What (Silver & Gold) NOT to BUY???
One of my readers contacted me recently about certain types of purchases. He wanted to know what I thought about buying "Collectibles" in Silver and Gold. This is a very tricky area to speak of. Reason being; we're trying to mix 4 different types of Silver and Gold buyers; and compare them to each other. These 4 types of buyers are:
1. Those wanting to preserve their wealth, supplement income, and use silver and/or gold to offset debt. (AKA STACKERS)
2. Those wanting to primarily make a profit off of buying silver and gold and selling when the price goes up. These people also buy paper silver and gold. (AKA INVESTORS)
3. Those who are concerned and worried that there is going to be an economic Armageddon or complete collapse of the Fiat Currency; and Silver and/or Gold will be the new money; or at the least, currency for bartering. (AKA PREPPERS)
4. Those who get into the HOBBY of numismatic collecting. They buy rare, limited quantity, old, or some type of commemorative silver or gold. Almost, but not always, government minted coins. (AKA COLLECTORS)
I've said numerous times, that this forum is dedicated to those in the FIRST type listed above. But that is not to say that there is anything wrong with having some interest in some of the other areas. For instance.... I don't believe that there is going to be an Economic Armageddon and total collapse of the US Dollar or any modern day country's currency. But what if I'm wrong??? I'm not right about everything. So for me, maybe I can take care of BOTH Scenarios; #1 and #3 above; at the same time. So, instead of buying just silver ounce rounds, maybe I will buy some of my silver in 90% Silver US Currency; e.g. Pre-1965 US Dollars, Halves, Quarters, and Dimes. I still have the silver purchasing power to preserve my wealth; but if there is some sort of Economic Armageddon, and Silver and Gold are used as currency or bartering, I'll have some small denomination silver that I can use for that situation. Of course, I would never have an overabundance of "Prepper-Silver". 10-15% might be good. So, if your goal is to have 500 ounces of silver, you'd have about 50 ounces worth of 90% Pre-1965 US Coinage. That would be about $70 "FACE VALUE".
Or maybe, if you wanted to combine #1 and #3 above with some "Investments" (#2), you might go ahead and have some "Separate Silver" for investment purposes. This would be the 100 ounce bars. Something that you can sell a larger chuck at one time. Of course, I am still against any type of PAPER SILVER/GOLD, such as SLV stock or ETF, etc. For the 1,434,654 time, I will say it again..... "IF YOU CAN'T HOLD IT, THEN YOU DON'T OWN IT".
So, there is nothing wrong with combining some of the silver and gold buyers above to have a more rounded portfolio. Just remember to keep your mind straight. If you believe, based on the knowledge you've gained from my blog, that you should possess 500 ounces of silver to preserve your wealth and use to supplement your income; as well as potentially reduce debt and purchase items at a reduced cost (Same as reducing debt), then make sure you stack your 500 ounces FIRST. If you think you should have 1000 ounces, then make sure you get that FIRST. Then, if you want to, you can buy SEPARATE Silver or Gold for investing purposes. But when the price jumps real high, and you think you'll make a great profit by selling, DON'T SELL YOUR 500 or 1000 SILVER STACK!!! What happens if the price continues to go up because of runaway inflation? Bread is $7 a loaf. Milk is $10 a gallon. You've probably gone through the dollars you profited by selling your silver. Now you're stuck because your income isn't enough to keep up with inflation. You're establishing debt again. Or what happens if, like many countries are trying to do, they move to a CASHLESS SOCIETY??? You won't be able to control your wealth. If you sell all your silver/gold, that "MONEY" will go into your ACCOUNT. You won't have control. The Silver/Gold you stack, "The 500-1000 ounces", is your INSURANCE. It's your LIFELINE. When you have no more available "FIAT CURRENCY" available, because you had to spend it all, inflation and economics will allow that silver and gold to be WORTH and have the PURCHASING POWER that your fiat currency no longer has. So, if you want to have some silver and/or gold for INVESTMENTS; that's fine. Just make sure it is separate from the 500-1000 stack you have to preserve your wealth.
