Gold/Silver bullion question.

First off, I am a short time lurker and finally decided to join so hello!
I'm about to place my first order for some bullion and I wanted some opinions on the best way to spread it out. The 3 following scenarios are all within roughly $100 of each other. Which is best in your opinion?

Option 1.
(1) 1 ounce AGE
(1) 10 ounce silver bar
(1) 5 ounce silver bar

Option 2.
(4) 10 ounce silver bars
(2) 5 ounce silver bars

Option 3.
(1) 1 kilo silver bar
(1) 10 ounce silver bar
(1) 5 ounce silver bar
(2) 1 ounce ASE

Looking to move most of my cash savings into gold/silver so any other info yall think I may need or need to read up on please let me know. Thanks in advance.

 

Log in or Sign up to hide this ad.

When silver drops, what are you going to do? Can you stomach a drop in the silver prices?

You need to look at Fungibility and Liquidity.

One ounce products are easier to move. Not many people have the space or money to change in and out of Kilo size bars, 100oz bars, etc. With One ounce products, you can move your money partially or all the way. With larger size bars, you can only move all or none.

 

welcome to CT ... nice to have you aboard.

first, i am of the opinion that silver will GREATLY outperform gold (in percent return) over the next couple of years, so if it was me, i would put my initial shot of cash into silver only. the whole point of this is to make money. why not make the most money possible. If you have been watching the price of silver and gold for the past year, you would have seen this relative outperformance of silver over gold first hand. Even tonight (Sunday night) when the PM markets opened at 6pm Eastern Standard Time, Silver shot up 50 cents (off a $40.97 starting point) a gain of over 1% ... while gold is only up 75 cents (off a $1,475 starting point) a gain of only 0.005%. Since August of last year, silver has more than doubled (100% gain) while gold is only up about 10% or so.

second, in my opinion, the best way to invest in silver is American Silver Eagles because the chances of them being counterfeited is REALLY SMALL. With a silver round or bar (who the heck knows!). Plus ASE's are stunningly beautiful, extrememly liquid and easy to sell, and fun to give as gifts (if you are so inclined). I also like the 1 oz size of ASEs (a very convenient size). Finally you dont have the issue of dirt and grime that you have with circulated 90% coins.

One interesting way to accumulate ASE's is buying some of the lower mintage years from the 1980s and 1990s and early 2000s which can be had for prices close to the very high mintage 2010 and 2011 coins and could offer some numismatic value over bullion in the years to come.

So that's my opinion ... put all your shot of cash into ASE's

 

If I had to pick an option, I would pick option 2. 10 ounce bars are smaller than the Kilo. However, I would consider buying 90% silver half dollars, or other junk silver instead. (lower premium, top recognizability, gov't minted, smaller denominations = greater liquidity, face value, pretty hard to counterfeit a quarter that everyone handles daily)...

 

Thanx for the input! I will be doing my first order through apmex mobile so I can take advantage of the free shipping. I shouldn't have to worry about fake bars if I buy the ones from there site correct?

 

If my memory serves, Engelhard's bars have serial numbers on them.

 

absolutely not.

 

thanx for that info V.
Thanx Dan, i wanted to use apmex because it gives me peace of mind to not have to worry about authenticity.

 

With gold get the Assay card. If it's not legal tender, like an AGE or Maple Leaf, get an assay card with the gold bar.

 

First I would think your age and financial situation would determine whether this is a good idea or not. If you are young and living at home, and the cash is a small amount, ....sure.

If you are perhaps a middle age working man/woman and have significant cash turnover at regular periods of time, you don't want to have to convert silver back to cash to buy a new radiator for the car, etc. You should consider putting some of the cash money into other areas than physical metal. There will eventually be a top IMO, and you don't want to have to try and sell into a rapidly decreasing or even maniacal rush to dump it. Small amount , sure, we are all there probably. More than 10% in too high unless you really know the market of silver. Welcome to the forum!

Jim

​

 

Get some junk silver too

 

I am 24 year old single male. Zero debt. Car payed for. Total monthly expenses with rent, gas, food, bills, etc, is 1400-1500 a month. Take home 3-4k depending on how much I wana work. Don't drink, smoke, or do drugs. I usually have 1-1.5k to save at the end of every month and I'm just tired of dumping it into ing. What would you say my course of action should be now?

 

Yeah, but do you have a girlfriend/future wife. As everyone knows the expense of companionship is astronomical.

 

No wife/girlfriend/kids. Enjoy the single life very much right now

 

For the three options you list, this is the one to take. No reason to put all your risk in silver. 6 months ago silver was $24. 6 months ago gold was $1340. If they both reversed (not saying they will) you lose 41% of your investment in what's in Silver, but only 9.1% of your investment in what is in gold. Gold is held by central banks as an asset, silver is not and in terms of risk they are not equivalent investments.

 

At your age and situation, I would put a lot of time into studying how to invest in the stock market. Over a lifetime, this will return more to you than perhaps any other passive investment. But if you want precious metals, I would only buy AGEs and ASEs. People tend to look at what is most economical to buy. A better strategy might be to look at what will be easiest to sell for full value in a bad market since there is a strong possibility that this is what you will end up doing. There is absolutely NO advantage to diversification in precious metal investments except by size. One ounce coins are easiest to sell.

 

I agree with option #1. Diversify and don't put all your eggs into one metal. Buy them both. Good info on what to buy in this thread, ie: AGE, ASE, etc.

 

I like XF AU pre 21 Morgan Silver Dollars at close to melt. You're local coin shop may have some a close to melt or even sometimes they get listed on ebay with buy it now price thats cheap. Silver Price per oz times .77 gives you the melt on a silver dollar. Example; $40 times .77 equals $30.80, if you can find XF AU Morgans within $5 of this price, you would have a good buy. Not to big on 1921 Morgans or Peace Dollars.

 

I agree. Just something about the 1921 Morgan that is lacking.

 

Thanks for all the replies once again. I see everyone's opinions kinda differ lol. I know a few people have mentioned staying diversified while others have said that its fine to stick with either silver or gold alone. I'll have to do so more research on that.

Also, why the heavy love for ASE and AGE over bars of silver or gold, other than the ability to get rid of them faster when it comes time to sell?