Ok, so after this healthcare bill thing passed, I decided it was time to invest in some bullion. I have a VERY small budget but would like to get ahold of some silver just in case we have a civil war or inflation kicks up soon. I have no idea what I am doing so any pointers you can give me would help a lot. Thanks! :thumb:
If you don't know what you are doing, that's the first thing you have to correct before buying. Silver is very volitile and if you don't completely understand what you are buying, you're going to panic if/when the price drops. You might want to google Ted Butler and read some of his stuff if you are buying for investment, but keep in mind that he is only going to give you the bull market side of the argument. If you are buying in anticipation of a civil war, keep in mind that (1) this is a low probability bet, and (2) silver might not do well in that case since it is an industrial metal as well as a precious metal. Inflation is more likely, but an almost equally good case could be made for deflation. I would recommend American Silver Eagles [uncirculated, not proof] as a first silver investment. You'll pay a couple of dollars more than buying 90% pure coin silver or silver rounds, but you'll get most of it back on the sell side because most dealers will pay something over spot price for them. ASEs are the easiest and most liquid of all silver coins/bars.
I agree with Sweeper. You have to learn a bit about anything before investing in it. I also agree that you should start with American Silver Eagles. They usually sell for about $3 over spot price, currently. If you buy, I suggest getting a whole tube at once, they contain 20 coins. You can expect to spend about $380-$440, depending on where you buy. If you live someplace where there are coin dealers, you can purchase there and get them immediately and won't have to worry about shipping costs. Later, when you learn a bit more try to get some pre-1965 silver coins....they usually sell for a lower premium to the ASE. Good luck.
Dear friend, i am new (to some degree) as you are please read up on silver and gold as much as you can! Listen to many on here (not me!) and yes buy ASE (any year) you will pay more for them up front but get more when you sell. Please also understand PM are not a day trading game, most times they need to be held on to for years before gain is possible??
Welcome to cointalk! There is a lot of good information here. To this I would add that if your budget is small, silver would be a good buy, but be sure to keep some cash on hand as well. As pointed out above, the price of silver can be volatile, and you don't want to put into it more than you can afford to see go down. If we get more deflation, cash will be necessary to have even if inflation follows afterwards. Because of this, I think of gold and silver mainly as an insurance policy. So I don't worry about the price, and just hold onto it as a hedge against various misfortunes. You can see the prices trending downwards this week, so if you keep an eye on it, you might be able to pick up a good deal Apmex or Provident metals. If you don't have money for a whole roll, I see nothing wrong with buying a few coins at a time especially if you have local dealer. It adds up as you go along, and you will learn along the way. American Silver Eagles are fine, but there is nothing wrong with Canadian Maples or any of the other standard modern easy to trade .999 silver coins, and they have lower premiums than the Eagles.
