Silver or gold?

If some gave you $1200 to spend on PM,would you buy silver (say 3 rolls of ASE or 1oz of gold just taking a poll here?

 

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That's an easy one. Definitely gold. If I have to buy silver, I would avoid buying ASE, SML or Austrian Silber. I would, instead, pay more premium, go for Panda, Kook, Lunar, Britannia.

 

I would go with the silver because the investment is divisible and silver has more gain potential [along with more risk].

 

sweeper, i agree now are you a SAE MAN OR A SILVER ROUND FAN? just asking?

 

With the choice of either gold or silver, I would put the entire $1200 in silver (specifically ASEs). IMO, silver is more undervalued than gold. ASEs are an easy choice because of guarantee of weight and purity, highly recognizable and strong upside in the future (even with current premiums). TC

 

I haved moved from just buying silver rounds to buying (almost ) all ASE there is a comfort knowing it is backed by U.S gov even if i dont trust it! (AND I DONT!)

 

I own some rounds, but I haven't purchased one in years. The rounds will always sell at a discount to ASEs because there is no certainty regarding their silver content. Anybody can stamp a coin .999, but how do you really know? People think they are getting a bargain because rounds are cheaper to buy, but they will give it all back on the sell side.

 

Silver, except I would probably go the bullion route and buy something with little or no premium like 1 or 5 oz bars.

 

I own some rounds, but I haven't purchased one in years. The rounds will always sell at a discount to ASEs because there is no certainty regarding their silver content. Anybody can stamp a coin .999, but how do you really know? People think they are getting a bargain because rounds are cheaper to buy, but they will give it all back on the sell side.

Also, one thing many people overlook is that someday the US Mint will discontinue the ASE program. When this happens, they will instantly acquire at least some, and perhaps a significant numismatic premium because the supply will be fixed but demand will continue.

 

Sweeper,again we agree thats why i have been buying ASE they will discontinue them @ some point then the few (1000s?) i have will be worth spot plus?????

 

a few notes:

Generally you can buy gold for a 5.5% premium (premium over spot) ... although premiums do vary and can range from 5.5% to 9.5% ... i like American Gold Eagles because they are so beautiful and recognizable

American Silver Eagles generally sell for a much higher premium over spot (14 to 19%) than the Gold Eagles ... I think this might be due to the heaviness of say $1000 worth of coins and their associated storage costs. If you want to get the best deal on silver buy bags of circulated 90% silver coins. You can get a bag of circulated franklin half dollars for 5.5% over spot (or buy partial bags for slightly more over spot).

However I do have to say that American Silver Eagles are gorgeous. And if you are only buying a few. You should own some. They are fun to look at and show.

One advantage of gold over silver is it's easier to store and carry with you (and easier to hide).

In terms of investment: it's a tough call ... gold is popular because many countries are buying gold right now as a reserve currency so the demand is very high. China wants to buy a lot of gold too. Silver is good because it does have industrial uses ... Gold is only $100 off it's record high of $1220 an ounce reached in November ... While silver is selling for about 1/3 of it's all time high price of near $50 an ounce in 1980 ... So I can see the argument that silver has more upside as a percent basis.

What you could do is buy half and half ... buy a smaller American Eagle Gold coin (say the 1/2 ounce coin) ... with the other half of your money buy either American Silver Eagles or circulated Franklin Halfs. The premium difference for silver coins is not that important if you are only buying a few.

This is a great source for bullion coins ... (pretty good prices)
http://www.goldeneaglecoin.com

Good Luck!

 

one more thing ... its true that silver bars and rounds have the smallest premium ... however watch out for counterfeiting ... i like coins because they are more recognizable ... just my 2 cents!

 

But on the sell side, all of the dealers around me currently pay $1 over spot for ASEs which is about a 6% premium. So you recover part of the premium on the sell side, which isn't generally true with 90% bags or rounds. So the premium isn't as high as it looks on the round trip.

 

This reminds me of the old question of who will take Sally and who will take Sue or something like that. Both will do the same, either way you look at it. I mean the silver and gold.

Liquidity is attainable whether it's silver or gold. Personally I would buy gold because I like the feel and look of gold, period. Besides with $1200 that's alot of rounds to be lugging around, just kidding. There ain't no difference between the two, Sally and Sue. Oh, no now it's stuck in my head like an old song that it is. As far as the silver and gold, I'm thinkng pre-33 and I'll take the gold!!

 

Ok PHUBANKS you brought it up so i will pure gas on it LOL? China is buying silver/gold with a purpose! Because if they own it all,who cant go back on the gold standard? (even if we wanted to) Our dollar will be worth S**T and then they will call in our debts?

 

pale, i think that china owns so many dollars now (through their massive buying of our treaury notes) that they want to buy gold to diversify and hedge against the obvious dollar devaluation that i think has to come eventually

i think that the debt (and unfunded liabilities) in the US is SO HIGH that the only way out is through inflation (inflate away the debt)

but who knows really ... i am just an onlooker to this whole fiasco. i really don't know anything!!

 

I am a on looker as well! one thing tough PM will be worth more then dollar 10yrs from now in my opinon???

 

US Treasury debt is non-callable.

 

The debt could also be restructured by eliminating interest payments and extending maturities. And the unfunded liabilities could be handled in a variety of ways such as eliminating some entitlements, raising the tax rate, raising the eligibility age for Social Security and Medicare, and converting 401K and IRA plans into government annuities. None of this looks probable now, but it would be a mistake to assume that it would never be done in a financial emergency.

 

I will put in a word for gold, since the current climate of opinion certainly favors silver. Ignoring the $50 an ounce Hunt brothers interlude, gold generally leads silver and is a more stable investment. If you want a contrary opinion on the value of gold over silver, here is a link to an article which describes silver as rather parabolic, and more suited to trading than investing: http://www.zealllc.com/2007/silvlag.htm.
But the best way to decide, is to go look at some long-term charts of both gold and silver and make up your own mind.
I will also put in a word for silver rounds while I'm at it. Junk silver is starting to trade at coin like premiums. If and when the premiums on junk silver get up to 20 or 30%, I would consider trading junk silver for bars or rounds, which allows you to purchase extra silver for free. Premiums on Eagles or Maples are often around 20%. Getting 1% of that back when I sell doesn't pay in my opinion, and I would just as soon buy the bars or rounds. When buying bullion, I think rounds and ingots are the best buy.