Can of worms - to invest in silver or not

Discussion in 'Bullion Investing' started by jacksbike, Jun 27, 2020.

  1. jacksbike

    jacksbike New Member

    Hi All,
    I just joined the CT community today. Obviously cash in the bank is getting virtually no interest. I fully realize that the price of silver has been from about $8 to about $50 in the last 40 years. How risky is it to buy perhaps $2000 to $4000 in silver today ?
    I was pondering buying some US silver American dollar coins. Open to all and any sides of info on this. Thanks in advance for any and all thoughts.
     
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  3. Kentucky

    Kentucky Supporter! Supporter

    Depends, you aren't going to be able to buy too many dollar coins at close to melt, even the slugs are going at fairly high prices. Any good prices you find, I think you should jump on.
     
  4. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    Depends, how long can you hang on, without needing the money? Yes, some currency financiers say the US dollar many lose as much as 30% value compared to other denominations if things do not correct. Since the daily fair value fix of bullion is done in Europe and the US is only part of the decision, the thought is how the US dealers will handle the exchange. 5-10% of cash evaluation is a common recommendation, but make sure you have immediate future needs of cash available for you. I usually go opposite of the "Loud" newsletters sell pitch. imo, Jim
     
  5. cpm9ball

    cpm9ball CANNOT RE-MEMBER

    It isn't an investment. It's speculation. What if you need the money in a hurry? Can you afford to lose $3, $4 or $5 per ounce? ~ Chris
     
    -jeffB, Beefer518 and johnmilton like this.
  6. crazyd

    crazyd Active Member

    I would buy 1-2 oz of gold. But that's just my limited knowledge. I used to collect a bit of silver every year. I stopped this year due to horrendous record breaking premiums over spot.

    P.S. I never really viewed Silver or even Gold as a way to make money - but rather I enjoy collecting and view it as way to force save for a moment - as its not easy to dip in to it as I would with cash so I have kept it.

    Watch the language please. Read the rules.
     
    Last edited by a moderator: Jun 27, 2020
    spoon and goldcollector like this.
  7. fretboard

    fretboard Defender of Old Coinage!

    Silver is extremely risky in my eyes. It's truly odd that the retail prices have gone through the roof but the spot price doesn't change that much. The demand for silver is absolutely crazy!! As far as investments go, do what you wish but I wouldn't.
     
    Jason is new likes this.
  8. Collecting Nut

    Collecting Nut Borderline Hoarder

    You must be carefully and what you ask just depends. Ask yourself, is it better to put money in the bank st almost zero interest or speculate on the price of silver rising. Look at the spot price and try and buy anything at or near spot. A dealer is usually about $2-$3 above spot for their markup. Today they are more than double that. Where's the real risk?
     
  9. chungt

    chungt Member

    It is ultimately your call and no one here knows more than you do on how it will pan out. So you need to be clear on your own objective. In my case, i am putting some portion into metals for diversification and protection. For that, Gold is the way to go. However, I look at gold/silver ratio and i decided to buy all silver. My strategy is to either cash out when silver hits over $32 or convert to gold if the gold silver ratio goes below 70. Silver is too volatile so my opinion is that ultimate goal should be to get gold but in current climate, i trying to achieve that with silver.
     
  10. Santinidollar

    Santinidollar Supporter! Supporter

    Precious metals are, at best, a highly speculative investment that I think should be a small hedge to stocks and bonds.
     
  11. goldcollector

    goldcollector Member

    Don't buy silver
    You're welcome in advance
     
  12. masterswimmer

    masterswimmer Well-Known Member

    @jacksbike take note, the above poster is a well documented thief on Coin Talk.
    You're welcome in advance.
     
  13. slackaction1

    slackaction1 Well-Known Member

    YEP.... WHAT MASTERSWIMMMER SAID.. WITH HIGH PREMIUM..
     
