I been reading this site for a bit now and what an eye opener! Sometime ago, I somehow stumbled upon precious metals and almost made a mess of myself by looking into silver pool accounts. Luckily, after enough research I realized that was a pretty bad idea. After reading this site for a while now, I am reconsidering investing into silver but in physical form.
Here’s what I need advice on. I’m currently a poor college student, and have a couple grand in my account that I won’t need for a couple years. Mind you though, I’ll probably need that money in 2 years or so. Maybe a bit later. Is it a bad idea to invest that money into silver and then sell back? I understand that my investment time-frame is quite short, but with what I been reading on the news is scaring me.
I’m currently living at home without transportation – so that’s where the money will go in a couple years. For now, I’m solely focused on school and have enough ways to get around without needing a vehicle. (And they’re not cheap to keep running! Repairs, gas, etc).
I’m slowly putting away small amounts for now, and debating if there’s any worth to investing into PM’s for a couple years.
Fair advice. So, sounds like in the worse case scenario I won’t lose. At least come out even. Another question: What size is recommended to invest in? Wondering which are easier to sell when the time comes. I been looking at the 10 oz NTR Bars sold here – 348 dollars at the moment or possibly the Silver Buffalo’s which come out slightly cheaper per oz.
Everybody will have they’er own needs, but here is my feelings and what I do. Silver is my bank savings! I keep only enough fiat currency in the bank to pay monthly bills. This minimizes my risk to bank failure computer glitches eccetera. So when I get checks I cash them and stack my fiat in a safe place to use day to day. If TSHTF I have cash to buy suplies at a moments notice . As the fiat pile grows past a few thousand I convert it to silver and I hate selling my silver. This is a good thing for me because I have never saved so much in my whole life. Also if silver takes a price drop I have the funds to stack more at a lower fiat spot price.
I do not care were the spot price is day to day. I buy silver all the time ya I try to get it at a low price but having it is better than not. Nobody knows were silver will be tomorrow in a fiat spot price and I don’t care. I look at it this way the only reason silver and gold is going up is it’s being weighed against the fiat US dollar. So all it’s doing is showing you the devaluation of that dollar or what ever fiat currency your weighing it against. Your $2000 dollars is loosing value daily siting in a bank. You are not getting any interest to counteract the inflation so your loosing future purchasing power. I do not call my silver an investment, did you know buying fiat currencies is an investment? An investment is a vehicle to generate wealth and needs to be managed, ie: Buy low sell high. Silver and Gold in physical forum is Wealth Storage. You put your wealth in it to help counteract inflation, government controle & miss management, Bank theft & failure. The goal is to keep your wealth the same or higher over the long term.
I buy silver for wealth storage and for peace of mind. I feel I know what is coming our way very soon so I sleep better. I have sold some silver when I have needed a good chunk of cash so this is a non issues for you in two years or so. I have PM dealers local that buys back over spot and on Ebay you can run a one day auction and it’s sold at a fair market value.
Your comment looks like your looking for some validation in converting your hard earned fiat, and im sure a lot of value to you into silver. Im not saying this in a negative way at all and the validation woud be for someone here to say that your wealth will grow in doing so. Nobody can guid you on this because the truth is we can’t say your going to make “money” Have you noticed I never used that word in my comment in reference to fiat currencies? The fact is buy converting you fiat to silver you are buying true money.
What would you rather have if we have a banking system collapse?
What would you rather have if we have a cyber attack on our banking system or electrical grid ?
What would you rather have during a depression?
What would you rather have during hyper inflation ?
What would you rather have during a world war?
Most of these ar already in motion and will be happening very soon and have happened
If you were alive in 1930 and you put a $100 in your matres and needed it today to buy food.
Would you rather have the $100 bank note of the time?
Would you rather have 5 $20 gold coins?
Had you converted your $2000 two years ago into silver you would have gained $6.17 per oz at a 22.77% total gain in value in USD
Or in other words if you had your $2000 in the bank the past two years you lost 22.77% of the purchasing power of your dollars..
I just seen you last post. The amount of fiat that your converting I would stick to 1 oz rounds and bars. Also on a resale stand point selling back to a dealer. The buffalos will only be bought back at spot or a few cents over. The ASE will generally be bought back at $1.50 over spot at least with my PM dealer. If your buying here ask them if they buy back and how much the pay. But get 1 oz that allows the freedom to sell the amount you need to and if silver pops to $200 an oz it’s easer for other buyers
What an informative post! I really appreciate it, opened my perspective and not just from a profit point of view. Like you said, I need to consider the fact that my money is slowly losing value and consider economic instabilities. “The goal is to keep your wealth the same or higher over the long term.” I think my question is definitely answered now. Thank you!
