Thinking of trading some of my gold in for silver

[jim4silver]

I want to get some opinions for the prospect of trading in some of my gold bullion for silver. Right now I have mostly gold bullion.

I believe that both gold and silver will go up in the future, but I think that I might get a higher percentage gain with silver in the next couple of years. I will always keep some gold, but I feel I might make a higher yield with a more silver heavy collection. When I buy silver, I stick with name brand 10 ounce bars or one ounce rounds (Engelhard, JM, Sunshine, etc.) and if I can get it with a low premium, silver maples. I stay away from the "generic silver" items, like the Merry Christmas or happy birthday type bars.

I get a bit of 90% and 40% "junk" silver from CRHing.

Any thoughts would be appreciated.

Jim

 

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[utah hunter]

Silver is KING!!! I have always bought and sold silver rather than gold, and have always done better that way. I am putting all my money into silver right now. Just my opinion...Ryan

 

[jim4silver]

Silver is KING!!! I have always bought and sold silver rather than gold, and have always done better that way. I am putting all my money into silver right now. Just my opinion...Ryan

Thanks UH,

I really like the old US double eagles, especially the Liberty designs. St. Gaudens are nice too though. I like to get them in circulated condition, and I can buy them for not much over spot. So I have not only approx one ounce of gold, but also a really cool piece of history.

But with all of the industrial uses of silver and the so called deficit of supplies that I read about all the time, I think silver may be the way to go for future purchases. No doubt that most of the gold that has been mined in the past thousand years is probably still around being stored somewhere. But silver is actually used up in many processes and will need to be replaced over time. Also, as times get tougher here in the US, fewer people will be able to afford an ounce of gold, but probably everyone will be able to buy some silver.

I will probably wind up trading in some of my regular bullion coins for silver, but will keep the double eagles for now. Also, any new money I have to invest will go into silver bars for sure.

Jim

 

[Siegfried Schlagrule]

You hear from the gold sharks that folks who bought gold last year had realized a 16% profit when gold topped $1000. In that same period those who held silver had gained 39% profits.
In the general scheme of things there are many more people who have twenty dollars than those who have $1000. If gold does top $2000 as some folks predict who will be buying it?
In the collapse of civilization scenario which lies behind all precious metal hoarding it is very difficult to make change for gold. Small silver coins will be good for barter and change is not needed. Having a reputation for having gold at home or handy makes you a target for plundering also.
Circulated gold coinage on the other hand will continue to have a residual second tier value stream. You won't always be able to tap it but it does exist and you gain it if you don't have to pay a large premium for them. I recently saw a near slick $2 1/2 gold coin where you could barely read the date. Worst one I've ever seen and it will eventually have to be sold at a discount to move it.
Another consideration that most folks ignore is the Patriot Act. Every time you spend more than $500 in a coin shop they are suppossed to get and report your identity to the feds. That gives them a dandy list of places to check if they decide once again to confiscate gold. Last time they paid face value in paper for coins and $35 per refined ounce for scrap and ore if you turned it in. If they came and got it you faced confiscation and a $10,000 fine per coin or ounce. not sure which but read it recently. siegfried schlagrule

 

[jim4silver]

Another consideration that most folks ignore is the Patriot Act. Every time you spend more than $500 in a coin shop they are suppossed to get and report your identity to the feds. That gives them a dandy list of places to check if they decide once again to confiscate gold. Last time they paid face value in paper for coins and $35 per refined ounce for scrap and ore if you turned it in. If they came and got it you faced confiscation and a $10,000 fine per coin or ounce. not sure which but read it recently.

Siegfried,

Thanks for your input re silver vs. gold. However, I believe your info regarding the Patriot Act is not accurate. The Patriot Act does require precious metals dealers who meet a certain annual purchase and sale thresholds to implement Anti money laundering guildelines for their particular business. If you have a link to the portion of the Act that states what you mention I would like to see it. There is alot of untrue BS floating around the net regarding confiscation and reportable vs. non reportable transactions that often times is used by certain individuals to sell a particular type of product (such as certified gold with the claim it is exempt from confiscation, etc.)

Even though the law in 1933 required you to turn in gold to the gov, I don't think anyone was ever arrested using the law nor did the feds ever go house to house searching. I did read that they seized safe deposit box gold bullion and gave the owners cash in exchange for it.

If there is a rule regarding purchases of $500 or more than every coin dealer I have ever bought from is violating the law, and I doubt these guys would risk their livelihoods and freedom for this.

Jim

 

[Siegfried Schlagrule]

I haven't read the law but every coin shop local to me in indiana is enforcing the $500 rule. Since I rarely purchase that much i just come back the next week to buy the rest on layaway. Like you said why would they do it if they didn't have to. siegfried schlagrule

 

[markmopar]

No dealers I've dealt with in NJ do that.