reading somewhere that metal prices typically drop at the end of the year. Is this true?

 

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Prices are too high to invest right now. They'll drop, then buy. Typically after Christmas the bullion prices on gold and silver drop.
Guy~

 

consult a financial advisor

 

Make sure that you have a hell of a lot of money that you can afford to lose!!

 

I have been buying 90% silver US coins, mainly Mercury dimes. They have a low purchase price, often being sold as bullion coins, but also have high collector interest that somewhat mitigates the bullion swing. No one can tell what tomorrow will bring, but with oil climbing, mortgages failing, wars being fought while other wars brew, it seems like a reasonable hedge if done moderately. These are dicey times and folks are getting a bit nervous.
You ask gold, silver or paladium? Percentage wise, based on historical precedents, one would have to say silver. BUT, the previous run-up of silver was an artificial manipulation by the Hunt brothers so trying to learn too much from that fiasco is pointless. Still, I am a silver man.
Just my opinion. Mike

 

You SHOULD have already invested in either Au or Ag.

Good Luck
Ben

 

The ship has left the shore.
Wait for it to return.
Say, in the Sping.
Also, watch oil prices, they move up or down along with oil.

 

We can only guess at the future. Many people will tell you it is too late because prices have risen. I would say that silver would be the way to go, and American Silver Eagles are a good way to play it because they are very easy to buy and resell one ounce at a time and are worth the small premium. Some of them develop significant numismatic premiums which is a bonus if you buy them at the issue price in January. I've already pre-ordered mine for 2008. At some point when prices become high enough and silver scarce enough, the US Mint will probably stop making ASEs and the entire series will immediately command a premium price. $15 is not a high price for an ounce of silver, and in my opinion this will look very very cheap a few years from now. I think we are still closer to the beginning of the price rise than to the end of it. Most big moves in markets last longer and move farther than anyone expects. Silver should be no exception.

Of course, this opinion comes with no guarantee and is worth exactly what you paid for it. All I can offer is to say that I'm following my own advice. Good luck.

 

More precisely, what I'm trying to say is "Strike while the iron is hot." "He who hesitates has lost." etc... Waste no time in buying the metal of your choice.


Ben

 

Depending on how old you are, you must realize that a S&P 500 index fund over the remainder of your lifetime will get you better returns as an investment than buying bullion ever will. So if you are looking for an investment .. that is the way to go. If you think it's cool to have a tool box full of gold and silver coins in the hall closet that you can take out and play pirates of the carribean with ...then you not talking investment but a toy with good resale value.

As always, you should consult with a finanncial advisor. Most will tell you to buy gold stocks and not risk taking possesion of the hard asset...but you won't listen because what's the fun in that? You want to hold it in your hands.

First determine what your monthly budget is and make a purchase every month. Dollar cost averaging is your friend. That's where you buy monthly, no matter what the market price is. Keep good records because you will need to pay taxes on your profits when you decide to sell.

Here is my reccomendation. In January buy a roll of 08 ASE. They will cost you about $380 or so a roll. Put it away. Buy a roll every January. Maybe two, if you can afford it. Why January? because you get them fresh from the green monster boxes, and unsearched. If 10 years from now, you decide to slab them you chances are better to get 69s and 70s buy buying a roll when they hit the streets.

After that, depending on your budget, buy a roll off silver dimes, or quarters or a pound of junk silver every month. Alternate between silver and gold. Buy a half ounce eagle if your budget is around $450 a month. Just make your purchase each month and have fun. By the end of next year you will have a nice little pile for your efforts.

 

The market has been pumped up with lots of 401-k and fed Gov retirement system. The boomers will be take there money in the next couple of years and the market will feel it. The people who had there money in Citi bank have just taken a big hit on there retirement money

No one knows if Gold and silver will drop. It could go higher

 

No Gold, Silver or Platinum. Invest in Lead. Soon Chiina will be paying to dollar for Lead for all thier products.
Also, you could contact Prince August in England and buy molds for lead soldiers, use the Lead to make some, take to a flea market and sell them. Kids will buy them, eat them and you will get all new customers eventually.
I agree with most that not a good time to jump on the band wagon. That is like buying buggy whips.
Soon enough the prices of that stuff will drop. It did before and it will do it again.