Dang. I SO want to get more, esp. with that sale going on, but just can’t. And it pains me to no end that I can’t get my hands on our company 401k beyond taking out loans, which I can’t make the payments on.
I agree though, stacking silver is best viewed as a savings account. Even in a SHTF scenario it can be bartered, because it has use not only as currency but also as an industrial metal and a medicine (kills any germ it touches, if in the form of a colloid of sufficient nanoparticle size).
I tend to favor 1 oz. bullion for versatility compared to cost. Right now it’s equivalent to about a $33 bill, which you could reasonably expect to get change for.
Thank you, I just don’t wan’t to give you a bias view or my view. Everyone should think out what is right for them and look at the big picture. Metals are always good to hold and better in times of trubles so how do you feel about the world today. I like looking at the facts of curent economic, political and world events and not the BS HYPE presented by most of these sites. Always do your own research and google the stories you read and try to find the truth. Find out were a story originated from and how much facts it contains against the opinion presented.
For short term holding of physical metals timing will be important to you. looking at this chart below you can see that the maximum gain in USD had nothing to do with the amount of time, but all to do with what time.
Since your looking to hold your wealth in silver for around two years I gave you that chart above. Now look at this chart and you can see that the person who converted to silver a year ago from today is not even doing better than someone that did so last month. The one that bought in to silver 6 months ago is doing quite well and looks similar to the gain in capital as the two year chart above. Six months ago silver was smacked down below it’s average price in the 26.50-28.00 and I would say $33.00-34.00 has been the average price for more than a year now. I am not trying to tell you to wate however and most look at buying silver on a cost average basic. Meaning some silver is bought high or low but when you combining the total cost divided into the total OZ is your average.
Yes buy Silver! You will be glad you did when you graduate. If your fiat $ sits in the bank (as 427 pointed out) it will lose value as the USDX goes lower. Also if you store your wealth in silver and make it a point to collect some every month you will find it is better to save in silver than having a savings account because it will be harder to spend.
I think I’ve been convinced! That’s what I been really liking about this website and it’s users is straight-up information. @StackerX It’ll definitely make it harder to spend my money once it’s invested in silver, which is a good thing! Honestly, it’s too easy to make purchases online these days. As a student, anything that slows me down from spending is beneficial.
Thanks for the all advice guys. Waiting now for SD Bullion to open!
Bull I left quite a long post to granle that took me quit a bit of work. It’s not visible to me or anyone on this forum page. It shows that it was posted in the resent forum comments and in my activity page kinda weird it doesn’t say moderation or anything. It’s just like were did it go?
Happy Thanksgiving I hope you & yours had a good time.
I put a comment in here this morning and it didn’t post and I don’t know why. I can see it in the resent comments for the forums and on my activity board. It’s the third comment below that starts out Now I told you I buy silver all the time and the curent spot is irrelevant. I feel silver is severely manipulated and as such is bellow it’s true value no matter the spot price. In this post I’ll give you my opin… “
Cant you try posting it for me, it took me quite some time for me to do for granle
Here is what I have found. The US Mint makes silver eagles. They charge about 4% over spot prices to cover their costs. Dealers approved by the US Mint, must be a viable business for 5 years and of good repute with a nice bankroll. Say a columnist with a website around for two years, solid hits, solid write ups, with a business and bankroll open less than 5 years, you get to buy at wholesale. So a dealer sells his eagles to you with another 4-5% markup. Investment grade, sealed tubes of 20 are purchased by you at a 8-9% markup. You then want to sell. Silver eagles are considered “collectibles” by the IRS. No if’s, and’s, or but’s, you will pay a 28% capital gains tax when you sell. So, we have 8.5% plus 28% equaling 36.5% you have to reach just to break even on your investment. The prices of silver is heavily manipulated. They make the price up each day. Loosely based on market fundamentals, the prices for silver, over time, is what “they” want it to be. Thus the charts are manipulated and any guesses where the price will go based on charts is often missed because the make the charts daily with their manipulations.
If it was my money, I would get a bottle, a nice gal, a room at the beach. Enjoy the money and what it can buy at today’s prices.
If you want to stay above the bovine sewage, you have to make more money in your paycheck than what you pay in taxes, capital gains taxes, and inflation. Get an education and enjoy the beach.
Yeah I can’t really get on board with advice that would tell a young man trying to make a prudent decision with his future wealth to just throw it away and have a good time… I understand the sentiment to enjoy ones youth but we are in troubled waters right now.
