5 votes

First time gold/silver investment advice

Fresh out of college, working the first full time gig I could find. Wages are mediocre at best, but the hours are there so I'm not complaining. I'm able to save about 100 dollars a week, and right now my intentions are to transfer those savings into a solid product once I have a good amount saved up. Before I commit to any purchases, I'm turning to you guys to offer me some general low-amount investment advice on precious metals. For the sake of discussion, please assume I'm working with about $2,000 and that I am about to enter my first purchase agreement.

A few questions I have are:
1) Gold or silver? Would silver be better for barter, and gold for savings?
2) Only 1oz or more denominations, or get whatever I can as I go along?
3) What are some good ways to find a seller? Shop local, or direct from mints?
4) What are good ways to verify the product you are being sold?

Any advice will help me. I am very noob at this :P Thanks DP!




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If you weren't buying gold 10

If you weren't buying gold 10 years ago then you've missed the train. Unless you are the upper crust of the middle class and higher, it's pointless. What are you going to use the gold to buy? It's fine if you think you will be doing large purchases. For people like farmers or those with large properties to maintain with equipment it might be useful. Normal people will benefit from silver because it ranges from nickels to dollars. You can go buy groceries with it.

With $2,000 I would buy a roll of Silver Eagles (~$700 each), a roll of halves (~$300 each), two rolls of quarters (~$250 each), two rolls of dimes (~$150 each), and maybe a few rolls of 35% war nickels (~$75). You could skip some things to have more left over and then go to the bank and buy a box of halves ($500 + if your bank is a crotch-face and charges a fee) to search for silver ones.

Please come join my forum if you're not a trendy and agree with my points of view.

Also, I prefer to buy from

Also, I prefer to buy from places that adjust their prices of everything based on current prices. If silver was $35 a few days ago and it fell to $30, people on eBay usually won't adjust their auction to reflect the market. I think eBay needs a system to track prices and the person should just enter how much they want for the item OVER spot. People tend to want way too much for stuff citing numismatic nonsense. Rolls of circulated coins are routinely a good 20% greater than their melt value. I find that actual physical dealers you can drive to do offer better deals. A local place to me offers older used Silver Eagles for $2.50 over spot and brand new ones for $3.00 over spot. I have yet to inquire about currency silver, but they do sell it.

Please come join my forum if you're not a trendy and agree with my points of view.

Forget the gold,

buy silver and buy as much as you can. Silver is the most under valued precious metal of all time. Chinese people are buying silver faster than any other metal. China exported 3000 tons of silver in 2005 but now imports over 3500 tons. The miners can not keep up with demand!

JP Morgan is deeply involved in manipulating silver prices down on the spot market, but I believe the physical shortage will soon take over.

Gold standard: because man can not be trusted to control his greed

(1) Buy gold and silver in

(1) Buy gold and silver in roughly equal amounts
(2) Buy US mint products, they are the best. Even though they have a premium you will sell at a premium.
(3) Buy gold in 1/4 ounces, stay away from bars.
(4) Buy silver in 1 ounce, stay away from bars.
(5) Buy junk silver (Pre-1964 US coins)
(6) Lastly find a good coin dealer that doesn't overcharge or save your money up (10K +-) and buy wholesale.

Good tips, thanks!

Thanks for all the answers, everyone! Much love to DP!

Gold or silver, either will

Gold or silver, either will be fine. Silver is a little lower than its all time high.

The best advice I can give you is #1- stay away from numismatics! Buy American Eagles, Austrian Philharmonics, etc. Don't buy special commemorative Olympic Silver coins from 1976. Buy the most actual gold/silver you can possibly get for the least amount of money.

#2- Don't bite off more than you can chew. Slow and steady wins the race. Don't over-leverage yourself trying to maximize the purchase. Never spend more than you can afford to lose. Never make significant purchases unless you have enough savings to live off for at least 3 months and you have any debt paid off.

When I went to make my first purchase, an investor told me spend only half of what I wanted. His exact words "If you want to spend $2,000, spend $1,000."

Hope this helps and good luck.

Either or is a good way to protect yourself from

dollar devaluation. If you only have a few hundred bucks to get started you can still go either route, gold or silver. Just buy 1/4 or 1/10 ounce coins or bullion. A quarter ounce eagle will run you about 440 at today's price a one tenth about 190 or 200 or you can go the silver route. Either way just buy bullion coin or bars don't waste time with numismatics that's almost a guaranteed loss. I recommend you shop local, that way no one keeps a record of what you buy in some database. Get to know your local gold dealer, go to cash for gold places they generally have pretty good deals since the refiner wants to pay under spot for bullion they would rather sell to the public slightly above spot and only mark up about 2% to 5% plus no ridiculous shipping insurance like on Kitco or Apmex and you get to take your gold or silver home the same day.

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    Advice? Yes...understand that gold and silver investments...

    I'm not an expert, nor do I claim to be, but I'm pretty sure gold and silver are not investments...they're hedges against inflation, or rather they're simply "money."

    An investment vehicle is something that is going to make more money. Gold and silver don't make your more money. They ARE money, and they are a store of your acquired purchasing power.

    An investment is like a small business (as long as there's no debt, otherwise, it's a liability), a paid for rental property (but that's only as good as your tenants), a piece of equipment that can produce things, etc.

    As with any investment, the first step is becoming an expert or at a minimum, knowledgeable about what you're investing in.

    I'm a serial entrepreneur and liberty activist from Texas!

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    Righteo

    I suppose the return on my 'investment' isn't money, instead the ability to maintain a sense of wealth in a collapsed economy. If everyone gets poorer while I don't, in a sense I became richer :P

    Depends WHY you are buying.

    To guarantee holding some wealth against inflation? For an apocalypse to have silver and gold to barter? As an investment over other investments?

    If it is just one investment over another to make money (federal reserve notes) silver or gold might not be the best investment. But if you are buying for either of the other two reasons, but whatever you can under spot or as close to spot as possible.

    shop local

    If a local dealer is available to you, walk in and check prices. Unless that dealer's prices are outrageous, you will benefit by establihing a face to face relationship just as you would with your barber.

    silver.... buy pre 1965 90%

    silver.... buy pre 1965 90% US silver dimes. Buy every week with what you can afford. Do not wait to save up then buy.