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searching4silver
Penny Pincher Member
111 Posts |
 Posted - 05/28/2009 : 08:13:20
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Ok I am looking for some advice here. I have about $12,000 in Municiple bonds. Seeing that the economy is on a downturn (counties and cities will start lossing revenue and the bond prices will drop) and inflation will soon be on the rise, I am thinking about selling all of the muni's and putting the money into a bulk silver purchase. My feeling is at almost $15 per ounce there is still some room to go up in Silver.
So my plan is to buy at $15 or less and sell at close to $20 or so.
Any thoughts?
As for using the money to search, I already carry about $500 with me at all times and stop at every bank i see and ask if they have halves.
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Country
1000+ Penny Miser Member
USA
3121 Posts |
 Posted - 05/28/2009 : 08:52:26
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Think why you are considering a silver purchase?
Determine how this purchase fits into your overall investment portfolio. Think it over carefully. Since your investment is moving from Munis to PMs, can you take the volatility that you will get with a PM investment? Can you stomach a temporary 50% paper loss, if instead of going to $20, silver goes to $10? Remember you don't have to sell ALL of your Munis at once, you can edge in as you become comfortable with your PM investments.
If you buying silver for speculation, set a profit exit point as to when to sell. When you've met your profit goal, sell. Use a PM ETF (SLV, GLD, etc.) in your brokerage account to speculate. It's easy to buy and easy to sell, with a mouse click on your PC. Sell when you've met your profit goal.
If you buying silver as a longer term investment (we're talking a time frame of years), I would you suggest you buy bullion silver. Buy what's the cheapest premium at the time of purchase. Buy from major dealers, such as AMPEX, BD, Tulving (free shipping for a $10K purchase) because they will treat you professionally.
Best of Luck
Silver is "real money" and has been for thousands of years.
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My CRH Totals '09: Franklin 5; 40% JFK 221; 90% JFK 20; JFK NIFC 144; JFK Proof 8
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RealCent Totals: You must be logged in to see this link. |
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highroller4321
1000+ Penny Miser Member
USA
2648 Posts |
Posted - 05/28/2009 : 08:58:40
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In my opinion is always a good idea to get out of bonds! Also my opinion that its a great idea to put all the money into silver. However, silver is very volatile and may go up or down in the near future. Long term silver looks great though.
It all really depends if you can stomach the swings, and what your end goal is.
Turn and Earn! |
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CoinHunter53562
1000+ Penny Miser Member
USA
1805 Posts |
Posted - 05/28/2009 : 09:14:59
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When I quit my job last summer to go into being self employed, I cashed out my 401K (yeah I know that's not recommended but I am glad I did seeing how far the market tanked right after I left and I was able to use a portion of that money to buy PM's cheaply late last year). I think metals (both base and precious) are a good long term investment.
As Country mentioned, if you're going to make a big move into silver, you better be ready for the day-to-day, week-to-week and month-to-month swings. I am involved in two other coin/bullion related forums, and I see so many people complain about the swings in the spot price and how they "lost" x amount of money. Truth is, if they still hold the silver, they havent lost anything yet. It's only when you sell that you can say you gained or lost money. So be prepared for the ups and downs, and try not to get emotionally too high or too low with the swings.
You have an exit point of $20 mentioned, so that's a good starting point. One way to look at things is to sell at $20/oz, but just enough to cover your initial investment. So you buy 800 ounces at $15/oz ($12K), but then sell 600 ounces at $20/oz ($12K) and still have 200 ounces left over. Or you could sell all of it, and hope that silver goes back down and in that case you could do it where you take the $16K, buy in again at $15/oz and you would then have 1066 ounces.
So you have some options available to you where you could net more cash, more silver, or some of both. Ultimately, it's up to you to decide what you can stomach and what your short and long term goals are. Whatever you do, good luck!
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My hobby: collecting real money 1 copper cent or nickel at a time.
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Edited by - CoinHunter53562 on 05/28/2009 09:16:30 |
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searching4silver
Penny Pincher Member
111 Posts |
Posted - 05/28/2009 : 09:26:49
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Thanks for tha advice. i am thinking about long term, but by long term I mean 6-12 months. Any insight into the the best way to buy or sell it? Through a local dealer or a larger place like monex?
