Silver or gold?

I've never paid a 20% premium when buying ASEs. And the current sell price is about 6% [not 1%] over spot if you bring them to a coin shop. Everyone has to decide for themselves what they want. I opt for the guaranteed weight and purity of the ASE plus the chance that they will develop a significant numismatic premium someday when the US Mint discontinues the series.

 

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My apologies, I read 1$ as 1% premium! There are certainly good arguments both ways. If you are looking for numismatic premium, ASEs are certainly a good way to go. But personally, I don't like trying to predict what kind of premiums people may be paying 1 or 5 or 10 to 20 years from now, so I try to avoid numismatic premiums. In that case, spot prices are spot prices and the closer I get to that in both directions the better.

If one had the time, one would calculate the bid/ask spread for different forms of bullion over a period of time, factoring in premiums and shipping. I can't say I've done this, because I believe that as long as one is buying gold and silver at somewhat reasonable prices, one is going to come out better than if one doesn't.

Just to add to the gold silver debate, I like to factor in the possibility that if currencies are revalued, and if something like the SDRs (special drawing rights) are brought in, that these are more likely to be backed at least partially by gold than by silver. In addition, all the rumors about banks and nationalities calling in their bullion, or attempting to buy more, seem to be focused on gold. Just a thought.

 

Silver, silver, silver and then some more silver!

Silver, silver, silver and then some more silver!

 

I believe silver is the better long term investment. Although you have to be able to stomach the volatility and there are a few caveats. One being that silver is more attached to the economy. So, the price probably won't go up significantly until people start buying more cell phones, Ipods, and other things that require silver to operate. Plus, silver has a bunch of new uses that are just coming to fruitation. This year it is predicted that photograph won't be the leading user of silver, but will be replaced by these new uses. Over time (years we are speaking) the use of silver will increase for these new functions (medical, solar panel, etc.). I won't bring up the silver to gold ratio because some people thing it is poo poo. But consider that mining can't happen forever on a commodity that is limited in the earth's crust. So, you do your own reseach.

One last thing about gold.....China isn't buying it. They consider it too expensive to be gotten by other sources and are acquiring their supply by internal mining operations. Consider two things, China didn't buy the IMF's 192 tonnes, and China only has 1.5% of their monetary reserves in gold.

 

as of today...

it would be Ag. You just missed the dip to $1055!

 

I would buy 4 gold Five dollar pieces (old Liberty Eagles.).

 

Ummm, you can find those for $300 a piece? Where?

 

The coin dealer near me was selling rolls of mixed date ASEs last week for $285. I don't know what this week's price is.

 

Asking because I don't know, not because I'm arguing:

Can something that was minted in the millions acquire a numismatic premium, even years after it goes out of production?

(Also, yes Treasury debt is non-callable, but if China insists on cash payment as it matures instead of rolling the money over into new Treasuries, the effect is pretty similar).

 

Morgan and Peace dollars were minted in the millions, and all except harshly cleaned or damaged coins carry varying degrees of numismatic premiums. It's really about supply and demand. Right now, the market absorbs all the Mint can produce at a slight premium to melt. If production stops, demand will continue to rise and the coin becomes a numismatic piece as time passes.

Of course China can opt to receive cash payments as their treasury debt matures over the years, just like any other holder. But the effect is much different than if they had the right to call the debt all at once since there would be no shock to the system.

Edit: I forgot to add that the other side of the transaction must also be considered when speaking about China exiting the US Treasury market. The purchase of Treasuries is the offset to the exportation of goods to the US. If China will not accept and hold Treasuries, they must accept a discontinuation of exports to the US. This might happen someday, but I don't think they are at that point yet. This also has the side effect of helping to eliminate the US trade deficit over time, so it isn't necessarily negative.

 

I'd purchase silver first. ASE if you insist. Best to start with the most Silver (Ag) for the buck. I'd start with junk silver coins. You'll get more Ag per dollar.

 

I think Gold is your best investment vehicle as long as
You have the funds To make a large purchase!!

 

Maybe Walmart should start selling gold and silver.

 

I would go with silver - reputable 10 oz bars and ASEs for such small amounts of money. If you have large funds and would anticipate selling in large dollar amounts, go with gold -- it's more convenient. Unless you plan to buy and then sell in a short period of time, don't worry about premium differences.

 

I would buy silver. In large bars for the lowest premium. If you are trying to make money when silver goes up, that is. Or better yet buy the silver ETF if you want much better liquidity and lower premium.

Lack

 

Gold.

I am not talking about investment, which is very debatable and controversial.

I'm talking about portability and storage. Gold is so easy to carry and hide, and also harder to contaminate. Silver is quite the opposite, and the most annoying part is that if you don't store it well then in a few years your silver will look like something else due to the tarnish...

 

What you call tarnish, others call toning, and sometimes pay a large premium for attractive examples.