Gold, Silver, BTC etc. (1 Viewer)

[Zigg]

I have some questions and comments, so I apologize in advance for my unorganized ranting.  

I understand these commodities(is bitcoin considered a commodity?) are gaining steam due to insane money printing, and a lack of faith in currency.  What do people expect when investing in these things as a currency hedge?  Do we expect these to become a pseudo currency if fiat disappears?  A stop gap until the next currency?  I really can't see a future where 99%+ of the population who own no G/S/B give an F about your gold in the event of massive inflation.  But I am very curious and would love to hear some insight from more informed people.

Despite my skepticism, I am interested in investing.  I am looking at silver and have a couple questions.  I found a very reputable site, and their spot price for silver, when purchasing 500oz, is $5.50 above spot.  Is that normal? Also, does the type of bar matter?  There is a $16/10oz price difference between the most expensive, and cheapest bars.  All bars are 99.999.  Lastly, how easy is it to sell silver(or gold)?  All price info is in CAD.

Thanks for all your incoming knowledge.  

 

[popeye]

I see precious metals as a way to diversify investments and balance risk rather than part of any future currency. 

One thing to consider is whether you plan to hold physical gold/silver yourself or use a third party to purchase/hold.  If you plan on taking possession of physical metal, you'll need to account for secure storage.

$5.50/oz over spot seems high for 500 oz of silver.  What size bars you looking at?  

Gold and Silver are very easy to sell.  

 

[Zigg]

50 10oz bars.  Keep in mind that’s $5.50 Canadian.  Any info about different types of bars?  Is there a difference?

 

[popeye]

If storage permits, 5 100oz bars would save on premium.  But there's nothing wrong with a smaller bar.  The smaller bar does provide flexibility when selling.

In general, my take is that silver is silver.  However, there are collectors who are willing to pay high premiums for certain names of bars/rounds they see as scarce.  And there are collectors who are willing to pay more for poured bars over cast.  Just remember, most dealers aren't going to give you that higher premium if you're selling those "scarce" bars back.

 

[Gawain]

Premiums are too high right now for anything but dollar cost averaging purchasing. Premiums will come back down as we get through this pandemic. 5.50 for anything but semi numismatics is way too high.

Because you don’t have a ton of experience I would not buy bars. I would buy a sealed box of govt bullion, either American silver eagles at no more than 2.49 usd over spot or Canadian silver maples at no more than 1.99 usd over spot.

 

[Rattle and Hum]

American silver eagles at no more than 2.49 usd over spot or Canadian silver maples at no more than 1.99 usd over spot.

Good info. Can these be forged or is assurance of authenticity pretty simple?

I'm sure there are better but here is an interesting read on how the retail holder can take it in the shorts should there be a need to sell during a volatile market: Link

 

[popeye]

A scale and understanding the dimensions of the bullion go a long way to spotting a fake - here is one guide.  Can't stress this enough - only buy from a trusted source.   

 

[Gawain]

Good info. Can these be forged or is assurance of authenticity pretty simple?

I'm sure there are better but here is an interesting read on how the retail holder can take it in the shorts should there be a need to sell during a volatile market: Link

China is counterfeiting everything that can be sold. As Popeye points out, especially for gov't issued gold (though tungsten is a problem for gold) and silver, fakes are fairly east to catch with a little practice. A Chinese fake producer can either match the weight or the dimensions using base metal, they can't hit both. 31.1 g and 40.6 mm in the case of an ASE.

I'd steer clear of bar products, especially cast as these rely on a specific gravity test (or a PMV/RF which is pricey).

Buy from a reputable dealer. In this day and age, the online dealers are much better than any B&M establishment. If you want to be an active trader, stick to GLD/SLV. Transaction costs in the physical market will kill any profit you have.

 

[FreeBaGeL]

I think it's kind of a self-fulfilling prophecy.  While I'm sure there are a select few that think we will literally be handing silver back and forth or transfering bitcoin to each other between our phones as our primary form of currency in the next 10 years, I'm sure those people are rare and I would imagine most of them felt that way before the crazy money printing anyway.

All in all like I said, self-fulfilling prophecy.  Everyone buys it because they think everyone else will buy it because of the money printing, and all those people are buying it because they think everyone else will buy it, etc.

 

[Gawain]

I think it's kind of a self-fulfilling prophecy.  While I'm sure there are a select few that think we will literally be handing silver back and forth or transfering bitcoin to each other between our phones as our primary form of currency in the next 10 years, I'm sure those people are rare and I would imagine most of them felt that way before the crazy money printing anyway.

All in all like I said, self-fulfilling prophecy.  Everyone buys it because they think everyone else will buy it because of the money printing, and all those people are buying it because they think everyone else will buy it, etc.

I keep 6-7% of my assets in PM/BTC for two big reasons.

1) It is too easy to wake up and found your bank account frozen. Zombie debt collector, bank error, court ordered attachment...it is very easy for a bank to deny you access to your money. Having cash on hand / something close to cash allows the family to get by until the situation is cleared up.

2) If there ever is an inflation event, I don't expect people to go back to using 90%. However, gold/silver/BTC allow someone to buy whatever the next currency is.

 

[shades]

If one does have some physical silver, say, a sealed tube of American Silver Eagles, what's the best way to cash out when one's ready?

 

[jrt103]

If one does have some physical silver, say, a sealed tube of American Silver Eagles, what's the best way to cash out when one's ready?

local coin shop