| Author |
 Topic  |
|
|
searching4silver
Penny Pincher Member
111 Posts |
 Posted - 01/22/2009 : 12:30:31
|
So I have been watching Obama's plans for economic stimulus packages and it has got me thinking.... how can I profit from this? Normally I have heard that gold is a hedge against inflation and the general consensius is that the government's stimulus and bilout plans will lead to higher inflation. Therefor, I am thinking about buying as much gold as possible and selling it when it goes up about 10-15% and making a hefty profit. The problem is at $875 an ounce I can only afford to buy 10-50 one ounce coins depending on spot price and how brave I am. However, I am thinking about buying a crap load of silver instead. For the same amount of money I can buy 650-2600 silver dollars. If the spot price goes up say $1-2 (which it easily can fluctuate) I could make alot more money with less risk.
Any advice on this scheme?
|
|
|
n/a
deleted
478 Posts |
Posted - 01/22/2009 : 13:36:12
|
28% Capital gains tax rates apply with no difference between short and long term rates. I just checked with my CPA on this. You need to take this into account when buying physical metal if you want to day trade it. I suggest buying some metal for storage and then playing the gold stocks or gold funds with an online stock trading account like Etrade. Here are a couple of gold mining stocks to look at. Look at the 52 week trading price ranges. Lots of room to day trade without the pain of buying, shipping, storing, paying over spot premiums, selling on ebay (fees), driving around to coin show or coin shops, etc. I'm all for buying physical metal but not for day trading. If you want a longer term investment, look into some precious metal mutual funds. Short term, day trade gold mining stocks......if you have the stomach for it. Just my opinion so please don't rip me too much.
You must be logged in to see this link.
You must be logged in to see this link. |
Edited by - n/a on 01/22/2009 13:48:14 |
 |
|
|
wagsthadog
Penny Hoarding Member
USA
565 Posts |
Posted - 01/22/2009 : 13:50:51
|
Hi there-
Diversify. Buy gold, silver, and a couple ounces of Platinum for grins. Own a gun? How about a couple of acres somewhere?
Thing with buying precious metals- when they go up, do you WANT to sell? If I ever log on to kitco and see gold at $1500/oz, I'd be afraid to look on yahoo to see why...
JMO.
wags |
Only when they CAN'T have it, ......THEN they'll want it.
I love Cents. If you get an UNC box, you win. If you get a regular circ. box, you win. If you get a zinc box, you don't lose....so you still win. |
|
|
|
horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 01/22/2009 : 14:31:34
|
I agree with CuproNickle. From what you said about your invest goals, you would be better off opening a brokerage account and investing in one of several funds that track the price of gold and/or silver.
Buying and selling physical gold and silver short term for 15% profit is too much effort. Physical gold and silver is generally held long term as an insurance policy to protect yourself against a "once" in a multiple lifetime event, such as a complete breakdown in your country's econonomic system.
IMHO
Disclaimer: Don't blame me if gold doesn't go up or if the whole paper system implodes. 
IMHO |
|
|
|
Lemon Thrower
1000+ Penny Miser Member
USA
1588 Posts |
Posted - 01/22/2009 : 16:20:21
|
| buy plywood or OSB. people will need it when the riots and revolution begin. |
Buying:
Peace/Morgan G+ at $15.00
copper cents at 1.3X
wheat pennies at 3X
|
|
|
|
ME CO
Penny Pincher Member
USA
199 Posts |
Posted - 01/22/2009 : 22:25:34
|
| Stay true to your handle. Call Loomis or Brinks and see what they would charge for a one-time delivery of 100 boxes of half dollars. At least hunt with the $$$ first. HH Mark |
"54/54/2280" |
|
|
|
Cody8404
Penny Hoarding Member
USA
602 Posts |
Posted - 01/23/2009 : 12:52:45
|
The man that got the richest and the got rich fast durring the gold rush of 1849 sold, "shovels."
