Question about Silver

Guest · Guest

Hi,

I've been visiting here for about a week now. I stumbled on to the peak oil by chance really.

Now that I've been researching it for the better part of a month I've come to the conlusion that it is real and that it is inevitable and may be coming too soon for me to prepare adequately. Fortunately my wife believes it can happen. Although her initial reaction was "they will think of something".

Once she became aware of the depth or our dependence on oil then she began to embrace the idea. Oddly, most other people laugh it off when I mention it.

My wife and I have figured out a repayment schedule for our education loans wherein we can pay them off in three years. I hope our current situation remains somewhat static until that time. If not then we are in deep doo doo.

One thing I can do now is to get my discretionary money out of the stock market. I am interested in buying some silver.

Questions are:

Where is the best place to buy it?

What form should I buy it in? (ie coins of ingots)

Should I buy it on paper or have it delivered to my house?

Gold?

For now we're either investing in FDIC insured CDs or precious metals.

Any suggestions would be appreciated.

Thanks,

Roy

smiley · Fission Joined: Apr 16, 2004 Posts: 2104 Location: Europe

One of the places where you can buy silver is at:

www.kitco.com

Here you also find a lot of information on silver. You can either buy it and ship it to your own home or have it stored at a depot (bank).

You can also buy silver certificates, but watch out that they are really backed by physical silver.

For a good overview of the silver market try:

http://www.investmentrarities.com/tb-archives.html

It is your money and I don't want to be responsible for it. But personally I would prefer silver above gold for 3 reasons

1) silver is a valuable resource whereas gold is not. It not only shines nice, but it is consumed by the industry (photographic films).

2) The silver market doesn't get as much exposure in the news as the gold market. I think this makes silver undervalued whereas gold is overvalued.

3) The silver stocks at the central banks are nearly depleted. This gives governments less leverage to depress the silver prices as the have done with gold in the past.

However I should warn you. Every investment has an inherent risk to the downside. Silver is no exception. So please obey the first rule of investing: Never use money which you can't afford to lose.

And NEVER EVER loan money to play at the markets !!!

PS. If you simply interested in protecting your money against inflation you can also think of inflation protected bonds.

Guest · Posted: Sat Jun 19, 2004 10:05 am Post subject: Golden Solstice

You should NOT purchase any paper deriviatives of silver or gold or anything for that matter(inflation hedge bonds) all derivatives are just that, derived from the very buuble system we are worried about bursting. People who hold Gold/Silver paper will loose all their money. World Gold Back reserves statements are as untrustworthy as Oil Reserve statements.

ALWAYS hold the real metal, whichever you choose Gold or Silver, and do so when you can and often.

Owning Gold is about wealth value, not earnings . . . see why the euro is mark-to-mark valued to Gold each quarter.

And the soon to come Gold Dinar...

AU, brutus?

The_Virginian · Light Sweet Crude Joined: Jun 19, 2004 Posts: 1422

Kitco is good for information on spot prices and market direction, but overpriced for bullion.

I used to see ads in the Wall Street journal for 10 USD over spot for Gold including shipping, see if you cant pick up a WSJ and find them, or do a search on the net.

These guys are cheaper than Kitco by a mile, don't know about shipping though.
http://www.usagold.com/gold/price.html

Also look up your local coin dealer in the Yellow pages. they can be compeditive, get some qoutes, heck get a lot of qoutes. (shop around)

DO NOT BUY NUMISMATICS (old coins), IN SHTF situations, or in foriegn countries they dont/wont give a rats a$$ about anything else besides the value of the gold or silver.

Always buy your silver or gold bullion made by a reputable company like ENGLEHARD or CREDIT SIUSSE, never any no name silver bullion cause you get a lower value in return (resale) and suspect whieghts/purity.

Also i would AVIOD US issue bullion, it's overpriced for collectors.

My picks for value : Sliver: Englehard Bars, Mapleleafs.
Gold: Kugerrands, Mapleleafs.

