Silver/Gold for dummies

Discussion in 'Homesteading Questions' started by suehi, Apr 19, 2006.

  1. suehi

    suehi Active Member

    Messages:
    39
    Joined:
    Sep 22, 2005
    Silver/Gold for dummies How would you suggest a person new to investing in silver and/or gold go about it, especially if you have limited extra money to spend but would sacrifice some money for this purpose? I hope you can understand what I mean. Basically, I want silver/gold anything that will be worth something in harder times. Can or should I by things like gold or silver jewelry or the coins. As you can see, I have no knowledge about this subject. I just no and believe that it will be useful one day. I just need to know how to go about it. I am already working on stocking up on food etc. and learning as many skills as I possibly can. I know this will be of most importance in my book.

    Suehi
     
  2. crystalniche

    crystalniche Well-Known Member

    Messages:
    880
    Joined:
    Apr 4, 2005
    Location:
    Connecticut
    When I first started I went to tag sales in the better (more fluid cash) parts of town and bought up all the sterling silver jewelry that I could afford. I know that jewelry has a high markup but at tag sales you can get it pretty cheap. I got a whole bag of it at a church sale for $10 and there was over 6 ounces in that bag. If you watch your prices and compare them to the weight of the item rather than the jewelry value you should do ok. 925 is sterling but watch out for Mexican Alpaca silver as it is usually plated. Check on the bottoms of silver service at thrift shops and tag sales. I've found sterling spoons at a quarter each. When the slver prices went way up that time we took in a handful of silver and got over $100 for it. Not bad! We went twice to sell and were very pleasantly surprised.
     

  3. frugalville

    frugalville Well-Known Member

    Messages:
    93
    Joined:
    Mar 11, 2005
    Easy investing...

    90% junk silver (Pre-1964 US coins)- are 90% silver. You can buy at coin dealers, or the internet. Dimes, quarters, halves. Bars and 1oz mint coins carry a premium to the price of silver.

    Gold- 1/10, 1/2, and 1 oz bullion coins. (Gold eagle, maple leafs, or krugs)

    There are other ways, but to a 'rookie'...you shouldn't pay more than a couple % premium of the daily price. (see www.kitco.com) for current prices. You really can't make any mistakes with the above except buy high and sell low.

    Try www.coloradogold.com Don is nice, and has low premiums.
    Read www.gold-eagle.com or www.321gold.com for more info and news.
    Howard Ruff had a book out in the 70's that talked about the same ideas.
    Read the Mogambo Guru for a different slant.
    Kitco.com is the largest internet dealer.
    Ebay at your own risk.

    Google Kondratieff winter or fiat money for research info.

    Best.
     
  4. Freeholder

    Freeholder Well-Known Member

    Messages:
    5,665
    Joined:
    Jun 19, 2004
    Buy preps. Seriously. You can't eat gold. Can't drink it, or wear it, or ride it to town. Can't burn it in the woodstove to keep warm, heat water, or cook your food. And if all those commodities are in short supply (as they likely will be soon) people who have them aren't going to be parting with them in exchange for gold or silver, which they can't eat, wear, or heat their house with.

    Until you have enough goods, tools, equipment, garden, and livestock to survive on, leave the gold to the foolish rich folks. If you have food from your garden or your dairy goats or whatever, you'll at least be able to barter for the other things you need.

    Kathleen
     
  5. Obser

    Obser "Mobile Homesteaders"

    Messages:
    577
    Joined:
    Feb 13, 2006
    Location:
    Highly Variable
    It seems as though silver and gold US coins are the best option for most people. The best prices available are at http://www.apmex.com/shop/buy/90_and_40_Silver_Coins.asp?orderid=0. They ship by insured mail without a flaw.

    Right now it appears as though "junk silver coins" are the best bet (i.e., coins that do not have collector value). US silver coins produced prior to 1965 (when silver was removed from coinage) are a known and accepted volume of silver (or gold) and are readily negotiable.

    Bullion is less certain and can require assay to insure content – and is therefore less easily sold or used in commerce. Foreign coins but are less readily recognized or accepted in this country.

