buying gold and silver as investments ~ as a prepper

[labellavita]

well, maybe I should just say silver as I could probably only afford to buy 1 gold coin at the going rate :-(

in a TSHTF scenario, I realize how bartering good and gold/silver coins would be necessary.

My question is, I would not be looking at purchasing these items w/ the same eyes as a coin collector, would I? Is it more about the content (.9999% pure silver) than it is about the year the coin was minted? Is it a combination? Will people even care in a post-TSHTF world if the coin was made in 19xx?

I'm also wondering, is it better to have 1 gold worth $1000 or a bunch of silver worth $1000? I look at the gold as being a big bill and being hard to 'break' for change... hence the need for silver.

Do you know of any sites that would give me information from a prepper's viewpoint?

Thanks so much!

[Bear]

Silver is the way to go. IMO It will soon return to the 20:1 ratio with gold............ Be onboard before that train leaves the station.

[BUF]

L, I'm not a pro, but will tell you what I've done.

I don't know how gold or silver will react TSHTF, but I bought gold and silver for an inflationary hedge. Starting out, I bought silver american eagles (SAE) and Peace silver dollars. As I could afford, I'd buy a Kruggerand or Gold American Eagle. I only buy raw bullion, no numismatic coins. I only buy in one ounce, since the lesser weight coins have an increased premium at purchase, but no extra at sale. There is a place for numismatic coins in a portfolio, but not in a little nickel and dime operation like me. After I got a mini stack started, then if I found a good price on silver bars, at spot or as close as possible, I bought some of those.

The most important thing is to start. apmex.com had SAE for about $20. ea. If you buy 100, the price break helps negate the shipping. Also check your local coin dealers. There are none in my local town, but met a great dealer in another town 40 miles away. Develop a good relationship with a good dealer!

I surf kitco.com and gold is money site and continue to learn. Again, lots of smarter people than me on this site. Hope this helped.

[maduro cigar]

PM's are great. But make sure you have all your basic preps first. Food, water, meds., kids needs, etc.

[Jonas Parker]

First, get your "beans, bullets, and band-aids". Then if you have the funds, I'd recommend you buy silver.

Silver American Eagles are 1 troy oz. of .999 pure silver. The US Mint has recently announced that these will be "rationed", and you can only buy them by paying a hefty premium - currently you'll pay $20.00 or more each for a troy ounce of silver that has a spot price (as of this moment) of $17.50/ozt. I would expect this premium to increase as the FRN continues to be devalued and the availability of SAEs dries up.

You'll actually get more "bang for your buck... err... FRN" buying US 90% silver coinage - dimes quarters and half-dollars minted in 1964 or earlier. If you want to know the melt value of these coins, go to www.coinflation.com (http://www.coinflation.com) to get the value of the silver in the coin at the current "spot" price. You can also download a neat little utility that will display the spot prices of gold and silver in the status bar on your computer here: http://kcast.kitco.com/ .

There are also "war nickels" minted from 1942 through 1945, when nickel was a scarce commodity, that contain 35% silver. These can be recognized by a large mint-mark on the reverse of the coin, above the dome of Jefferson's home, Monticello. The silver content value of these is also on the coinflation website.

I buy my 90% coins on eBay, usually in small lots, and always for under the current spot price (including shipping). Stay away from coins listed as "Proof", Brilliant-Uncirculated", "Rare Date", "Error", etc. Leave these to the collectors, Remember, all you're buying is metal. A good place to learn about silver and gold coins is www.goldismoney.info (http://www.goldismoney.info) . I also have 2 Excel spreadsheets that might help. If anyone wants a copy, PM me with your e-mail address and I'll send them out as attachments... (and no, I'm not selling anything, I'm just buying silver for my wife and myself).

Also, today's nickels (and this will change next year) are made of copper and nickel, and have a melt value of 7¢. Pennies minted prior to 1982 have a copper content worth 2¢. Don't spend your nickels at all, and check your pennies for dates and save the 1981 and earlier pennies.

