So as I've said before I'm investing super slow in silver bullion (1-2 coins per paycheck). It's a third savings plan for me basically. But today I saved up to buy some from provident got 7 2014 ASEs (2) zombucks, and (5) 2014 Somalian elephants saved for a bit so I could buy online this time. Jeff
I did the free shipping thing on provident too. I know that you normally get dinged with shipping unless you buy more. Apmex was the only one that had the Somalian elephants.
Apmex sells eagles for 22.50 if you buy 10 maybe that would have been a better deal but congrats anyways.
... that is important. When gold and silver shot up I could have made a killing, but my investment had become a collection that I was attached to. I couldn't part with my Krand, or my Saint, my AGE, AGB, ect. Now, it will only be ASE or AGE, random years.
Yeah I know that there are some that I will want to keep, but the ASEs all look the same, and I know that those are the ones I will have for liquidation when I need them. Have thought about getting generic bars too for the same reason. It will be hard to part with the kooks, pandas, kualas, and libertads for me because I really think they are beautiful.
buy what you like and it sounds like your having fun so thats the important thing. Also slow and steady is great! Eventually you will have a great collection that you can be proud of!
I think the Somalian elephants and whatever country makes the motorcycles are pretty cool coins to collect for "hobby" value (meaning, I expect to take a loss when I sell them 20+ years from now).
You may lose some of the premium but I find it highly unlikely that you will lose money with a 20 year holding period.
But what is meant by that? If something stays the same nominal price over a 20 year period, you have lost at LEAST half of your money. At only 5.5% inflation you have lost two-thirds of your money. So no, even if something stays at the same nominal value you haven't, "not lost", you have lost a tremendous amount of money. Its a very important point in investing in bullion. On an asset that has no return, the asset must go up by inflation every year just to stay even, let alone make a real profit. If you bought silver a little over a year ago for $35, the price of silver, (assuming 5.5% inflation as a guess), has to be $102 an ounce in 20 years for you to just be break even. If you buy today at $22 its a little better, only needing to be $64 an ounce in 20 years for you to break even, (not assuming premiums of course). Gold, if bought today, needs to be $3,880 in 20 years for you to break even, ignoring premiums. Still, its better than if you bought at $1800, which would mean it has to be $5,251 in 20 years to simply break even. Kind of puts a different twist on things, huh? People talk about the "good old days" 20 years ago when silver was $5, well today silver has to be nearly $15 to just break even, let alone make a profit. Yes, you would have made a slight profit, but not something to write home about. Since 2009 when I started a brokerage account my balance has gone up 6 fold. My land has gone up about 4 fold since 2009 not including rent income from it. My worst performing asset from 2009 to today by far is pm.
You have only had a brokerage account since 2009 which was the lows of the stock market. Stocks have gone up in a straight line since then due to QE. Many people have had brokerage account since long before 2009 and let me tell you that the 2000's were pretty much a lost decade for stocks. Stocks actually had a negative total return from 01/01/2000 to 12/31/2009. I'm not sure how you got a 600% return on stocks or a 400% return on land over 5 years but good for you. What happens when QE ends and markets normalize and volatility returns? Stocks will not have 30% gains every year. It's a good thing to be diversified, and precious metals provides that diversification. By the way if you had pulled your money out of stocks on 01/01/2000 and invested in gold you would have done very well.
I know what your trying to say medoraman but taking such a short time period when the stock market was at generational lows until now on the very day that the S&P 500 is hitting all time highs is a little misleading. You have to look at a much longer timeline. What if we were having this conversation in April of 2011 when silver was almost at $50 would you still be saying what a lousy investment it is?
My only point was for a non-interest bearing asset, you have to factor in inflation for your profit/loss recognition. A dollar today inveted better be about $3 in 20 years just to break even, (assuming 5.5% inflation). Too many people say, "I paid $5 for an ounce of silver in 1994 and today it's $22, so I made $17 an ounce". They never factor in inflation. Same with looking forward. When people predict $5000 an ounce gold in 30 years I yawn, since that would not be terribly impressive in my view, (less than 5% growth a year). Regarding 2009 I know it was a weird time to get into the market, (with after tax money, I have had 401ks for a long time). I simply saw the prices and had no choice but to buy. I have written about it here for the past 4 years if anyone thinks I am making up my timing. By the way, it hasn't been straight up, it actually had quite a few downturns in the last 5 years, but net has been up quite well. Btw, its up so much because my largest holding is LVS. I wish I would have bought all LVS and mortgaged my house, but hindsight is always that way.
I agree with you about measuring your investment returns in inflation adjusted dollars. That is one thing that gives stocks an advantage over non interest bearing investments. Reinvested dividends make up a huge amount of the returns on stocks. My thesis is that the metals are in a secular bull market and the losses of the past couple of years are only a pullback in a much longer term bull market. IMO, right now is a good time to be a contrarian and take some of those stock market gains and roll them into an out of favor investment like gold and silver.
Can you please check your math? Apmex is $5+ over spot on ASE's, you have to by 500 or more to get to $3.50+ over spot (both only with check or wire transfer). How did you get $22.50 per ASE?
Several weeks ago when spot was lower Apmex had a deal on Ebay to buy 10 ASE's for $225 with free shipping. It only lasted for 24 hours though.
