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Silver vs Gold Bullion - what is better for Average Joe?
vanity | 8/27/2012 | Self

Posted on 08/27/2012 8:36:40 PM PDT by GlockThe Vote

I have been accumulating silver Eagles , maples, Austrian phils, and pandas.

Can anyone give me a good idea or reason why Gold is better than silver for the average Joe investor in physical bullion?

From what I can gather Silver overall is a better avenue for most of us.


TOPICS: Business/Economy; Chit/Chat; Miscellaneous; Weird Stuff
KEYWORDS: gold; goldsilver; silver
Thoughts?
1 posted on 08/27/2012 8:36:44 PM PDT by GlockThe Vote
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To: GlockThe Vote

FYI - my family and friends think I am nuts for buying silver maples and eagles.


2 posted on 08/27/2012 8:38:28 PM PDT by GlockThe Vote (The Obama Adminstration: 2nd wave of attacks on America after 9/11)
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To: GlockThe Vote

I got this friend who has accumulated some gold things.

He says that for a short term outage of civilization, like a two or three month long issue the gold bits would be handy to have.

If the bad times are series, like 3+ YEARS then the gold and other expensive things will be useless. The currency will be ammo and food. You can’t eat gold.


3 posted on 08/27/2012 8:42:44 PM PDT by GRRRRR (He'll NEVER be my President, FUBO! Treason is the Reason! Impeach the Kenyan)
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To: GRRRRR

I have enough ammo and guns.

I have dry food, water storage and purification, probably not enough dry food though.

My thought was if you have say 5k for bullion purchase, what is best and why?


4 posted on 08/27/2012 8:51:38 PM PDT by GlockThe Vote (The Obama Adminstration: 2nd wave of attacks on America after 9/11)
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To: GlockThe Vote
I hold silver eagles - lots of them. I also have some gold that I've had for some time.

I'd recommend silver for the average joe because of it's low cost.

Silver has done VERY well since I started buying it in earnest in 1995.

Whatever you get, get it in a form that you can literally hold it in your hand.

5 posted on 08/27/2012 8:54:09 PM PDT by youngidiot (The name's Bond. James Bond. James Bond Jovi.)
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To: GlockThe Vote

Gold takes up less room. It depends on how much you’re investing and why. For small investors or for “barter” purposes, junk silver coins are said to be best as they are well recognized.
For investing against a crash or inflation with the intent to sell into the new currency, then it probably doesn’t matter too much.
Just my opinion...


6 posted on 08/27/2012 8:55:43 PM PDT by Rio (Tempis fugit.)
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To: GlockThe Vote
My thought was if you have say 5k for bullion purchase, what is best and why?

Percentage wise, silver has done better than gold in the last several years (say 2005 to present). Therefore, I'd go with silver.
7 posted on 08/27/2012 8:57:38 PM PDT by youngidiot (The name's Bond. James Bond. James Bond Jovi.)
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To: GlockThe Vote

I have found this website to be a very useful source of information on the economy, gold, and silver.

http://goldismoney.info/forums/


8 posted on 08/27/2012 8:58:00 PM PDT by Silver Sabre
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To: youngidiot

I buy eagles, maples , pandas, and phils from a site called provident metals. Lowest over spot I have found.

I checked out APMX but they are a little more.

Just wondering if it’s better to buy smaller gold coins vs the 1oz silvers.


9 posted on 08/27/2012 8:59:45 PM PDT by GlockThe Vote (The Obama Adminstration: 2nd wave of attacks on America after 9/11)
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To: Silver Sabre

thanks! Nothing like having the coinage in hand TBH.


10 posted on 08/27/2012 9:00:50 PM PDT by GlockThe Vote (The Obama Adminstration: 2nd wave of attacks on America after 9/11)
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To: GlockThe Vote

The question is what kind of “value” you’re looking for.

Are you looking for an investment value or an insurance value in case society falls apart?

