Investment time has come...

The company I work for recently sold out, and we were given a very substantial one time bonus. It equated to 6 months salary minus the normal taxes, which were downright unGodly. The taxes were close to 15 k on one check. I will probably be apt to have to pay taxes again at the end of the year, as it put me into a different tax bracket. Anyways, with that being said, I am going to invest a small amount of the bonus into silver. I would say roughly between 3-4 k. I was curious as to what you guys would invest in? I would rather have coinage, circulated dollars and half dollars, but would love for the experienced investors to chime in and advise. Also, if anyone here is interested in making a good deal for that amount just P.M. me. Now, lets hear some good advice.
Thanks,
Rocky
:hail:

 

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Well, if you believe in silver, maybe you should get a few 2010 silver sets from the mint --- there's only 4 days left I think!!!

 

Not necessarilly saying this is where you should put your money as it is really a personal thing, but I am a believer that one of the best investments right now is high grade generic gold. Premiums aren't too bad for such nice coins and value rises with gold but also because it has numismatic value it is fairly safe if there happens to be a crash. I personally like the 64-65 St. Gaudens double eagles and the 63-64 Indian Eagles. Again just a personal opinion and I'm sure there's going to be someone to disagree with me but I feel confident in my investments in this field this year.

 

I'm glad you are going for silver, which I feel is the investment of a lifetime. It's hard to go wrong with 90% silver coinage because everybody recognizes it and you can get it for less than spot sometimes. You might have a hard time finding some in good quality though. If you do, go by weight, not face value as wear down can be a factor. I prefer 999 fine bullion because I like purity, in which case there is a case for American Silver Eagles since they are legal tender in the US. However for a purchase as large as you are considering I would go for something with less of a premium, generic rounds such as buffalos or something from another private mint since you can save a couple bucks per coin. I also like Canadian Maple Leaves because they are 9999 pure which is what solar panels require, but those have a higher premium like ASE's.

 

If you are going to invest in silver, I'd recommend American Silver Eagles, (ASE) canadian Maple Leaf coins. They are .999 silver one ounce coins, and you can have them for a three or four bucks over melt if you're going to buy in bulk. .999 1 oz silver rounds are another option, you might save a buck or two on the premium per coin versus ASEs.
The other option I'd recommend is average circulated Morgan and Peace dollars. These coins contain rougly .775 oz of silver per coin, and if you buy them in bulk you can often get them for close to melt maybe a dollar over per coin. So with silver trading at around $29 today, melt is about $22.50 per silver dollar. If you can get them for under $25 you're doing OK. These coins have some small numismatic value over straight bullion, so if the bottom falls out on silver, you may be able to get a little more for them when you go to sell than you would for a bullion coin.

 

Keep the advice coming guys !!! I am really surprised that none of the large collectors have sent me message offers on a bulk deal?

 

I'd say go all in on ASE's if you're not gonna diversify in other metals.

 

What, in an hour and 20 minutes? What are you looking for if you want people to give you "offers"?

 

Volatility of the metals market is hard to guess. It is either feast or famine.

Are you looking for long term investment? Or a short term flip?

Personally, I believe it is a buyer's market for HIGH quality numismatic coins. I am NOT saying high dollar. I AM saying high quality. Buy the semi keys and the hard dates/mm that did not survive or have strike issues.

 

That depends on whether you mean what we'd invest in across all options, or just in pm's. If you meant anything, I'd say play around with 10% by investing in silver rather than gold, but be sure it's money you won't need for a while. I'd use the rest for more traditional investing. I don't give out where I invest because I take the time to do a lot of research before I buy, but I will say I had gains of a bit more than 700% the last two quarters of 2011 on just this year's investments. You won't see that with pm's during the best of years. It takes a bit more work than asking for advise on a forum. Best of luck.
Guy

 

I think this is the best idea. You should buy what is easiest to resell for full value, and that would be ASEs and maple leafs. Everything else has a much larger bid/ask spread when market conditions are less favorable than now. So you'll probably lose less money this way.

 

The best prices I can find on the internet is APMEX. Anyone know of a better place? Please chime in at will!!!
Thanks Guys,
Rocky

 

Gainesville gave me good bullion coins.

 

APMEX has pretty good deals on silver rounds and older bullion. I've seen prices of just a dollar over melt at times there.
Guy

 

I believe PMs will fluctuate lower in the first quarter of 2012, then start trending upward.
If I was going to buy silver, I'd buy junk US 90% half dollars - no matter what they'll always be worth 50¢
Platinum is cheaper than gold right now and, if you believe there will be an economic upswing requiring its use in manufacturing (the auto industry uses it and palladium in catalytic converters), several countries, the USA among them, mint platinum coins.
I believe but am not sure that some countries are producing palladium coin.

 

I also agree. ASE's I know are easy to unload if you need to and I am sure the same can be said for Maple Leafs. The generic rounds are very hard to unload and if you can, you will be lucky to get spot. I have tried to unload generic rounds and have been unable to. I have been buying US mint tubes of ASE's and am lucky enough to have a local connection that can get them for me almost anytime. You may want to ask around locally to see if a local coin shop has them or can get them. If you are patient eBay may be a good place. Currently ASE mint tubes, if you trust they have never been touched, are selling for right at $700 or $35 which is about $6 over spot. If you look around you can get them for $3 to $4 straight from the mint. I believe the Maple Leaf tubes, which are 25 per tube instead of 20, are selling for right at $33 per coin or $4 over spot.

If you are strictly in this for investment then I would go with ASE's, Maple Leafs and I would also get some gold. Like others, I believe silver is the way to go but I still think getting some gold is wise as well. Maybe you do a 70/30 or 80/20 split of silver to gold. That is my personal recommendation. Of course you need to do your own research and then do what fits your investing style best. Good luck.

 

I personally like several things in regards to putting my money into silver. ASE's, 1 oz. rounds, 90% junk coins and full rim Barber dimes, quarters and halves in Good 4. I prefer buying from a local coin shop where I've already established a solid, trusting business relationship. That can be something that's difficult to find though sometimes. I've been lucky to have access to 3 of those shops within 40 miles of my house. You're very fortunate to have gotten this unexpected money. You'll have fun deciding and making your silver purchases. Best of luck.

 

Yes, I am very, very fortunate, and very, very thankful. We were all worried that we were going to lose our jobs, but the owner of the company took good care of us, and even put in stipulations regarding our long term emplyment with the new owners. She was very generous to also put into place the one time bonus with the buy-out. It was life-changing for some of the higher ups and management people I am sure, but I was very pleased and appreciative to get what I did.

 

This is a very good point, but may slip by many.

If you are an investor, by my definition, you have to be willing to buy and sell and protect your investment sometimes by hedging with paper.

If you are willing to buy at current price and maybe, just maybe, hold for a decade or more to get over that price, you are an accumulator. No one knows if PM are going to continue the bull market, or what world events will bring. There is so much crud put out by bullion sellers/forums and "the USD will be tissue paper" people that many are thinking that appreciation in bullion price is a "no-brainer", whereas it may turn out to be a loss over the years.
1. Make sure it is money that can be left for decades and cut in half with no problems to you.
2. Don't dump all into the market at once, parcel it out.
3. Don't be surprised that the people who sold you bullion may not want it back except with deep discounts below melt.

Yes, silver may rebound big, but maybe not, protect yourself.

JIm
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Given your description, I would buy gold coins. However, before spending a dime on PMs, I would first use the windfall money to pay off all debt, put $5K in an I-bond and make sure you have maxed out any retirement opportunities for this year and next.