One simple question about buying gold and silver

[Wyatt Burp]

I was wondering about somethin'. There are constant commercials on radio and TV of companies selling gold and silver. If the value of gold and silver is going to skyrocket soon like they always say, why do they pay William Devane tons of money (or gold) to get us to buy their's now?

 

[Krell1]

Gold and silver prices go up and down just like the stock market does. All the companies selling precious metals ALWAYS sell at a profit. That means, from the start you're behind. You have to wait to sell and then the selling price could be less than market as well. The only good thing I can see is the possible long term benefit if there is any.

 

[gregintenn]

Sort of like a bookie. He doesn't care who wins the game. He makes the spread either way.

 

[acram]

In a post apocalypse world who would trade food, medicine or ammo for gold?? Precious metal investments are risky at best.

 

[DWFAN]

When I buy it's from a bullion dealer. I only buy US Mint products and only at the beginning of the issue. That's when they are close to spot on the market. Example. In 2014 I purchased 10 uncirculated silver dollars at a rate of $17.85 @. Spot was $16.50. All packaged individually, untouched by human hands with absolutely no marks. Current low wholesale is around $26.00 and up. That's a little over 45% markup. Regular bullion is a fools market. It takes years to make any money that way.

DW

 

[vmumford]

Pricing

There are many ways to buy gold and silver. You have to ask yourself why you are buying it? I buy for the metal content not the collectability. I know if I sit on it long enough I will make money but when it becomes more valuable in its value in trade if the paper collapses. If its 23.7% in a gold coin or 999.9 in silver, you can cut or chop by weight and barter with it. I know that's a reach but just saying it could happen. If not, you can always sell at spot or a small amount under by weight and not worry about collectability. You can also leave it to your family. That's how I got started with gold coins. Just my 2 cents.

 

[THE PILGRIM]

I have also been thinking about buying some gold.
I have a fair amount of silver, little gold.
And when I buy it I want possession!
Some of those speculation outfits want to store it for you.
We have an one ounce Okinawa reversion coin- yawn.
And a 10 Peso Mexican gold coin. I like the Gold Pesos!
Both mounted on a 18 K gold bracelet with some other gold trinkets.

 

[venomballistics]

it's not a bad thing to invest in if you use your head .... which is to say, YOUR head, and not someone elses.
Upside is that it's quite secure, TEOTWAWKI, and BOHICA not withstanding.
The down side is that its not liquid, and timing is everything.

 

[BAM-BAM]

Gold is at something like $1,120 an oz.............IIRC.....18 months ago we were hearing the same commercials and gold was $1,700/oz.....5-6years ago it was $450 an oz.

Silver is at $14.50 but a few 2-3 years ago it was close to $40

I've bought a few coins over the years...... generally to commemorate dates in our family lives......kind of like some cultures tie up savings in jewelry....nice to have a little..... but if we see TEOTWAWKI....... my stash of .22lr will be worth more........

 

[shaggist]

If you are buying gold and silver because it is pretty and neat to hold in your hand, great! It's another toy to play with and enjoy. If you are buying it because you think you can buy foodstuffs, ammunition, and other items for your survival from me if and when Armageddon arrives, then you have made a serious mistake. Gold and silver are not edible and have no nutritional value. If the choice is between them and something to help me and my family survive longer and stay healthier. then the choice is obvious. The metals will, in my opinion, have little or no value under those circumstances, and you will wish you had spent your money on other items of a more practical nature. I am not a hoarder or prepper, but I am a practical and logical man, and gold and silver ownership makes no sense to me.

 

[redlevel]

If you are buying gold and silver because it is pretty and neat to hold in your hand, great! It's another toy to play with and enjoy. If you are buying it because you think you can buy foodstuffs, ammunition, and other items for your survival from me if and when Armageddon arrives, then you have made a serious mistake. Gold and silver are not edible and have no nutritional value. If the choice is between them and something to help me and my family survive longer and stay healthier. then the choice is obvious. The metals will, in my opinion, have little or no value under those circumstances, and you will wish you had spent your money on other items of a more practical nature. I am not a hoarder or prepper, but I am a practical and logical man, and gold and silver ownership makes no sense to me.

This always overlooks the fact that, even in the most primitive economies, there always existed some medium of exchange. Even in post shtf, there can't be a 100% barter economy. Let's say you need a goat for slaughter, or to milk. I have a goat, but I don't need anything you have to trade. What I need is a 55 gallon drum of wheat, which my neighbor has. He (my neighbor) doesn't need goats, but he does need a 5 gallon can of diesel fuel. He can buy it for a silver dollar. He will sell me the wheat for a silver dollar, plus a silver half. I will sell you the goat for a silver dollar, plus three silver quarters.
Silver and gold, and other precious/semi-precious metals, have always been both a store of value and a medium of exchange.
Remember the Golden Rule: He who has the gold makes the rules.

 

[THE PILGRIM]

When the feces encounters the fan- It's your paper money, stocks, bonds, bank deposits and such which will be worthless.
My pre-64 mostly circulated silver will be handy for trade-bartering.
As will gold, if I buy some.

 

[redlevel]

I have bought probably 100 ounces of silver in the last three-four years. Mostly American Silver Eagles. I also bought some rolls of US 90% silver dimes and quarters, and a few 90% Silver Dollars. I have bought most of what has come through our pawn shop in the last year or so, which is a few dimes and quarters here, a dozen Silver Eagles there, and even a five ounce Mexican coin.

Spot price on the NY Exchange a few minutes ago was right at $14.50 per ounce. However, when silver was $18-$20, I could buy the Eagles cheaper than I can now. The dealers were charging a $2-$3 premium then. Now, they are charging as high as a $7 premium. We (the shop) can sell the few US 90% coins and bullion coins on ebay for more than I'm willing to pay right now. It appears that cheaper prices on the exchanges haven't translated into cheaper prices for those wishing to augment their "preps" with a little silver.

 

[ben_g1]

I like silver, think there's more of an up side than gold.

I don't buy the stuff with high premiums.

An ounce of silver is an ounce of silver no matter what shape it's stamped into.

I also like the smaller weights (1,5,10 OZ) as easier to dispose of when time comes.

 

[DWFAN]

The S is not going to hit the fan in your lifetime. There will NOT be a zombie apocalypse. Precious metals and gems will always rule the monetary system. The only way this changes is if we stat send ballistic missals at each other. If the stock market goes po po your bling will still be good. If you invest with fear in the equation all you're investing in is fear. I'll stay away from bullion and stay with new issue stamped coinage. Historically it always goes up.

DW

 

[Chuck24]

Don't forget the fees in and out. You pay extra to buy it and get charged to sell it. If collapse comes give me food, water, and ammo.

 

[Jessie]

If you're buying precious metals to make money with you're probably wasting your money.
It's best used as a hedge against inflation or worse.
Paper money could be worthless at some point if conditions were right( I should say wrong) but gold and silver will still hold some value.
If you're lucky, it will be more than you paid. If you're not, it will still be worth something.

 

[RJJ 1971]

I was wondering about somethin'. There are constant commercials on radio and TV of companies selling gold and silver. If the value of gold and silver is going to skyrocket soon like they always say, why do they pay William Devane tons of money (or gold) to get us to buy their's now?

Because we watch too much tv?

 

[Old TexMex]

Because they can't get diamonds?

 

[sipowicz]

I did not invest a dime in gold or silver but I must say that those commercials have helped my golf game immensely.