    Please note that this is personal opinion. Others have different opinions (including that paper Federal Reserve Notes are superior to all other things). Internet searchs will yield a wealth of information (pun intended).

    I agree that provisions and preparations should come before purchase of metals. Under extreme conditions gold and silver may have little value for purchace or barter -- the key word being "extreme". Both have their place.
     
  6. mightybooboo

    mightybooboo Well-Known Member

    Messages:
    11,301
    Joined:
    Feb 10, 2004
    Location:
    So Cal Mtns
    This website link will get you up to speed.
    Beware a few immature types,just ignore the tripe,tons of GOOD info there.

    You will learn what the coins are,weights, and costs.Bars,rounds,junk 90% coins,everything is there and explaned.
    Its all there,everything you could possibly want to know about metals.

    This is the purchasing section,there is a lot more if you go to the homepage from here.

    http://goldismoney.info/forums/f63-purchasing-precious-metals.html

    BooBoo
     
  7. texican

    texican Well-Known Member

    Messages:
    12,327
    Joined:
    Oct 3, 2003
    Location:
    Carthage, Texas
    Silver and gold both are going thru the roof right now. If you do buy a large quantity, be aware that buying on the wave up can crash back down, and leave you stranded with overpriced metal.

    Buy low, sell high. If you buy now, good chance of selling low...or it could get higher... IMHO, it's all speculative, just like gas prices, everyone worried about what Iran will do.

    Personally, I've been buying barrels of diesel. I need it and use it daily, and every couple of days the price keeps rising....

    Agree with BlueJuniperFarm... buy preps instead. Now if you like coins for numismatic purposes, gold and silver are fine. But I wouldn't buy either right now...price is too high... and I'm certainly not about to sell any of my holdings....
     
  8. Bret F

    Bret F Well-Known Member

    Messages:
    655
    Joined:
    May 4, 2004
    Location:
    Idaho
    Like Texican says, the silver prices are very high now. Expect to pay ten times the face value for a pre '65 coin. ($1.00 for a dime, or $2.50 for a quarter)
     
  9. sulix

    sulix Well-Known Member

    Messages:
    62
    Joined:
    Jan 28, 2003
    I guess it is time i cashed in all the siver i got for nothing from a company for doing them good 15 yrs ago.....along with all the junk silver i have collected 20 yrs ago.......it is better to eat and buy gas .....Than to hold onto something with does no good. LOL.Rememer someday the Money is going to go broke.....Our economy is something to be desired.
     
  10. Obser

    Obser "Mobile Homesteaders"

    Messages:
    577
    Joined:
    Feb 13, 2006
    Location:
    Highly Variable
    I, personally, think that the price of silver and gold (in Federal Reserve Notes) will NOT come back down. I am no expert, only an observer. I advise no one.

    Here is my thinking. World demand for gold and silver is increasing, particularly as citizens of India and China (who have traditionally liked precious metals) become increasingly prosperous enough to buy what they want (thanks, in part, to US importing their products).

    The US dollar, FRN, is suffering from a loss of confidence by investors and common people. This, IMO, is due to terrible economic decisions that are being made in our country (de-industrializing, outsourcing, massive personal and national debt, zero savings rate, etc) that are obvious to astute people. This causes loss in confidence in the system.

    On an individual scale we are watching the picture develop day-by-day when we say, "Prices are going up, fast". Another way of saying the same thing (and a more illuminating way) is to say, "The value of my dollars is going down. They buy less."

    Another indication of the seriousness of this matter is THIS discussion on a Homesteader forum among common people about getting out of dollars and into something (anything) that has lasting value. I see the same thing in person as individuals who never gave owning precious metals a second though are now becoming interested and are trading their FRNs for other things, including metals.

    Paper money is subject to the whims of those in control of the currency. The more they put into circulation, the less each is worth. Politicians and "the elite" have ample reason to print excess money -- TO SPEND. That is easier than raising taxes. It is not obvious (at first) but the effect is the same (or worse).

