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Oregon Gold
02-08-2009, 11:53 AM
I've been buying Gold like crazy lately (26oz in the last 3 months).

I own very little Silver.

I've been reading the forum and talking to my PM dealer and it seems like Silver might be what will break out next.

So here's my dilemma...

I love the Gold!
But..
I should diversify in Silver...

Would you buy Silver or Gold next?

My objective is to hold both but if the price goes crazy high on either one, I will start selling up to half the stack.

Any thoughts?

Thanks people!

O.G

Goldfingerer
02-08-2009, 11:56 AM
The old saying, don't put all your eggs in one basket, certainly applies to precious metals.

I prefer Gold, but I think Silver is due for a big increase in price. It's all i've been buying the last couple of months.

If you already got 26 oz. of Gold, why not the $4K in 90% Silver coins.

AR15AU
02-08-2009, 12:07 PM
Just got $8000 back from the feds on Friday... Of that, I decided to take $1000 and buy 5 contracts on Yamana (WNZAB).

http://finance.yahoo.com/q/op?s=AUY&m=2010-01

You sound like you already have the physical covered (with some $25k worth!).

Chris C
02-08-2009, 12:24 PM
As said above, grab yourself some bags of 90%, from there you can diversify into eagles, maples, 10 & 100 ounce bars.


As a trader 10K investment in silver last week would have done you better than gold.

BigTiny
02-08-2009, 12:24 PM
I already had some numismatic silver when I started buying physical gold in January. I'm looking at palladium, but I want the spot to break down to below 180 before I do it. If it doesn't break in the next couple of months, I'll probably buy some anyway.

I used to buy stocks, but when the bailout talk started, that was it for me. Any stock I would buy now would have to be Canadian companies. I would stick with companies who actually produce something tangible, no services. Preferably inferior goods. Even then, you run a risk of your investment return not outstripping inflation even if the stock does well.

Don't overlook ammunition. I think this is only the beginning of a bull market for carts.

Baggerman
02-08-2009, 12:35 PM
I would buy some silver, ammo and store some food and water.

Oregon Gold
02-08-2009, 12:41 PM
Good replies...
I've got the food/ammo covered.

I'm thinking Silver is the way to go...

So 90% junk instead of bullion bars?

I would prefer the bars just for the ease and storage.

Thanks again people!

O.G

Coldtrader
02-08-2009, 12:43 PM
IMO don't ever buy 90% or 40% coins. You buy those for hyperinflation, but the public will think they are just regular coins with a normal face value. If you are buying, buy something with clear hallmarks..

jorg2007
02-08-2009, 01:09 PM
Silver bullion for sure for 2009

Goldfingerer
02-08-2009, 01:30 PM
IMO don't ever buy 90% or 40% coins. You buy those for hyperinflation, but the public will think they are just regular coins with a normal face value. If you are buying, buy something with clear hallmarks..

You buy 90% coins because they are government issued, have a known weight and purity. Instantly recognizable and easily divisible.

refrep
02-08-2009, 01:49 PM
I've been buying Gold like crazy lately (26oz in the last 3 months).

I own very little Silver.

I've been reading the forum and talking to my PM dealer and it seems like Silver might be what will break out next.

So here's my dilemma...

I love the Gold!
But..
I should diversify in Silver...

Would you buy Silver or Gold next?

My objective is to hold both but if the price goes crazy high on either one, I will start selling up to half the stack.

Any thoughts?

Thanks people!

O.G

Gold is almost at its high point from last March. ($100 off). silver is no where near its March high. Its still down around 40%. I would go with the silver. Diversification is a good thing... MO

Silvercoin
02-08-2009, 02:06 PM
i would not buy junk anything.

only govt issued gold/silver coins

PSUDave
02-08-2009, 02:09 PM
I'd buy some of each, 90%, ASE/Maples, 10oz bars, and 1oz. bars/rounds.

SWCroaker
02-08-2009, 02:43 PM
I'd buy 571 shares of a closed end fund specializing in dividend payments from SE Asian companies; something priced about $7 and paying about $0.12 per share, monthly. Preferably a fund that doesn't eat it's own investors by paying dividends from some return of capital or share dilution scheme.

I'd have an immediate income stream of $68 per month, even if the share price falls, as long as the dividend remains constant. If I reinvested that instead of spending it, at the end of.....

12 months, I'd have 677 shares, paying $81.27 per month, and assets worth $4,822.
24 months, I'd have 844 shares, paying $101.37 per month, and assets worth $5,813.
36 months, I'd have 1,018 shares, paying $122.21 per month, and assets worth $7,129.
48 months, I'd have 1,248 shares, paying $149.86 per month, and assets worth $8,742.
60 months, I'd have 1,557 shares, paying $186.93 per month, and assets worth $10,904.

...and...