As for your 401 K move, I used to have 85% of my 401K in Government bonds and fixed income funds. Then once the stock market tanked in the fall my investments did fine for the most part and I then started buying stock in October. I am planning on getting out of Government bonds entirely in my 401K here in the near future, but there is now PM fund in the government 401K system! |
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CoinHunter53562
1000+ Penny Miser Member
USA
1805 Posts |
Posted - 05/28/2009 : 09:35:05
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I have heard some not so good things about monex, so I would stay from them.
Here is some reading:
You must be logged in to see this link.
As with anything else, due your own due diligence, and I dont have any experience with them personally, I have just heard/read some bad things.
Buying through a local dealer is ok as long as they dont charge outrageous premiums or have sales tax on bullion (we do here in Wisconsin). You could post a wanted add in our buy/sell section specifiying what you are looking for - bars/rounds, 90% silver, silver Eagles, Maples, Phils, etc and how much you are looking to buy and how much you are willing to pay. We have alot of like minded individuals here, and alot of times you can find better deals here than you can at a dealer.
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My hobby: collecting real money 1 copper cent or nickel at a time.
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Country
1000+ Penny Miser Member
USA
3121 Posts |
Posted - 05/28/2009 : 09:44:27
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quote:
Originally posted by searching4silver
Thanks for tha advice. i am thinking about long term, but by long term I mean 6-12 months. Any insight into the the best way to buy or sell it? Through a local dealer or a larger place like monex?
As for your 401 K move, I used to have 85% of my 401K in Government bonds and fixed income funds. Then once the stock market tanked in the fall my investments did fine for the most part and I then started buying stock in October. I am planning on getting out of Government bonds entirely in my 401K here in the near future, but there is now PM fund in the government 401K system!
6 to 12 months is a short term speculation! I strongly suggest trading the ETFs. Otherwise, you could lose 10% or more due to the spreads in buying and selling the physical bullion.
Silver is "real money" and has been for thousands of years.
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My CRH Totals '09: Franklin 5; 40% JFK 221; 90% JFK 20; JFK NIFC 144; JFK Proof 8
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RealCent Totals: You must be logged in to see this link. |
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Market Harmony
1000+ Penny Miser Member
USA
1274 Posts |
Posted - 05/28/2009 : 09:52:07
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quote:
Originally posted by searching4silver
Ok I am looking for some advice here. I have about $12,000 in Municiple bonds. Seeing that the economy is on a downturn (counties and cities will start lossing revenue and the bond prices will drop) and inflation will soon be on the rise, I am thinking about selling all of the muni's and putting the money into a bulk silver purchase. My feeling is at almost $15 per ounce there is still some room to go up in Silver.
So my plan is to buy at $15 or less and sell at close to $20 or so.
Any thoughts?
As for using the money to search, I already carry about $500 with me at all times and stop at every bank i see and ask if they have halves.
Banking transactions over $10K will be flagged by your bank.
If you want to sell 100% of your muni's and buy 100% silver, and you've already placed your buy price at $15, and exit at $20, then I can assume that you're looking for profit only. Perhaps physical bullion is not the best choice for you with this in mind.
Online brokerages, such as Scottrade and Ameritrade have low comissions on stock trades ($7 to buy or sell per transaction) The silver ETF of You must be logged in to see this link. tracks the price of bullion fairly closely. The silver ETF of You must be logged in to see this link. moves in double the percentage of SLV. If you choose to go with paper silver (the ETF's) then you can easily trade in and out, and potentially double the potential profit of physical bullion. The risk, in my opinion, is relatively low for the range of $15 to $20 silver. When I speak of risk, I am referring to the risk of default. The other risk is of fluctuating silver prices, which I'm sure you've already considered.
Bullion carries a premium to buy, and coin shops do not normally buy at spot. Theoretically, if silver is $15, your premium may be $1 per ounce... when silver is $20, the dealer may only buy at spot minus $.50. So your real profit with bullion for a $15 to $20 move could be as low as $3.50 per ounce. If you want to sell at a premium, then selling at online markets normally will help you achieve a 10% premium on spot. But, there are transaction costs, and time delays as money is transferred.