Finally, the one rule to remember about precious metals - "if you don't hold 'em, you don't own 'em!"

Hope this helps.

[BeWell]

Colorado Gold sells bags of 1964 and earlier coins below spot, you have to buy $1000 face value, or a half bag plus $50. If that's too much cash outlay, the bag (or half) can be split with another person once it's delivered. I saw people on TB2 say they had bought from him for years. They have dimes or quarters (you could get either, you find out when it arrives) or halves. If you get half dollars, you also pay $50 more since they aren't worn as much so they have a bit more oz of silver per $1000 face value.

[ku commando]

The cheapest silver you'll find is 90% US coinage. Melt value of $1 face value can be calculated by multiplying Ag spot price by .7234.....hence Friday's close of $17.50 yields $12.66 per dollar of face value....so a $10 dollar face bag would cost you $126.60.

You should be able to hit a coin dealer up for a $50 face bag easily....or a flea market coin dealer (an exclusive coin dealer) for at least $10-$20 face.

Silver Dollar (Morgan & Peace) melt value is calculated with a different multiplier -- .7734 -- the coin was slightly heavier as minted. However you will pay a premium over it's melt value....just the way things are. I pick mine up for about $17 apiece.

So knowing melt value as spot x .7234, you could go to a flea market & "cherry pick" the best values. Dimes for under $1.25, quarters for under $3.15, & halves for under $6.30.

Good luck !

[BUF]

well, maybe I should just say silver as I could probably only afford to buy 1 gold coin at the going rate :-(

I'm also wondering, is it better to have 1 gold worth $1000 or a bunch of silver worth $1000? I look at the gold as being a big bill and being hard to 'break' for change... hence the need for silver.


Buy what you like. I'm currently recommending to my daughters to buy SAE every payday. If they can afford 1 or 10, buy. But if you get a good price on a Krugerrand at or close to spot, buy it. You won't lose money unless you do nothing.

Another site I view daily is www.jsmineset.com

[dreadstalker]

I quit buying more then a month ago. I now view the current market as a bubble.

[Jonas Parker]

More on SAEs:

June 6, 2008

MEMORANDUM TO ALL AMERICAN EAGLE AUTHORIZED PURCHASERS

FROM: Cathy Laperle
Team Lead, Bullion Program
United States Mint

SUBJECT: American Eagle Silver Bullion Coin Update


The United States Mint has been informed by its silver blank vendors
that the volume of blanks they will be shipping to us in the coming
weeks will be significantly reduced. Specifically, the quantities they
will ship to us during the week of June 9 are expected to be less than
half the quantities they shipped to us during the week of June 2. Our
vendors, however, expect to be able to make incremental increases in
supplies each week thereafter. In the mean time, the significant
reduction in the number of blanks they supply to us will, of course,
directly affect the quantity of coins we can make available for
allocation to our Authorized Purchasers. Accordingly, the United States
Mint will continue allocating American Eagle Silver Bullion Coins per
the process initiated on April 21, 2008.

As you know, in the first six months of 2008 production, the United
States Mint produced more American Eagle Silver Bullion Coins (10.07
million) than we did during the entire 12-month period of 2007 (9.03
million). The United States Mint stands ready to continue this high
level of production as additional blanks become available from our
suppliers.

The United States Mint is making every effort to increase its
acquisition of silver bullion blanks that meet the specifications and
requirements of the law. In our efforts to meet unprecedented demand,
the United States Mint is again preparing a request for proposals (RFP)
for additional silver blank suppliers. Additionally, we are not using
incoming supplies of silver blanks to produce numismatic versions of
these coins (American Eagle Silver Proof and Uncirculated Coins); all
incoming inventory is being used solely for silver bullion coins during
this reduced supply period.

Thank you for your patience and your continued support of the United
States Mint American Eagle Silver Bullion Coin Program.

[labellavita]

thanks so much all! More research to do. I've started watching coins and such on ebay, and will look for some local shops too.

