Discussion in 'Bullion Investing' started by rugerr1, Dec 14, 2015.
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I don't know about those two items but I had no problem getting ASE's back then......
Zombucks would fit that!
If I knew the answer to that question I'd buy all I can before I shared that information with anyone, including CT. Sorry guys and gals.
Seriously, I think we're in a buying frenzy right now. Most of the online dealers I use are out of stock in some form of silver on any given day. The US Mint is recording record sales on the Silver Eagles and dealers have raised their premiums. It's still available but the spread of spot verses retail has grown. Miners are mining below production costs just trying to stay in business. Market demand is high but the big money controls the price. Then factor in inflation. $100.00 in the $80's buy $20.00 today.
Silver is a long term investment. You can lose your shirt trying to time the market, or buy at the lowest and sell at the highest. It's a game you don't want to play. You can't win. Buy different types of silver, 1, 2, 5, and 10 ounce bars and/or rounds. Buy junk coins, pre 1964 or buy 40% Kennedy's. Silver is silver in any form but some forms of silver are cheaper than others per ounce.
I certainly hope that you're right. My precious metals IRA will have to be cashed in and turned over into something more stable before very long.
specifically purchasing high(er) grade government issue coins for their numismatic value. I'm probably in the minority with this, but I tend to stay away from private mint issued silver bullion since they won't do as well as "collectible" gov't issued coins when the economy's bullish or in an upswing. I may get some world government issued bars if they're priced "low" (reasonably near spot compared to the 1 oz's rates). I also try to stay away from gold since silver seems to be more practical, given its impetus from (more) industrial applications, but that's straying a bit from your question.
If your strategy, however, is to hedge against an economic collapse or the likes, then obviously you should stick with your own method to purchase the lowest priced silver bullion or cull coins you can get your hands on, among other purchases.
Per my general observations and IMHO:
+ If the economy does well, then people tend to afford and purchase more luxury options such as high grade "collectible" coins (e.g. Morgans, Sovereigns, US commemorative halves/dollars, etc.), and relatively forgo private issue bullion purchasing (dollar is usually stronger and silver is relatively weaker, ceteris paribus).
+ If the economy tanks, then people tend to hoard silver thereby causing silver and silver coin prices to rise (again, in general - all things constant). I wouldn't say silver is more rare, but it's more expensive (silver mining production and output has increased year after year). Even though folks in general may not be able to afford higher grade silver coins, the counter-intuitive appears to result where nicer grade numismatic-minded coins are still being purchased. Maybe they're seen as a safer investment, maybe those at or near the top of the economic food chain get richer and have more to splurge on, etc.
++ All in all, this strategy affords me the ability to sell my silver pieces and collection in most any market condition without worrying too much. I may not do particularly as well as some of you who purchased large quantities of private mint silver bullion to flip during an economic crisis, but I can set it and forget it. Plus, I get to collect from a wider range of different types / designs of silver coins to make the hobby more interesting.
Civilized criticism and comments are welcome. I'm always open to hear ways to improve upon my strategy.
Oh, if only we could answer that question...we would ALL be rich!
How do you know that where we are now counts as "low"? I have severe doubts about that. Yes, if all you look at is from summer 2011 on, then this is low. But what about before that? In a "normal American economy" even $13.70 is stratospheric, isn't it? Couple of points:
1) nothing that has happened since 2011 is normal or can be relied on to repeat.
2) every indicator says we are SLOWLY getting back to normal, if only because the old school underemployed are soon going to be dying off.
3) most of the reason metals are THIS high are fears of inflation, which AIN'T coming, sorry, it's just not. Confiscatory marginal taxation rates might come back, but not serious inflation. That is based on demographic urban/rural proportion trends which argue for higher taxes as noses are counted.
Bottom line: I see NOTHING trending metals upward from here based on anything but irrational fears. And no, I do NOT see an impending debt crisis, nor do I see how anyone else sees one.
You don't mind if I continue to average down during the dip?
"Normal American economy" lol
Take your $100 a month and spend it wisely:a few American Eagles one month; a few 90% silver coins next month; and so on. Good advice, I believe, to stay away from non-government issued "stuff"; especially if you have to liquidate quickly. Remember this: silver coins can always be spent as money.
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