If you’re looking for an investment, a little over a year ago, the margin requirements for silver commodity traders were changed, and that has effected the price of silver ever since. Before the change, silver was at over $40/oz and reaching toward $50. It quickly dropped by about $10 after the change, and has been in the low $30s ever since. All that is to say, if you want to buy silver and flip it for a profit a few years later, that probably isn’t a great idea.

However, if you’re just looking for a hedge against society falling apart, then think of silver as a smaller denomination of the same currency as gold. And since it costs so much less, it makes it way easier to get into than gold.

Hope that helps.


11 posted on 08/27/2012 9:06:10 PM PDT by TooMuchCowbell
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To: GlockThe Vote

1/10 oz are easy to carry and make change with...


12 posted on 08/27/2012 9:11:15 PM PDT by GRRRRR (He'll NEVER be my President, FUBO! Treason is the Reason! Impeach the Kenyan)
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To: GlockThe Vote

If you have to bug out with nothing but a backpack, a mixture of silver and gold is best. Use the silver for barter along the way, and the gold for concealment and longer-term survival.


13 posted on 08/27/2012 9:14:04 PM PDT by Carismar
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To: GlockThe Vote

One ounce gold coins would be worse than useless. It would be the equivalent of having a wallet full of $1000 bills, you couldn’t spend them anywhere, as no one could provide change for most purchases. It wouldn’t be long before the local predators got wind of the fact that you have a bunch of $1000 bills.

1/10 ounce coins? Much better. Bullion coins whether gold or silver, still mark you as someone who planned ahead and therefor might have a stash of gold, sliver, food, ammo, medical supplies, etc. but small coins reluctantly spent are less of a flag.

Pre-1964 US silver coins better still. “My granny left me a few of these, and I hate to spend them but...”

Just my take. Your mileage may vary.


14 posted on 08/27/2012 9:16:05 PM PDT by null and void (Day 1316 of our ObamaVacation from reality - Obama, a queer and present danger)
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To: GlockThe Vote
Just wondering if it’s better to buy smaller gold coins vs the 1oz silvers.

Not as far as I'm concerned. I'm getting ready to dump my gold. It looks to me like it has topped out.
15 posted on 08/27/2012 9:21:48 PM PDT by youngidiot (The name's Bond. James Bond. James Bond Jovi.)
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To: null and void
As an item to protect your wealth, Gold is fine, but if you want something that you can use in case of a fiscal collapse then silver is the one. One Ounce rounds, ie ASE, Canadian Maple leaf either one is fine. No matter which one you decide on, just get er done.
16 posted on 08/27/2012 9:27:34 PM PDT by BooBoo1000 ("The plans I have for you are plans to prosper you.,not to harm you, Plans to give you hope)
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To: GlockThe Vote

I can only tell you what I do, and the basis.

It is a broadly held position, and it is mine, that silver will increase more than gold as a percentage. Therefore, in general, silver is better.

However, there is a problem with silver. Typically, the percentage premium you must pay for silver coins is considerably higher than for gold coins. Typically: 40/1600 = 0.025 for gold and 4/31=~ 0.13 for silver. Therefore, you need a greater increase in silver than for gold to make a profit. Now, you can get around this by buying silver bullion bars, but then you must file the 1099 forms. Alternatively, you can buy silver from someone like BullionVault and get the full exposure without the large commission, but then you have “paper silver”.

My approach is diversification.

I own mostly gold coins (1 Oz Eagles) in my Gold IRA. I also own silver bullion bars in the IRA as well (it is reported by the bank anyway). For my personal holdings, I own gold Philharmonics. Then, I own silver through BullionVault.

Finally, one problem is that the silver takes up a lot more space. There is no way to fit a reasonable amount of silver in a safety deposit box.

Of course, you should further diversify in lead, land, food, and purification.

Regards...