The reason I stack is because I am preparing as best I can for a future scenario where the dollar— and all the rules that go with it— will be irrelevant. Silver will become harder to obtain, yet it will always have value as a medium of exchange, an industrial metal, and a medicine. I buy it for its silver content and acceptability for trade, not how shiny it is (though shiny is nice). It is one of the safest savings accounts a person can have right now, if you have physical possession.
Here’s what you need to hear. Stop hiding behind “I am a poor college student.” Grow up. Get a job. Get a second job. Get a third job. Move out of Mommy and Daddy’s house. Stop playing video games. Be responsible for yourself. If college is the route for you (I have a doctorate) then make certain it is field in demand. There are 8760 hours in a year. Don’t waste them on frivilous activity. Take one hour and plan out you next five years. Write it down. Now work it backward so have a day by day plan (tape it to your mirror)of what you need to accomplish to meet and exceed your five year goals. If you don’t have a plan you will end up nowhere.
Pay attention to the world. Money and religous idealogy drive it all. Read everything you can about monetary theory and Austrian Economics. And most importantly get your own spiritual house in order. Read every Billy Graham book. Take what he says to heart.
Back to silver. Put half into US silver eagles. And the other half toward executing you plan.
@Thomas very good advice. He is young and should enjoy those very young years. But I think it would be best to find a balance. Trading in good times during ones youth to have bad times during ones elder years isn’t the best strategy either. I suggest he should buy Gold and Silver now while he is young to preserve the purchasing power of his savings. Sure the Capital Gains tax is high. But Inflaton over time would be much much worse than the capital gains. We all know the Government and the Fed are basically cornered and their only escape is to print and cause inflation.
@granle Buy Gold. Buy Silver with any free cash you have. Try to be frugile. You dont need that expensive watch or that fancy ride when a regular car will do. If you have or find a nice honey try to split dating costs 50/50. If she is unwilling. Then she will also be unwilling to pay half the bills if you were to move in together. If she doesnt like your ride then she isn’t into you she is interested in your ride. Just my thoughts.
Chris Duane has good advice and he seems to understand how deep the corruption goes. Although Silver is a fantastic way to preserve ones wealth it shouldnt be considered an investment. Within the next four years it will outperform gold, stock , bond and the real estate market. So buy as much as you possibly can as soon as yesterday!
I bought 5 of Chris Duanes coins 2 months ago and it appears to be selling on ebay already at 200% above where I bought it which was $38. I prefer buying US issue coins only such as the US Silver Eagle coin but I couldnt resist thinking Chris Duanes Medallion would appreciate similiar to the Norfed coins I purchases a few years back.
“Going to College” is a varied subject in itself. Switch all your classes to Chemical Engineering if you want a sound future. On Silver: I buy from hock shops that sell at spot price. I also look for deals but freight cuts in to the cost. If you are in a big city find a dealer and pay as cheep over spot as possible. But let me tell you, as soon as you have three of the little suckers in your grasp it becomes…a STACK!! And then you want a fourth and a fifth!! It brings a special joy that crumpled up bill will not. As far a which style I believe that an ounce is an ounce is an ounce (apologies to Gertrude Stein) although I like Kooks and Dragons and Eagles and Maple Leafs and Philharmonics and Onzas and Pandas and …well…I like variety. As far as selling them back for fiat you might consider some mints that (if you buy the correct style & quantity) publish a guaranteed buy-back figure which after a year or two will be more than you first invested. Other than that I believe Silver may be accepted as money again when fiat falls out of grace. So Hurry down to the coin dealer on the way to the BEACH!!
Now I told you I buy silver all the time and the curent spot is irrelevant. I feel silver is severely manipulated and as such is bellow it’s true value no matter the spot price. In this post I’ll give you my opinion and what I have been doing and what I would do if I was you, so take it for whats it’s worth.
First pull your cash out of the bank!!! leave in what you need to keep it active and to pay electronic payments for silver and bills. You do not have to use your debit card for all you day to day transactions, pay with cash.
If you have a local PM dealer or a good coin shop that carries lots of PM go check them out. Why pay shipping on top of the premium for physical it will be harder to recoup you capital. You will also be helping a small local shop put food on there families table. You will also ask the about there buy back policies, prices and have an outlet to sell in a mater of hour, Cash in Hand. Also hear in CA. if I spend $1500. and up in cash for silver in one transaction there is no taxes, State Law. So ask them this as well most states have this waving of taxes and you get the benefit of no record of the transaction BIG PLUS!!!
