Buying Precious(semi) Metals? (1 Viewer)

[Trihonda]

I'm contemplating buying a bunch of silver (maybe gold) to diversify. I've never done this, and want physical product. Any thoughts on this? What do I need to know?

I was thinking of starting with maybe $1k in 1oz silver bars to start...?

 

[Payback]

Buy bitcoin instead

 

[Trihonda]

Buy bitcoin instead

You're not the only one to suggest that... I have lots of other virtual investments, But I want some physical investments.. ya know in case of economic collapse, lol. .

 

[joepro]

Some good sites : provident metals, bgasc.com, jm bullion. Coins are more expensive than bars but easier to sell.

Also can go local obviously, but these sites will give you a frame of reference.

 

[hdgeno]

You're not the only one to suggest that... I have lots of other virtual investments, But I want some physical investments.. ya know in case of economic collapse, lol. .

In that case, your guns will be worth more than metals. They will enable you to accumulate what you need to survive.

I’m only partially kidding, the main reason I even own guns is the ability to hunt game if the need ever arises. One could also use them to accumulate gold if one desired

 

[redeagle]

You're not the only one to suggest that... I have lots of other virtual investments, But I want some physical investments.. ya know in case of economic collapse, lol. .

Buy ammo. Value seems to grow faster than precious metals.

 

[BukNaked36]

My Dad used to collect coins, gold, silver, platinum. Best thing would be to attend a coin show to make contacts there. Probably have to be post covid for that.

Another thought, you can save 5% right off the top by going to Iowa. My Dad and I were in Prairie Du Chien WI. My Dad was ready to buy and the seller wanted to charge sales tax. My Dad said he doesn't pay tax. They got in the dealers car, drove 5 minutes across the bridge to Iowa, made the transaction in cash - no tax.

Looks like Illinois may be exempt but has some exceptions. Probably make a few calls to see what the deal is.

This looks like a good tax summary
https://www.bgasc.com/sales-tax-gold-silver-bullion-coins

 

[BiGGyT]

Apmex is a good source to buy and sell. They usually have a variety of rounds, bars, and coins at spot plus prices. Their collectible coins are higher than coin show but bullion and us mint silver (or canada, uk, aus, mex) is reasonable.

Edit. Also pre 1965 us coins the conversion is about .7 oz troy per $1 face (not nickles) so if you find "cheap" coins under spot, buy them.

 

[IaHawk]

Is clay a precious metal?

 

[ruskba]

Is clay a precious metal?

Only if there’s lead in it

 

[Silver_Fiend]

be prepared for "sticker shock". Metals are a racket aimed at scamming the little guy. You will never be able to buy at the market "spot" value, there is always a premium added. How much premium depends on the details of the item being bought. When you go to sell, you cant sell for spot price either, so you get shafted buying and selling unless you want to risk private buys and sells. Be VERY wary of buying any place other than a metal refiner, whole-saler. The market if filled with fakes from china and buying from craigslist, eBay etc is a gamble.

 

[Marius L]

Why do you want the physical product? Pretty sure that's a lot more expensive, and a lot less liquid. I'm pretty sure that when both buying and selling this stuff at a local physical store, you will get a much worse price than if simple buying an ETF

 

[Silver_Fiend]

Why do you want the physical product? Pretty sure that's a lot more expensive, and a lot less liquid. I'm pretty sure that when both buying and selling this stuff at a local physical store, you will get a much worse price than if simple buying an ETF

I understand that side too. There are many times more "paper" shares of metal than physical metal on hand. There is SUPPOSED to be a 1 for 1 set up, and you should be able to cash in your ETF silver for physical. But if even half the holders tried to cash in, then the system would crash. PMs should never be bought as an investment, they are a hedge and a store. $10k in cash in your mattress loses buying power every years. Metals hold roughly the same buying power over times regardless of inflation. Physical metals also cant burn or rot. Every investment adviser will tell you that you should have a certain % of your portfolio in PMs. I personally would always prefer physical over paper. Its always in my hand, I dont have to try to "cash in" during a disaster scenario when you probably wont even be able to contact the market holder of your ETFs. PM's also have utilitarian uses as jewelry.

I just hate the purchase and selling system for them.

 

[Highli99]

The only metals I stack are lead, copper and brass. Wrong time to buy those metals though. I figure in SHTF that will be more useful than gold. In normal times the transaction costs of precious metals makes it hard to make $$$. Plus, there is a storage cost, risk of loss, and the metal doesn’t earn income to compensate for those risks.

