Posted on 11/10/2010 11:29:31 AM PST by GilGil
This is not an article about investing in gold. This is an article about the total collapse of the dollar and Obama’s utter mismanagement of the country.
That gold will reach $1600 by next January is a given. Things are falling apart so fast, that very few people understand the dynamics of this implosion.
As we have said $1600 is a given.
Where $5,000 comes in is a function of how quickly the liquidity of quantitative easing (QE) reaches all the cogs of the economy. The rapidity with which the QE lubricates the economic machinery is a function of the Federal government’s ability to move fast enough and to do the right thing.
If the Federal government fails us, values will start collapsing and there will be a total loss of faith in the dollar’s inherent ability to hold value. When that happens, markets will panic and go to the only store of value left which is gold and the $5,000 price tag will be reached. That loss of confidence has already started.
(Excerpt) Read more at examiner.com ...
After you pay to have it assayed for each transaction so that the gold buyer can be sure it is gold. I couldn’t just take your word that it is what you say it is. Guns and Ammo are the best investment going forward.
Having both silver and gold is a good idea. You’d cash in the silver for small stuff, and could exchange the gold for silver at the time
As for which.. I don’t do junk silver, although a dollar of junk silver, no matter how many coins you use.. Is worth about $20 today
http://www.coinflation.com/coins/silver_coin_calculator.html
I stay away from the ingots/bars... Easier for ppl to counterfeit, which would be fraud. If ppl were to counterfeit the silver coins, that’d be a federal counterfeiting charge. Much more serious.
Because of this, moving the coins is/will be easier
As for the price... Silver usually bounces between 25 - 80 to 1 compared to gold. I think the avg is in the 40s.
The Silver to gold ratio is currently 52 : 1
gold: $1401.50
silver: $27.15
Since you can’t eat gold, gold is good for one thing - recovering after a catastrophic collapse of a society. Obama will drag us through the mud and make us suffer, but he won’t be able to totally destroy this country (he would like to)
This guy told me bars, junk, silver dollars are all different prices per oz. Is this true?
I seem to remember reading somewhere that each “junk” coin has different percentage amounts of silver depending on the size. I assume that means a percentage of one troy oz. That only makes sense due the size difference. But, does one coin have a higher percentage than the other?
And, again, how much over spot should you pay?
I own over 150 kg of silver, at least half from $7, about 1/4rd from $11-13, the rest at about $17. I’ll not miss out.
It is always the last to the party whose stomach linings get tested. I strongly believe $25 is the new floor for silver. But silver has a long established history of having trouble at “round numbers”. I’m firmly bullish on silver. But it could take a year to get through $30. Newcomers who see 3 successive days of 4%-5% moves should be aware of this. These kind of parabolic moves more often than not get taken back in the short term.
That is correct...and not a pretty picture. 2011 could get ugly.
Here are some good sites to see actual buy/sell prices on Au/Ag
www.apmex.com (excellent; check shipping costs)
www.amark.com (a wholesaler; you cannot buy from them)
www.golddealer.com (excellent source)
www.tulving.com (among the very best; strong minimum qtys)
And I strongly suggest www.coinshows.com to check and see if there is a coin show you can visit in your area. Good for small quantities.
Cheap entertainment, $2-3 admission, if any. Sellers there are there for cash in hand and you take your goods with you. No postage.
“...a dealer quoted me a 10% charge above current market prices.”
This is normal. Most coin dealers will pay $2.00 under spot if you are selling and charge $3.00 over if you are buying. Some dealers are paying spot price because they have a long waiting list of eager buyers that are willing to take all they can get at $3.00 over market quotes.
Buy now because silver will reach $50.00. Just my opinion.
Thanks. I really appreciate the info. Bottom line is what I buy will have to go up around 10% before I’m in the black. But if I buy now at around $30 and it goes to $50 I’ll be in good shape. I know it’s all a gamble. But I don’t think it’s a gamble to bet on dollars going down.