    Degrading unbacked currency is SOP for politicians. The US Dollar has lost 95% of its buying power in the past century, much of that in the last ten years.

    Precious metal prices reflect world values. Right now the world is saying that it prefers metals to US dollars -- and US citizens are starting to say the same thing. This does not seem likely to change.

    Yes, prices may come back down. But I don't see anything on the horizon that indicates that the US dollar is gaining respect (or that the US is gaining respect).
     
  11. mightybooboo

    mightybooboo Well-Known Member

    Messages:
    11,301
    Joined:
    Feb 10, 2004
    Location:
    So Cal Mtns
    We did FINALLY get our pullback to 12.40 or so today.
    The Comex,thats New York market,was able to hammer it down by 1.60 in one hour.
    Consenses is the options payouts come due the 25,and then again in July.
    At yesterdays price,Comex was faced with delivering a LOT of physical silver.

    They cant have that.The short players,the ALWAYS play of the govs. and hence the brokerages,were facing big losses.BIG speculation not enough silver even exists to pay the contracts.Comex in a serious bind

    Comex therefore changed the prices on options,making them more expensive for future traders.They changed it yesterday.They dont intend being caught again in a position such as this.And it bails out the shorts,those betting on prices not rising,them being the govs. and their players,the brokerages.

    They wont be caught short again,not like this time.Not that big of an exposure.

    NY has their way,prices will be down until the 25th.

    NY and London are always the BIG Hammer,today they showed they can still wield that hammer.

    Good buying opportunity but I doubt you are ready to move yet.

    Watch Hong Kong trading tonight,lets see how they feel about NY's move.
    This will be a kick to see if the rest of the world can take it back from NY.

    Hold on to your hats,going to be a very interesting 10 days coming up.

    BooBoo
     
  12. frugalville

    frugalville Well-Known Member

    Messages:
    93
    Joined:
    Mar 11, 2005
    Margins were raised another $700.00 per contract last night for crimex contracts.

    Best show in town. :]
     
  13. Citiot

    Citiot Well-Known Member

    Messages:
    79
    Joined:
    Apr 11, 2006
    When have people ever refused to trade in exchange for gold or silver? You don't eat gold and silver, you exchange it for goods, it's a currency. Only it's not a fiat currency so no inflation worries.
     
  14. Hoop

    Hoop Well-Known Member

    Messages:
    799
    Joined:
    Jan 1, 2003
    Location:
    Northern Wisconsin
    I happen to think investing in gold/silver is for dummies.

    Yes, in the last year it has gone up. Look at the big picture. Over the last 20 years, gold/silver have LOST ground on inflation.

    One of my buddies tells me about how he financed his college costs by selling off his collection of US silver dollars at $20/pop. That was quite some time ago as the guy is now retired. One can buy US silver dollars for $8/pop all day long today.

    If you were unfortunate enough to purchase US silver dollars 30 years ago at $20/pop, well, lets just say it wasn't a smart investment.
     
  15. mightybooboo

    mightybooboo Well-Known Member

    Messages:
    11,301
    Joined:
    Feb 10, 2004
    Location:
    So Cal Mtns
    IF you were fortunate enough to have purchased at 5 and sold at 40?
    IFS and BUTS........

    Do you know why it was kept down and how that rates to FRNs,and who kept it down?

    Do you know why they refer to the CRIMEX?

    Do you understand gold leasing and why it pays,so why they do it?

    Do you understand WHY they short metals and how that plays to the FED?

    Do you know about the CRIMEX meeting last night and their fear on calls?There was ZERO buying today in the pits,the fix was in.Naked shorts could bring down the market,its that big a deal.

    But not to fear,its a buy opportunity.What we have been hoping for to increase our holdings.

    If you dont understand that,youre right,stay away,its NOT for you.You need a 5% cd.

    Come on naysayers,its your turn today. :D
    I can take down days,Im a holder,not a seller.

    It will have its ups and downs,this is the first true down in 4 months.
    Like any speculation.

    Me Im long,staying long.
    If it hits 10 by Tuesdays options calls Im in a lot more.I will spend down some savings thats in the land purchase fund.