Now; lets move on to the COLLECTORS. I will be quite honest here. If "Coin Collecting" is your hobby, then have at it. But it's NOT a very profitable hobby. But that's ok. Hobbies aren't necessarily suppose to be profitable. They're suppose to BE FUN!!! I use to love to work on old cars. I'd spend more time and money having fun rebuilding those cars than I could sell them for. Ham Radio is also a hobby of mine. I've spent thousands of dollars on ham radio equipment, and I'll never make any money using it. But for me, it's fun. And what good is life if you don't enjoy it. So if you like the history of coins; collecting rare silver and gold coins, or limited edition collectibles, then that's fantastic. Enjoy your HOBBY. But DO NOT TRY AND COMBINE #4 (COLLECTIBLES) with ANY of the previous 3. In other words, if you've committed yourself to stacking 500-1000 ounces of silver for preservation of wealth and supplementing your income, DO NOT consider any of your collectibles as part of that 500-1000 ounces you've stacked.
Now some may think; "What's the difference if I have 500 ounces of generic rounds or 650 each of Collectible Morgan and Peace dollars; or a mixture of collectible Silver eagles??? Well, it is true, that in an Economic Armageddon age, where silver and gold are used for bartering or as currency, an ounce of silver is an ounce of silver. But that's pretty said, when the $20 1oz 2017 silver eagle (Bought today) will be worth EXACTLY THE SAME as the $100 1oz 2017 Donald Trunk MS-70, First Release Silver Eagle (Bought Today). Imagine that you COULD have bought 5 TIMES the amount of silver for that 1 "Commemorative" coin. Or that a 1908 standard St. Gaudens $20 gold piece (Almost an ounce of gold) can be bought today for about $1250-$1300; (Same as a 1oz gold eagle); but a 1908 MOTTO MS-62 will cost approximately $13,500.
Again; if you're a "COLLECTOR" and coin collecting is a HOBBY; then that's fine. Just don't mix your collecting and your stacking. And this goes for ANY SPECIAL Silver or Gold. If it's MS rated, then you're paying too much as a stacker. If it's a commemorative, like a star trek, wizard of oz, donald trump, or anything similar, you're paying too much. If you buy it on a tv infomercial; then you're paying to much. For stacking your 500-1000 ounces, just go to your local coin shop or a reputable online seller, and buy the MOST OUNCES for your money. If you're not collecting as a hobby; then STAY AWAY from ANY Silver/Gold that is being sold as something SPECIAL. It isn't.
CYA: SE:
1. Those wanting to preserve their wealth, supplement income, and use silver and/or gold to offset debt. (AKA STACKERS)
2. Those wanting to primarily make a profit off of buying silver and gold and selling when the price goes up. These people also buy paper silver and gold. (AKA INVESTORS)
3. Those who are concerned and worried that there is going to be an economic Armageddon or complete collapse of the Fiat Currency; and Silver and/or Gold will be the new money; or at the least, currency for bartering. (AKA PREPPERS)
4. Those who get into the HOBBY of numismatic collecting. They buy rare, limited quantity, old, or some type of commemorative silver or gold. Almost, but not always, government minted coins. (AKA COLLECTORS)
I've said numerous times, that this forum is dedicated to those in the FIRST type listed above. But that is not to say that there is anything wrong with having some interest in some of the other areas. For instance.... I don't believe that there is going to be an Economic Armageddon and total collapse of the US Dollar or any modern day country's currency. But what if I'm wrong??? I'm not right about everything. So for me, maybe I can take care of BOTH Scenarios; #1 and #3 above; at the same time. So, instead of buying just silver ounce rounds, maybe I will buy some of my silver in 90% Silver US Currency; e.g. Pre-1965 US Dollars, Halves, Quarters, and Dimes. I still have the silver purchasing power to preserve my wealth; but if there is some sort of Economic Armageddon, and Silver and Gold are used as currency or bartering, I'll have some small denomination silver that I can use for that situation. Of course, I would never have an overabundance of "Prepper-Silver". 10-15% might be good. So, if your goal is to have 500 ounces of silver, you'd have about 50 ounces worth of 90% Pre-1965 US Coinage. That would be about $70 "FACE VALUE".
Or maybe, if you wanted to combine #1 and #3 above with some "Investments" (#2), you might go ahead and have some "Separate Silver" for investment purposes. This would be the 100 ounce bars. Something that you can sell a larger chuck at one time. Of course, I am still against any type of PAPER SILVER/GOLD, such as SLV stock or ETF, etc. For the 1,434,654 time, I will say it again..... "IF YOU CAN'T HOLD IT, THEN YOU DON'T OWN IT".