20 years, I'd have 33,181 shares, paying $3,981 per month, and assets worth $232,269. All for the cost of $4,000 initial capital investment.

All of that assumes no capital gains on the fund, and a constant dividend payout and share price. Not likely, but you get the picture. The fact that Asian Pacific companies pay higher average dividends than US companies, and that any devaluation of the US $ means even greater relative dividend payments is not by accident.

I'd enjoy the fact that my dividend income is taxed at 15% rates or 5%, rather than the smackdown on collectables or capital gains. Especially in an inflationary environment, as I'd *never* take capital gains. I'd really like the fact that my asset can instantly start "sending me money" if I ever need it, without having to sell any shares of the asset.

Of course, the thing that let's me think about doing something like this is the safety net of bullion I already own. Ag and Au would have to go to $35 and $2,484 in the next five years for my "safety net" to match the performance of a dividend play like this. The moment I sold any bullion, I'd be slapped around by the capital gains, so I'd really need to see Ag and Au go to much higher to match the relative performance. But that's not why I own it.

“The most powerful force in the universe is compound interest”. - Albert Einstien

Mnemonic
02-08-2009, 02:46 PM
I've been buying Gold like crazy lately (26oz in the last 3 months).

I own very little Silver.

I've been reading the forum and talking to my PM dealer and it seems like Silver might be what will break out next.

So here's my dilemma...

I love the Gold!
But..
I should diversify in Silver...

Would you buy Silver or Gold next?

My objective is to hold both but if the price goes crazy high on either one, I will start selling up to half the stack.

Any thoughts?

Thanks people!

O.G

What about giving yourself a brake and paying this hard-earned 4,000 on down-payment for used Porsche 911 ? :-))

Look, if you get fixed rate and inflation is going to hit hard sooner or later - you will pay it off close to nothing anyway:-)

Otherwise, try long FCX.

Karlus
02-08-2009, 04:34 PM
has fallen quite a bit on the auto industry woes....but it should not stay down forever. Even if it is not used for hybrids, many of the mines are going belly up and can create a supply crunch. It should not be at $1K an oz....

Oregon Gold
02-08-2009, 04:37 PM
What about giving yourself a brake and paying this hard-earned 4,000 on down-payment for used Porsche 911 ? :-))

Look, if you get fixed rate and inflation is going to hit hard sooner or later - you will pay it off close to nothing anyway:-)

Otherwise, try long FCX.

Sounds like a good reward :D

I've actually got myself some fun toys...but I've got Gold fever here and now.

I've seen my 401K go down about 40%...
My home, which is nearly paid off, go down in value ( Or should I say go to the correct value )
I'm keeping cash on hand..

But the PM is something that came to me late in life...and it's been fun investing and searching it out.

I think I'm going to do the Silver bars route.

I truly appreciate all the sound advice. My only regret is I didn't know much about PM earlier :cool:

O.G

skyking
02-08-2009, 04:41 PM
i would not buy junk anything.

only govt issued gold/silver coins

Uh, 'junk' silver IS gov't issued coins...duh...

skyking
02-08-2009, 04:46 PM
First, do not trade fiat for any paper - guaranteed to lose.

Next, diversify your PMs - 25% Au to 75% Ag could be a winning combo when Ag breaks out. Figure your Au as long term wealth preservation to buy land someday. Think of Ag as more of an investment that could bring a better short term return, or if the SHTF, you have smaller denomination 'trading units'. 90% Dimes could end up trading like a $10 bill when Ag hits $100/oz (based on current valuated fiat dollars). So, for Ag have some 10oz bars, some 1oz rounds, and some 90% dimes. Different denominations for different scenarios. Diversify so you are prepared for any situation. Besides, it's all Ag in the end and will be worth xxx$ no matter what.

Most of all, do some research and follow your instincts - they got the human race out of caves and onto the moon. Ignore the TV and CNBC pundits. Your intuition will save your a$$.

Modest_Stack
02-08-2009, 05:52 PM
I'd buy 571 shares of a closed end fund specializing in dividend payments from SE Asian companies; something priced about $7 and paying about $0.12 per share, monthly. Preferably a fund that doesn't eat it's own investors by paying dividends from some return of capital or share dilution scheme.

I'd have an immediate income stream of $68 per month, even if the share price falls, as long as the dividend remains constant. If I reinvested that instead of spending it, at the end of.....

12 months, I'd have 677 shares, paying $81.27 per month, and assets worth $4,822.
24 months, I'd have 844 shares, paying $101.37 per month, and assets worth $5,813.
36 months, I'd have 1,018 shares, paying $122.21 per month, and assets worth $7,129.
48 months, I'd have 1,248 shares, paying $149.86 per month, and assets worth $8,742.
60 months, I'd have 1,557 shares, paying $186.93 per month, and assets worth $10,904.

...and...

