$5,000

[jim4silver]

No matter which you choose, gold or silver, make sure you buy.

See the below video for a good reason why PMs might be a good bet to hold in the future. It explains what is going on very simply and clearly in the financial world.



Jim

 

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[BuffaloBoy]

if i had 5 k i would buy 20 boxes of dimes and hit the dimes super hard!!

20 dime boxes would land me 10 silver dimes... if i'm lucky, dimes are real bad in my area.

 

[kb4iqm]

just out of curiosity, if you had $5,000 to invest in gold or silver what would you buy? Would you buy pre 1933 gold coins or morgan and peace dollars. Or maybe new silver eagles from the mint. Maybe even some silver bars or gold bars. Just say someone gave you $5,000 for you to spend at a coin show to invest in what would you buy? Explain why you would buy the coins or bars for that person

That's easy. Junk silver coins give the most bang for the buck. All gains or losses aside, precious metals are of no use if you cannot buy or sell easy, or if you have to take a big hit on premiums.

Pre-1933 gold and other numismatic grade coins have too high of a premium and are usually too hard to sell on short notice without taking a bath on the premium.

Junk silver coins are easy to buy or sell, premiums are low, and being they were minted by a government, there is very little doubt that they are of a known and trusted purity.

Generic rounds/bars may have low premiums, but do not always carry that same level of trust. Dishonest chinese or others will counterfeit numismatic grade coins much more than they would junk grade silver coins.

Bob

 

[BuffaloBoy]

Dishonest chinese or others will counterfeit numismatic grade coins much more than they would junk grade silver coins.

they even counterfeit coins such as pennies dimes and quarters since it all cost a lot less than face value to make the coin. For $1, you can make $1.60 in pennies, $4.17in dimes, $4.17 in quarters... amazing...

 

[jim4silver]

Pre-1933 gold and other numismatic grade coins have too high of a premium and are usually too hard to sell on short notice without taking a bath on the premium.

Right now premiums on pre 1933 $20 Liberty coins are fairly low for circulated condition coins. If you live in a area with several competitive coin stores it is also possible to get $10 and $5 Libs with low premiums. For example, yesterday I was able to get some $5 Liberty coins that were circulated but probably Very Fine condition for 3% over spot. Not a bad deal for old US gold and cheap fractionals. I have spent alot of time getting to know different coin dealers and that certainly helps in getting better deals, but anyone who wants to do that can in their own area.

Junk silver coins are easy to buy or sell, premiums are low, and being they were minted by a government, there is very little doubt that they are of a known and trusted purity.

That is true. But there have been times when demand drops and premiums fall hard and those coins get sent to refiners when you sell them. When that happens you don't get anywhere near melt when you sell. This tends to happen when silver hits an all time high, like in the early 80s and will probably happen again within 6 months or so, if not later.

I am all for keeping my CRHing 90% and even 40% coins to hoard them. But I don't think buying them is always the best bet.

Generic rounds/bars may have low premiums, but do not always carry that same level of trust. Dishonest chinese or others will counterfeit numismatic grade coins much more than they would junk grade silver coins.

I have not seen an influx of fake Chinese or other silver bars/rounds other than those made to look like old US 90% coins, like Peace dollars and Morgans, etc. If silver goes up enough there could be any number of counterfeits of many different types of silver that is for sure.

If a person wants to take the time to educate themselves about how they are going to spend their investment $$$, they can easily learn to spot a legit one ounce generic round/bar.

Another caveat to owning US coinage is that the gov can more easily make rules prohibiting how it is used, such as the current melting ban on pennies and nickels. It would seem to be more difficult to make a blanket rule affecting generic silver bullion made by a private company.

Just my opinion on this.

Jim

 

[RP4L]

Given some uncertainties in the market right now, I'd go for about 2 ounces of gold and rest in silver. Silver is not for the faint of heart. It can get you some really good gains, but it can also bring you some really bad losses. Gold is the only precious metal in the past 10 years that hasn't went bubbly at all.

That said, here's some variants in particular that I really like.

Gold:

American Gold Eagle
SA Krugerrand
Canadian Maple Leaf

Silver:

American Silver Eagles --- they're easy to resell and they usually go for $1 over spot in most coin shops (I usually buy these in 20 coin tubes)
Canadian Maple Leaf --- not as high of a premium as an ASE, but still very nice coins (I usually buy these in 25 coin tubes)
10 oz Engelhard or Johnson Matthey bars --- very well known names, 10 oz bars aren't faked very often

I've bought 100 oz bars in the past, but they can be a bit difficult to sell because of the amount of fakes out there. I'm not particularly fond of junk silver because the local pawn/coin shops don't really like buying bags of the stuff. However, there's plenty of online dealers who will pay for you to ship and send you a check (APMEX, Goldensilvereagle, Tulving, few others).

 

[Generic_Lad]

Personally, it would depend on what all you already have and what you like. If you were a coin collector, I'd go for the pre-33 US gold coins since premiums are at nearly historic lows. If you've already got a lot of gold though, I'd go for silver. Personally I like silver because you can mix it up, sure you can go for the typical American silver Eagles or generic rounds/bars, but you can also get world bullion coins like silver Britannias and silver Philharmonics, you can get low-premium US silver from the '60s or get collector coins from the 1800s. If you didn't hold any gold, I'd buy at least some gold, but if you don't want to get the pre-1933 gold, I'd put most of it in silver, both bullion and collector coins.

 

[apush]

I certainly cannot give any advice to anyone, but this is just what I do: When I find enough 40%ers I buy 1/10 gold eagles. Why not? As I get them for "cents" on the dollar--so to speak. Then, I also buy a variety of items, such as those 5 oz Quarter Gems, Eagles, and Peace Dollars--and I have quite a few U.S. Silver Commemoratives. Not everyone goes for the latter, but I do like them. I had to buy Dolly Madison for my granddaugher and Jackie Robinson for my future grandson.

One time I heard on this forum, "I am silver rich, but cash poor." I think the poster was referencing a teller Perhaps, that describes me as well. Mr. Apush just shakes his head still . . . . as I can walk in and take x amount of halves and get x times x cash back in hand. Gotta love this hobby.

I have also "upped" a bit in my stock drip program with my 40% finds per month. Then, of course, a few extra dollars go into the safe deposit box for good keeping. Then, with my MD finds (which are free--cept' the gas money, I buy more silver and gold). When I find 14k MDing--which is not often, I store it as well.

I just like diversity. No eggs in a single basket.

Just a thought, and very interesting post/question.
HSH,
apush

 

[2cmorau]

what's the melt value on a 1 oz gold coin, that ya just bought at the coin shop at a premium with a MS65 stamp/grade

I'll go with junk coins any day
sorry