Strategy for the beginner/intermediate investor?

There are a lot of great videos on youtube about silver/gold investing options and whether to go with numismatics, bullion, etc. It kind of depends on your end goals. I would definitely check those out. I'm mostly a collector so I pay a premimum for dumb things like graded ms70 ASEs because I like them. I also have some generic bullion because I think its a good thing to have in one's portfolio. I only put fun money into coins and metals. Any real investing goes into my 401k etc.

 

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Buy third-party certified key coins in popular series and numismatic (pre1933) U.S. gold coins in decent grades, and you'll do all right in the long run. I've bought and sold coins since the mid1950s and have done well overall. Of course, I'm not in it to make a killing but to have fun and make a little to sustain my hobby.

 

Based on this discussion the question still remains: Is it better to buy bullion for investment than silver coins as proof silver eagles or silver proof mint sets?

 

You need to make that decision for yourself. Part of the investment process is leveraging - in other words - an exit strategy.

If you plan on selling at retail, you'll need a business license, etc... that will cost you. If you plan on selling back to a dealer, expect to take a large hit on the premium.

If you plan on selling via Ebay, expect to have overhead for fees, potential for fraud and losses, etc...

If you have no understanding of numismatics and no exit strategy, you are better off with raw bullion. If you understand coins and bullion - and the relationship, you can do well with either.

The thing to remember is that you are talking about an investment - and no matter the investment, it takes research to understand the market before you buy. Otherwise it's just guessing.

That said, you need to do some homework. The key is to take advantage and leverage opportunities no matter what you buy.

People make money and lose money every day in all types of investments. Those that do their homework are more likely to make money.

To tell you coins or bullion would only be giving a subjective opinion.

I have my strategy, what is yours?

 

I have NO strategy... I have few coins and mint sets that I would like to either sell or exchange. Now, you mentioned e-bay... If you are the buyer, I imagine you may be taken; but if you are an honest seller, what is the downfall? I do not only not have a strategy, but neither have knowledge of where to sell. It always seems that it is always easier to buy than to sell.

 

A scamming buyer basically and getting eaten by the fees. It may end up being your best option but I would take a look at Great Collections as well and do some comparisons between the sale prices and what you would actually net factoring in the fees. Often times it is close enough once the fees are accounted for that Great Collections is worth taking slightly less to not have to deal with charge backs or scammers and letting them handle all the payments and shipping for it.

 

Ebay is ok but make sure to accurately represent what you sell. Also their 10% cut hurts pretty bad. I've done better with selling legos than coins there. I've had no issues, fraud, or returns. Sadly a lot of the mint products will only net you their value in silver. Especially modern mint sets and comems. I think ASEs in any form are a good coin to hold since there are a ton of buyers and you should always get spot or better. On the other hand not everyone wants a 1984 Olympic silver dollar. Proof and uncirculated ASEs also sell well above spot. If you hold them for a few years you can sometimes get a premium from collectors trying to complete sets.

 

I wish you luck. I don't mean to sound negative, but there are lots of happy-go-lucky people that think just through buying and holding - that they will get rich. Without understanding what you have, what the value is - and to whom, you will most likely spend a lot of time and effort not making much. If you enjoy the ride, then that's great - but it will not be a good money making opportunity. Most people make money by buying at the right price in the first place. This is the key, and it takes time to understand the market, and a bit of luck and skill to find the right opportunity.

You might try a coin show. There are lots of buyers at the shows - be sure not to accept first offer. Shop around.

Scammers can pull all kinds of fake returns, charge backs, etc... The percentage is low, but new sellers are prayed upon. Also take into consideration that the fees and shipping charges will easily eat up 15% or more of the sales price.

 

Any kind of investment strategy requires three skills -- when to buy and when to sell, as well as an often-overlooked skill: when to sit on your hands.

 

In a word, liquidity. Easily recognizable bullion from major mints sell easier, faster, and for more than others.

 

Check out this site that runs up to the minute comps for several different sellers. The margins between 1-10-100 ounce purchases are pretty significant. I'm mainly a coin collector and when I buy silver it's usually bulk numismatic (not s fan of the term "junk" as I've found several solid coins in my purchases). Anyway, you may be leaving a lot of money on the table by not buying in larger quantities.

https://comparesilverprices.com

 

OP: You can buy an ATB 5 ounce bullion puck for about $100. What's nice about these is that the design changes and the mintages are well below the ASE and ML mintages. The mark-up on these is not as high as other 5 ounce bullion coins with even lower mintages, such as Libertads. TC

 

Funny you mention Lego. I've made decent money selling them on eBay too. There are better margins in those plastic bricks than gold and silver.