In this chart I was buying silver as it declined from Oct, 2011. The week before Christmas silver spot price dropped rapidly do to low trading because of holiday vacations. On Dec. 24, 2011 it hit 27.55 and I went to my local PM dealer dumping $20,000 into the metal. I felt this would be the lowest I would see it ever go, I was wrong but not far off. I never stopped buying as it went up because your trying to get as much as possible as soon as you can just in case. Then silver headed to 37 oz but got hit hard Feb 29,2012 and was pounded for month all the way to the high 26 oz. In July 2012 I dump a large sume of fiat on silver again at these low prices. So you see I do a steady increase in silver by buying all the time but also am ready to take advantage of sever dips in the market.
So Im expecting the same thing to happen this year. It’s called a monthly trend and feel silver will go lower just before the holidays. I will keep buying oz’s hear and there but will have capital to dump into a big dip. Trends can change rapidly over curent world events do to the feer factor so stay on top of the news. Diversify your stack with 90% US silver coinage in Dimes & Quarters and well respected world wide .999 1 oz rounds & bars. I like old vintage silver myself, manufactured by assayers/mint that minted for Banks & Governments.
More advice: Don’t refer to what goes on here a the “silver game.” It’s not a game. If you put your “worthless fiat” into silver and the price drops you will be out the money you spent, and that’s not a game.
If you put money into silver and the value plummets, you are young enough to sit around and regret that move for a very long time. It is not a “game,” and despite the lunacy you will hear about “storing value” and the GUARANTEES of same, you would be wise to look at something more than just the last five years of history. Since you are young, you may not know the long history of the silver and gold bugs. You may not know that they will tell you to LITERALLY hold whatever silver you buy to ZERO. It is a RELIGION to them, and that, again is NO GAME.
The fiat “game” is rigged, and PMs are only rigged as long as they’re tied to fiat. Or more accurately, fractional reserve banking. As a medium of exchange for most people throughout history, silver is the rock-solid winner, and that’s the truth.
The reason we hold onto physical silver is because, when not manipulated by banksters, it retains value and has had a fairly consistent worth attached to it. Now, as an industrial metal, it is even more valuable, especially knowing that its worldwide availability is seriously over-estimated. It also has great medicinal value and is being used more and more in hospitals to kill germs resistant to antibiotics.
We don’t care if the manipulated, FRN amount arbitrarily assigned to silver “plummets”, because silver will live on after the FRN has crashed and burned. Then we start over, and we’ll see whether the silver holders are worse off than the FRN holders.
year end tax advice. Sell any high price silver or gold. take your capital losses up to $3,000 or against any capital gains this year. Buy back the holdings you sold after a 30 day wash sale period. If a loss can help your taxes, this might be a good idea. If someone bought 500 oz at $38 an oz and sold at $30, they would harvest a $3 ,000 loss in 2012 and a residual $1,000 loss in 2013.
This loss, measured against income, could give you about $1,200 in tax savings at a 40% tax bracket. That can be used to buy more precious metals.
Thanks for the link. No, I have not bought from SD. About a month ago I attempted to and found the price/shipping higher than Provident. I actually found Provident after pricing SD. Provident was very fast and easy to deal with. Heck, even checking during this post thei... "Reply To: Pawn Shop
" Thanks Mikey for the reminder of the coming meteor shower.
With an abundance of clear, starry skies here in the dry Pacific NW, there are sure to be plenty of viewing opportunities.
(sarcasm/off) "Reply To: COMET ISON – OCT 7
" PMG have you bought from SD Bullion? I have purchased from them twice, with no problems. Just received a 'junk' order and with shipping included, the price came to 16.5 x Face. Before buying from them I checked around, and SD Bullion had the best price I could find. And although I have never ... "Reply To: Pawn Shop
" Good info. I quit my local pawn guy because he jacked up his prices way way high. I'll have to check in at EoQ to see what I can get.
Re ebay. I've been doing quite well. My LCS sells 90% at 20x face (at least). Then I have to pay tax, my time there and fuel. Usually I can fi... "Reply To: Pawn Shop
" yeah, i read that the first time you typed it. it's just now we're going to go through it same time as the geminids... lots of 'told you so' coming whether it is actually warranted or not. "Reply To: COMET ISON – OCT 7
" You have to watch out in pawn shops if you pawn something an it disappears when its in there shop your out your stuff you pawned. Read the receipt of your pawn ticket it says so. And another one that is hidden, Say you buy a diamond ring there worth $4000 dollars an you have it for a year an the ... "Reply To: Pawn Shop
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