I am still trying to figure out what will be needed in this day to get rich. After looking at the options I just hope I have enough food stored and able to be grown to stave off starvation of my family for a few years. |
Awake, O kings of the earth! Come ye, O, come ye, with your gold and your silver, to the help of my people, to the house of the daughters of Zion, to the help of the people of the God of this Land even Jesus Christ. |
|
|
|
Cody8404
Penny Hoarding Member
USA
602 Posts |
Posted - 01/23/2009 : 12:58:34
|
| When you buy and sell remember the spread. |
Awake, O kings of the earth! Come ye, O, come ye, with your gold and your silver, to the help of my people, to the house of the daughters of Zion, to the help of the people of the God of this Land even Jesus Christ. |
|
|
|
keys
Penny Collector Member
383 Posts |
Posted - 01/23/2009 : 20:39:17
|
This is just what I did with my stimulus check from last year-
I bought silver quarters with my $600. I treat it as a silver IRA without management fees.
I have no plan on selling my silver until-
1. Silver hits $40 per ounce
2. A precious metals bubble starts to get out of hand (the masses are buying PMs like its going out of style)
3. I desperately need cash during a crisi/panic (banks close for an emergency bank holiday, paychecks are late in arriving AND my emergency reserve of cash is depleted, etc.)
Just remember playing the stock market has its risks too, look at all of the 201Ks (formerly 401Ks) that were heavy on stocks. |
I change with the times-
but like silver coins found in your change
I stay the same.
*****************
The United States of America started out as the new Republic of Rome.
Will The United States of America end up as the New Imperial Rome? |
|
|
|
searching4silver
Penny Pincher Member
111 Posts |
Posted - 01/29/2009 : 12:23:49
|
Ok good advice from a number of you and I have revised my plan. I am still going to buy some gold to hold just in case, but I am going to use the money to search for silver in the mean time. I figure I will just order a constant rotation of boxes of half dollars. Maybe a box or two per week so I never have to pull out more than $1000-$2000 at a time from my savings account. I figure at the rate people tend to find silver in halfs I can build up $1000 in face value after going through roughly 400 boxes of halves.
(based on the numbers I have been seeing in the disscusion on 2009 silver finds a conservative estimate is 0.5% silver in halves, thus $2.50 per $1000, therfore I need to have searched $400,000 worth)
This is a lofty goal, but I think it might be easier than collecting 1 million pennies.
Any other advice? |
|
|
|
n/a
deleted
478 Posts |
Posted - 01/29/2009 : 13:40:01
|
Let's do the math. $400,000 worth of half dollars to sort = 800,000 coins.
Each coin weighs around .40 ounces.
800,000 coins X .40 oz = 320,000 oz.
320,000 ounces / 16 Ounces = 20,000 lbs of coins or TEN TONS of coins to sort.
The banks in the city I live in are lucky to have one roll of half dollar available. Most don't have any half dollars at all. I'm willing to bet there are not $400,000 total value of half dollars available at ALL banks within 300 miles from my house.
There are easier ways to get $1000 face worth of silver, like getting a part time job?? |
Edited by - n/a on 01/29/2009 13:42:06 |
|
|
|
Nickelmeister
Penny Hoarding Member
Canada
588 Posts |
Posted - 01/29/2009 : 14:14:13
|
| Yeah, really. If you enjoy scouring for silver in circulation coinage as a hobby, that's one thing. But to try to put together a huge hoard at FV is not really worth the time and effort. You time would be better spent at a part-time job to earn extra money with which to buy silver on the open market. |
www.WinnipegGoldBuyer.com
Standing offer for sale of quality, second-hand solid gold jewellery:
<$100 USD worth - spot +25%, plus actual shipping
$101-500 worth - spot +20%, plus actual shipping
$501-1,000 worth - spot +15%, plus actual shipping
$1,001+ worth - spot +10%, plus actual shipping |
|
|
|
horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 01/29/2009 : 14:57:12
|
quote:
Originally posted by Cody8404
When you buy and sell remember the spread.
I think you just answered your own question about what the next "shovel" play is. The middle men will/are making a killing as people rush around into different currencies and assets trying to avoid the economic destruction around them.
Even as the speed of currency collapses accelerates, there are those who are swift enough on their feet to take the collapsing currency out of the hands of panicked people in exchange for other currencies or goods and then turn and around and spend the currency before they lose the profit.
So, right now the shovel salesmen are the people that instead of holding gold/silver are actively buying and selling it...much less risky and more money than just holding it assuming that they don't store all of their profits in cash...
|
Edited by - horgad on 01/29/2009 14:59:34 |
|
|
| |
Topic |
|
My gold/ silver plan
Forum Locked