(Silver got CRUSHED today, btw)
Go to a coin store and sell it for $5000. duh.
The long term historical ration of silver to gold has been about 16 to 1...
The long term historical ratio of silver to gold has been about 16 to 1...
This guy told me bars, junk, silver dollars are all different prices per oz. Is this true?
^^^^^^^
SD’s always carry a premium over regular “junk” coins because...well, they just do. You will ALWAYS pay more for a SD than 10 qty 1963 dimes or 4 qty 1958 quarters. If you strictly want silver as cheap as you can get it, you should not buy SDs. Also, there are more counterfeit Chinese SDs than dimes, quarters, or halves. Junk coinage is attractive because it is highly divisible, generally carries the smallest premium, and nobody will ask you to assay a 1962 Washington quarter.
There is nothing wrong with paying a few bucks extra for a few SDs because you like the coin. In MOST cases, just like buying a Mercedes, paying a litle extra for one “preferred” form will yield that premium back upon sale. Silver Eagles cost about $2 more than a generic round, but will yield that premium back on sale.
You can get pictures of any of this stuff searching on ebay which is de facto the world’s biggest coin market. It may or may not be the greatest place to buy or sell.
^^^^^^^^^^^
I seem to remember reading somewhere that each “junk” coin has different percentage amounts of silver depending on the size.
^^^^^
All US junk coins, with the exception of 1965-1969 Kennedy halves and 1974 Eisenhower dollars (which never really circulated) contain 90% silver. Standing Liberty quarters, Barber quarters, Mercury dimes, Roosevelt dimes AND silver dollars are all 90%.
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I assume that means a percentage of one troy oz.
^^^^^^^^^^^
No, percentage of gross weight.
^^^^^^^^^^
That only makes sense due the size difference. But, does one coin have a higher percentage than the other?
^^^^^
see above
^^^^^^^^
And, again, how much over spot should you pay?
^^^^^^^^^^
As little as you can!
^^^^^^^^^^
Many other countries produced silver-containing coins.
Canada produced dimes, quarters, and halves pretty much like the US did, except they are 80% silver until 1967...SOME 1967 Cana coins have reduced silver...it is best to avoid that date.
Mexico produced lots of .720 coins and many .500 coins. Many, maybe even most of them show the composition.
Mexico also produced “onzas” (”ounce”) aka “Libertad” coins which contain 1 tr oz .999 silver. SOME onzas are weigh 1 tr oz and ALL of it is .999 silver. SOME onzas weigh 33.xx grams and are composed of .925 = sterling silver. A very popular coin.
I had a friend who used to travel to Mexico frequently around 5 years ago and claimed that in one section of Mexico City, there were guys selling onzas by the bucketful. $6 each, all you want. (THERE ARE IMPORT RESTRICTIONS ON QTYS OVER 20 or maybe 25 ONZAS!) I gave him money to bring back 20 of them. Ooops, forgot. Tried it again, they were $7. Ooops, forgot. Tried again, ooops, forgot. $8. Next time: $9. Next time “they are all gone”.
Everyone assumes that life would be the same after such a financial crisis. May NOT be the case. DUH!
Ebay. Every imaginable coin you'd want is on there. Just looking at melt value is going to be juuuuust a touch misleading tho because you need to consider the numismatic value of most coins.
Even the dbag at the coin store (the one I no longer go to) couldn't explain to me why he would only give me gold/silver spot value for my American Eagles but would sell them to me with numismatic value in the price. So yes, even bullion coins have numismatic value.
How long term? Link?
Sounds like the guy was bull sh..ing. Like the “friend” who says “Why didn’t you let me get my friend to fix that transmission for you. He’d have done it for half price.”
Why did that “friend” say something the day you told him the transmission went out.
So we’re going to stop using currency after a financial crisis? Based on what in history? DOH!! epic.fail.
Meant to type why DIDN’T that friend say something.
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