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n/a
deleted
38 Posts |
 Posted - 07/23/2006 : 11:45:00
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This is my first post. I have quite a bit of money that was given to me as an inheritance. Since this is basically an anonymous forum I don't think it's a big deal if I tell how much. It's $135,000. I'm 24 so this is quite a bit of money for someone my age to have. Most of it is in a couple mutual funds and a couple CD's. The idea of the person giving this money to me was basically that it would help me pay for my first house, and I think that's probably a good use for it once I decide to buy a house. I was thinking about investing in silver and gold with a significant portion of this money, like 10%. I want to invest in silver and gold both as a hedge against inflation and in the event that TSHTF. If I didn't ever use the metals for the house that will leave me with a little over $120,000 towards the first house. I don't really know the best way to go about doing this though. It seems there are plenty of options.
1. I could buy a bunch of the buillion coins and just keep them in a safe wherever I live.
2. I could buy a bunch of buillion coins and keep them in a safe deposit box somewhere.
3. I could just buy one of those certificates or something like that that just says I own so many oz's of gold or silver.
4. I could buy silver on that new market that was created just for silver.
Also, I plan on buying silver regularly now,and perhaps gold less regularly, like a thousand dollars or so a year just to stock up. I would have other money go towards other investments, like a Roth IRA and that $120,000 mentioned above, so I'm not banking totally on silver. I just like the idea of investing in a concrete substance that I can hold, rather than paper that has no real value.
Of the above options, I prefer 1, just because I like to have ready access to my money, especially if TSHTF. If that happens I might have a hard time getting my money. I would think safe deposit boxes would be one of the first things to be raided by intelligent looters. Also, if TSHTF, options 3 and 4 carry the same downside of accessibility. On the other hand, option 1 and option 2 have the downside of how do I sell the silver if I so choose if it happens to go up in value significantly and I want to cash it out? Although I think it would be wise to always keep a signifcant stash that you never use until either TSHTF, or you are old enough that it would be better for your children to have it.
Then of course the final question is how and where should I buy it. If I go with option 3 or 4 and maybe even 2, I would have to get the broker who manages the money to do it, while with option 1, I would probably just tell the broker to give me a check for $13500 or so and I would then deposit and send a check to whomever I was buying the metal from.
Thoughts?
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 07/23/2006 : 13:32:35
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First of all, welcome to the forum Yeldarb. I agree that the use of the bulk of your money should go towards the purchase of a house. I would not put it into PMs at this time.
I would go with option #1 or #2 depending on how the safe you feel you can hold your physical PMs. The problem with a good home safe is that it will take at least 10% or more of your 10% to buy. In addition, it will be a pain to move and to hide. If you can move it a thief can too. Most of us use a bank box or hide our PMs. As for #3 or #4 an old saying is that if you don't hold it, you don't own it. Most brokers will either try to talk you out of PMs or try to put you into something like "rare coins" so they can make a huge profit on it. Plus doing so will always leave you with a paper trail for the tax man or other goverment inspection.
I buy my PMs like this; I hand over cash and they hand over the PMs. Usually the sales tax is part of the deal, but really I'm not taxed at all (I doubt the state ever sees it). No names, are given. You can shop local coin and bullion dealers to find the right ones that you can trust.
If I may suggest this though? I have been into the silver game since the early 60's when I got silver coins out of circulation at their face value. I have seen silver prices rise and fall. I still think silver is a great oppertunity, but consider putting at least some of your money into copper cents and or nickels at their face cost. The oppertunity that is going on now will most likely never happen again in our lifetime.
Good luck to you no matter what you decide.
________________________
If you can conceive it and believe it, you can achieve it. -Napoleon Hill |
Edited by - Ardent Listener on 07/23/2006 17:43:54 |
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Canadian_Nickle
Penny Hoarding Member
Canada
938 Posts |
Posted - 07/23/2006 : 16:17:06
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-Don't buy "old" coins for over spot value of the metal content. The "numismatic collector" value is as big a scam as the "paper silver" and "iShares silver fund" larks. Buy newer American 10z coins, Canadian maple leaf coins and krugerands and australian bullion. They are all printed in english and have the metal value stamped on them. Actually, with $10,000 I'd probably buy 10 100oz silver bars.
If you're not going to buy a house right away, I would suggest putting all of the money into PMs and not wasting your time with any paper or fiat investments. Maybe 50 grand in 1oz/ 1/2oz / 1/4oz gold coins, 50 grand in 10z silver coins and 35 grand in old american 90% silver. |
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realcent
Forum Admin
USA
246 Posts |
Posted - 07/23/2006 : 18:33:35
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Welcome to the forum.
Until you are ready for a house, I like your option number 1 the best. Just be sure to hide your stash real well, and don't talk about it to friends or even most family members. Even if you tell someone who you know would never rip you off, they may not be thinking and mention that you have precious metals to someone else in conversation, who could mention it to someone else who could....you get the point. Word can spread fast, and people tend to remember stuff like that.
Oh, and this bears repeating:
quote:
Originally posted by Ardent Listener
...an old saying is that if you don't hold it, you don't own it.
Doug
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For more copper cent hoarding information check out:
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Canadian_Nickle
Penny Hoarding Member
Canada
938 Posts |
Posted - 07/23/2006 : 18:43:29
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As for where to buy, I would buy on ebay because, especially with the abillity to bid on $10,000-$20,000 lots you could, with a little knowledge and good sniping software, easily make another 30% by buying only large, undervalued lots that most small investors can't afford to bid on. The software "jbidwatcher" (do a google search on it) is great for automated sniping of auctions.
