What are your opinions on the precious metals outlook for both investors and collectors? I try to buy higher grade gold and silver coins when I can afford them, and cherrypick the better rare ones, hoping of course that those will not fluctuate so much with the metal prices. I'm very interested in what others on this forum think, and what you are now doing in this respect. Thanks, in advance for your opinions! Sorry if another thread/post has covered this subject recently.
My 2 cents I think its going to be a hard market to keep up with Gold & Silver:devil: Plus as folks cash out there IRA'S it will go up & down till the end2011. then 2012 that is a election year so that will make a lot happen! :kewl:
My approach is basically the same as yours-- I usually don't buy strictly bullion, but rather try to cherrypick numismatic coins that are selling for around the melt price. Regarding the direction of silver and gold prices, it's anyone's guess. But speaking as one who has ties with the mining industry, I will say that there are quite a few base metal (lead, zinc, copper) mines in Third World countries, former Soviet republics, etc., that have-- or had-- been sitting on their silver, which is often a by-product of their main operation. This silver costs little to produce and is often viewed as a "rainy day fund" by the producers. Unlike Western mining operations, the main goals of mining operations in such countries are usually to 1) provide hard currency for the national government, and 2) provide sustainable employment opportunities in mining areas. Thus, a common strategy is to ensure a steady, stable, sustainable revenue stream. Given that base metal prices will likely fall with the economic news coming from China and elsewhere, while on the other hand silver prices had recently been hovering in the mid- to high-30s, it seems entirely possible to me that several mines may have been selling their silver to take advantage of the relatively high price and to compensate for the lower prices received for their main products.
Thanks very much, Collector1966! That's really some very interesting and quite usable info! I am grateful for your opinions, acute observations and advice!
While I would feel bad for the people losing money, as a coin collector I am hoping that the downward trend in PM prices continues. Don't get me wrong, I have a lot of silver coins which are worth less this week than last but I didn't buy them because of their melt value - I would be horrified at anyone melting down my beautiful collection of walkers. I paid on average about $7 each for them so these recent fluctuations don't worry me, I'm not looking to turn a quick buck - I collect them. Recently I have opted out of collecting silver coins because of the feeding frenzy, base metal coins are just as worthwhile to me. If the price really tanks then I will take the opportunity to buy up some non-chinese dollars and Franklin / Barber halves. Let silver prices fall and let coin collecting return to the devoted hobbyist rather than the portfolio managers.
I'm like pnightingale in that I hope the bottom falls out of metals because I'm a collector not investor in them. If that doesn't happen I suspect it will eventually kill the hobby like it has done in the past. The average collector cannot pay on average $50+ an oz on silver and $1500+ an oz on gold while maintaining a commitment to the enjoyment of collecting. Investors alone cannot sustain the coin market. High bullion prices are bad, bad news for collectors and the hobby. Guy
The big drop in Silver has been with pretend silver and will cause a shortage of real Silver . I have seen some coins I'm watching go for less and asking price has come down some . So some Silver is now on sale . I will ready to buy but not in a rush .I did get a great deal yesterday on a 1954-S FBL NGC so that was cool. I will be on the lookout for more deals. http://www.youtube.com/watch?v=cC81CeI-Y-U&feature=feedu
