Pretty good. Sounds like a good deal because I know that you can only get a buck over spot from some dealers.
Now what to do with the cash... I hate watching the value of my bank accout drop every time I go to the gas station or grocery store.
That's the way I look at it. I'm sitting on about 400 ounces but don't need the cash right now. At $50/ounce I'd probably sell some and take the profit but right now my average cost is $20/oz and I believe it's going over $40 soon so I'm holding.
Bad move, Ned. Because now you are looking for a place to park the cash. Eagles more typically sell for $4-$6 over spot and the trend is UP. Now that you have sold you should buy some more silver. Good luck finding it that cheap. You now have to bear two transaction costs. One to sell and one to buy. Still your best move right now. The only good reason to sell silver at this time is because you need to pay some bills, which requires cash immediately. I am talking bullion, which I consider Eagles to be the premier example of. If you have silver with numismatic value, I would sell on a different schedule (now is probably OK). It may not pay to be holding collectible silver during hyperinflation. Bullion silver - you betcha - but numismatics will tank. People will have no money for luxuries like collectible coins. Their numismatic component of value will shrink a lot. People will be worried about survival. Nobody will want to sell you food for worhless government paper. Small silver coins will be the best barter instrument on the planet. Buy silver.
It does seem like now is a good time to cash out on some silver investments. The times that I've really taken a bath on stocks or bonds have been when I failed to have an exit point in mind (or failed to follow through on my sale plan because it 'felt' like prices were going to keep going up). Just out of curiosity, where are you r-investing? I'm liking several oil company & agricultural stocks right now, but not sure where to put a couple grand in my IRA.
Hi George, You are right to look ahead to the end game for each different investment. The time to execute the end game plan for silver is not now though. For the uninitiated, this is still a good time to get in. Look at the reasons for buying silver 5 or 6 years ago. The reasons were that the economy is being mismanaged and hyperinflation is on the horizon. No economic problems were being solved. Only more were being created. What has changed? Nothing. Only the price of silver has quintupled. Paper has become more and more risky. The US dollar is in dire straits and the politicians are rowing in the wrong direction. Stocks and bonds have no basis for their rise other than goverment and Fed manipulation. The remoteness of your assets when investing also increases risk. The dollar denomination of stocks and bonds means that they should increase in price along with inflation but their progress has actually been lower, resulting in losses in purchasing power. Time to dump is now. Mining, oil and ag are good ideas in an honest trading environment. I think there are too many crooks and middle men that will gather all the profits, if there are any, and you will get the leftovers (unless there are losses - in which you get them all). For an IRA you want security. Security is more important than big profits for a retirement program. For that you need to reduce risk. Do not play games. Get out of the games if you can. Games include bank accounts (playing the Dollar), stocks, bonds, even gold and silver ETFs. The only non-game in town is precious metals in physical, bullion form. Gold and silver are your best bet. Silver has better potential but is harder to store. For a few grand, silver is the answer though. That much will only weigh a few pounds - very easy to ship, carry and store. The end game for gold and silver will be when stability is around the corner. All your neighbors and friends will be saying what a great investment gold and silver are. That is the time to get out. Where to go from there ? Well, when stability returns, interest rates will be high. Bonds should be good then. With stability, you get a real return on investment and no more risk of losing purchasing power through inflation. Gold and silver do not pay interest, so that will be the time for the end game on precious metals. I do not think we are anywhere near this point. My opinion is that we will not see this scenario for many more years. Of course, your investing should reflect your own best analysis of what you think the future holds.
