Metal Buying GuideSubmitted by Sternzy on Fri, 05/14/2010 - 00:36
I am considering buying small amounts of silver at a time. I am unemployed at the moment, so I don't have a lot of money, so I figure over the next year or so I will purchase gram bars, maybe some coins. Once I'm working again I'll consider buying larger amounts at a time, or possibly move to gold/silver.
I'm hoping we can fill this thread with useful information to help me and others who are new to the market learn the ins-and-outs of purchasing.
Here is an example of something you might see on eBay:
"1 GRAM PURE .999 FINE SILVER DEER ART BAR BULLION CMC
THIS AUCTION IS FOR ONE GRAM OF PURE .999 SILVER WHITETAIL DEER ART BAR BULLION!! NEW THIS YEAR 2010!! VERY NICE BARS!!"
What can you decipher from this information? Are you generally OK as long as the bar or coin to be purchased is .999? What is a reasonable price to pay for something like this?
Something else I have been pondering...
Why is the Gold/Silver sales market suddenly booming? Why does everyone all of a sudden want to dump Gold/Silver? The advertisements are everywhere, on every forum and site i visit...
I realize prices are up, however everyone keeps saying the prices are projected to keep going up, so why is every single holder selling now? Wouldn't that be an indication that insiders are expecting a dramatic drop in the not so distant future?
Are these people just rolling the dice? Perhaps they just bought mass quantity when it was dirt cheap, now they are looking to cash in on whatever profit they can turn now, disregarding the fact every single forecaster is predicting a huge increase in value?
That's all I can think of for now, thank you in advance for any input you might have that will help us late-new-comers get up to speed.
p.s. regarding the big Precious metal IRA banner to the right of this paragraph....I have been advised to stay away from paper holdings, as many businesses are suspect of selling precious metals on paper that they do not actually have physical possession of. That if everyone went to pull their holdings out there would not be enough to go around....any truth to this rumor?