Gold and Silver?

I'm getting sea-sick from watching the PM price graph? Gee; let's get scared and buy, then take our profit. What a world!! Oh well, at my age I need something to do, lol!

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Permalink Reply by Gary on July 19, 2011 at 3:43pm

Just buy and let it ride...stop watching and just keep stacking it up!!! I am 39 years old, so i will let all mine ride for another 20 years???? Unless i die(then i could care less)! Until then i will keep buying what i can, when i can!! But i will try and buy on the dips!!

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Permalink Reply by Buffalo on July 19, 2011 at 4:45pm

I check the charts several times a day but I quit worrying about them a long time ago as far as short term ups and downs. Well, at least unless I am buying or selling right then and trying to time something. If prices drop and all of a sudden your stack is worth less, just click on the longer term charts for the last couple years for a quick pick-me-up, lol.

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Permalink Reply by Gary on July 20, 2011 at 2:33am

I am curious what happened to all the comments on the mint news blog??? I hope a few bad eggs didnt ruin it for all of us!! I never commented on any of these but i liked to read what people have to say..i just skip over the non sense!

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Permalink Reply by CaptainOverkill on July 20, 2011 at 3:24am

Try not to worry about day to day fluctuations in price. In general if you're buying to make money, the best thing to do is set a price target in your mind that determines when you will sell (i.e. if silver hits $40, you're out the door to the coin dealer or whatever to offload your silver eagles). Don't get greedy and say "Hmm, maybe I'll wait for $50," or panic and say "Oh no, we had a down day! Time to dump everything!" You can also protect yourself somewhat by buying coins that will have good premiums in secondary markets, like the First Spouses, the uncirculated army and Medal of Honor commemoratives, or possibly the AtB-Ps.

As for the Mint News Blog comments section, a particular poster was posting frequent obscene comments on the blog (we are talking like 40 comments in a day) and clearly trying to get the blog comments shut down. Unfortunately, he succeeded. I wish Michael had simply IP banned the offender (but maybe you can't do that with blogspot's software, I don't know) or perhaps had asked a trusted friend or commenter to help moderate. Unfortunately, what's done is done. I'm disappointed because the comments section was probably the best place on the internet to discuss and exchange tips on buying Mint products. Hopefully the former commenters will migrate over here to continue things.

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Permalink Reply by Indentured Servant on July 20, 2011 at 6:22am

Buy when the price is up>>>>>>>buy more when the price is down. Ignore the charts. They represent the price of paper silver. Volatility will only get worse. Once the panicked frenzy buying begins and the fraud that is paper is revealed you will look back at $30-$100 silver as cheap. Buy with both hands as often as possible! Convert some into gold as the ratio closes.

Bill

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Permalink Reply by Bruce Wiseley on July 20, 2011 at 10:14am

I just bought 7 ASE's of various dates, all Gem BU for $39 each. The only problem is that they are coming from Canada, and with the strike at Canada Post, I might be an old (er) man by the time they get here. Still a good deal, I think? I think many bidders shyed away from this guy because of his minimal FB score, and because he's in Toronto, but I've gotten great deals from him before on ASE's and Maple Leafs, I figure I can wait. Buying at "Melt" is always good!

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Permalink Reply by CaptainOverkill on July 20, 2011 at 3:27pm

Absolutely, anything at melt should be snapped up post-haste! I'd also recommend snapping up the 2010-2011 silver quarter sets from the US Mint as they are pretty close to melt right now (and also, as MintNewsBlog pointed out, probably close to a product suspension).

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Permalink Reply by Indentured Servant on July 20, 2011 at 8:54pm

Question: Is my math off or would you end up paying 11% or more plus shipping buy purchasing silver quarter sets from the mint with a spot price of $40? Granted they are proofs, but in the context buying at melt they are effectively junk silver.

Will these coins maintain some premium above spot as proof coins? Enough to justify 11% cost above melt? I'm not looking to invest in numismatic value because in a true SHTF scenario I expect numismatic premiums to shrink for most PM coins.

I can get junk locally for 1-3% above spot with no shipping.

Bill

CaptainOverkill said:

Absolutely, anything at melt should be snapped up post-haste! I'd also recommend snapping up the 2010-2011 silver quarter sets from the US Mint as they are pretty close to melt right now (and also, as MintNewsBlog pointed out, probably close to a product suspension).

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Permalink Reply by CaptainOverkill on July 20, 2011 at 9:19pm

Indentured Servant, right now the AtB quarter sets are still a few dollars above melt. I am getting my information from this post on MintNewsBlog. However, it is not going to be that way for much longer if silver rises just a few more bucks. I do think that the value of them being proof coins combined with melt price makes them fairly good purchases even at the current level.

Your point is well taken, though, about shipping prices. If you know someone locally who can hook you up with junk silver (especially without tax!), you're probably best off using them if we're talking from a pure price standpoint. Unfortunately, I do not know of anyone in my area and so am often looking for the best internet deals. That's why, to me, the proof sets seem like a good buy right now.

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Permalink Reply by Clair Alan Hardesty on July 21, 2011 at 9:35am

I always try to point out, when people are talking about the best deals on buying PMs, that you need to look closely at the buyback prices as well as the purchase prices (for both after taking all extras like taxes and shipping into account). Some items that sell at or even below spot also have large buyback margins that negate the value. Some items that sell at large premiums have narrow buyback margins that make them attractive investments. Of course, the margins vary just like the base prices so it is important to get an idea of history to effectively predict the future but my point is don't only look at the purchase equation when investing. Be sure that you take the full buy-sell cycle into account when attempting to find the best deals for you. Of course, buyback pricing is not as easy to come by as purchase pricing but a few vendors (APMEX for one) do publish what they are currently paying for many coins. Ease of sale is also a factor to consider. You can also check jeweler and pawn shop buy prices to get an idea of what really sells. Their margins will be tighter on items that they sell easily and quickly and wider on coins that take time to move.