Silver investor needs help!

Hi I am a small investor in silver, both oz coins and junk silver.
I have been buying a lot of 40% Kennedy's for a wile now, and the average price I paid was around 3.65 each.
I wold like to know if this was a good investment, as I am also new to investing.

I just thought that I got such a good price on my Kennedy's,
and the most I have paid for a one ounce silver Eagle is around $36.00.
That I made the correct move.

I realize It is to late aether way, but it never hurts to ask people who much more than I do.
Thanks so much for your advice
Alan

 

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According to coinflation.com your 40% halves are worth over $6 at today's spot price, so it was a good purchase as things currently stand. I personally prefer 90% silver or better because if you were ever to be able to melt it down that's about the same as sterling silver, where as the 40% would have to have the metals separated to be useful. I do have a few 40% halves just because I like the Kennedy design, they're affordable in good condition, and they will always have value. Getting Eagles for $36 is about the best you could possibly have done since silver nearly hit $50 earlier this year. I'd say you've done well.

 

Based on your questions, you shouldn't be investing in silver or anything for that matter.

Your "buy first and figure it out later" strategy is a recipie for personal financial disaster.

 

Agreed - you did well. Those 40% JFK's have a known quantity of silver in them, so there's never any real reason to melt them down.

But, if you needed the silver for something (ie, an industrial use, or casting medals) then there would be higher smelting costs involved. And vroomer has a point. Investing is a lot like building something. Measure twice, cut once.

 

i bought some 40% kennedy's around $4 also, many guys slam them most notably for the inability to sell them. i have not tried to sell any yet but i see them selling without a problem on ebay. ive been buying 40% ikes lately, they could be a sleeper.

all this being said i would not make 40% coinage the core of my stack but whenever i can get it for a good amount under spot im on it.

my further thinking is that when silver reaches 100+ they will be very appealing to newbies.

 

Thanks Everyone.
You advice has been noted, and I am trying to be as careful as possible.
Alan

 

All the prices you listed are below melt, so IMO you did really well. All silver is good, even the under appreciated/underrated 40% silver coinage. TC

 

You are absolutely correct..Save your money and instead of buying 40% buy 90% or .999 40% Ike's are not investment silver.

 

I agree with you 100%, but you have to admit that these forums do have more than their share of people "jumping off the bridge" without even knowing if they can swim.

Chris

 

Good Judgement comes from experience, and a whole lot of that comes from bad judgement.....

 

I just bought a roll for 4x face...Would you like to explain how that wasn't a good investment?...I don't like stacking the 40% so every time I get a few hundred or the gold/silver ratio is good I trade them for gold.

 

When you go to sell your silver to a dealer, pawn shop, or whatever kind of shop/venue you sell at, you will figure out very quickly what is and what is NOT a good investment for silver.

Trust me. You'll see and figure it out.

PS - don't sell at the first place you go to.

 

The thread starter payed just over 7x face, they have a silver value of just under 13x face...Being 40% you won't get close to 13x because of extra refinery cost to turn them into .999....Last time I traded for gold I think silver was at $34 per ounce and I got 7.5x face....I wouldn't call the thread starters price a good investment but I would rather have a 40% than $3.65 in fiat FRN...If silver goes over $100 an ounce the refinery cost will be way less irrelevant.

 

$100 plus/ot for silver. What year, what decade? LOL I'm hoping for half that, thank you.
Oh, and for this year too!

 

I think we'll flirt with $60 by years end. And I'll hold every last ounce I have unless I'm trading for other PMs

 

Hard to say. Are you selling them soon ? Will the PM prices hold over a long term ? PM investing, like all others is timing. Commissions are a koller. If the price goes upward and you sell for a profit, you did well. If not, then you have the silver. But I bought double eagles at $700 and was forced to sell at $300. I have bought silver at $9 and sold at $30. Predicting what your investment will do is guesswork. And there are no guarantees. That's why instead of calling it an "investment", I call it "speculation".

gary

 

Is silver or precious metals an investment? Are they a store of wealth? Are they a hedge against inflation? Did you buy them to protect yourself in a shtf scenario?

I think you did fine with what you paid for them in today's market, but you should probably ask yourself why you bought them, or what was the purpose behind buying them. Once you figure that out you might want to set up an entry and exit plan and try to execute it. Before anybody can tell you how you did, maybe most of us or all of us should ask why did we do it and to what end are we doing it.

 

Last week I sold off about 150 oz of silver that I got for between $3-5 an oz. Figured it was time to take my profits

 

I would "generally" agree...I've always said, "Never invest in anything you don't understand"...which is similar. However, I find that when I'm venturing into a new area of investment (or coin collecting) I sometimes need a focal point to help assimilate the information.

For instance, I like many of the Conder tokens I see on CT, but really don't know much about them. I picked up a few inexpensive ones I liked from a trusted eBay seller and, in the process of researching them, learned quite a bit more about Conder tokens in general.

The same is true for other types of investing...I can read (or talk to people) about selling stock options all day long, but until I actually do it a few times, it's difficult to put the information into perspective...that's true for me, anyway. The key is to do it with money you can afford to lose and understand that may be the outcome. That shouldn't stop you, though. Fear of failure can be worse than failure itself.

 

Excellent points! ...especially the part about an exit strategy. Most people invest in coins and PMs without a clear buy/sell strategy. Some folks hoard PMs without knowing to whom they can sell and at what price. That may be less of an issue in a big city as opposed to someplace out in the country...but something to think about. It may be a good idea to try to sell some just to see if you can "close the loop".