Buy silver or gold with $5000?

Discussion in 'Bullion Investing' started by Silvertip1958, Nov 29, 2011.

  1. Silvertip1958

    Silvertip1958 Member

    A few weeks ago, I had $5000 in cash that I wanted to invest in PM's. I really struggled about whether to buy a bunch of silver, a few ounces of gold or both or hold the cash. I made the decision, but I'm no expert so I'm wondering what more experienced investors would do? Btw $5000 is a lot of money to me.
     
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  3. fatima

    fatima Junior Member

    Buy 2 American Gold Eagles and a Krugerrand.
     
  4. rodeoclown

    rodeoclown Dodging Bulls

    If 5k is a lot of money for you that you can't stand to possibly lose, my advice is, go put it back in the bank, perhaps a small interest earning account of some type. I'm not a fan of banks myself or how most conduct business but it's either that or stick in a safe in your home.
     
  5. SteveM1320

    SteveM1320 New Member

    Silver.

    Some will say something like "buy a ratio of 80% silver to 20% gold" or Some other ratio.

    I say buy silver. With the GSR over 50 and the fundamentals of silver as a commodity... When choosing between gold and silver right now, buy silver.

    My .02 cents

    Edit: this recommendation is being made assuming you have well over 5k in savings if you have 5k to invest in PMs
     
  6. VNeal

    VNeal Member

    Buy slabbed 1885CC Morgans. They are Key and the 3rd lowest population
     
    asheland likes this.
  7. JCB1983

    JCB1983 Learning

    This is what I would do. Keep 2k in your bank, put 1,500 into a roth IRA. Invest 1k in silver bullion, an 500 in low grade half barbers.
     
    Pheonix likes this.
  8. Silvertip1958

    Silvertip1958 Member

    . I have plenty of money in the bank, it's money I don't mind losing.
     
  9. medoraman

    medoraman Supporter! Supporter

    I would go with the "put it in the bank" suggestion. I don't know your situation sir, so its impossible for me to give you a rational suggestion. I don't knwo what bills you have, what is your age, what are your goals, what other assets you own, etc. For some people $5000 isn't nearly enough to have in PM, for others its WAY too much. Many others are better served paying off a credit card and then tearing it up, others may need the money to fall back on.

    Your question is like me coming on here saying, "I like ancient coins, which one should I buy?" Well, kind of nice to know how much I make, what kind of coins I like, what condition coins I like, etc, before being able to make a good recommendation, right?

    Chris
     
  10. Silvertip1958

    Silvertip1958 Member

    . Wow! Did I hit a nerve? I don't want my financial situation solved. I've heard so much lately about "keep your cash". Buy gold buy silver, I was just curious what most people would do with it?
     
  11. onecenter

    onecenter Member

    If I may add a suggestion...

    A nice one ounce gold coin ($1700) and 100 one ounce silver coins ($3300). These two amounts are the current market equivalent of $5000. Myself being a long-term investor, plan to hold the physical metals for a minimum of five years.
     
  12. medoraman

    medoraman Supporter! Supporter

    No sir, I was simply explaining that your initial inquiry was so vague that I would not feel comfortable answering it, since the data I said was missing could easily change the answer.

    If you said, "I have 5k I don't need, and wish to buy PM to balance my other assets, which would you recommend?" I would have suggested buying one or two ounces of gold, and the rest in ASE or another easily recognized form of silver bullion.

    Sorry if it sounded if I was defensive, but I didn't know if this was money you could lose, if you had other assets, if you were 20k in debt to credit cards, etc. That information is very important if one is to provide a rational answer.

    That's all, no offense meant. I was reacting to you saying, "$5,000 is a lot of money for me".

    Chris
     
    Two Dogs likes this.
  13. SteveM1320

    SteveM1320 New Member

    My understanding of this question was this (since this is the Bullion Investing forum):

    Let's play the "you're investing 5,000 in precious metals specifically Gold and or Silver Game . Which would you buy and why?"

    ?
     
  14. Silvertip1958

    Silvertip1958 Member

    cool! I suppose I made it vague so people would just look at it like, I have 5000 to invest, this is what I'd do. I have no credit card debt nor any other. It's $5000 if I keep it and a gain or loss invested in PM's
     
  15. happydaze88

    happydaze88 New Member

    You might consider buying gold or silver in a form that takes advantage of BOTH numismatic AND bullion pricing advantages, such as American Eagles or Canadian Maples.

    Both have numismatic value, since they are coins minted by governments and have legal tender status. Both have bullion value since they are usually either .999 pure (silver Eagles) or .9999 pure (silver Maples) and .9167 pure (gold Eagles) or .9999 pure (gold Maples).

    As for which, well depends on your stomach for volatility and how much storage room you have:

    a-Silver is more volatile (small % price fluctuations can more greatly affect the value of your overall investment) and will require more storage space.

    b-Gold is slightly less volatile, and requires much less storage space. But, you dont have as much upside potential as with silver.

    Just things to consider. Ultimately, you should do what makes you the most comfortable with the amount of risk that you are willing to take. Good luck!!! :)
     
  16. Silvertip1958

    Silvertip1958 Member

    Thanks for the input, I liked the ira suggestion, that never crossed my mind. I bought 2-$50 gold eagles and 3- 10oz silver bar
     
  17. wgpjr

    wgpjr Collector

    If I had 5k to spend on PMs, I'd get 2k of gold, 2k of platinum and the rest in silver.
     
    SilverSurfer415 likes this.
  18. onecenter

    onecenter Member

    An excellent choice.
     
  19. rush2112

    rush2112 Junior Member

    What ever you decide, don't buy it from an online auction site but rather pay a little more and get it from reputable dealer or as I do, order it through my local bank. I do pay a commision fee and small delivery fee but the product arrives arrives at the bank and is immediately put into a safety deposit box. I also only buy bullion produced by Royal Canadian Mint or if your in the U.S. then stick with U.S. mint products.
     
  20. Silvertip1958

    Silvertip1958 Member

    Whether I asked the question right, I'm not certain, but when I have $5000 or any amount to invest in the future, I will be sure to reference all of the above. Thank you!
     
  21. jjack

    jjack Captain Obvious

    Ideally you would want spent 80% on gold and 20% on Silver so you would buy about 2 1 oz AGE and 1 1/4 AGE. For Silver buy 20 1 oz American Silver Eagles.
     
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