[Falls_Tech]

The above advice about preps first is good. It's a good feeling, knowing that if the shtf, you've got 6-12 months worth of food sitting in your house. I tend to go heavy on security/protection. What's left goes into silver. My thinking is, what's the point in having lots of stuff if you can't defend it or yourself?

[ELBUFO]

If and when TSHTF, you will be better able to barter with goods. Just prior to impact PM's will be just the ticket for bribes and the last minute why didn't I buy it when the money was still good items. Once the dust settles then Gold and silver etc will again start to have value. My stash is mostly silver. A mix of .999 and .90. Gold is good, just get small coins <1/4oz. Now if ya just gotta get out of dodge...Chuck a 100 oz bar of silver at them. (make shure you get their boots before they wake up.)...John

[TXBSAFH]

I buy a few dollars face of pre 1965 silver every month. I slowly am building a stash.

[labellavita]

bumping this up to ask a question...

OK, don't know if I should duck or not (be gentle on me :-) ), but I was wondering... in checking ebay for gold, silver, and bullion, I see a lot of scrap gold flake out there. Its not coinage, and I guess I should have tried to run some numbers before I posted here (but I didn't see any weights listed), but is flake a viable choice since you are wanting weight/ounces? And are going for melt value? It doesn't really matter what form the gold/silver is in, right?

Anxiously awaiting your answers!

Thanks!
LBV

[BUF]

bumping this up to ask a question...

OK, don't know if I should duck or not (be gentle on me :-) ), but I was wondering... in checking ebay for gold, silver, and bullion, I see a lot of scrap gold flake out there. Its not coinage, and I guess I should have tried to run some numbers before I posted here (but I didn't see any weights listed), but is flake a viable choice since you are wanting weight/ounces? And are going for melt value? It doesn't really matter what form the gold/silver is in, right?

Anxiously awaiting your answers!

Thanks!
LBV

L, IMO, I wouldn't touch them with a 10 ft pole. Anyone that doesn't give you weight in troy ounces is either ignorant or a thief. I quit buying on Ebay, because the chances of getting ripped off there are greater than purchasing anywhere else.

I saw on APMEX last night they're offering silver of their choosing for .49 over spot and down to .29 over spot for larger orders. Krugs were as low as $11.95 over spot. I highly recommend you start your buying with proven sources. There's lots of counterfeit stuff and unscrupulous sellers out there. Even Morgan and Peace Dollars are being counterfeited.

Last, never be afraid to ask questions. I stay on this board 'cause of the great group here. They always try to help.

[maduro cigar]

bumping this up to ask a question...

OK, don't know if I should duck or not (be gentle on me :-) ), but I was wondering... in checking ebay for gold, silver, and bullion, I see a lot of scrap gold flake out there. Its not coinage, and I guess I should have tried to run some numbers before I posted here (but I didn't see any weights listed), but is flake a viable choice since you are wanting weight/ounces? And are going for melt value? It doesn't really matter what form the gold/silver is in, right?

Anxiously awaiting your answers!

Thanks!
LBV

labellavita, I'd advise (although not an expert) that you buy 90% silver coins, like dimes and quarters. Just about everyone knows them, and people would accept them much quicker. www.apmex.com has them!

[Jonas Parker]

... I quit buying on Ebay, because the chances of getting ripped off there are greater than purchasing anywhere else.

So far, I've only had one problem on eBay, which was resolved quickly and to my satisfaction. Having said that, I wouldn't buy gold coins from China on eBay... or anywhere else either at this point. As long as you're buying 90% silver US coinage in small lots from a seller in the US, and he/she has good feedback, you'll probably be OK. When you see rolls of Silver American Eagles listed as "Buy It Now" for 25% under current spot price, then run (don't walk) to another vendor.

APMEX has a fine reputation, but the advantage at eBay is that you can purchase small quantities of 90% silver US coinage below spot price (including shipping) with a little effort. One of the tenets of "prepping" to me is to get the most tangible goods for my FRNs.