17 posted on 08/27/2012 9:31:19 PM PDT by c. k. rowdybush
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To: GlockThe Vote

I am not that fond of the smaller denom gold coins. You’ll find that the coining charge “about” the same regardless of coin size. It’s less for 1/10 oz gold coins because a $60-70 charge on top of a ~~$166 bullion spot price would be ridiculous. I’d stay away from the 1/10 oz. IMO the half ounce Eagles in gold are the best choice and there’s nothing wrong with full eagles at all.

Example from CNI (golddealer.com) just one dealer among many

US Gold Eagle Bullion 1 oz. $1692.00 $1742.00
US Gold Buffalo Bullion 1 oz. $1692.00 $1752.00
US Gold Eagle Bullion 1/2 oz. $837.00 $ 872.00
US Gold Eagle Bullion 1/4 oz. $420.00 $ 450.00
US Gold Eagle Bullion 1/10 oz. $171.00 $ 186.00

Here, you can see that you are not being punished for buying an ounce of gold in two halves. But in four quarters, $60. “lost” and ten tenths, $120.

Merit Financial may be able to beat your Provident prices by a few nickels. Free shipping, first order.

I have loads of silver, a little gold, I sold 1/3rd my gold at $1760 [net to me] a while ago, not unhappy about it. It’s nearly back there.

Hard to say about silver. Unless it really goes ballistic, which some believe will happen (I do not) you have to own quite a bit of it to make much of a life-difference. And buying it now, at $33 for Eagles (say) for a run to $36 is probably a better bet in the stock market. I have been buying silver for a decade and probably own most of mine at $13-$15, so I can make some buying errors. I don’t know what to say about going all-in now, today. I’m bullish on the PMs, but not religious about them.


18 posted on 08/27/2012 9:33:18 PM PDT by Attention Surplus Disorder (This stuff we're going through now, this is nothing compared to the middle ages.)
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To: null and void

*bump* gold and silver


19 posted on 08/27/2012 10:18:00 PM PDT by Taffini ( Mr. Pippen and Mr. Waffles do not approve and neither do I)
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To: GlockThe Vote
Average Joe needs
1. Lead and brass
2. silver
3. small gold coins 1/10 oz
Gold is very likely to be confiscated.
20 posted on 08/27/2012 10:31:18 PM PDT by Mormon Cricket
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To: GlockThe Vote
Also consider the gold/silver ratio. Trading silver for gold at a 32 ratio was a good move. (I didn't)

Photobucket

21 posted on 08/27/2012 10:33:47 PM PDT by Stentor
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To: GlockThe Vote
I was gonna explain..but it would take me 2 hours and I'm tired of it!!!

Ill make this quick and simple..

>>as of today...There are more physical ounces of mined gold in existence then there is of silver!!!

Do your own DD!

or...put another way...if the Lone Ranger was around today...He'd practice with gold bullets and save his silver ones for the “silver screen”...

All original pictures compliments of...lol...U guessed it...Eastman kodak and all other silver “CONSUMERS!”

22 posted on 08/27/2012 10:42:09 PM PDT by M-cubed
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To: GlockThe Vote

Both are good. Silver is easier to use though for smaller items.


23 posted on 08/27/2012 11:07:01 PM PDT by Secret Agent Man (I can neither confirm or deny that; even if I could, I couldn't - it's classified.)
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To: youngidiot
It looks to me like it has topped out.<<

oh it has!..Sell me yours at spot tomorrow!...I'll pay “cash”.....Hurry cause its going to zero!

(lol...You decide which will go to zero quicker...*W*)

Whats yourscreen name again?......I missed it in my haste to post

24 posted on 08/27/2012 11:07:59 PM PDT by M-cubed
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To: GRRRRR

Excuse me Sir..but could I get change for $166.60...Ill take that coffee to go...


25 posted on 08/27/2012 11:16:30 PM PDT by M-cubed
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To: null and void

Well said!...your Granny left u an “Insurance policy!”...let the premium build!


26 posted on 08/27/2012 11:22:29 PM PDT by M-cubed
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To: Silver Sabre

Bookmark for later.


