Taking the Silver plunge....

[Silver Surfer]

Although my stocks (all but one) have rebounded greatly, I just dont trust that market anymore... I seem, for the most part, to have a good eye on which stocks to buy, my best choice was in cell phone parts... BUT again, I am just too leary of a crash that I see being inevitable...
SO.... I have contacted a silver seller that I can purchase $5k worth for $31/oz..... I figure that if silver hits $50 like many are saying will happen next year, I will nearly double my money.. Doubt I can do that with my stocks (although I have already doubled on two of my stocks)...

Any tips on how best to avoid being ripped off would be greatly appreciated... The majority of sellers on the net (your usual, trading companies, ebay, PM dealers, etc.) are just asking way too much above spot to even consider... So I found a guy on Craigslist that seems to have a LOT of silver, and the price seems right... Since I cant meet him in person for the sale, I am a little nervous about sending a person $5k and hope that he comes through with a good product (or any product for that matter)...

Fingers crossed...

 

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[cyberdan]

Since I cant meet him in person for the sale, I am a little nervous about sending a person $5k and hope that he comes through with a good product

I would be leary too. I just can't see paying spot or more than spot. I prefer to buy a bit at a time and pay a lot less than spot.

 

[Marchas45]

Be careful with meeting someone from Graigslist. I would be meeting he or she in my bank (usually the bank manager will work with you and if you make a deal just draw the money out and give it to the seller) You just don't know who your dealing with and you could get that silver for less than spot if your dealing with a large sum. There's deals out there, you just have to look.

 

[Silver Surfer]

Thanks folks... I have now gone to two online sellers and the prices are right, but guess what They dont actually have any silver until later this month or into January...
Why the heck advertise on the net if you dont have the product?? I can see backorder, but that does not work with commodities...

 

[JD-GA]

If you cant meet a person on craigslist in person to do a transaction im not sure how it isnt a scam. I run a small car lot and anything not done person to person inside a bank 9 out of 10 times the person sending the money is screwed. Please be wary.

 

[trdhrdr007]

I'd try Apmex or Kitco. I wouldn't touch Craigslist unless I could meet locally & would be testing a good sized sample before I paid.

 

[Silver Surfer]

I'd try Apmex or Kitco. I wouldn't touch Craigslist unless I could meet locally & would be testing a good sized sample before I paid.

Very good advice, and taken to heart.... I did tell the seller that we would have to meet in a public place, but never thought about the "testing" issue.. Supposedly the bars/rounds are still in sealed packages... I will have to look into Apmex and Kitco also..

 

[jnkhntr]

Thanks folks... I have now gone to two on-line sellers and the prices are right, but guess what They don't actually have any silver until later this month or into January...
Why the heck advertise on the net if you don't have the product?? I can see backorder, but that does not work with commodities...

Here's an on-line seller to checkout. I haven't bought or sold with them, but the site is a great source of current PM info.
http://www.mjpm.com/silver.cfm

 

[blai745]

Be careful with meeting someone from Graigslist. I would be meeting he or she in my bank (usually the bank manager will work with you and if you make a deal just draw the money out and give it to the seller) You just don't know who your dealing with and you could get that silver for less than spot if your dealing with a large sum. There's deals out there, you just have to look.

funny thing...my scrap gold buying buisness was started by me posting ads on craigslist...now Ive got guys to run around and buy it and then come straight to me.. I also dont pay lousy like those WE BUY GOLD store BS

 

[Silver Surfer]

Found a refinery to buy my silver... Although I dont actually receive it for 6-8 wks, I am locked in on price, and at any time can close the order and they will pay me spot price at that time... 175 oz, and I am already up $85... Cant beat that...

 

[packerbacker]

What form is that silver in? 1 ounce rounds, bars, Silver Eagles? $31 isn't too bad if it's Silver Eagles or even Canadian Maple Leafs but, if it's anything else, the price is much too high imo.

 

[billjustbill]

Although my stocks (all but one) have rebounded greatly, I just don't trust that market anymore... I seem, for the most part, to have a good eye on which stocks to buy, my best choice was in cell phone parts... BUT again, I am just too leery of a crash that I see being inevitable...
SO.... I have contacted a silver seller that I can purchase $5k worth for $31/oz..... I figure that if silver hits $50 like many are saying will happen next year, I will nearly double my money.. Doubt I can do that with my stocks (although I have already doubled on two of my stocks)...