  14. jacksbike

    jacksbike New Member

    Boy, I got what I asked for ! I could put this $ amount aside for a silver purchase without it affecting my (newly) retirement needs. What I find confusing is that with interest rates at close to zero and bonds very low, that precious metal prices would move heavily upward. Have not really seen this at all. Gold to me is a certain investment. I obviously understand that it is my call. I am not sure I totally understand the 'spot plus' cost. I could buy a 20 pack of silver US eagles from APMEX for about $2500. If I bought the same amount from a coin dealer, would it cost me the $21 to $23 dollar per coin Plus a spot price (profit margin for the dealer) mark up ? Should I go with gold, is it best to buy US mint coins or the ST. Gaudens, or something else ? I know, lots of choices and hard decisions.
     
  15. chungt

    chungt Member

    All online dealers are rip offs. I only use it when i am buying gifts or wanting a reference piece. Go to local shops. The max over spot should be $3 in current climate for silver. This means current market price (S100) plus $3. Under normal circumstances, I am told the premium was around $1-2.

    Any gold/silver coin with minimum premium is fine if this is only for investment or hedging. Find the balance where you will pay least for premium and easiest to cash out. Most likely anything would do but i personally like government minted, foreign or domestic.
     
    Last edited: Jun 28, 2020
  16. PeacePeople

    PeacePeople Wall St and stocks, where it's at

    When you say American silver dollars, are you thinking 1 ounce silver eagles? If that's the case, I think that's probably a good item to start with, but I wouldn't buy them right now because the premium is too high at the moment. Less than a year ago you could buy them for spot + $2 or $3 and right now they're selling for way more than that. You want liquidity or something that is easily recognized and there is solid demand for, but the premium is just to high at the moment. Just remember that you cannot expect to recoup the premium, generally speaking. In my opinion, the premiums are just too high for precious metals at the moment, when that will change is anybody's guess.
     
    jacksbike likes this.
  17. jacksbike

    jacksbike New Member

    Thanks. Yes I meant American silver dollar eagles. I have a better understanding now from everyone's answers . Thanks !!
     
  18. Randy Abercrombie

    Randy Abercrombie Supporter! Supporter

    As an investment vehicle, man silver is a risky proposition. As a vehicle to store wealth, I believe it’s a fine idea. I hold a decent amount of both silver and gold, but it is all set to go to kids and grandkids when I leave this party. If I sold, I would see a nice return, but I have been holding most of this since the 1990’s adding all along the way when cash was burning a hole in my pocket or a great deal found its way to me...... Here’s what’s going against you at this point in time. Values are inflated due to economic concerns and even when you do find it, added premiums are a killing blow.... In short, I am afraid a large investment right now would be a losing proposition. But then again, nobody really knows. Six months ago you could purchase silver or gold a spot market values and it was everywhere. I think once we get this virus under control and folks get back to normal there will be plenty of precious metals out there to be had at much more favorable price levels.
     
  19. Collecting Nut

    Collecting Nut Borderline Hoarder

    I've been buying silver for many years now. It's a great way to build wealth. If I sell I just need to sell over $9.50 an ounce. Then it's all profit.
     
    slackaction1 likes this.
  20. jacksbike

    jacksbike New Member

    I think it is quite clear to me that now is not the time to buy, which is understandable. As I had previously said, I have followed silver for about 40 years and seen it from $9 to $50. Just perplexed that both silver and gold have not really gone up , in comparison to interest rates, stock market and bond market.
     
  21. chungt

    chungt Member

    No one would invest in gold or silver unless there is a serious downturn in the market and we’ve had a bull market for a loooong time. With this covid-19, there is a serious concern now for a market crash that is driving the price or gold to record levels. With the second wave of covid-19, i believe gold will reach over $2000 easily and maybe up to $2500. When gold gets too expensive and the economy turns around, silver will go up to who know how much. No one knows whats gonna happen. If silver stays at current level, you would have made the right choice. If the silver shoots up to $30 by next year or so, you may regret your decision. I recently acquired some gold and silver at 2:3 ratio because i am betting that it will go up significantly this year and next. But then, i cant see the future so its my speculation.
     
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