Also, don't worry about deciding to cash in and being unable to find a buyer. You can sell it on ebay, in the newspaper (classifieds), to bullion dealers, to banks, to jewelers, at pawn shops, etc. |
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n/a
deleted
38 Posts |
Posted - 07/23/2006 : 20:20:46
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Thanks all for the input. It's all very helpful.
It seems like it might be dangerous to spend $10,000 on ebay, considering the possibility that I mght be scammed. You think the feedback would be enough assurance to go on? I've never paid that much for anything on ebay. What's the best method to pay that much on ebay? Credit card is not an option as I have only a $1500 limit I believe. Money order? Personal Check? Cashier Check?
I guess everyone pretty much agrees about option 1. I really do like the idea of truly holding the metal instead of it being off in some remote location, or even no physical location.
About storage, do you all just hide it in bizarre places? All in one spot, or multiple locations? I would think you would want to keep the number of locations to a minimum(but not one, just in case), so you can remember all of them. I remember seeing instructions for hollowing out a book on this or the survival haven forum. I think that's a really good idea. I could find a really boring book, and hollow that out for one location. Even if not for metal, that's a cool place to hide anything. Does anyone know where those instructions are?
I have started hoarding pre-81 pennies and nickels, but not en masse. For now I am just keeping the pre-81's I get in change and all nickels. Perhaps in time I will do more, but for now that's enough. In a true SHTF scenario, if I don't yet have enough CU and NI I can trade some of my silver for some of your CU and NI. |
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n/a
deleted
143 Posts |
Posted - 07/23/2006 : 20:50:27
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go to coin shows to sccop up all the junk silver coins you can find, most dealers do not charge tax, and bring only cash
realcent, thank you, i think it's very important not to advertize that we have PM, not even the closest, i wonder if i can de-notify people around me by lying that i have sold most of my PM, and bought some stocks instead |
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realcent
Forum Admin
USA
246 Posts |
Posted - 07/23/2006 : 21:36:53
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quote:
Originally posted by ballcopper
realcent, thank you, i think it's very important not to advertize that we have PM, not even the closest, i wonder if i can de-notify people around me by lying that i have sold most of my PM, and bought some stocks instead
You absolutely can. I mentioned this because years back before I got into precious metals I was a strictly numismatic coin collector. I was going to visit my relatives one state over and stopped at a coin dealer on the way and picked up an MS-65 NGC slabbed type 2 standing liberty quarter and a few circulated peace dollars for my collection. I showed them to my mom while I was there, and she started asking me about my collection. I told her what I had at home, and the next time I visited she mentioned she had a neighbor who wanted to sell me some old silver Morgan dollars he had. I asked how he knew I collected coins and she said she told 3 or 4 friends that I collect coins, (trying to help me build my collection), and that I had a bunch of old silver coins at home. She didn't know any better, it was my fault for not telling her that it was a bad idea to spread around the fact that I had collectible coins in my house.
Anyway, after spending a few weeks worrying about this I called her up and told her that I was not interested in her neighbor's coins because I quit collecting and sold my entire collection because I needed the cash. I asked her to tell her friends that they could stop looking around for old coins for me because I got rid of all mine. I felt bad lying to my mom, but I didn't want to worry about it.
(by the way, coin collecting was what got me started in precious metals. I put together a set of American silver eagles in a Dansco folder, and it got me hooked on silver and I started researching metals, learned about the difference between silver and gold and FRNs...and that was it, I was hooked.)
Doug
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For more copper cent hoarding information check out:
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Canadian_Nickle
Penny Hoarding Member
Canada
938 Posts |
Posted - 07/23/2006 : 21:51:02
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When buying on ebay in amounts greater than $1000 you should use an escrow service. There are many - search online to figure out which ones are reputable (I've never used one) - basically, you send the escrow service a money order, they notify the seller that funds have been recieved. Seller sends you the item. You notify the escrow service that you have recieved the item, and the escrow service releases the funds to the seller.
Or, if you live somewhere where there are alot of coin shows, you can go to them and buy coins there as suggested. Wait until the end of the day, and you can make some good deals.
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n/a
deleted
143 Posts |
Posted - 07/24/2006 : 03:53:47
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realcent, i think i have a very similar history as yours in terms of numismatic-then-pm; i was working in a retail icecream shop when i first get a 1967 Canadian silver quarter(which has a cougar on the reverse *) in change; even though i know zip about numismatics, the magic of that piece of metal doesn't require any coin expertise to realize it's outstanding value against the rest
i did not turn to numismatics immediately; but i eventually did, and it didn't take me long to realize concentrating on silver coins of low premium, i.e. the junk coins, would make more sense for someone who doesn't have much to start with...to make long and not-so-special story short, i think it's fun to hold a chunk of your savings in your hand, which a lot of us here call real money
next time someone asks me where my silver gone, i will make up something
*in 1967 the canadian mint has decreased the percentage of silver in the quarters, and dimes, from 80% to 50%; dealers, who said those two types are indistinguish by weight and appearance, give the coin an avergae of 65% purity; some say they can distinguish them by the tone those 2 types of silver hit on certain objects
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Edited by - n/a on 07/24/2006 03:56:29 |
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Have some money to spend
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