buying bullion

hey my local shop sell bullion at"$1.50 per oz over for "generic" 1 oz bars/rounds. $2 over for Englehard 1 ouncers" would it be worth it to buy an ounce or so a month(im 16 im slow) or would it be to far above spot?

 

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That sounds about average. Usually you can do better at coinshows though and Ampex will run specials from time to time that might be worthwhile. Either way, dollar cost averaging should yield good results in the long term.

 

Generally 2$ above spot is acceptable. Try to get a job and use a portion of your paycheck to buy bullion. I just turned 17 and I have 36.5 oz silver and a gram of gold. I got a 250$ paycheck and spent 150$ on a 10 oz of silver.

Basically, I think that's a reasonable price, but with the ways silver is rising lately, I would wait for a sleight dip, if there will be one. One ounce a month is small, I would try to make some more money and then buy 5 or so ozs a month.

You can't think of it like spending money either, it's more of converting it to something else. So if you see you have only 50$ cash and panic, just look at your bullion and you'll find you have several hundred.

If you have any more questions, just let me know.

 

so i should buy when i have the money? i figure i get about 20$ every so often for coin roll hunting il just use the dumps to buy bullion

 

yeah I would save up for larger purchases. Selling odd coins is a good idea, like I sold 22 junk mercury dimes for 36 bucks, and picked up 2 ozs of silver the next day.

I think 3+ozs a month is good, but 1 oz isnt really a good long term investment

 

well im really bad at holding physical money as i have adhd and things catch my eye so i figure i get 20 bucks i go get halves and then go get bullion so itd vary month to month im hoping to buy 1 oz on friday or getting halves and just rolling them and hiding them till silver goes down

 

then open a bank account, and any job you get make sure it's direct deposit. That way you have digital money and can use paypal to make online bullion purchases

 

yeah im thinking about a bank account but i dont have the money to open it ive been blowing alot of money on scrap silver lol

 

Haha I see. It seems scrap silver sells for a higher premium on ebay. I prefer the bars and rounds myself, but it's completely up to you. I've gotten 3 silver quarters below spot, but I can't really do anything with them. But if you like scrap silver then by all means, keep buying. I just think bars are easier to sell in hard times.

 

well i buy scrap n then melt it into bars when i get enough its easyer to store that way i prefer bars myself i jst didnt know mylocal coin store sold any till recently lol

 

you actually melt them??

The problem with that is the purity might be off, it's harder to resell, and the weight will be different for each bar. It's easier to buy a standard bar with a weight in troy ounces.

 

yeah its prolly not perfect but my friends been doing it for years and he buys silver at spot so i just have him melt the bar weigh n stamp it

 

Well I guess keep doing what you're doing if you enjoy it. I prefer buying troy ounces from reputable places. If you like your style then stick with it, I was just lending some advice. Whatever you decide good luck!

 

well i just melt it as its easyer to store that way i pln on buying the bars so it .999 pure and can be sold easy

 

That's a good plan and better than Ebay. You can chase lower prices on Ebay to try to save money, but eventually you'll get burned and lose all of the savings. It's better to form a relationship with the local dealer in my opinion.

 

very cool what you are doing fisher2. I am 53 years old and wish I had started buying at your age. I always buy what I can, when I can. If it is only one ounce per paycheck....that is what I do. I really like American Eagles, Walking Liberty halves, Libertads, Englehard silver, etc. I always try to put aside 10-20% of every pay check for silver purchases. The stack will build over time believe me.

I also have never bought off of Ebay.....just my preference. I usually post up what I have to spend and whatI am looking for on several forums I am on and buy from individuals. It is also a good idea to form a relationship with a local dealer if any in your area.....may have to pay premiums at first but they eventually "toss you a bone" after they see you will be a regular customer. Good luck and let us know if you have any more questions.

 

I would buy local if I could. Unfortunately I live in a high cost of living area and the premium is large. Add a 7% sales tax to bullion purchases and it's completely not worth it. I wouldn't buy local if you're paying a high sales tax.

 

I would say that if you pay $20 or less for an ASE you'll probably be happy in a few years when silver hits $50. Sometimes you can miss the big picture and big price move by paying too much attention to the last dollar of price. I wouldn't bother purchasing silver if I thought one or two dollars was going to make a difference.

 

I'm not sure about 50$ an ounce, but your reasoning is right. A few dollars here and there will be made up by in the long run if you hold on to it.

 

I here what you're saying but I don't agree with your reasoning at all. Silver is an investment when buying bullion. It's fine for a kid buying a coin or two a month but not with much bigger. I can't imagine paying my broker an extra dollar a share in commission when I buy a $15 stock. Why would I do it with silver?