20 years, I'd have 33,181 shares, paying $3,981 per month, and assets worth $232,269. All for the cost of $4,000 initial capital investment.

All of that assumes no capital gains on the fund, and a constant dividend payout and share price. Not likely, but you get the picture. The fact that Asian Pacific companies pay higher average dividends than US companies, and that any devaluation of the US $ means even greater relative dividend payments is not by accident.

I'd enjoy the fact that my dividend income is taxed at 15% rates or 5%, rather than the smackdown on collectables or capital gains. Especially in an inflationary environment, as I'd *never* take capital gains. I'd really like the fact that my asset can instantly start "sending me money" if I ever need it, without having to sell any shares of the asset.

Of course, the thing that let's me think about doing something like this is the safety net of bullion I already own. Ag and Au would have to go to $35 and $2,484 in the next five years for my "safety net" to match the performance of a dividend play like this. The moment I sold any bullion, I'd be slapped around by the capital gains, so I'd really need to see Ag and Au go to much higher to match the relative performance. But that's not why I own it.

“The most powerful force in the universe is compound interest”. - Albert Einstien

This is the most intelligent post I have read for ages. The principal of Compound Interest should be compulsory education in schools. All you need is that initial investment and time. (and extra contributions if you want to score big !). Agree with all of the above, good post !

M_S

SevenEyedJeff
02-08-2009, 06:05 PM
I like buying silver with fiat when things are going bad for PMs because silver always gets hit harder. Then when things go well and the gold/silver ratio tightens to around 55:1 or so, I would trade up some of my silver for gold. If the ratio keeps dropping to 50:1 and then 45:1 etc., then I would trade up some more.

Then rinse and repeat when the cycle starts again.:D

JohnnyBob
02-08-2009, 06:23 PM
Don't get in a hurry.
Hold the cash for bargains on dips.
Maybe consider a little gold mine stock with proven production and good cash position.

ViperGQ
02-08-2009, 06:35 PM
My first 4K in silver would be

100 Oz Generic Rounds: $1450
100 Face: $1050
10 10oz bars: 1450

Zarkov
02-08-2009, 06:48 PM
I would buy coal shares

yahalam
02-08-2009, 06:55 PM
I'd wait a week or two, and just before the price of silver drops15%, I'd blow it all on pool, and wait till it hits the bottom and sell it!

(I make up for the loss in volume) :confused:

tekhen
02-08-2009, 07:06 PM
It seems that you have a nice hold on the Au... If it were I, I'd diversify into Ag.

I know how most here feel but IMHO, I'd add some more $$$ to the 4k and get a sealed mint box of the cheapest gov't bullion be it SAEs, CMLs or Phils.

2 Reasons:
- Possible future numi. premium (yes I know it is a what if but junk silver is just that... junk and will always carry premium over 90%)
- gov't issued so no worry of assay

audiotom
02-08-2009, 07:14 PM
I'd go to Tulving.com
buy some 100 oz JM bars
and rolls of 2009 or older eagles
your silver arrives within a week

grinningdog
02-08-2009, 07:33 PM
Just came back from my accountant paying taxes on some pm sales I made last year and I learned an interesting fact. The tax is less on sales of us coins than on any other type of pms.

ag47au
02-08-2009, 07:50 PM
It's good to have a balance. Silver is more volatile than gold, so when the pm's are down, silver gets killed, while gold gets depressed. If you're in a tight spot and need ready cash, you could sell some of your gold and lose very little.

On the other hand, when the pm's are up, silver goes up by a higher percentage than gold. Silver usually lags gold, rarely leads. Silver remains a bargain longer than gold.

This is a bargain time for silver. The gold/silver ratio makes gold much stronger. If the ratio reverts to the mean, then silver is real cheap today. You could make a good argument for selling gold to buy silver, then selling silver to buy gold when the ratio gets closer.

Most pm investors just buy and hold. With the shortage of physical, it's not practical to play the ratios.

You can't go wrong with 90% junk silver coin. But don't ignore a good deal on silver bars if they're from a recognized maker and the premium is less than $2/oz.

AR15AU
02-08-2009, 10:00 PM
Just came back from my accountant paying taxes on some pm sales I made last year and I learned an interesting fact. The tax is less on sales of us coins than on any other type of pms.

Fire your accountant. Capital gains tax is all the same, regardless of whether you gained on Baseball Cards or Gold. :rolleyes:

Abouthadit
02-08-2009, 10:57 PM
I'd buy 2 M70AB1 Yugo underfolders, a spare parts kit, an AR15 and the balance (~ 1200) in magazines.

etcetera
02-09-2009, 12:13 AM
IMO don't ever buy 90% or 40% coins. You buy those for hyperinflation, but the public will think they are just regular coins with a normal face value. If you are buying, buy something with clear hallmarks..

Good point.

Buy something that says its weight on it and fineness.