Buying silver (sales, real estate, foreclosed)

michmoldman · 03-10-2011, 08:48 AM

I have an ounce of silver my uncle gave me when I graduated, and never really gave it much thought because it was not worth much. Now I see the price of silver is going crazy and I think I need to start buying some up. I heard it may go up to $200 an oz. this year. I dont know much about it, and am wondering if anyone can tell me whats the best place to buy some?
Thanks

Coldjensens · 03-10-2011, 08:54 AM

Silver is pretty high right now. It may not be the best time to buy. The investors rule of thumb is buy low sell high. It may go up more, but it also may crach. precious metals are over inflated right now IMO. They are due for a crash. If I had some, I woudl be thinking of selling it, not buying more.

MY BIL bought a bunch of silver in the 1980s because he was convinced that our society woudl collapse and precious metals would be the only commodity. Some guy tried to corner the market on silver and the price went way way up so BIL bought some more. Corner the market guy got in trouble and prices crashed. BIL lost tens of thousands in a week or so.

Precious metals are at an all time high I think. (Not postive and too lazy to go look it up on google). It is not impossible that something simlar could happen again.

Anyway if you want to buy some, look online there are lots of precious metal brokers. Any place that handles gold transfers will also handle silver. Keep in mind that the brokers are the ones who will really make a profit on this.

You can also look on E-bay and auction sites for silver coins with no historic value. that means worn out coins or coins where they made a lot of them that year. If they have no collector value, then they are only worth their silver content.

michmoldman · 03-10-2011, 08:59 AM

Quote:

Originally Posted by Coldjensens

Silver is pretty high right now. It may not be the best time to buy. The investors rule of thumb is buy low sell high. It may go up more, but it also may crach. precious metals are over inflated right now IMO. They are due for a crash. If I had some, I woudl be thinking of selling it, not buying more.

MY BIL bought a bunch of silver in the 1980s because he was convinced that our society woudl collapse and precious metals would be the only commodity. Some guy tried to corner the market on silver and the price went way way up so BIL bought some more. Corner the market guy got in trouble and prices crashed. BIL lost tens of thousands in a week or so.

Precious metals are at an all time high I think. (Not postive and too lazy to go look it up on google). It is not impossible that something simlar could happen again.

Anyway if you want to buy some, look online there are lots of precious metal brokers. Any place that handles gold transfers will also handle silver. Keep in mind that the brokers are the ones who will really make a profit on this.

You can also look on E-bay and auction sites for silver coins with no historic value. that means worn out coins or coins where they made a lot of them that year. If they have no collector value, then they are only worth their silver content.

Yeah...I have been looking on Ebay, and the prices are going crazy. I think they will still go up quite a bit for at least another year, so I think it would be a decent investment right now. What exactly am I looking for as I see the price of some is lower then others...do I want 999% pure or/and what else...or is that it?

tjay · 03-13-2011, 01:23 PM

you could try garage sales or estate sales......i used to find old tarnished silver this way.....if people haven't caught on what they're giving away

kcam213 · 03-14-2011, 12:27 AM

You can buy silver at gold coin shops. Buy US quarters that are silver. They are the most convenient.

I really believe in precious metals as an investment.

DH and I bought gold several years ago (2001, or 2002) when it was $250 an ounce... today spot price of gold is $1435.

We sold out about 5 years ago, made a nice sum, but if we held on... we would had close to 3/4 of million.
My inlaws bought gold several years after us but still got in a decent price. They still have gold and sell when they want to buy things. Just put a huge down payment on a foreclosed house lakefront and just sold some gold coins to put the downpayment and closing cost.

DH does say that gold is due for a downturn because EVERYBODY is talking about it (mainstream media).

But he still thinks silver has not peaked, and we are still invested in silver, not a lot, but depending on how high silver does...

Indentured Servant · 03-14-2011, 08:00 AM

I would say that now is time to buy because silver and gold generally have inverse relationships with the direction of the currency and or inflation. The thing to watch is the bond market and what China does in regards to its dollar holdings and its willingness to take finance more US debt. In my opinion the world economy is out of balance and in many cases insolvent. There are a lot of things related to natural resources that are ominous. There is a lot of political unrest in the Middle East. Iran is inching closer to creating a nuclear weapon. There is too much instability, and hence a lack of confidence, for precious metals to take a dive. Hence, even if you buy now the threat of a crash in precious metals is low and the only thing that would bring that about is if the Dollar suddenly gained against foreign currency.

That having been said, I am going to invest several thousands in silver this year. I think as a general rule you want to take delivery of any precious metal investments as apposed to buying funds. People might be selling even though they lack a physical inventory. Its kind of like banks and deposits. Banks lend out deposits but banks actually lend out way more money than actually physically exists as deposits. They do this through what is called "Fractional banking". Thus, banks actually create money in the form of debt or loans that exceed their deposits. A lot of precious metal funds don't actually have the physical inventory to cover what it sells. The hope is that everyone will not ask for physical gold at once.

However, I would seek a professionals advise if you are looking to make serious investment.

Retroit · 03-19-2011, 06:51 AM

No way would I buy silver now (nor gold). Prices have gone from $20 to $35 in 6 months. This is almost all due to speculation and has very little basis in supply and demand for the metal. And the thought of people walking around after a financial cataclysm buying loaves of bread with gold and silver bullion makes me giggle. Only the Hunt Brothers could top this.

Also, there is an investment section in the City-Data "General Forums" area where this has been / is being discussed.

kcam213 · 03-19-2011, 03:07 PM

^
people have been saying this since the 1990's when gold was a little over $250 an ounce... now it is over $1400 in a little over 10 years the price of gold has risen over 5x.

I wish we had stayed in the market.... we sold out too soon listening to naysayers saying the very same thing you are saying. We sold out in 2006 and invested in real estate

Gold has done nothing but gone up, our property sits empty.

Retroit · 03-19-2011, 03:20 PM

^And it may very well go up much higher. But the question is: do you want to base your investing on reasonable valuations or do you want to base it on speculation. Is it logical that the value of gold has gone up over 5 times in 10 years? Are people buying 5 times more jewelry? Are industries that use gold producing 5 times as much? Or are speculators driving the price up by spreading irrational fear that the whole world is going to one day stop using paper money and switch to gold?

denofhc · 04-12-2011, 07:32 PM

What is the best way to SELL silver? I've got some silver coins I'd like to get rid of.