Any tips on how best to avoid being ripped off would be greatly appreciated... The majority of sellers on the net (your usual, trading companies, ebay, PM dealers, etc.) are just asking way too much above spot to even consider... So I found a guy on Craigslist that seems to have a LOT of silver, and the price seems right... Since I cant meet him in person for the sale, I am a little nervous about sending a person $5k and hope that he comes through with a good product (or any product for that matter)...

Fingers crossed...

Whew!! It was plain torture when I let go and sent in my first silver to a refiner with a good reputation and a "Brick & Mortar" address, but with 5K on the line, I'd be wringing my hands and wanting some police around me. Even if it was handing 5K to a member of the family, I'd still worry....

Remember that as of January 1, 2012, every "Legal" sale of Precious metals of $600 or more has to be with a 1099 IRS form....so you'll pay for any profit. That was hidden in the National Health Insurance bill passed by our Congress... Everybody is going to have the same problem at the same time and the PM buyers are going to use that to their advantage...starting out at $30 doesn't leave much meat on the bone....if it hits' $50.

I know a guy that bought Canadian 1oz coins for $30 each, back in the late summer.... He's still hoping that silver will go up....

Seems jewelry is the best dodge for tax and government changes in ownership of silver and gold... Even after hearing about one state increasing taxes by 70%+, now another is requiring bicycles to be registered at $10 each... Pm's are going to get boxed in and unlike land in a good location, you've got to sell the metal just to just get your money back..... http://urbansurvival.com/week.htm

Sticking your neck out for fun and profit is more a gamble than ever. With gas up .46-cents a gallon here in Texas since Thanksgiving Day, food and freight costs are up, too. UPS is up at least 8%, and Yellow Freight now has a 22% fuel surcharge. It's going to get tight and tough as 2011 progresses...

 

[Silver Surfer]

What form is that silver in? 1 ounce rounds, bars, Silver Eagles? $31 isn't too bad if it's Silver Eagles or even Canadian Maple Leafs but, if it's anything else, the price is much too high imo.

1 oz breakable bars. Scored in 1/4 oz mini-bars... When it comes to precious metals, I could care less if they are "Silver Eagles", etc., as I buy them for the future, and probable economic collapse.. If that scenario plays out, no one will care if they are "fancy" or "collectable", they will simply want purity.. Of course, I am no pro at this and it is only my opinion...

 

[Silver Surfer]

Although my stocks (all but one) have rebounded greatly, I just don't trust that market anymore... I seem, for the most part, to have a good eye on which stocks to buy, my best choice was in cell phone parts... BUT again, I am just too leery of a crash that I see being inevitable...
SO.... I have contacted a silver seller that I can purchase $5k worth for $31/oz..... I figure that if silver hits $50 like many are saying will happen next year, I will nearly double my money.. Doubt I can do that with my stocks (although I have already doubled on two of my stocks)...

Any tips on how best to avoid being ripped off would be greatly appreciated... The majority of sellers on the net (your usual, trading companies, ebay, PM dealers, etc.) are just asking way too much above spot to even consider... So I found a guy on Craigslist that seems to have a LOT of silver, and the price seems right... Since I cant meet him in person for the sale, I am a little nervous about sending a person $5k and hope that he comes through with a good product (or any product for that matter)...

Fingers crossed...

Whew!! It was plain torture when I let go and sent in my first silver to a refiner with a good reputation and a "Brick & Mortar" address, but with 5K on the line, I'd be wringing my hands and wanting some police around me. Even if it was handing 5K to a member of the family, I'd still worry....

Remember that as of January 1, 2012, every "Legal" sale of Precious metals of $600 or more has to be with a 1099 IRS form....so you'll pay for any profit. That was hidden in the National Health Insurance bill passed by our Congress... Everybody is going to have the same problem at the same time and the PM buyers are going to use that to their advantage...starting out at $30 doesn't leave much meat on the bone....if it hits' $50.

I know a guy that bought Canadian 1oz coins for $30 each, back in the late summer.... He's still hoping that silver will go up....

Seems jewelry is the best dodge for tax and government changes in ownership of silver and gold... Even after hearing about one state increasing taxes by 70%+, now another is requiring bicycles to be registered at $10 each... Pm's are going to get boxed in and unlike land in a good location, you've got to sell the metal just to just get your money back..... http://urbansurvival.com/week.htm

Sticking your neck out for fun and profit is more a gamble than ever. With gas up .46-cents a gallon here in Texas since Thanksgiving Day, food and freight costs are up, too. UPS is up at least 8%, and Yellow Freight now has a 22% fuel surcharge. It's going to get tight and tough as 2011 progresses...

