Investment help please.

Ok, here is my situation, and all of your input would be greatly appreciated by me. I have about 1k or more in cash to invest in PM's. I am leaning towards .999+ silver rounds ASE or Maples etc. What would you buy? Size in oz's? Perhaps gold? Generic rounds? And at what price should I look to buy at, I was thinking if I could get silver to drop below 17.5 again I would do it? Your thoughts?

 

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Right now the markets are all topsey turvey. I don't think anyone know what the PMs market will do nor the general stock market will do this week. A lot of investors are watching and waiting. Silver and gold could more than likely go down. If this happened, you'd be best waiting. But, silver and gold could also go up, where upon you would have missed a good opportunity to buy.

I'm not suggesting what to buy, but how to buy it. Only spend $500 now at this price. If the price goes up, look at it as you paid $500 at a reduced price. If the price goes down, be glad you still have $500 to invest at the new lower price.

 

Silver is at 17.87 right now ..so it might get close to your 17.5 threshold this week.

Its never possible to time the market and your purchases.

If you are investing for the long term you might do some research on dollar cost averaging. Google it. That's essentially buying some amount of something, in this case silver, at regular intervals throughout the year. For example, with the first paycheck I receive every month, I buy a roll of ASE. Some months I pay less, some months, I pay more but on average, it works itself out over time.

Any silver is good but only you can decide what's the best vehicle (rounds, bullion, bars) for you and how do you see yourself selling it in 10, 20 or 30 years ...or sooner if you need quick cash.

 

I like rounds, but I am not opposed to bars, and I do plan on holding for years/lifetime. And I buy silver just to save money for a rainy day, or if I need some quick cash. Perhaps I should just buy a little at a time and hold cash for a dip? Or...?

 

That sounds like your best bet, Just spending a little at a time
And its safer to

 

You can make a lot more money investing in real estate, but like any other investor, you have to weigh the potential risk against the possible gain. Just make sure you don't buy swampland.

Chris

 

I'd go with ASE's by the tube right now or bulk 90%. And I like the idea of $500 now and $500 later....it's like a small dollar cost averaging.
It's your money though. Either way enjoy the ride!

 

AG Surfer gave some great advice; Dollar cost average.

Submit to the (likely) fact that you will not pick the perfect time to buy, embrace your ignorance....heck, kiss it on the mouth.

Decide on a plan (once a month, twice a year, ect) and buy a little bit. If it is for long term savings, you will make out fine. Split your capital into three groups and start with 1/3 at a target price.

If it is for short term trading...use the SLV index fund.

I have found that my target price changes as time passes. Here are some examples of when I purchased ASEs over the past 10 years;

4.95
5.99
4.75
8.65
10.40
14.50
12.82
10.75
16.00
18.70
15.39
16.16
18.59
20.58

You will notice that many times (almost always) after I bought some, the prices went down. I know that even if prices will go down, I doubt that I will be smart enough to buy then....because I will be waiting for it go down further....

Don't be fooled into thinking that you KNOW something or have secret data. Factor your lack of omnipotence into your plan.

Design a plan....work the plan....modify the plan...be the plan.

 

Thanks to everyone for their advice! I think I will go with just one tube of ASE or Maples today, and spread out my eggs. Considering that I am a long term guy.

 

Great move...and if your buying from a local dealer geting a tube everyonce and a while he should make the price a bit better for ya.

 

Many folks prefer rounds to government issued bullion because the rounds have a smaller premium built into them when purchased. However, that also means the rounds have a smaller premium associated with them when you go to sell, too. Of course, if you intend to hold for quite a while then that lower premium status might change, too. For my own purposes, I prefer government issued bullion and 90% coinage and I have purchased both silver and gold in this manner at various prices over the years. I view it as diversification from paper assets and hope that this might help protect my family somewhat over the years. I also realize I am likely not going to get rich doing this and that I cannot buy everything all at one time.

 

Buy a savings bond. In ten tears you'll double your money. You won't do that with PM's or everyone would have been doing it and getting rich for years, and they aren't.
Guy~

 

That is incorrect.

http://www.savingsbonds.com/rates.cfm

 

You do realize that interest is incurred after the bond matures, right? I have about 400 $100 dollar bonds I paid $50 for that have a ten year maturity rate on them. After that those interest rate charts kick in and they grow slowly thereafter. Of course those were E's.
Guy~

 

You do realize that E bonds are no longer sold. So it is incorrect for you to suggest that someone can buy what is no longer sold, or earn a rate of interest on savings bonds that is no longer available. I just think your post was wrong and misleading to someone asking for investment advice.

Edit: I also found the attached info on E bonds. They never doubled in 10 years. They were issued at 75% of face value and matured in 10 years. They were discontinued after 1980.

"Interest Rules
Series E Savings Bonds are accrual bonds that were issued at 75 percent of the face amount. Interest is paid at redemption as part of the current redemption value.

Active, unredeemed Series E bonds accrue interest at a market-based yield or the applicable guaranteed minimum investment yield, whichever is greater.

A guaranteed minimum investment yield in effect at the start of an original or extended maturity period is guaranteed to the end of that original or extended maturity period.

The guaranteed minimum investment yield for Series E bonds is 4 percent, compounded semiannually, beginning with extended maturity periods starting on or after March 1, 1993, unless the guaranteed minimum is changed prior to the beginning of an extended maturity period.

Maturity Rules and Periods
Originally issued for a fixed term of 10 years, E bonds were granted interest extensions that brought their interest-bearing lives to 30 or 40 years, dependent upon the issue date of the bond.

Some Series E bonds continue to earn interest today, although the last E bonds will stop earning interest in 2010."

 

Sorry. Didn't realize they weren't sold any more. Must be a new development I wasn't aware of. Carry on.
Guy~

 

Where do you buy them for half face value? That is a 7% annual return which seems quite high for bonds. If you can point me to a place to buy for that price I would be very interested.

 

E bonds havent' been available since 1980.

 

You'll get lots of advice, but for the money you have to invest, I would advise keeping it simple with tubes of ASEs or 10 oz silver bars. Fractional gold would eat up money in premiums. If you are in it for the long-term, just try to maximize your "weight-to-dollar" ratio right now -- which means low premium silver.

 

Take your $500 and roll search for halves. I do buy eagles and maples but mostly just to collect them. Most of my silver is "junk" that I paid face value for by pulling it from circulation. You would have to pull about 190 40% halves (which aren't too hard to find) to get $500 worth of silver. This is doable.