27 posted on 08/27/2012 11:28:36 PM PDT by ConjunctionJunction
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To: GlockThe Vote

In my opinion silver is a far better medium of exchange than gold is.


28 posted on 08/27/2012 11:37:50 PM PDT by Lurker (Violence is rarely the answer. But when it is it is the only answer.)
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To: Lurker

Thank you for all the help!


29 posted on 08/28/2012 1:19:46 AM PDT by GlockThe Vote (The Obama Adminstration: 2nd wave of attacks on America after 9/11)
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To: GlockThe Vote

Gold has its obvious advantage in being able to carry it on you, if you need to. For example, once ounce of gold can buy enough food to feed a person for about one year (although you’d have to cook a lot...2 ounces gets you to what an average person spends per year).

But when Doomsday hits, and the dollar is worth nothing (some time in Obama’s second term), you want to have silver as a day-to-day currency (ideally old coins). You can use it much more discretely than gold, which you’d have to flake off and hope the buyer has a way to verify it. But then, when you’re out of silver, you sell a K’rand and buy a bunch more silver coins with it, and start again.

So think gold>short term, silver>long-term.


30 posted on 08/28/2012 2:31:47 AM PDT by BobL (You can live each day only once. You can waste a few, but don't waste too many.)
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To: GlockThe Vote

Despite what anyone tells you, gold and silver will still have value when/if the SHTF. I think some physical gold would be useful but scrap US silver coins would be best for most common purchases or barter deals. Silver eagles would be fine as well but people know and recognize dimes and quarters.

A great barter commodity as well is sealed half-pints of whiskey and vodka. Again, if the SHTF liquor will be in very short supply and great demand. Moonshine might be okay for some but a half-pint with a genuine tax seal on it will be much more readily accepted, IMHO.


31 posted on 08/28/2012 2:42:51 AM PDT by muir_redwoods (Legalize Freedom!!)
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To: GlockThe Vote

Silver mainly because gold is somewhere near the peak (though people have been saying that for years). So probably a 80:20 split between silver and gold respectively.


32 posted on 08/28/2012 3:43:57 AM PDT by Cronos (**Marriage is about commitment, cohabitation is about convenience.**)
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To: Attention Surplus Disorder

Ping


33 posted on 08/28/2012 4:50:24 AM PDT by STJPII
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To: GlockThe Vote

I’ve been stockpiling toilet paper, to swap for gold and silver when the time comes.


34 posted on 08/28/2012 4:53:03 AM PDT by P.O.E. (Pray for America)
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To: M-cubed
Nobody said it was going to zero, you ass. Mark this post. Take note of the current price and lets talk in 30 days.
35 posted on 08/28/2012 7:50:09 AM PDT by youngidiot (The name's Bond. James Bond. James Bond Jovi.)
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To: youngidiot; M-cubed

It’s about $1670 per ounce. 8-28-12


36 posted on 08/28/2012 7:52:45 AM PDT by youngidiot (The name's Bond. James Bond. James Bond Jovi.)
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To: Mormon Cricket

Exactly what you said.

Lead is far cheaper than gold or silver.

Buy a box of 5,000 rounds of .22 and a cheap rifle to use it and you are set for under $300

If TSHTF you will not regret this one iota.


37 posted on 08/28/2012 12:15:48 PM PDT by Waywardson (If you fear Obama..... vote for Romney. If you fear God... DON'T !)
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To: youngidiot

http://www.providentmetals.com/bullion/wholesale-gold-silver-bullion-deals.html

Are any of these good deals ?


38 posted on 08/28/2012 7:57:56 PM PDT by GlockThe Vote (The Obama Adminstration: 2nd wave of attacks on America after 9/11)
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To: GlockThe Vote; jiggyboy; PA Engineer; blam; TigerLikesRooster; Cheap_Hessian; CJinVA; Jet Jaguar; ..

Goldbug Ping.


