Last call for cheap silver and gold in the next few months?

Discussion in 'Money, Investing & Precious Metals' started by BillS, May 15, 2020.

  1. BillS

    BillS Well-Known Member

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    The Fed is creating trillions of new dollars every month. I think we're going to see significant inflation soon. Probably hyperinflation in the next year or two. Now is a good time to get more precious metals if you can afford to.

    I expect that we won't get any warning when precious metal prices take off. Chances are we'll get up one morning and find out that gold is hundreds of dollars higher and silver is $50 higher. And no coin shops will be selling until the price plateaus at some new level.

    I've bought as much as I want to buy now. I've been listing things on eBay, selling them, and using the money to buy silver.
     
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  2. Tweto

    Tweto I love the smell of Argon in the morning

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    I agree that PM is going to explode, if not soon then in the next year or two.

    The Fed for 10 years has been worried about deflation, not inflation, that's why they have been lowering the rate down to almost zero, to increase the velocity of money. The purpose for this is to stimulate inflation and for 10 years it's failed.

    I do believe we will have inflation and maybe hyper inflation but not yet. I believe we will have deflation for several years before inflation takes off.
     

  3. zimmy

    zimmy WELL SEASONED

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    Okay so where do we buy the silver, I have never bought any before and what type of silver do we buy?
     
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  4. LincTex

    LincTex Jack of all trades?

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    I go to Apmex and just buy the cheapest .999 1 Troy Ounce "rounds" they sell.

    https://www.apmex.com/category/25020/silver-rounds
     
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  5. BillS

    BillS Well-Known Member

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    I've bought from providentmetals.com and sdbullion.com. I prefer to buy Canadian Maple 1 oz silver coins. But if you haven't bought any silver before I'd suggest buying junk silver first. That's 1964 and earlier US coins that are 90% silver. They're typically sold in quantities of coins based on face value. So a dollar in face value could be any combination of dimes and quarters. They usually sell 50 cent pieces separately. One nice thing about junk silver is that it would make it easier to trade silver for items in small quantities. One 90% silver dime has 2.5 grams of silver. A troy ounce of silver has 31.1 grams so it takes about 12.5 silver dimes to equal an ounce of silver. So the melt value of a 90% silver dime is about $1.30 if silver is $17.85 an ounce.
     
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  6. BlueZ

    BlueZ Well-Known Member

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    jmbullion.com

    Right now we are in a weird situation where due to the shortage of minted silver, the spread (the mark-up if you will) between silver spot price and what you actually pay to receive physical silver is higher than ever before.
    How ever Gold has not been affected by this.
    The mark up from spot to a coin like canadian maple leaf when bought at 100 pieces or more was always like 1.78 USD> now its 5 dollars!.
    Silver Eagles are even more marked up.
    some of the rounds are starting to come down. but are still mostly at 3 dollars over spot. (6 months ago u could buy them for less than a dollar over spot)
    Gold is marked up by only 6-7 % whereas silver is marked up by 25% (ish).

    So right now due to very high demand the price to pay for silver is also high...
    It sounds crazy give how expensive gold is per weight.... but its not marked up as much % above spot.
     
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  7. zimmy

    zimmy WELL SEASONED

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    So the bottom line is don't buy silver now but keep watching silver prices and buy low, correct.
     
  8. BillS

    BillS Well-Known Member

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    I'd buy now if you have the money. Always buy when you have the money. When silver is $200 you won't care if you bought it at $15, $20, or $25.
     
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  9. BillS

    BillS Well-Known Member

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    Premiums reflect the actual market price of gold and silver compared to the spot price. I wouldn't be surprised if we had silver premiums equal to the spot price before too long. I think it was Provident Metals that posted their buy back price for silver coins. The buy back price was higher than the spot price.
     
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  10. BlueZ

    BlueZ Well-Known Member

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    Its complicated..
    Because the spot prize (even though it has recently risen) is still kinda on the low side .. so even though the markups are higher than they have been historically, it may be a wash..
    I am certain markups will drop, (they have already to an extent compared to 2 weeks ago..) but also certain that spot will rise (it also has compared to 2 weeks ago)

    As a result the price of the silver is almost the same as it was 2 weeks ago when spot was lower but spreads were also higher..

    But if you dont have any silver at all, I'd buy some the risk seems low.

