investing in precious metals

[JosephTheLibertarian]

which should I buy? I'm browsing the apmex catalogue ;) http://www.apmex.com

I'm not sure what I should get, but I want to convert some of my $$$ into hard assets

[tallt66]

I just go down to the local coin shop and get silver dollars every week. Sliver hasn't corrected yet, but it will. They are about 15-20 bucks a coin.

[JosephTheLibertarian]

I just go down to the local coin shop and get silver dollars every week. Sliver hasn't corrected yet, but it will. They are about 15-20 bucks a coin.

how do I find a shop like that? hmmm they take credit card? lol. I don't want to get ripped off

[dlm1968]

I have purchased from apmex many times. If you are just starting buy the cheapest, in other words get the most for your money. The pretty coins are of course very appealing but I always advise getting the most metal for your money.

For silver I would go for 90% US coins or 1 ounce generic rounds. If you want something a little prettier go for silver american eagles or canadian maple leaf.

If you are looking for gold, typically krugerands are the cheapest premium (mark up over spot) gold coins to be had (and the most recognized).

Shipping needs to be taken into consideration also. There is flat rate shipping (I believe 9.95 for any order up to $499) so if possible take advantage of that and order as much as you can up to that amount to take the most advantage of the shipping you are going to pay. If you are going to pay with a credit or debit card they are going to hit you with 3% of your ordered added to shipping charges.

If you have a decent local dealer that is the best option. If you purchase regularly and they get to know you a local dealer can be a great asset. However you need to watch they premium over spot they charge and what they pay if you want to sell your metals back.

[JosephTheLibertarian]

ok. Local shopkeepers could also be looking to rip off people, so I wouldn't put blind faith in them ;) I'm going to take your adice. What are the "generic rounds," I didn't see anything on apmex that said that, just wondering.

thanks

I'm starting to convert my $$$ into hard assets

[Dr.3D]

You can find generic rounds here: http://www.silverprice.com/
and here: http://www.nwtmintbullion.com/silver_nwtmintbullion.php

I have bought from both of these places, the first one is the most for your money and probably faster delivery.
The second one took me 4 months before I got the metal.

I'm sure there are many others out on the web.

[s35wf]

I've also bought some silver from monex.com but looks like apmex is a little cheaper maybe

[Corydoras]

You may find this thread from goldismoney.com to be interesting:

http://goldismoney.info/forums/showthread.php?t=7228

[Kregener]

Start with silver coins. Dimes and/or quarters. Take physical possession and keep them close at hand.

[JosephTheLibertarian]

Start with silver coins. Dimes and/or quarters. Take physical possession and keep them close at hand.

lol. regular coins? but uhh I can get them from the bank, no?

[Dave Pedersen]

lol. regular coins? but uhh I can get them from the bank, no?

Pre-1965 90% silver dimes. You can buy rolls of 50 silver dimes on eBay for about $60. No need to shave them or weigh them if you need to barter with them. They are already measured out in convenient amounts everybody will trust as genuine.

[Corydoras]

Really it depends on whether you are buying as a way to invest and protect your savings, or whether you are buying to have something to trade if SHTF.

Me I don't believe that people will understand the value of a silver coin if SHTF, so I am not interested in buying so-called "junk silver" (old silver coins). I'd rather buy ounce coins of high purity in order to protect my savings, as part of my diversified portfolio.

[Kregener]

lol. regular coins? but uhh I can get them from the bank, no?

Please tell me you were just being facetious...

[Corydoras]

"Regular coins" are not silver.

[AceNZ]

which should I buy? I'm browsing the apmex catalogue ;) http://www.apmex.com

I'm not sure what I should get, but I want to convert some of my $$$ into hard assets

It depends on how much you want to spend.

I like the 1 ounce gold Maple Leafs:
http://www.apmex.com/Category/21/2008__Prior_Gold_Canadian_Maple_Leafs.aspx

or the smaller sovereigns:
http://www.apmex.com/Product/17/Great_Britain_Gold_Sovereigns___Almost_Uncirculate d_or_Better.aspx

I don't care for silver. It's an industrial metal, so it's likely to not do as well as gold during the recession, IMO -- although it is cheaper than gold, so if you're cash limited, that's an option. Silver is certainly better than cash.