Of course, if the economy springs back to life, PM's will naturally fall... I would lose in that scenario.. But I would rather have the $5k nestled in something like PM's than in stocks, cash, or in my bank account... IF, and I believe it will happen, the economy continues on it's downward spiral, then PM's will surely be the ticket..
I agree that land (if you buy it now) is a great investment, it is still something that the Govt can easily take away, or tax you to death on... So I am glad that I can purchase a good load of PM before the $600 limit law is enacted..

 

[billjustbill]

Of course, if the economy springs back to life, PM's will naturally fall... I would lose in that scenario.. But I would rather have the $5k nestled in something like PM's than in stocks, cash, or in my bank account... IF, and I believe it will happen, the economy continues on it's downward spiral, then PM's will surely be the ticket..
I agree that land (if you buy it now) is a great investment, it is still something that the Govt can easily take away, or tax you to death on... So I am glad that I can purchase a good load of PM before the $600 limit law is enacted..
[/quote]
I see your point of view, SS. The example of land was meant to show that locking yourself into buying a large amount of silver might lock you into some results you can't eat, spend, or quickly use. If we had the right answer, we would take that route, but when we don't, each person has different needs and different outlooks, and makes the best choices he can.

Just this week, I saw this:
http://www.elliottwave.com/freeupdates/archives/2011/01/13/I’m-Beginning-To-See-A-Pattern-Here.aspx and it says from the $29.00 starting point, there is to be another upswing in silver prices coming, base on the cycles seen in the past. But then in early December, ARA was telling its gold pool customer's that gold was to be at $1,600 by mid January....if they actually touch gold everyday and can't read the market, what chance does the average PM buyer have at being accurate?

I understand that now China allows its citizens to buy and hold gold, just like we take for granted. With as much gold (or gold plated tungsten bars) as their government has purchased, I think that's a way to let their "Average Joe" become the government's piggybank. If things get tight from unrest due to the pressures of labor and industrial export production, all their government has to do is do what Ours Did when the President of the United States made gold illegal to own; "Joe Average" had to turn it in... Silver has the same possibility because it is a PM and because of its wide base of industrial useage. Like the "No-Melt" law for copper pennies, silver coins could fall under a quick, quiet, and simple amendment to that law, too. So, those with pounds of 90% silver coins will be faced with quite a problem when the economy continues to limp along and there's no "Mad Max" doomsday struggle for us to live in.

It doesn't hurt to have some touchable PM tucked away...if you can trust your bank's safety deposit box or the like. Last year, I've used half of what PMetals I've found detecting and at garage sales to buy things for the house and home place, to the tune of $4,600. If gasoline is to be closer to $4 a gal. by the end of this new year, all of that and everything else will cost more by the time you buy it, or when it gets unloaded at home... how much that will cut into the profit above the $30 an oz you've layed out?

I'll continue to seek those things I "need not want" during this year, as long as I can find them on sale or barely used. Because I have an acre with a home, no, I won't be buying land that ties up money and independence. If I really need some things, then more that half will be turned into funds to pay for the things in full, and keep what PM is physically left. The way I'm playing it, I'll bet on having the best of both worlds.

 

[Silver Surfer]

Very good post.... Yeah, if we all had a crystal ball eh?
175 oz of silver is not really all that much. But too lose half of it, yeah, that would suck... But I have been in the stock market 3 times in my life (actively, not work IRA, etc.) and each time, I have watched it climb, then crash, then climb, then crash.. One thing I know from those expericences is this, the only people who really make it in the stocks are the "day traders", and now with the supercomputers in use, especially those within blocks of the Trade Center, have made it really hard for anyone to even make a killing doing that (unless you are the one who has the supercomputer)...
I watched my stocks tank big time 2 years ago, and only one is now doing really good (up 170%).. That one stock is the only reason my portfolio is $71 up overall.

So what have I learned? That every damn time I have told myself to invest in PM's, and then not follow through with it, I have been sorry later on.
I hope that since I listened this time, it will pay off... Fingers crossed..

 

[Vodka1000]

So if you still want to invest in silver what is the best and cheapest way to fo so !
Let's say I have 5K burning a hole in my pocket.
What to buy ;
--- $1 face value of mixed coins ( now about $21bucks worth)
--- 1 dollar silver coins - about $23 ea.
--- 10 - 20oz. silver bars
--- or gold coins 1/10oz. ea for about. $ 160
------- -------

 

[Silver Surfer]

Wow, silver shot up today, crude prices or what??
I bought 175 oz at $29.90/oz, so I am really glad I bought when I did.... Up almost $2k on an investment made 3 months ago.... ;-)