    I spent a LOT on silver last 12 months and was getting nervous about putting away so much of my savings..
    But thing is.. your dollar savings are really just electrons in some banks server..
    How much can we really trust that long term?

    So I prioritized Silver over buying ammo/guns/ even food (already have plenty of all those.. except my food supply not as high as it should be..)
    Dint byy ammo now as its approx 20-33% higher than a year ago.. (depending on caliper.. some non volume calibers that are usually expensive anyway are only up 15%)

    Stick to 1 ounce sizes (a convenient size for transport, but enough to get a fair deal small when buying...enough can be used to pay for things in a certain collapse phase (like in venezuela people are dirt poor. but you can still buy food, clothes, gas, even women, with silver and gold.).
    I remember during the 2008 crisis some gas stations had signs up "will take Gold or Silver for gas")
    Coins are more prestigious than rounds (which merely looks like a coin but it is minted by private mint so cannot call itself a coin)
    The Silver Buffaloes (a well known round) are , compared to others, not too badly marked up over spot right now. (about 3 USD. usually can be had for 0.8 to 1.2 USD over spot, depending on quantity)

    Also while "only" a round not a coin (those are always marked up more, even mor so now) it has a coin format, 1 oz round) which will likely help its acceptance in a post collapse..
    Also its one of the better known rounds
    https://www.jmbullion.com/1-oz-silvertowne-buffalo-silver-round-new/

    If you ever need to sell your silver, it generally not hard.. just be sure to avoid pawnshops they will always try to rape u very badly.

    PS: Right now, I absolutely cannot recommend Silver Eagles, or even my old favorite Maple Leafs. The Eagles are markd up 9 dollars over spot!.. thats 50% over spot.. the Maples Leafs are a bit better (as they usually are) but still too much of a spread over spot for me to recommend them..
    Most of the Coins, even some of the rounds and even the silver bars (which should be the closest to spot) are still crazy marked up.
    Right now I only see those buffaloes in a price range thats relatively moderate over spot (by todays standards)

    I been doing this a long time... but if I were to buy silver now Id get those Buffaloes.
    (no guarantees in life for positive outcomes of investments.. but I think most of us buy Silver as a hedge not an investment.)
     
    Last edited: Jun 8, 2020
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  11. BlueZ

    BlueZ Well-Known Member

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    PS: If/When you buy.. try to spend enough that you reach the "100 ounces" threshold.. that's usually the quantity where you start getting close to full volume discount.
    The next step up and the fullest volume discount is 500 ounces, which is the price of a decent used car... to much for most.
    While 100 ounces is also not a trivial outlay you get a much better volume discount than buying ten or even 50.
     
    Last edited: Jun 8, 2020
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  12. ArizonaHeat

    ArizonaHeat Active Member

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    And if you need smaller increments you can purchase the Valcambi silver Combibars and snap off "coins" for barter...
     
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  13. BillS

    BillS Well-Known Member

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    Silver has gone up 30% and gold is up 8% over the last 30 days. Premiums make the silver price $28 to $32 and gold $2000 an ounce. If you have extra money you can use to buy precious metals you should do so now. And not wait for big dip in the price.
     
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  14. BillS

    BillS Well-Known Member

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    It took silver months to go from $16 to $20. Weeks to go from $20 to $24. Now just a week to go from $24 to $28. In one day silver went from $27 to almost $30 then it dropped to $28. It's going to be interesting to see what it does next week.
     
  15. BlueZ

    BlueZ Well-Known Member

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    Did you call this or what? :)

    Luckily i bought a lot of silver i march before it went up ..
    ....it was already starting to creep up back then and i was hesitant + worried i might be buying high(ish) but now I am glad I committed major funds to it..
     
  16. Tweto

    Tweto I love the smell of Argon in the morning

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    And it's still a good time to buy!!
     
  17. BlueZ

    BlueZ Well-Known Member

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    I dunno... spot is flirting with 28 dollars and premiums are high..
    On the other hand uncertainty is also high.. and savings are just electrons in some banks computer...
     
  18. Tweto

    Tweto I love the smell of Argon in the morning

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    Since gold and silver have settled back a few percentage points but have remained there, this maybe the new permanent floor. If it proves to be the new floor, that means that both metals will probably make another jump to a higher valuation. I think it's still a good time to transfer assets into gold and silver.