[Corydoras]

On the other hand, you could argue that silver is more valuable BECAUSE it is an industrial metal and demand is going up because silver solders are replacing lead solders in electronics.

[Corydoras]

Of course, there's always platinum, which is both a precious metal used in jewelry and an industrial metal used in electronics. Just make sure you keep your platinum coins real safe, because they are such a concentrated form of value.

[JosephTheLibertarian]

Really it depends on whether you are buying as a way to invest and protect your savings, or whether you are buying to have something to trade if SHTF.

Me I don't believe that people will understand the value of a silver coin if SHTF, so I am not interested in buying so-called "junk silver" (old silver coins). I'd rather buy ounce coins of high purity in order to protect my savings, as part of my diversified portfolio.

As an investment.

[AceNZ]

On the other hand, you could argue that silver is more valuable BECAUSE it is an industrial metal and demand is going up because silver solders are replacing lead solders in electronics.

Business activity and industrial consumption declines in a recession. That means demand is going down.

Silver went down in the 1979-80, 1982-83, 1990-92 and 2001-03 recessions, where gold went up except 90-92.



Of course, there's always platinum, which is both a precious metal used in jewelry and an industrial metal used in electronics. Just make sure you keep your platinum coins real safe, because they are such a concentrated form of value.

Platinum is also mostly used as an industrial material (catalytic converters, etc). It's used in jewelry or for investment is very small in comparison.

[jaybone]

I have purchased from apmex many times. If you are just starting buy the cheapest, in other words get the most for your money. The pretty coins are of course very appealing but I always advise getting the most metal for your money.

For silver I would go for 90% US coins or 1 ounce generic rounds. If you want something a little prettier go for silver american eagles or canadian maple leaf.

If you are looking for gold, typically krugerands are the cheapest premium (mark up over spot) gold coins to be had (and the most recognized).

Shipping needs to be taken into consideration also. There is flat rate shipping (I believe 9.95 for any order up to $499) so if possible take advantage of that and order as much as you can up to that amount to take the most advantage of the shipping you are going to pay. If you are going to pay with a credit or debit card they are going to hit you with 3% of your ordered added to shipping charges.

If you have a decent local dealer that is the best option. If you purchase regularly and they get to know you a local dealer can be a great asset. However you need to watch they premium over spot they charge and what they pay if you want to sell your metals back.

+1
what he said

[dsentell]

I purchase gold and silver from apmex. Here is the link to the silver rounds:


http://www.apmex.com/Category/520/Silver_Rounds.aspx


If you want value, an ounce of silver is an ounce of silver. Using that reasoning, Silver Maple Leafs, Silver Eagles and Rounds all contain an ounce of silver and are therefore of equal value. Rounds are cheaper. You will pay a little more to purchase the prettier Maple Leafs and Eagles . . .

[AceNZ]

If you want value, an ounce of silver is an ounce of silver. Using that reasoning, Silver Maple Leafs, Silver Eagles and Rounds all contain an ounce of silver and are therefore of equal value. Rounds are cheaper. You will pay a little more to purchase the prettier Maple Leafs and Eagles . . .

If you're buying and selling only through dealers, then you're probably right.

However, if you ever plan to use the coins directly with individuals (one of the big advantages of silver), then all silver is definitely not created equal. I would only accept silver coins that I recognized as clearly not being fake or forgeries that might have been trimmed or otherwise devalued. In my case, that means I wouldn't accept rounds from some random commercial mint. Maybe others feel differently...

[dsentell]

If you're buying and selling only through dealers, then you're probably right.

However, if you ever plan to use the coins directly with individuals (one of the big advantages of silver), then all silver is definitely not created equal. I would only accept silver coins that I recognized as clearly not being fake or forgeries that might have been trimmed or otherwise devalued. In my case, that means I wouldn't accept rounds from some random commercial mint. Maybe others feel differently...

Good point! Be alert to signs of damage/tampering/devaluing! For those reasons, Eagles and Leafs would be easier to deal with. But I personally would have no problem with Engelhard or some other well known mints.