Buying silver for the first time. Help please.

[Raw Liver]

Hey everyone,

I've never bought gold, silver or other precious metal, but I'd really like to get started ASAP as I don't see the dollar getting any stronger in the future.

I have very limited funds right now so I'd like to start by buying as much silver as I can before prices rise too much more but I have absolutely no idea where to even start.

Is it better to buy silver in coins or bars (or some other form that I don't know of)?

If I'm buying coins does it matter much what type of coin it is (so long as they have the same silver content)?

If I'm buying bars, what do I need to know? (I know nothing about silver bars)

Where is it best to buy silver on the internet?

I appreciate any answers to those questions and any further insight about investing in precious metals.

 

[Seraphim]

Some stated goals and timeframes of these goals would help us give more appropriate advice.

 

[pmbug]

... I've never bought gold, silver or other precious metal, but I'd really like to get started ASAP ...

General advice: http://the-moneychanger.com/commandments.phtml

As Seraphim alludes, the answers to you questions really depends upon your goals. I would suggest you start out buying 90% silver. It's a very liquid market and you can get started with small purchases. I'd also recommend dealing with a local coin shop for small purchases.

 

[Raw Liver]

Certainly, apologies for being vague.

I believe that right now I want to buy about 10oz of silver per month which will leave me enough to save up for 1oz of gold every few months. I just graduated college and started work and basically I want to put my savings into precious metals instead of banks. That would mean my goal is essentially to buy all of the silver and gold I can.

 

[Seraphim]

Just do it than. Bullion, bullion and more bullion.

Certainly, apologies for being vague.

I believe that right now I want to buy about 10oz of silver per month which will leave me enough to save up for 1oz of gold every few months. I just graduated college and started work and basically I want to put my savings into precious metals instead of banks. That would mean my goal is essentially to buy all of the silver and gold I can.

 

[Raw Liver]

Just do it than. Bullion, bullion and more bullion.

Any suggestions as to where I buy it from?

 

[Seraphim]

Local dealer. You can do online at http://www.apmex.com/ or something of the like.

Personally, I suggest finding a local dealer and paying in cash like it's religion.

Any suggestions as to where I buy it from?

 

[XTreat]

I like to buy silver off craigslist. I buy Morgan and Peace dollars from senior citizens trying to make a couple extra bucks. I can get the silver at spot or below and there is no charge for commission or shipping.

Works pretty well for me.

 

[Seraphim]

This is good advice as well.

I like to buy silver off craigslist. I buy Morgan and Peace dollars from senior citizens trying to make a couple extra bucks. I can get the silver at spot or below and there is no charge for commission or shipping.

Works pretty well for me.

 

[pmbug]

Be careful buying Morgan dollars off ebay/craiglist. There are fakes being sold. Either buy from a reputable dealer, or get some equipment (scale, etc.) to verify authenticity.

 

[cubical]

If you are only doing 10oz per month, you should def find a local dealer.

 

[Jeez]

I am not big bullion fan (it can get boring stacking eagles). I buy gold and silver world coins, as long as you do your research it is fairly easy to accumulate them.

 

[bucfish]

Buy from a good local dealer

Hauser Coin in Central Florida is very reputable. Bought some in Late Feb, early march they only charged $2 over spot on some American eagles. Also said they would buy back any silver at $1 under spot from their customers. They have two stores one in Lakeland and one in Clearwater they have been in business since the 60's. http://www.hausercoin.com/

Also www.apmex.com is great bought from them as well if you don't happen to live in florida or have a well established coin dealer by.

 

[Deft9]

Shop around.
apmex.com trustedbullion.com bulliondirect.com goldshark.com monex.com golddealer.com
Goldshark can help you comparison shop for some things.
Try to buy as close to spot as possible. Look at what they're buying, so you know what you can expect if you want to sell. When you're buying, you're going to pay a premium over spot. Try to buy as close to spot as possible. You might be able to get a deal on craigslist or ebay. Look at coinflation.com for melt values of American coins. Pre-1965 quarters, dimes, and half-dollars were 90% silver. Silver dollars were the Morgan and Peace dollars. They're all highly recognizable and not a bad place to start for small purchases. There is risk when investing, although I'd argue that there's also risk when holding paper dollars, which have been plummeting for years now. You could also buy some gold in small quantities.

 

[IBleedNavyAndOrange]

If I'm buying coins does it matter much what type of coin it is (so long as they have the same silver content)?

-that depends on your intent. Easily and readily recognizable is a good place to start. Everyone knows what american 90% looks like even if they don't know they year it all became slugs.

If I'm buying bars, what do I need to know? (I know nothing about silver bars)

-Dont tell anyone what you own. The smaller the bar, the higher the premium.

Where is it best to buy silver on the internet?

-the place that doesn't keep a record.

Gold can be had fractionally. For the same amount you'd spend on $14 face value 90% (10 oz) you can get a 1/4 of gold.

 

[Cleaner44]

I am a big fan of pre1965 90% silver coins. Very low premium.

$1.40 = about 1 troy ounce of silver.

$14 of face = 10 troy ounces

40 quarter and 40 dimes = about 10 troy ounces

 

[_b_]

do you guys generally buy when you can/want to or do you try to hit a little bit of a dip? I've been a bit gun shy and always waiting for a dip and then missing it, but I'm really ready to start now (in a similar spot as the OP).

I was thinking of getting some silver like Eagles or Maple Leaves, but I'm curious about the small bars as well. Would there be an advantage to go with 1oz rounds vs 1oz or 5oz bars? I'm mainly looking for it as a way to protect wealth, not so much for actually exchanging it directly for goods and services when the currency collapses - a bag of 90% would be smarter there, I think.

 

[pmbug]

If you are buying strictly for investment/wealth protection, you want to maximize your ROI. Therefore, you want to seek out the option with the lowest spread between buy/sell. Of course, you need to consider if the premiums/spread is going to remain stable or not (ie. consider if one form becomes more scarce/popular like Eagles did a while back and premiums for both buy/sell jumped). Last I checked, 90% had the best spread. Eagles looked to be the most popular/liquid. YMMV.

 

[pmbug]

do you guys generally buy when you can/want to or do you try to hit a little bit of a dip? I've been a bit gun shy and always waiting for a dip and then missing it, but I'm really ready to start now (in a similar spot as the OP). ...

Looks like you are getting it now.