Looking to invest in precious metals, need advice

[zHorns]

I’m thinking about starting to invest in precious metals and need some advice.

Basically, I’m 21, run a small business, own a car outright, no debts and can easily pay my current load of bills with my income, but, rather than transferring “extra” income to my saving account every month, I tend to spend it on things that aren’t really necessary.

Ultimately, I feel like I’m not working towards something long-term.

So, I thought it would be smarter to start placing some of that extra income into a long-term investment plan, which involves me buying 1oz silver coins a few times a month and over time building a nice size stockpile without a large initial investment; I don’t have the savings to go drop thousands right now on much of anything.

I've never owned precious metals, so I need some advice. Any info would help.

Does anyone have an advice?
Should I wait and see if silver drops?
Is this a good or bad idea?
And if good, where should I buy?

[WilliamC]

Buy either 1 ounce silver American Eagles or 1 ounce gold coins/bars as you have cash flow to do so from either local coin stores (if they don't charge much more than the mark-up you would normally pay from APMEX) or better yet the same from private individuals.

Always pay cash, never create paperwork, and pretend that you lost them in a boating accident.

Precious metals are not an investment per se, but insurance against the unknown.

Now if you get to the lucky point in life where you have enough cash and PMs stashed away that you feel foolish for holding any more, then you may need to start thinking of more normal investment strategies, like owning stocks in mining companies or such, but I've never been fortunate to be this rich and I never will be.

When it comes time to sell/trade, again, private individuals, and no one else needs to ever know about it.

I just wish I had more than the handful of old silver dimes to my name, then maybe my opinion would be worth something

[zHorns]

Buy either 1 ounce silver American Eagles or 1 ounce gold coins/bars as you have cash flow to do so from either local coin stores (if they don't charge much more than the mark-up you would normally pay from APMEX) or better yet the same from private individuals.

Always pay cash, never create paperwork, and pretend that you lost them in a boating accident.

Precious metals are not an investment per se, but insurance against the unknown.

Now if you get to the lucky point in life where you have enough cash and PMs stashed away that you feel foolish for holding any more, then you may need to start thinking of more normal investment strategies, like owning stocks in mining companies or such, but I've never been fortunate to be this rich and I never will be.

When it comes time to sell/trade, again, private individuals, and no one else needs to ever know about it.

I just wish I had more than the handful of old silver dimes to my name, then maybe my opinion would be worth something

I would think the endgame for all folks that buy metals, eventually is to exchange them for goods/services, either by cashing in or hoping when they themselves can be exchanged one day, correct?

I mean, what's the point in investing in something that, if grows, you never exchange at some point?

As for what I would use them for, I think I would only sell them if I needed to put a down payment on a house, buy a car or for insurance.

I doubt I'll invest in gold, since the initial investment is so large. Silver would allow me to take $100-$150 a month and buy a few coins here and there without missing the money much and years down the road have a nice size insurance/savings if needed.

Lastly, does anyone own copper? I would think the only downsize is storing them (size wise) versus what they're worth.

[WilliamC]

Nah, we just like them 'cause they're shiny

But yes, when it comes time to sell/trade then do so to private individuals and don't talk about it, it's your business and your money.

[zHorns]

Nah, we just like them 'cause they're shiny

But yes, when it comes time to sell/trade then do so to private individuals and don't talk about it, it's your business and your money.

You talk a lot about keeping it on the down low, would you suggest I still insure them in case of loss (theft, fire, etc...)?

[WilliamC]

You talk a lot about keeping it on the down low, would you suggest I still insure them in case of loss (theft, fire, etc...)?

To me it's all about keeping some of your wealth out of paper and out of the knowledge of those who would steal it, legally or illegally.

So no, just make sure to put it someplace fireproof and where no one will find it.

Again, once you have enough wealth that this becomes absurd (and that level varies from person to person) then more transparent, taxed investments start making sense, but I've never had that much so take my advice for what it's worth.

Not much

[ILUVRP]

an investment is a return on your money and a return of your money , everything else is a speculation.

if any of your bills are long term and high interest rates , i would pay them off/down.

i would never buy copper bars , i still think the thing to buy is junk silver ( pre 1965 dimes , quarters ) coins on ebay--- the price will be as close to

spot as you can get , no dealer mark up --everyone knows them--hard to fake as is happening now with many silver/gold pieces.

[Black Flag]

First, answer this question:

1. Why are you buying gold?
What are you planning to do with the gold in the future?

Usually the answer will be:
Well, when things go bad, I will use the gold to buy the things I need.

So, the real answer to your question of "what should I buy" is...

Buy the things you will need when "things go bad" now, because if you wait until the day "things go bad" the price of those goods will blow through the roof, and you will pay a whole lot more for them.

Buy those things now, at a discount compared to when "that day comes"

Now, if the answer to that first question is different... please post your answer.

PS;
Here is an article to answer your primary question
http://survivalblog.com/2012/03/buyi...-new-york.html

[zHorns]

As far as selling it to buy things. I don't think, unless we have a collapse, that I would sell it to buy basic needs (food, water).

I'm thinking long-term like retirement, down payment on a house, or general insurance. Honestly, I have trouble saving and believe the silver not only would be a nice opportunity to hopefully see growth over the years, but give me the insurance of having a hard asset.

The only real asset, I own is my car.

I rent an apartment and all my bill consist of general monthly expenses (water, electric, food, etc...)

[WilliamC]

As far as selling it to buy things. I don't think, unless we have a collapse, that I would sell it to buy basic needs (food, water).

I'm thinking long-term like retirement, down payment on a house, or general insurance. Honestly, I have trouble saving and believe the silver not only would be a nice opportunity to hopefully see growth over the years, but give me the insurance of having a hard asset.

The only real asset, I own is my car.

I rent an apartment and all my bill consist of general monthly expenses (water, electric, food, etc...)

Your car isn't really an asset unless you are making more money with it than it costs you to operate it.

Your small business is your best bet at getting wealthy, so long as it is turning a profit. If you can start, grow and sell businesses you can become wealthy.

Another way is to buy houses in need of some repair below cost, living in them while fixing them, then selling them at a profit. Since you are young and single this is more feasible than if you had a family. Do this three-four times successfully over a few years and you can buy your own house for cash. Then buy and manage rental properties, if you have the skills to do so.

Supposedly the above two ways are the most certain to get you rich should that be your goal. Even if you fail a few times so long as doing so doesn't leave you in debt it only takes once to win.