Those are just the facts. My thoughts are that you once you buy bullion, it will be harder for you to sell it, both psychologically and physically. If you buy paper silver, then the job is done with a click of the mouse.
I also think that I would like you as a customer.  If you would ever like to acquire some of my products, please contact me directly. I will treat you with the same professionalism that any other supplier would. Plus, you would have some of the most unique bullion available.
My parting thought is that speculating in short term moves can become a very stressful matter. It's not for everyone, and not everyone is good at maintaining their discipline. If you set a strategy, keep with it, and do not deviate from it to justify feelings of regret or excitement.
Please do keep us informed of your ultimate decision and the outcome. I'm rooting for you.
Kind Regards,
Michael
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An investment in knowledge generates the most interest |
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sumrtym
Penny Sorter Member
36 Posts |
Posted - 05/28/2009 : 10:47:02
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I'd recommend tulving (as mentioned) and bags of 90%. He's the cheapest I know of on his bags and reliable with which to deal.
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Lemon Thrower
1000+ Penny Miser Member
USA
1588 Posts |
Posted - 05/28/2009 : 11:36:41
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buy a bag.
tulving is not always cheapest.
I done business successfully with the following:
tulving
wexford capital management
southern coins and precious metals - can do half bags.
portland coins and jewelry |
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Nickelless
Administrator
USA
5580 Posts |
Posted - 05/28/2009 : 12:08:39
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Searching4silver, my first question for you is why you're looking to sell at $20 rather than to hold onto your silver indefinitely. I think it's safe to say that a majority of people on this board view silver not as a commodity to be bought and sold as a profit but as long-term insurance against the eventual demise of the dollar. If you sell your silver at $20--trading real money for Federal Reserve Notes that have absolutely no inherent value--you have no guarantee that you'll be able to buy anything of equal or lasting value with those FRNs. My advice to you is to buy silver and don't even think about an exit unless you can't afford to hold onto it, in which case buying silver probably isn't your best option at this time. I've learned the hard way the past several months about being heavy on silver and preps but light on cash--I've cut back on my silver purchases and have been busting my tail trying to build up cash reserves, which had dwindled down to almost nothing because I'd been buying silver and preps using my cash reserves--but in my opinion setting a target selling price or even thinking about selling your silver at all is a very bad way to enter the PM market. This is not an investment to make a profit off of--it's long-term insurance that you don't want to be without.
Take a look at the Shadowstats.com link in my signature--the U.S. is heading for dollar hyperinflation soon, and the last think you want is to have your money tied up in FRNs and to be without precious metals.
Be prepared...and prepared to help: You must be logged in to see this link.
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Join other precious-metalheads: You must be logged in to see this link.
Why hyperinflation is inevitable...and very soon:
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NotABigDeal
1000+ Penny Miser Member
USA
3890 Posts |
Posted - 05/28/2009 : 17:21:49
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Why not pick up some fractional gold as well? I'd hold for a while unless you are needing the money ASAP, but as it's already tied up in bonds it doesn't look like you need it. Maybe sell some when you realize 50% profit. That way you still have something physical.
Deal
p.s. If you want that much silver/gold, look for a local dealer. My dealer could fill your order no problem on most days. Probably cheaper than getting it shipped. |
Live free or die.
Plain and simple.
"If you love wealth more than liberty, the tranquility of servitude better than the animating contest of freedom, depart from us in peace. We ask not your council or your arms. Crouch down and lick the hand that feeds you. May your chains rest lightly upon you and may posterity forget that you were our countrymen."
- Samuel Adams |
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Nickelless
Administrator
USA
5580 Posts |
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buyingsilvers
Penny Collector Member
441 Posts |
Posted - 05/28/2009 : 21:00:43
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| not a fan of this idea. Better to take $8k and trade with EFTs like people mentioned. The other $4k dump it into physical, and is best thought of as a "core holding" that should not be sold, again as other people mentioned. |
Edited by - buyingsilvers on 05/28/2009 21:01:42 |
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Some advice on bulk silver purchase
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