Treasure is cool though. If I were to buy it would be from a company like Apmex for sure as recommended above.

 

[ekricket]

I work hard for mine, garage sales and estate sales. Not every pm is a coin, there’s stuff that has plenty in it that people overlook.
Estate sale jewelry is ok too, but it’s work, you have to go early and you have to examine it close.
But it beats paying all the fees and absolutely no paper trail anywhere. The coins you find typically have no numismatic value, but I’m after the metal anyway.

 

[Silver_Fiend]

definitely the wrong time to be stacking lead and brass! Holy hell, I dont even want to open mine right now because I cant afford to reload !

 

[Trihonda]

definitely the wrong time to be stacking lead and brass! Holy hell, I dont even want to open mine right now because I cant afford to reload !

The lead and brass market is crazy right now. My portfolio is solid right now, but I'm always in the market to add, for the right price. I snagged a can of 5.56 variety for $.40 per share shipped in April... But I've passed recently on $.70/share (even though I've seen it being traded near $1/share in places). I had an insider stock tip, at $.55/share, and was about to snag a full can, but by the time I received the text tip, and tried to place my order, all options had been secured (sold out)...

And yes, for others... I understand the "investment" aspect of PMs. I am looking at this as a means to secure some of my savings (cash holdings). I'm looking to convert 1/2 of my poker roll to PMs. Nothing too drastic.

 

[Poker Zombie]

Physical product is basically worthless in a full-on economic collapse. Basically, the common-joe has no use for shiny metal if there is no electricity, food, or toilet paper.

If you want to diversify and use metals as a hedge, go with an ETF. Hoarding physical gold or silver is borderline tin-foil hat investing.

 

[Trihonda]

Physical product is basically worthless in a full-on economic collapse. Basically, the common-joe has no use for shiny metal if there is no electricity, food, or toilet paper.

If you want to diversify and use metals as a hedge, go with an ETF. Hoarding physical gold or silver is borderline tin-foil hat investing.

All good points. but by that logic, in a full economic collapse, the common joe has no use for the stacks of $100 bills (of paper money) sitting in my poker fund. paper money devalues with inflation. So I guess I'd rather have some PMs to diversify my poker roll... And what can I say, I like shiny things.

 

[Jeff]

And you can use it (in small 1 oz ingots) to cap your cards.

 

[Trihonda]

And you can use it (in small 1 oz ingots) to cap your cards.

Hmmm, is it still ok for people to touch someone's card protector during covid? Asking for a friend....

 

[Jeff]

You were ahead of your time!

 

[Silver_Fiend]

And you can use it (in small 1 oz ingots) to cap your cards.

I often like to pick one my 1800's silver dollars for a protector.

 

[Taghkanic]

In that case, your guns will be worth more than metals. They will enable you to accumulate what you need to survive.

I’d go with booze and cigarettes... Commodities which would skyrocket and have instant trade value if there were a collapse.

But you’d need (a) a good place to hide them and (b) means to protect them and yourself.

 

[CraigT78]

I put all my apocalypse money in condoms and feminine hygiene products. Show me a woman when the economy collapses that will trade her assets for mine for a shiny gold trinket......

 

[Silver_Fiend]

I’d go with booze and cigarettes... Commodities which would skyrocket and have instant trade value if there were a collapse.

But you’d need (a) a good place to hide them and (b) means to protect them and yourself.

I put all my apocalypse money in condoms and feminine hygiene products. Show me a woman when the economy collapses that will trade her assets for mine for a shiny gold trinket......

Pirates after my own heart!

 

[Trihonda]

I put all my apocalypse money in condoms and feminine hygiene products. Show me a woman when the economy collapses that will trade her assets for mine for a shiny gold trinket......

You have apocalypse money?

I just snagged some silver. I think I got a great price. I just traded up some junk jewelry scrap, and was given 90% spot value on the gold, converted it to silver coins. I've found several reputable vendors selling the cheap silver coins for $27-28 ea online (cheapest I could find), and I paid $26 per (no tax). I think the coins trade above spot value somewhat, so I hope have done ok.

Again, I'm not thinking about this as an investment per se, but more as diversifying my poker bankroll (which is just piles of paper money in a drawer). And it's kinda fun owning silver coins... Loot!!!

 

[gopherblue]

Well...at least you slept on it....

 

[CraigT78]

You have apocalypse money

I have apocalypse barter items that I've purchased with money. Preparation is key.

 

[mtl mile end]

Mmmmmm LCrown silver!!