So, there is nothing wrong with combining some of the silver and gold buyers above to have a more rounded portfolio. Just remember to keep your mind straight. If you believe, based on the knowledge you've gained from my blog, that you should possess 500 ounces of silver to preserve your wealth and use to supplement your income; as well as potentially reduce debt and purchase items at a reduced cost (Same as reducing debt), then make sure you stack your 500 ounces FIRST. If you think you should have 1000 ounces, then make sure you get that FIRST. Then, if you want to, you can buy SEPARATE Silver or Gold for investing purposes. But when the price jumps real high, and you think you'll make a great profit by selling, DON'T SELL YOUR 500 or 1000 SILVER STACK!!! What happens if the price continues to go up because of runaway inflation? Bread is $7 a loaf. Milk is $10 a gallon. You've probably gone through the dollars you profited by selling your silver. Now you're stuck because your income isn't enough to keep up with inflation. You're establishing debt again. Or what happens if, like many countries are trying to do, they move to a CASHLESS SOCIETY??? You won't be able to control your wealth. If you sell all your silver/gold, that "MONEY" will go into your ACCOUNT. You won't have control. The Silver/Gold you stack, "The 500-1000 ounces", is your INSURANCE. It's your LIFELINE. When you have no more available "FIAT CURRENCY" available, because you had to spend it all, inflation and economics will allow that silver and gold to be WORTH and have the PURCHASING POWER that your fiat currency no longer has. So, if you want to have some silver and/or gold for INVESTMENTS; that's fine. Just make sure it is separate from the 500-1000 stack you have to preserve your wealth.
Now; lets move on to the COLLECTORS. I will be quite honest here. If "Coin Collecting" is your hobby, then have at it. But it's NOT a very profitable hobby. But that's ok. Hobbies aren't necessarily suppose to be profitable. They're suppose to BE FUN!!! I use to love to work on old cars. I'd spend more time and money having fun rebuilding those cars than I could sell them for. Ham Radio is also a hobby of mine. I've spent thousands of dollars on ham radio equipment, and I'll never make any money using it. But for me, it's fun. And what good is life if you don't enjoy it. So if you like the history of coins; collecting rare silver and gold coins, or limited edition collectibles, then that's fantastic. Enjoy your HOBBY. But DO NOT TRY AND COMBINE #4 (COLLECTIBLES) with ANY of the previous 3. In other words, if you've committed yourself to stacking 500-1000 ounces of silver for preservation of wealth and supplementing your income, DO NOT consider any of your collectibles as part of that 500-1000 ounces you've stacked.
Now some may think; "What's the difference if I have 500 ounces of generic rounds or 650 each of Collectible Morgan and Peace dollars; or a mixture of collectible Silver eagles??? Well, it is true, that in an Economic Armageddon age, where silver and gold are used for bartering or as currency, an ounce of silver is an ounce of silver. But that's pretty said, when the $20 1oz 2017 silver eagle (Bought today) will be worth EXACTLY THE SAME as the $100 1oz 2017 Donald Trunk MS-70, First Release Silver Eagle (Bought Today). Imagine that you COULD have bought 5 TIMES the amount of silver for that 1 "Commemorative" coin. Or that a 1908 standard St. Gaudens $20 gold piece (Almost an ounce of gold) can be bought today for about $1250-$1300; (Same as a 1oz gold eagle); but a 1908 MOTTO MS-62 will cost approximately $13,500.
Again; if you're a "COLLECTOR" and coin collecting is a HOBBY; then that's fine. Just don't mix your collecting and your stacking. And this goes for ANY SPECIAL Silver or Gold. If it's MS rated, then you're paying too much as a stacker. If it's a commemorative, like a star trek, wizard of oz, donald trump, or anything similar, you're paying too much. If you buy it on a tv infomercial; then you're paying to much. For stacking your 500-1000 ounces, just go to your local coin shop or a reputable online seller, and buy the MOST OUNCES for your money. If you're not collecting as a hobby; then STAY AWAY from ANY Silver/Gold that is being sold as something SPECIAL. It isn't.
CYA: SE:
Comments
Post a Comment