 

The case just isn't that clear-cut. If you invested your money in January 1970, the London gold price was $34.94 [now about $827] and the S&P500 was 85.28 [now about 1504]. Of course the stocks throw off dividend income, and sophisticated gold investors generate income selling covered calls, but a closer look reveals that there are times to be in stocks and times to be in bullion. Nothing works best all of the time and there is usually more good than harm done by putting money into various asset classes and periodically rebalancing them. If you consult a good financial advisor they should explain this. If you consult an index fund salesman, they probably won't. They also probably won't explain that you can outperform the S&P500 by buying equal dollar amounts of every stock in the index, which takes advantage of the way it is constructed.

But that's getting waaaaayyyy off topic. The point is that owning a little gold and silver isn't a bad thing.

 

Take it where?

I know what you are saying, and the market may indeed feel the Baby Boom retirements, but I doubt they will drain all their money from their accounts and stuff the cash under their mattresses.

Also, don't forget a few billion people in developing countries who will have more and more money to invest - some of it might come to the US.

 

Well, that kind of depends.

If Las Vegas, Atlantic City, and the various Indian gaming sites are all too far away for convenient gambling, then by all means buy bullion - gold, silver, or whatever.

On the other hand, if you don't want to gamble, then DON'T.

 

Probably better off investing in the Canadian $.

 

Take it and buy 2nd and 3rd homes in resort areas or just use it to pay bills once there income drops after retirement/ common sence like the ad do not out live your money

The market was down 50% from 1999 to 2003 people forget this so the market is only up about 12% since then
put your money in T-bills for now safer no risk

 

First determine what your monthly budget is and make a purchase every month. Dollar cost averaging is your friend. That's where you buy monthly, no matter what the market price is. Keep good records because you will need to pay taxes on your profits when you decide to sell.

Here is my reccomendation. In January buy a roll of 08 ASE. They will cost you about $380 or so a roll. Put it away. Buy a roll every January. Maybe two, if you can afford it. Why January? because you get them fresh from the green monster boxes, and unsearched. If 10 years from now, you decide to slab them you chances are better to get 69s and 70s buy buying a roll when they hit the streets.

After that, depending on your budget, buy a roll off silver dimes, or quarters or a pound of junk silver every month. Alternate between silver and gold. Buy a half ounce eagle if your budget is around $450 a month. Just make your purchase each month and have fun. By the end of next year you will have a nice little pile for your efforts.[/quote]


Howdy,

I concur with the above. American Eagles have a bit higher premium than other coins and bullion rounds and ingots, but are easy to buy and sell and are a pretty coin.

I've been buying a roll of them every January for years. Occasionally, I've picked up a few other odds and ends as I was able to afford it and the price was attractive.

Normally the best prices come in late winter - early spring.

And I lke silver rather than gold. Historically, their relationship has ranged between 1-15 and 1-20. Right now it's 1-54. During the bull market of the late 70's gold topped out in early 1980 at $850 while silver topped out at $50 (1-17). Granted, the Hunt Bros were trying to corner the silver market and indeed, all things considered, the 'historic ratio' may no longer be exactly the same. However, I still see a great profit potential with silver instead of gold.

Ideally, you'd have some of both and just overweight silver. That's what I've done.

And most of all, don't go crazy with this - stay prudent and take your time. The market isn't going away.

For pricing, I've found that www.apmex.com has pretty prices for comparison sake.

Oh, and don't EVER buy anything off of a TV show.

peace,

rono

 

was supposed to be quoting andrew

sorry, this post was supposed to quote andrew.

rono

Howdy,

I concur with the above. American Eagles have a bit higher premium than other coins and bullion rounds and ingots, but are easy to buy and sell and are a pretty coin.

I've been buying a roll of them every January for years. Occasionally, I've picked up a few other odds and ends as I was able to afford it and the price was attractive.

Normally the best prices come in late winter - early spring.

And I lke silver rather than gold. Historically, their relationship has ranged between 1-15 and 1-20. Right now it's 1-54. During the bull market of the late 70's gold topped out in early 1980 at $850 while silver topped out at $50 (1-17). Granted, the Hunt Bros were trying to corner the silver market and indeed, all things considered, the 'historic ratio' may no longer be exactly the same. However, I still see a great profit potential with silver instead of gold.

Ideally, you'd have some of both and just overweight silver. That's what I've done.

And most of all, don't go crazy with this - stay prudent and take your time. The market isn't going away.

For pricing, I've found that www.apmex.com has pretty prices for comparison sake.

Oh, and don't EVER buy anything off of a TV show.

peace,

rono[/quote]

 

[/quote]


I have yet to see any great deal from apmex but your coins and metal from coin shows or dealers who will sell at graysheet bid price save your money