39 posted on 08/28/2012 9:50:14 PM PDT by Jet Jaguar
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To: Waywardson

Got plenty of that.


40 posted on 08/29/2012 4:35:02 AM PDT by GlockThe Vote (The Obama Adminstration: 2nd wave of attacks on America after 9/11)
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To: GlockThe Vote
I prefer (1st) silver and (2nd) gold coins.

Mostly, they are legal currency.

41 posted on 08/29/2012 6:36:46 AM PDT by blam
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To: youngidiot
Wait till after the election. Your gold might double in value if ~wave of nausea~ OBOZO gets another term. If Romney wins, you might still need it for a rainy day...
42 posted on 08/29/2012 6:55:03 AM PDT by ExSoldier (Stand up and be counted... OR LINE UP AND BE NUMBERED...)
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To: null and void; Travis McGee
IIRC MONEX sells 70 pound bags of pre-1964 silver coins for about $1K. If the bottom drops out of silver, they'll still be worth exactly the face value. You can't be taxed on the silver content only the face value. It is still "coin of the realm." MONEX also has a constantly updated melt value index of what those coins are worth for their silver content.

I made a mistake when I bought my first silver bullion. I bought in sizes that are too big to easily negotiate and I did it when Silver was sitting at $15 an oz. I realized my error when I read Travis McGee's Castigo Cay and how silver coins were used to buy black market goods in the story. That made a lot of sense to me. I'm probably going to invest in that MONEX deal. At the very worst case scenario, they'll still hold their face value and I can also divide and cache them if need be. I can do it a lot easier than doing the same with ammo.

43 posted on 08/29/2012 7:05:42 AM PDT by ExSoldier (Stand up and be counted... OR LINE UP AND BE NUMBERED...)
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To: ExSoldier
Here it is: Pre-1964 Silver Coins

Silver Coin Melt Values

44 posted on 08/29/2012 7:16:50 AM PDT by ExSoldier (Stand up and be counted... OR LINE UP AND BE NUMBERED...)
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To: GlockThe Vote

The main advantage of gold is how small it is. At $1600 and oz a 1/10th oz coin (a gold piece the size of a dime) is worth about $160.

So, you could carry or store a lot more money in gold in a small amount of space.

$160 in Silver would be about 5 ozs. A little chunky stack. It adds up quickly, weight wise. If you are going to convert up over $10K then you probably want some gold, just to keep it reasonable size wise. In gold $10K is only 6 ozs !!

The same amount in silver at $30 an oz is 333 ozs, or 20 lbs. Not to convenient to carry around.

Of course if you are buying for post monetary crash spending the silver might be more useful. Think about how hard breaking a $100 bill is. That’s what your dime sized Gold Eagle is going to be like to break, and your full 1oz Eagle will be mostly useful for buying expensive things (over $1000).


45 posted on 08/29/2012 4:39:45 PM PDT by Jack Black ( Whatever is left of American patriotism is now identical with counter-revolution.)
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To: GlockThe Vote

The main advantage of gold is how small it is. At $1600 and oz a 1/10th oz coin (a gold piece the size of a dime) is worth about $160.

So, you could carry or store a lot more money in gold in a small amount of space.

$160 in Silver would be about 5 ozs. A little chunky stack. It adds up quickly, weight wise. If you are going to convert up over $10K then you probably want some gold, just to keep it reasonable size wise. In gold $10K is only 6 ozs !!

The same amount in silver at $30 an oz is 333 ozs, or 20 lbs. Not to convenient to carry around.

Of course if you are buying for post monetary crash spending the silver might be more useful. Think about how hard breaking a $100 bill is. That’s what your dime sized Gold Eagle is going to be like to break, and your full 1oz Eagle will be mostly useful for buying expensive things (over $1000).


46 posted on 08/30/2012 8:06:46 AM PDT by Jack Black ( Whatever is left of American patriotism is now identical with counter-revolution.)
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