    BooBoo
     
  16. mightybooboo

    mightybooboo Well-Known Member

    Messages:
    11,301
    Joined:
    Feb 10, 2004
    Location:
    So Cal Mtns
    I'll take every one of your pre 1965 silver dollars at 8/pop right now,PM me.I'll pay shipping and insurance too. :)

    BooBoo
     
  17. Obser

    Obser "Mobile Homesteaders"

    Messages:
    577
    Joined:
    Feb 13, 2006
    Location:
    Highly Variable
    Trading in gold and gold futures or investing in mining stock is not my cup of tea. Physical possession of the metal, particularly in the form of US coins, is not speculative IF one is buying for possession (preservation of buying power in lieu of holding FRNs). If buried well, coins aren’t likely to be lost.

    Anyone who bought metals a couple years ago can weather any downturn because spot prices have about doubled during that time. Would I buy now when spot prices are so high? Yup, if I had some spare FRNs.

    “But what if the price goes down?” If one is worrying about “going down” they should be aware of what has been happening to the “US Dollar” lately. Don’t dollars buy less of everything including medical care, education, food, fuel, repair parts, building materials, (real estate at the moment), etc?

    That is not “prices going up”, that is buying power of the dollar going down. It doesn’t matter if those FRNs are in our pocket, in the bank or in investments, their value is decreasing as we watch. My income is not increasing to keep pace. Is yours?

    There are other things that hold value as well as, or possibly better than, precious metals. But, those alternatives often require large areas for storage, protection from weather and theft, maintenance, etc.

    I was involved in a discussion with someone who thought shotgun shells were the ultimate “store of value for hard times” (in considering a significant but not great amount in FRNs). I pointed out the storage volume and weight of the required number of boxes of shells – many cubic feet and several tons. The same current value of gold could be held in one hand and in silver it would be a modest load on a handcart. I also pointed out several other problems with buying shotgun shells to maintain value (including getting rid of them in the unlikely event that the economy does not turn downward more than it is presently).

    My considerations are based upon my own prediction that economic difficulty is more than just “likely”, due to economic blunders that are being made at federal, state and local level, by de-industrialization of the nation, etc. I was disturbed to learn that the US imports as much food as it exports (or slightly more as of this year) when we were once “breadbasket of the world”.

    I do not envision a “worst case scenario” requiring intense survivalist preparations (though that is possible), but do expect some economic disruption. One might be wise to have basic preparations in place to weather hard times (let’s say like the Great Depression or somewhat worse), and then think about “storing value”.

    These are just my personal opinions. Others have opinions that differ radically. I am not a financial advisor or expert with impeccable track record (and neither are they). My only objective is to encourage people to think toward making intelligent decisions for themselves. I am not selling anything.
     
  18. mightybooboo

    mightybooboo Well-Known Member

    Messages:
    11,301
    Joined:
    Feb 10, 2004
    Location:
    So Cal Mtns
    Me either.I see you are full time in an RV,that rocks,we did it for 2 years.Enjoy your travel.

    Now back to your regularly scheduled programming. :)

    BooBoo
     
  19. Mudwoman

    Mudwoman Well-Known Member

    Messages:
    528
    Joined:
    Dec 18, 2002
    Buy US gold Eagles. You can do a search and come up with lots of places that you can buy on line. Dh and I use www.ajpm.com and have had excellent service from them. Their price that they will sell to you is a little higher than some others, but having bought from other places, we always go back to these people. Take possession of your gold/silver. Gold futures for Dec 2007 are going in excess of $850 oz. Gold went down substantially today and may go down some more tomorrow. I see strength and uptick at $595 to $600 and a good buy at that.
     
  20. Citiot

    Citiot Well-Known Member

    Messages:
    79
    Joined:
    Apr 11, 2006
    I understood the rest but what is the fear on calls? What was there zero buying of today in the pits? I know that silver fell sharply but it was overbought and it's not going to fall back much further before buying resumes. Gold held up fairly well. All this in spite of fiat mania, it's the latest fad!

    I'm long commodities all the way.