Gold/Silver Bullion purchase for an ignorant rookie

[bblhd672]

Ok, I'm not an expert but here's what I've learned in buying silver for a few years:

Spot price: this is the actual dollar value of your metal. You'll pay a slight bit more than this (called the premium or 'above spot') if you want to buy actual bullion - this is because it costs the dealer to make molds, pour the metal and market their wares as opposed to merely trading in paper stocks. For silver bullion, $2/oz above spot is normal - anything less than $2 is a good deal, but you'll often see far higher than that, too, for specialty-runs eg. collectibles such as pure silver "pirate" coins, etc at $5/oz above spot. Example: the silver spot-price might be $18.00 per ounce - but you'll be buying silver bullion at $20/oz; this is normal.

Some people buy bullion to try and make a profit (well, who doesn't like that?) - so be aware that when you go to sell your silver, the buyer will typically pay you a few dollars UNDER spot - so if you're trying to make a profit, you'll have to wait until the price is at least $4/oz more than you paid to account for $2 above spot when you bought it and $2 under spot when you sell it.

Others like me are more focused on having what amounts to hard currency in their hands away from the electronic numbers stored by banks or simply a hedge against inflation.

In Texas there's no sales-tax on buying bullion - and many places offer free shipping if you buy over $100 worth of metal.

Gold/silver ratio: https://www.providentmetals.com/knowled ... ained.html

Silver (and gold) spot-price ticker: https://www.bullionvault.com/silver-price-chart.do

All of the above is staying away entirely from the subject of numismatics - coin scarcity. That's a whole other world I'm definitely no expert in or have any interest in.

Does Provident Metals have a storefront or do they only ship?

[jb2012]

Just got one of those flyers from my accountant. Profits from the sale of bullion and coins is taxed differently than profits from stock. I know you are all talking about the end of the world scenario but realize that if the world doesn't end uncle sam will hit you hard on profits if there are any. Talk to an accountant before putting big dollars in this. If you keep hearing that silver is selling for half of its high routine therefore you should buy, I wouldn't.
Now guns and ammo, you can hold in your hands.

So I was told last year by a friend of mine that buys and sells silver, that if you buy/sell under a specific weight, then it can be a 100% cash transaction off of the books. Now I don't remember the weight, but I remember he told me he would go to several places in Austin to sell his silver so that he could take advantage of this. Again I have no idea anything else, maybe the quantity is too small to really make money, or maybe this isn't even true.

[o b juan]

The Chinese and other countries have been counterfiting U S Coins and silver and gold bars for years many years and
it is only going to get worse..
there is an awful lot of paper money that is being done by the same countries and last but not least "THE FEDERAL RESERVE"

Find a coin dealer you can trust and look in his eyes.

[talltex]

The spot price is based on the commodities market and varies daily from hour to hour. The price dealers charge to buy and sell generally varies according to the amount you are purchasing or selling ,and the business history you have with a particular dealer. There is no set price over or under...depends on the deal. The smaller the size and amount of the bullion you are buying, the higher the premium will normally be. I have bought and sold metals since back in the late 70's before Nelson and Bunker Hunt tried to corner the market. On one ounce bullion coins you will pay a higher premium than on 10 ounce bars and the premium on 100 ounce bars is lower still. The dealers I did business with would generally pay me spot on 100 oz. bars and sell to me at $1.00 over...a lot less work for them to sell 5 big bars than 500 one oz. rounds...just handle one sales invoice and one check in 5 minutes, so they are willing to take a smaller margin. Now days, the safest small bullion coins to buy are American Eagles from US mint, and Mexican Libertads from APMEX. Both are certified and widely recognized and carry a higher resale value on the secondary market. Bags of "junk silver" (pre 64 US dimes, quarters and halves are probaly the best to hold if you are looking for silver that can be easily bartered in a economic collapse scenario.

[curryman]

The spot price is based on the commodities market and varies daily from hour to hour. The price dealers charge to buy and sell generally varies according to the amount you are purchasing or selling ,and the business history you have with a particular dealer. There is no set price over or under...depends on the deal. The smaller the size and amount of the bullion you are buying, the higher the premium will normally be. I have bought and sold metals since back in the late 70's before Nelson and Bunker Hunt tried to corner the market. On one ounce bullion coins you will pay a higher premium than on 10 ounce bars and the premium on 100 ounce bars is lower still. The dealers I did business with would generally pay me spot on 100 oz. bars and sell to me at $1.00 over...a lot less work for them to sell 5 big bars than 500 one oz. rounds...just handle one sales invoice and one check in 5 minutes, so they are willing to take a smaller margin. Now days, the safest small bullion coins to buy are American Eagles from US mint, and Mexican Libertads from APMEX. Both are certified and widely recognized and carry a higher resale value on the secondary market. Bags of "junk silver" (pre 64 US dimes, quarters and halves are probaly the best to hold if you are looking for silver that can be easily bartered in a economic collapse scenario.

All valid points. Do not buy from ebay or pawn shops. Too much counterfeit junk out there.

[carlson1]

Andy has been a big help to me since he posted the very first post. I use Providential Metals. I have bought some jewelry from another place in Oklahoma, but do not recall the name of it right now.

I have learned to buy small pieces because if there is a financial crash which I also think might happen it will be easy to buy/sale/trade without loosing more "ounces" on your side. If all you have is 10 ounce bars it will be hard to get your "money's" worth when bartering.

[twomillenium]

It definitely depends on why you are buying. If you are a collector then there are many reasons to buy Coins. If you are investing then I would recommend JB Bullion. https://www.jmbullion.com. They have free shipping and less than a 1.00 over spot on some 1 oz. rounds. If you are buying incase of a economic collapse then don't forget to get 1/10, 1/4, and 1/2 oz. rounds, they are a bit more above spot, but will be easier to use for currency and I probably would not go over 1 or 2 oz rounds for this reason. I just bought 20 of 1 oz. 1/10 oz., 1/4 oz. and 30 1/2 rounds and a 5 oz ingot for less than a grand (free shipping at https://www.jmbullion.com).
Good luck with your choices but be careful and compare.

[suthdj]

Does Provident Metals have a storefront or do they only ship?

I don't know - I've only ever ordered online from them, but they have a big corporate office just off Dallas North Tollway roughly midway between George Bush and 635. I have a vague recollection that one could order online and ask for it to be held at that office for one's collection in person.

No store front, I called awhile back an asked.

[Dadtodabone]

$3 dollar silver by 2018 if Trump is elected.

[Rex B]

$3 dollar silver by 2018 if Trump is elected.

Well that didn't work out!

[Grayling813]

You guys buying gold/silver today....what's your recommendations for getting started converting cash to gold/silver? Size, types, etc?

[Nuts]

Whatever I can find with the cheapest premium over spot.

Free shipping

Stay away from eBay. Lots of fakes on there.

[carlson1]

You guys buying gold/silver today....what's your recommendations for getting started converting cash to gold/silver? Size, types, etc?

This is a good place. https://www.providentmetals.com/90-silver-coins.html

I buy small like ounces and even smaller with gold. My thought behind that is if there is not way to get change back for something as small as a loaf of bread I don’t want to be paying $50.00.

[Nuts]

https://comparesilverprices.com/mobile/

Is a good place to look at prices. They have a gold one too. Just watch shipping