Do you guys buy physical silver bullion or do you buy into a pool? Kitco has a pool account(not sure who else does), would that be a better way to go and if so where is a good place to buy from? Thanks for the info.
The pools are a promise to deliver silver just like the gold version. There has been some less than perfect reports about some of the pools offered. I myself would rather have it in my posession. Besides, the actual silver is much nicer to look at than just a dollar figure on your computer monitor. Check your nearest coin dealer to see what is being offered and at what price. Most ASEs, silver rounds and bars are all tied to latest PM market figures. Check the latest market price before going to the dealer so you will know if he's fair with his prices. ASEs have a slight premium over spot silver but that difference is also realized at the time of resale.
Personally, I don't think buying into a pool is such a good idea. It's too easy for the "numbers" to be manipulated on paper. Take possession of the real stuff. Chris
How much money are you putting in, and what do you worry about? If you're in a bad neighborhood, then it's safer to pay someone else to store your silver. If you want zero counterparty risk, then physical is the only choice. Your options include an ETF at a discount broker, the Kitco pool account (best suited for small investments), Bullionvault and GoldMoney.
Back in the day of the last price surge there were companies selling 1 oz bullion coins like Kuggerands, Double Eagles, etc and offering a safe storage of these in their vaults for a nominal fee. The problem was they sold the same coin several time over to many people. So when it came time for delivery, they went out of business. I feel the same thing could happen with pool type investing. Personally, I feel the bullion coin is liquid, almost the same as cash. So I want my money in my own hand. I can dig a hole someplace to hide the bullion if necessary. But in no way do not want it in my personal possession. If you don't have it, you just might not own it. IMHO gary
im not sure how much I want to invest at this time. I am tryin to get info before i make any moves. I do have a small amount of silver rounds(like 6 rounds) but I want to add a lot more. I know that is nothing compared to some of you guys
Howdy, I don't care for pool purchasing as I want my bullion readily available. Get yourself a safe deposit box or whatever. Cripes, you can buy a roll of gold eagles (20) that fit into a tube that's about the size of a quarter and 2.5 inches tall. You can hide that in the oatmeal box. ;-) With silver you can buy a 1000 oz ingot, paint it black and use it as a door stop. How much? Frankly, I feel everyone should have a core holding of bullion equal to somewhere between 3-5% of their wealth. More than this is speculative, but that's OK as long as you realize it. I'm running about 20% right now and am still accumulating. peace, rono
100 oz Silver bars make good paper weights and nobody actually believes it's real. Keep it polished so it looks chromed.
If you want to see the price of metals go crazy tell everyone you know to cash in their digital PM's...
As said, if the PM isn't in your possession, you don't really have it. It's like loaning a tool and forgetting to whom you lent it to. You no longer own it. IMHO gary
Welcome Jholla89 to the forum! It depends if you want to make more money with your investment. The buy and hold philosophy of investment have had some severe adjustments in the last couple of decades. If you want to accumulate silver objects and admire and secure them, and although having an entrance plan ( such as buy whenever) and no real exit plan would be worrisome to me as if I want to do that, I would stick with numismatic items and not call it investing. If 89 is your birth year by any guess, and if you have a job that allows/provides for IRA or ROTH IRA, I would establish those and invest in PM through a discount broker that does IRAs and ROTHs and buy SLV, GLD, IAU Exchange traded funds. You can buy or sell in seconds and it is treated as a stock transaction rather than possibly collectibles which could be taxed at a higher rate. There are many sides to consider if you really want to make the highest return. Some physical PM could come in handy if a worse case scenario occurs, but the best returns (IMO of course) will be from mixed investment of physical and stock shares managed with care by you. If you are going to be holding less than a couple of 100 oz of silver, accumulation is probably the best way.
Thanks for this explination. Yes 89 is my birth year. I actually just got a packet of information from my job about 401k and ROTH IRA. I also looked through a bunch of coins i had and realized that i had a bunch of 90% and 40% silver coins.
If the trade is inside of an IRA or Roth, the tax is deferred until withdrawn, and then it is taxed as ordinary income. If you sell SLV, GLD or IAU outside of a tax deferred account, it is still subject to tax as a collectible.
