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Rich Dad Forum
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Rich Dad
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General Discussion
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Metal investments
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Rank: Copper
Joined: 2/1/2009
Posts: 4
Location: Slovenia
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Hello
What are your thoughts in investing in gold and silver? How much to buy? Where to stock it? When to sale it? What to do in hyperinflation?
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Rank: Gold
Joined: 1/12/2004
Posts: 171
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Here are my thoughts: (and I've thought about it for a while) http://www.coinmine.com/HOW%20TO%20BUY%20COINS/How%20To%20Buy%20Coins.htm
Financing Reality through Precious Metals and Mining.
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Rank: Platinum
Joined: 11/13/2004
Posts: 347
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Physical gold and silver is one of my favorite investments. Shiny makes me happy.
I took a look at the site linked by Max in a post above, but I have to disagree with almost all of the recommendations save one. The first one.
If you decide to buy gold and/or silver PLEASE buy bullion, or rounds.
When buying gold and silver coins the best ones to buy are Silver and Gold Eagles. The US prints tons of these so they are very plentiful. This holds the value to as close to actual metal price as you are going to find unless you purchase bars. Also buy 1oz coins when possible and nothing smaller. You pay a small premium on each coin due to its striking, why pay the premium more often than you have to?
Bars are harder to find in 1oz sizes but are even closer to the actual price. The difference at the 1oz level is minimal between Eagles and Bars, but bars are cheaper nonetheless.
Bars and coins are the only way I purchase gold and silver.
Quick note: When buying bars, the larger the bar, the cheaper they are per ounce.
Gold and silver coins also come in numismatic. Stay away from them. Numismatic coins are priced above the value of the metal in them due to design or rarity. This can become a crap shoot when attempting to sell them. So numismatic = higher purchase price and more uncertainty on getting a good sell price.
Like I said, the other ways mentioned on the site I would not do. There is no amount of trust I can give to any company that matches knowing I have that exact amount in my holdings at home or in a safe deposit box.
Plus there is a lot to be said about taking a peek at my growing pile of gold and silver coins. SHINY!
Just my opinion, of course.
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Rank: Gold
Joined: 1/12/2004
Posts: 171
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Stielle,
Actually, buying mint bullion is more expensive than buying 'junk silver' which is circulated 90% coinage. Junk silver is the least expensive way to buy silver in bulk quantities. Junk, or circulated coinage silver, also have additional benefits of divisibilty, recognition, and transportability.
The mint products command a large and unecessary premium. Furthermore, the chinese are actively conterfeiting bullion products from the various national mints. Counterfeit bulk silver coinage is essentially not done.
My sense is that you have not invested in precious metals very long, and therefore don't recognize the RD concept of leverage.
Yes, buy physical metals first. That is your foundation. There will come a point that it is time to seek higher appreciation, and the associated higher risk. You might consider not automatically ruling it out for your self, much less other people, until you have some better understanding and experience in the market.
Financing Reality through Precious Metals and Mining.
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