The closer to spot the better value.

Silver is a good buy. Usable for smaller transactions, as are 1/10 th oz. of gold. Photography silver is on a decline, but the upswing for use in computors and other industrial processes...most places where they would use silver (like in electrical contacts gold would be better, but it is too valuble).

Gold and Silver have been, and will likely always be valuble.

I would make it a SMALL part of my planing, after I aquired the means to support myself on my own land. Cause push come to shove, it's gonna be hard in the first few "crash" years to trade metal for scarce recources, and you wont get a good deal for it either. (assuming a real crash comes)

MattSavinar · Elite Joined: May 09, 2004 Posts: 1990

Nothing that hasn't been stated yet, but a good overview:

http://www.lifeaftertheoilcrash.net/postoiltimessilverbackup.html

Matt

Guest · Posted: Sat Jun 19, 2004 8:01 pm Post subject: USA gold

usagold has a good site, minimum 1000$ order 25 shipping

you might want to read the forum the have going there it is fascinating especially the archived material by "another" and "friend of Another' and the in-house document about GOLD CONFISCATION.

Pre 1933 gold coins are less likely than any other type to be confiscated by the Feds . . .

so I agree numismatic value will not survive a crash, it may provide protection from siezure. If one buys old coins pre 1933 that are not graded real high then they are not that much over spot... and again gold is for value not profit-20 bucks over spot now will sound like nothing in the future especially if they grab yur nice shinney registered new stuff, spot bought or not

Guest · Posted: Sat Jun 19, 2004 8:05 pm Post subject: PnF chart

Here is a link to $GOLD's recent PnF Chart

http://stockcharts.com/def/servlet/SC.pnf?chart=$GOLD,PLTB[PA][DA][F!3!!]&pref=G

Roy · Posted: Sat Jun 19, 2004 9:49 pm Post subject:

Thanks for all the replies. Very helpful.

If I may I would like to take this one step further.

Let's say I have $10k to invest in precious metals. That would buy me roughly 20 gold Krugerrands. Or approximately 900 oz of silver.

For use as a post crash currency, it would seem to me that having a selection of denominations would be more useful than having a handful of expensive coins.

Just for kicks, how would you divy up that $10k to maximize both its portability and its usefulness in procuring essential items post-crash?

Thanks

MadScientist · Heavy Crude Joined: May 19, 2004 Posts: 286

"Ten Commandments of Buying Silver and Gold
SUMMARY OF THE TEN COMMANDMENTS
For your convenience, her are the ten commandments summarized:
1. Remember your purpose.
2. Buy at the lowest price per ounce.
3. Focus on coins.
4. Avoid "numismatics" (i.e., rare coins).
5. Acquire silver first, then gold.
6. Buy small coins first, then large coins.
7. Know your dealer.
8. Protect your privacy.
9. Always take delivery.
10. Keep your valuables safe.

RECOMMENDED SILVER
AND GOLD PORTFOLIOS
Here are five portfolio suggestions, and some principles you must
keep in mind. Don’t let anyone smooth talk you into buying
something you’ll regret—when it’s too late to correct your mistake.
Amount to Invest Recommendation
$1,000 to $4,999 to invest Put all in U.S. 90 percent silver coins
(junk silver).
$5,000 to $24,999 to invest Put half in U.S. 90 percent silver coin,
half in gold quarter- or tenth-ounce
American Eagles.
$25,000 to $74,999 to invest Buy three bags ($1,000 face value) of
U.S. 90 percent silver, $10,000 worth of
quarter- or tenth- ounce American
Eagles, and the balance in one ounce
Krugerrands or American Eagles.
More than $75,000 to invest Buy eight bags of U.S. 90 percent
silver, $10,000 worth of quarter- or
tenth-ounce American Eagles, $5,000
worth of platinum coins (American"

-Michael Hyatt "Ten commandments of buying gold and silver"
_________________
"The future power is manpower"

Chichis · Posted: Sun Jun 20, 2004 11:50 am Post subject:

I just have a sort of general question. Why do silver and gold have value in sustinance-level societies?

