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I want to buy silver, but how?

I would like to start accumulating precious metals as a hedge.
I'm not really sure which route is the best to take.
Most of the advice I have been given so far is steering me towards buying locally, only buying the metal, and not any coinage. Just buying by weight, if you will.

Do any of you have additional advice for me?




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photoshopwiz's picture

I have great information

~
given to me by a fellow dailypauler, but will email it to you since it's too long to post! ;>

silver info

Hello, could you please email the information you have about buying silver. I am very scared of getting ripped off.
Thank you,
Nancy
cynan@suddenlink.net

message recieved!

Thanks very much.

"I don't endorse anything they say"
~Ron Paul On the 911 Truth movement.
http://www.youtube.com/watch?v=hGyhlNY0y1k

HEY PHOTO.. CAN YOU EMAIL ME

HEY PHOTO.. CAN YOU EMAIL ME THAT TOO!

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

photoshopwiz's picture

hey, sierra,

~
I thought you knew everything there is to know about precious metals
... but sure I will! /wiz

What about a PM to me too?

I like great information and need help as well in buying metals.

"Greater than the force of mighty armies is the power of an idea whose time has come"
- Victor Hugo

"Greater than the force of mighty armies is the power of an idea whose time has come"
- Victor Hugo

How to buy precious metals wholesale

If you want to buy gold and silver without having to pay big retail mark ups, try opening a futures account and fully collateralizing the account with enough cash margin to take delivery of the physical silver or gold from the exchange when the futures contract matures.

If you don't have enough money to do that, try pooling money with other like minded people into a commodity pool account. It will enable you to lock in the spot price for bulk orders of silver and gold via the futures market and take delivery directly from the exchange.

Contract specifications for gold futures are 100 troy ounces. So, roughly $900/oz X 100 = $90,000.

Contract specifications for silver futures are 5000 troy ounces. So, roughly $12.40/oz X 5000 = $62,000.

Let me know if I can clarify any points for you.

Yours in Liberty

Ed Rombach

Hey Fredo, let's go fishing.

Ed Rombach

Thanks Ed

I may not fully understand..ok, who am I kidding..I don't understand!
Am I taking immediate delivery of the metal using this method, or am I owning a promise of delivery?

"I don't endorse anything they say"
~Ron Paul On the 911 Truth movement.
http://www.youtube.com/watch?v=hGyhlNY0y1k

How to buy precious metals wholesale

Thundercloud - You would be purchasing a futures contract in silver and/or gold today for future delivery. If you hold the contract to expiration, you are contractually obligated to take delivery of 5,000 ounces or silver or 100 ounces of gold from the exchange at the then current spot price. During the time you hold the contract, you will have mark-to-market gains or losses daily in cash that will be added to or subtracted from you futures account.

For example, on Friday the April gold future closed at $914.30/oz. If you had bought it at that price you would incur gains and/or losses along the way until the contract matures in April. Assume that the price drops in dailey crements to $800/oz by the time the contract matures and you do not sell the contract prior to expiration. The exchange will invoice you for $80,000 ($800/oz X 100 ounces) and will deliver to you 100 troy ounces of gold. This means that you will have already paid $11,430 in futures variation margin (losses) to the exchange which in turns pays that out to the seller on the other side of the contract who made a profit from your loss. On a net basis you will have paid $80,000 + $11,430 for a total of $91,430 or $914.30/oz, which is the price you would have locked in when you bought the futures contract.

Of course the price could go up instead of down, and given the accelerated pace of deficit spending with the stimulus package I reckon there is a better chance of gold going up than down. If the price went up to $1000/oz at contract expiration you would receive $8,570 in futures profits along the way and be invoiced for $100,000 from the exchange to take delivery. But, your net cost is $100,000 - $8,570 in profit = $91,430 or $914.34/oz, not counting commissions which are relatively small.

Either way the market goes, you have used to the futures market to lock in a price of $914.30/oz, but my point is that you can avoid paying big retail mark ups by purchasing wholsale in this fashion.

Hope this helps,

In Liberty,

Ed Rombach

Hey Fredo, let's go fishing.

Ed Rombach

hey Ed

We should get together and pool our money up here in Massachusetts for these contracts. Up until now I am buying locally and on ebay, but I am looking to buy in bulk. I liks to buy peace dollars along with whatever I can get my hands on. Do you want to throw this out to the Boston group to see what the response is

AOCS / Free Lakota Bank

Hello Those Looking for Silver,

I've been placing bi-weekly bulk orders with the American Open Currency Standard www.opencurrency.com, the product has been great, turn around time is around 3 weeks, and you can even open 100% liquid silver accounts with the Free Lakota Bank www.freelakotabank.com. If people want to join me on a bulk order (if the order reaches 1,000 ounces the prices are discounted!) for next Friday, email me at gsukenik@opencurrency.com

-Gabe

Caveat Emptor

Search the Daily Paul for the lowdown on the "Free Lakota Bank." Caveat Emptor.

Ĵīɣȩ Ɖåđşŏń

"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

Silver - A small writeup on Silver

“SILVER – The Poor man’s Gold”

Author: Munish Rao Dated: 27th Dec’2008

The world has already suffered a lot due to the ongoing credit crunch and it should continue to worsen even further as US enters into a mild depression sometime during 2009. The main reason for the problem was over leverage that rose due to increased exposure in form of various derivatives available in the market. Looking at the current situation we can soon expect a serious monetary debasement. Debasement is the practice of lowering the value of currency. It is particularly used in connection with commodity money such as gold or silver coins. A coin is said to be debased if the quantity of gold, silver, copper or nickel is reduced. This process lowers the value of the coinage, causing inflation. Over time, it may even lead to a new coin being adopted as a standard currency. This attracts investments in precious metals and silver will be the major beneficiaries out of this…! Globally, the central banks have already started increasing currency (which is another derivative) debasement rates to higher thresholds around the world.

http://www.onlineequitycalls.com/2008/12/silver-the-poor-man...

poor mans gold

definitely speaking my language
thank you

"I don't endorse anything they say"
~Ron Paul On the 911 Truth movement.
http://www.youtube.com/watch?v=hGyhlNY0y1k

Last time I bought silver

I got it on Ebay with free shipping. It was cheaper than the coin shop I normally go to!
20 ounces of Silver Eagles for $314

Thank you for the help so far

About the coinage. I think they meant don't buy based on collectability, but based on silver weight. Does that make sense?

"I don't endorse anything they say"
~Ron Paul On the 911 Truth movement.
http://www.youtube.com/watch?v=hGyhlNY0y1k

SteveMT's picture

Agree with Sierra. Check out...

http://www.apmex.com/

They are currently having a silver sale.

This one looks promising

And many different buying options.

"I don't endorse anything they say"
~Ron Paul On the 911 Truth movement.
http://www.youtube.com/watch?v=hGyhlNY0y1k

Get thee...

...to a coinery

dynamite anthrax supreme court white house tea party jihad
======================================
West of 89
a novel of another america
https://www.smashwords.com/books/view/161155#longdescr

Not buy coinage? I don't

Not buy coinage? I don't know about that. Silver is silver is silver (but don't invest in sterling unless you know what you are doing).

Apmex.com has 10oz bars going for $137.00 right now which is a pretty good deal. Purchasing one or two of those would be a good start to any collection.

buy either silver eagles or

buy either silver eagles or 90% pre 64 Junk silver or both... also ... canadian mapleleafs are great! that is the way I would go!

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain