Asking to those that understand the ins and outs of the precious metal markets.
Wanting to drop $5K into precious metals. cheapest silver ounce is $30.61 which tells me I'm loosing $4/ounce because of the spot price. Similiar idea with gold. Help walk me through the idea of purchasing these items even though they are seemingly dropping in value as soon as I buy them.
Also, how would you divide your precious metal portfolio 20/80 gold/silver. 50/50? and is that by dollar amount or by ounce, i was thinking of buying 2oz gold, and 20-25 ounce silver. gold was going to be 1oz bars, while silver 1oz coins.
please help me make sense of this, I know our paper dollar is loosing value and will continue to do so.
EDIT/UPDATE: I pulled the trigger, and I put PedoJoes stimulus money into silver. Bought 140 ounces
Silver has been the primary market manipulator for over 150 years. For all of history its value relative to gold has closely matched their respective availabilities (10:1). This changed over 200 years ago when the first Central Bank was created in America by the Rothschilds (1810ish?). It went from around 10:1 gold:silver price to 15:1. This was the first silver manipulation.
Most people had silver, the very wealthy stored their wealth in gold. This market manipulation further separated the two groups. It remained at 15:1 until the coinage act of 1873 when money was no longer tied to both gold and silver, and became tied to only gold. This instantly made an even bigger jump in the gold:silver ratio and subsequently the wealth of the rich v. the average person.
This trend continued, through various acts and restructuring of our financial system (Federal Reserve, Stock Market, Acts, Laws, edicts, etc.) until about 1933 when the separation became about what it is today ~75:1. It has varied between 50:1 - 100:1 throughout that time. This has been done to manipulate markets. It has very little (probably nothing) to do with real supply and demand.
In the past 100 years the demand for silver has increased over the demand for gold. Our technology uses silver for its superior thermal and electrical properties. In a normal market the price of silver would have increased relative to gold. In our market it has only fluctuated up and down, regardless of use.
Once we throw off our Luciferian chains, the prices of these metals will adjust to their real value. If we use them in a new precious metals standard the price will stabalize and inflation will become related only to availability of the metals. Deflation is even possible, but really, things like inflation and deflation are not really important unless it is a huge variance.
In my estimation the price of silver to gold will probably be in the 10:1 ratio again, which makes silver a much better investment than gold. Nevertheless, the price of gold is probably substantially suppressed. When you look at inflation adjusted values of gold and silver the prices should be around 10k/oz for gold and 1k/oz for silver. If you look at it relative to other metrics (like debt, or availability on a global scale) these values can become even higher in real purchasing value.
Thanks for the detail.
I've started accumulating generic silver one-ounce coins and have another order on the way. The markup over spot seems reasonable to cover shipping, insurance and a profit.
I would be SO happy if it went to 1k/oz.
Just for clarity, in this scenario it would be less that silver was increasing in value and more that the dollar had become worthless paper.
Buy a good-condition Buick coupe made in the 1970s.
Unless you can negotiate a better price, the average bullion sellers have a big mark up from spot. There's talk about massive physical silver shortages, DO NOT buy into the "Dynamically vaulted" silver options because they actually won't have it, it'll just be on paper.
Especially now you want to have physical possession of metals. The talk is that silver will soon be exposed, and will fly, it's already done well from the beginning of this covid crap, that choice is yours. It has been higher than it is at the moment also in this last year.
Gold has fell back a bit, and that too had a big run up during this and has fell back slightly (I bought in March at the start as during crisis it usually does well) and could go lower?
I obviously can't give you any financial advice of what you buy and what price, all I will say again is make sure you have it in your possession! I've bought more silver than gold, just, and smaller values just because it could be easier to trade in the future for other stuff?
Oh yes, I should have mentioned this in my other post. The price of physical silver compared to the completely fraudulent paper silver (spot price) is irrelevant. Physical silver is in demand, paper silver is not. It is in the process of breaking free from its paper chains (market manipulations). Eventually the price of silver stock (which has no real backing for most investors) and physical silver will separate completely.
This means that if you intend to buy physical silver and sell it back in a month if the price goes up, you are probably not making a sound investment. If however you plan to keep it until the Bankers no longer hold it hostage (hopefully sooner rather than later) then it is one of the best investments you can make. Though I hear lead is also popular.
The difference between spot price and the price you're paying is what's called the "premium." It covers the costs of minting and distributing the rounds. A 10-15% premium is very normal.
What's interesting in this market is that most premiums are around 25%, which means there's a disconnect between the spot price (which is based on paper value of silver) and the real-world price. Theories abound on why this is, including manipulation of the market.
Given current conditions, the $30.61 price is very fair. A silver bull market typically takes a few years to unroll, so move forward only if you're looking to hold onto the bullion for multiple years; if you expect to need that money in three months, don't do it.
It all depends on what your objective is. If you see metals as an INVESTMENT, then you need to pay close attention to the daily spot prices. But if you're like me and see metals as a backup currency for when our fiat currency inevitably crashes, then you buy what you can at whatever price you can afford, and put it away in a safe place and "forget" about it....until the day comes when you need it to buy basic products and groceries. ...or trade for ammo, or whatever.
I believe we are in the same region of the country, do you use a local shop, if so which one? If you don’t mind
I've bought from West Side Coins & Collectibles... on Kingston Pike near the entrance to West Hills. Haven't been there in a little while, but may go in after I cash out my "stimulus money".... turning worthless fiat currency into something of real value. I've also put out the word with friends who might want to rid themselves of silver stashes, I'm buying.
thank you, I just dont like how they have a poor website and dont even have an email address. seem like a reputable company would atleast have an email to post, and a little more info on their website. I did see they were in business for 40+ years, so that is good
It's more of a walk-in business, at least that's been my experience with them. The owner just may not be comfortable with websites and tech.... and I could hardly blame him.
One thkng to think of is if shit hits the fan. You can trade silver for stuff, but gold is to value heavy that no one will have change.
RIGHT!
My knowledge on this comes from here, here, and here:
https://www.bitchute.com/video/5TEgMSGlRxiu/
https://youtu.be/b4QCOx-dVTc
https://youtu.be/zg-lgnUF1UE
Can’t offer too much advice, I’m fairly new myself. Market seems rigged to keep the price down.
I like silver because the denominations are smaller and it’s functional as a raw material in electronics. Silver supply is getting harder to come by.
I don’t know much about gold.
If you want to buy Physical gold and silver without paying the high premiums over spot and have a trusted source store it in their vault you can buy sprott CEF (Closed end fund) trust products - PSLV & PHYS
https://sprott.com/investment-strategies/physical-bullion-trusts
as far as ratio i would go 80/20 or maybe even 90/10 silver to gold right now. silver will run higher than gold for the next 4 to 5 years
For more fun reading, check out the book "Pieces of Eight: The Monetary Powers and Disabilities of the United States Constitution". https://www.goodreads.com/book/show/1879146.Pieces_of_Eight
It may be difficult to find. I grabbed a set off ebay from someone that didn't know what they had.
SLV ETF all the way!
J/k
I would buy junk silver. Smaller demoniations, and usually cheaper mark up.
Yankee stacking on YT is a good one for some insight for buying. The guy obviously has money as he is buying 1oz gold in multiples. If you buy online from a bullion dealer you are paying a higher premium than what you would buy at a coin shop. If you want to buy online but not pay the higher premium, shop the generic silver or generic gold rounds and bars. Just my opinion. Not in any way an expert or advisor. I stack silver mostly but gold when I can.
im having issue fining a shop i trust locally
Provident Metals, SD Bullion, JM Bullion, and APMEX are the online retailers I use.
Do you normally buy coins or bars? Looks like all the coins have an extra $10/oz for the minting. It would be nice to buy just silver at market price
I normally buy Rounds and bars when the premium isn't stupid. I like the Silver Eagles, Britannias, and Kangaroos. However, the APMEX brand rounds and bars aren't terrible over spot. Libertads, Silver Eagles are a bit high. Just find whatever suits your budget, personal preference etc.
I found the lowest premiums at a local coin shop. $2 over spot. But last I looked (which was a month ago, granted) APMEX had low premiums as well.
Regardless, silver is HUGELY undervalued. So even at $30/oz you should be fine as long as you can afford to hold for a while. It WILL launch, just no telling exactly when.
i can stash this away and forget it ever existed. it can hold until Christ returns