Here's my basic understanding of how silver and gold have been used:

Pre-chemical revolution (say 5000 BC to ~1600 AD) - Pretty looking, using for jewelry. No practical value.

Chemical Revolution-Electrical Revolution (~1600-~1900) - Used in some chemical reactions for whatever purpose. Later on, used perhaps in the dye industry and photography. Few practical uses, but increasingly useful

Electrical Revolution-Now - Used in tons of stuff. Electronics, photography, chemical reactions. A requirement of our advanced society.

If we're in a post-industrial society, then what is the use except for the very few people equipped to do chemical science, and for trinkets?

Obviously my knowledge on this subject isn't very thorough, so I would enjoy any corrections you may have.

Guest · Posted: Sun Jun 20, 2004 12:22 pm Post subject:

Chichis,

I don't think we'd go to a subsistence level society overnight. Post-crash, I think we would instead see a serious recession or depression.

During that time, I think the price of precious metals would skyrocket, because everyone is going to be thinking the same thing - "omigod, I've got to put my money in gold or silver!", because that has been the traditional response to such a crisis.

During this period, if it appears that we are going to "bottom out" to a subsistence level, you can use that gold and/or silver to buy in-demand commodities, like grain or fuel, or supplies that can help to ensure your survival.

-- Carrie

Guest · Posted: Mon Jun 21, 2004 2:32 am Post subject:

Carrie · Posted: Mon Jun 21, 2004 1:22 pm Post subject: GoldMoney?

What do you folks think of GoldMoney ( http://goldmoney.com )? From my research of it, it seems very reputable. You purchase actual gold, which is kept in a vault in London & audited annually by a third party.

I still prefer to hold physical gold, so I'm using it as a savings account toward purchasing gold. Still, for those who are worried about confiscation, it may be an option, since the gold is kept in London. It's also very liquid - you can sell it back to GoldMoney anytime for the current spot price.

--Carrie

The_Virginian · Light Sweet Crude Joined: Jun 19, 2004 Posts: 1422

mattduke · Light Sweet Crude Joined: Oct 28, 2005 Posts: 1127

Start accumulating 1 ounce silver rounds or coins. You pay a more for the government coins (maples and eagles), probably because unknowledgeable people (with whom you may be trading in the future) trust them more. How ironic. You may do this completely anonymously by paying cash at your local coin shop. However you can generally find the best prices online. I have found ~~Northwest Territorial Mint~~ apmex to have excellent prices, although there are many other online stores to choose form. This style of shopping is not anonymous and involves shipping costs and delays. Remember, a *single* non-anonymous purchase will identify you as a precious metal owner. One strategy is to locate current prices at a low-cost online store and take that printout with you to your local shop. That will give you a bit of bargaining power. Silver in this form has been most useful for small trades. After you feel that you have enough single ounce coins but you with to invest more in silver, I suggest moving up to the 100 ounce bars which offer a very low markup over spot price in silver. Plus, it is fun to own bricks of money. I also recommend at that point to consider adding 1 ounce gold coins (krugerrands, eagles, maples, buffalos) to your collection. After you have accumulated your bullion position (physical, in your house), it is time to own some of the mining shares, which is where the even larger profits are being made. Starters might consider the precious metals ETF fund (gdx), although that is weighted towards the larger players and it is the smaller players that will perform the best. Perhaps you might wish to own a selection of mid-tier companies like Agnico Eagle and Goldcorp and Kinross among others as a good compromise. The juniors however will be the new dot coms and that is where the fortunes are being made. If you are going to pay someone else to store your gold then make sure it is held in another country like Hong Kong, Switzerland, etc. Make sure you get an "allocated" account. The history of the world is one where the holders of the gold fail to actually store it. Beware!