I have been telling my friends for years to buy silver. Today, one called me and said they might be receiving a settlement and wanted to know how or what to stack. I don’t do big numbers so I was hoping my SD friends could advise. Thanks in advance!
SIlverbeard In my thinking the silver food chain starts with American eagle silver coins. They are the real deal since they are minted and far less likely to arouse suspicion if I wanted to sell them.
Then silver rounds like Doc has for sale. They are the Indian Buffalo ones at .999 pure. Junk bullion always has a place at the table. 10 and 100 oz bars are ok. I bought some 100 oz bars from Doc a while back and know that I can resell them at my local bullion dealer at spot. My bar cost originally was about .69 cents over. I would sell those big ones first just to liquidate if I needed some cash. If I had it to doover again I would have probably bought 10 oz bars because they are easier to handle and tote. Drop and 100 oz bar on your foot and you’ll know that I mean
In my silver stack I have about 10 % in junk bullion, 15% in American eagles, 10% in 100 oz bars and the rest in silver rounds. I have not done an inventory for about 9 months since mobility was an issue due to bad knee and hip. But I would guess to say my silver round percentage is 65% of the total stack.
Some people don’t like variety but I wanted a taster’s choice of silver to give me flexibility in what I owned. My IRA is all American eagle gold and silver since the IRS requires only those types of coins are in the mix
$10k for an undeground bunker built from cargo containers, $15k guns and ammo, $10k on long term food, $10k for a water well, $5k for a diesel generator without electronics. $5k for a fuel tank and fuel underground, $45k in silver rounds, 90% dimes and quarters.
I definitely agree with the monster box. Legal tender coins for the country in which your friend lives could well have tax advantages when it comes time to sell. Silver bars are cumbersome, and hard to liquidate when the prices go up. Therefore I don’t recommend anything bigger than a kilo.
Your friend should also think about liquidity. I’m a big fan of GoldMoney, and also Eric Sprott’s physical metal trusts. At some point in the not distant future, I believe that silver and gold will go parabolic, in a blow off top. When that happens, I want to able to exchange most of my silver holdings for gold at a favourable rate. Storage is big headache for me. I couldn’t envision myself pushing a wheelbarrow full of silver bullion around the streets of a major city looking for a dealer, so I’ve opted for third party storage. I have no problem at all with James Turk’s business model (or Eric Sprott’s, for that matter) and I trust that GoldMoney will be doing just fine when the time comes. Look what happened when the Netherlands declared GoldMoney an illegal investment vehicle. James Turk calmly returned people’s holdings, in physical bars wherever possible.
My personal belief is that, following the blow off top, gold will re-enter the monetary system in some way (although not as ‘money’, per se). I think the excitement over silver will fade very quickly as some form of monetary stability is regained. Silver’s price will drop, but not to the levels we see today. At some point silver will enter a new bull market which will have more to do with its scarcity and industrial applications than any monetary value. I believe the new bull market in silver will be ongoing through the next couple of decades. My remaining silver will be my legacy.
It’s really hard to know what form of silver to buy now, and in what proportion to gold, because we don’t really know what political conditions will exist when TSHTF, and how long it will take to get there. We only know that the economic conditions will be dire. I am watching carefully what others buy, and the consensus seems to be: overweight silver, mostly legal tender coins.
It is interesting to note that Mike Maloney, a very well known precious metals dealer, has converted most of his gold holdings to silver. Furthermore, about the only kind of silver – or gold – he buys these days are American Eagles. He has his reasons. Utah isn’t a very long drive from California.
I did notice that Mike Maloney has recently started selling bullion jewellery on his website. There’s an interesting video too, to explain why.
Finally, I would invest a few grand, maybe $5,000, on good quality mining stocks. A couple of hundred dollars for a good investment newsletter would be money well spent.
Thx tawnyard, nice post. I am all about phyzz but passed on your thoughts. My friend was excited because they too are thinking about mining stocks. They believe that they are extremely undervalued right now but aren’t sure which ones they might go with. Anyways, glad to know others were thinking the same way.
Side note. They made plans to see an advisor. I will be interested to hear what an “expert” (LOL) has to say.
Believe me, in an ideal situation, I would love to have the phyzz. However, I sold my house and invested the proceeds, and I now live in someone else’s property. I have a couple of small bars and a handful of silver coins to show people when I talk about investing in precious metals, but that’s all I feel comfortable with having in my possession. Plus I really wanted the liquidity, in order to take advantage of changes in the gold/silver ratio.
I’ve often thought that a discussion of mining stocks could be quite interesting. Stock tips seem to be the sole preserve of people who can afford to subscribe to expensive newsletters. We should get our heads together and build up a theoretical SD ‘portfolio’. Even if we just sniffed around to see which junior miners top performing funds managers are buying.
We’ve got our phyzz, is anybody interested in talking stocks?
Survival, love ones, & you. Do you think living in same place? Many people insist on keeping wealth with you, yet this can cause death, robbery, scammed on, & taxed to elbows. If investing in precious metals, purchase from vault that can hold your metals. Possibly outside USA. Get licesenses, permits, etc. Educate yourself & Congrats. Hopefully see you on other side.
“My IRA is all American eagle gold and silver since the IRS requires only those types of coins are in the mix”
You sure about that, AG? My info says that any .999 or more pure precious metal can be put into an IRA according to IRS rules. This would include Maples, Philharmonics, and Australian coins, bars, and rounds as well as any other PM products that meet or exceed the .999 purity standard. This excludes most European gold and silver coins as well as Mexican and South African coins. Although US Gold Eagles are not .999 or higher purity, there is an exception in the rules for them.
See: http://www.apmex.com/Category/476/IRA_Products.aspx for details.
If I had $100k dropped into my lap, I would hang onto it for a while and think about it. Decisions made in haste rarely work out as well as we would like. After a time of not doing anything about it, I would then design a plan that would improve my family’s chances of coming through the coming collapse in the best condition possible. For the most part that would be getting a small acreage set up for efficient off-grid living with good water, solar and wind power, BIG garden area, good tools for mini-farming, barns, and pens for the animals. This $100k would make a nice addition to the funds we currently have set aside for this. Some gold and silver too? Of course! ;-)
I believe you are right Ed B I put my SDIRA into American gold and silver eagles but there are provisions that allow coins of other countries. I’m not so sure about regular bars, rounds, junk bullion and ingots. If you own your PMs in an SDIRA the rules on the bullion coins is pretty specific. While rules do change occasionally, they are pretty specific on these matters. If you do plan on an SDIRA check with your CPA or inquire into this with the IRS. I did both to be sure of my plans and then make doubly sure by buying US coins
~$10K in off-grid power, with grid-tie inverter, because it could be a while.
~$10K in a nice greenhouse for growing food, and farm critters.
~$10K for vehicle improvements. Plug in hybrid conversion
That leaves around a $40K balance, and that would go to mostly smaller Silver, (ASE’s and fractional, + junk) and maybe some Gold. Not as likely on the Gold, we are staying put and Gold is great if you plan on flying outta Dodge one way or another. So if bugging out is in their plans, this whole scenario changes drastically.
@AGXIIK: ”$2,500 for a 308 on an AR platform with Eotech optics”
Nice Choice! I have an AR in lay-away that is pretty sweet, just a 5.56 all around setup. Almost mine! What level of optics do you recommend (I’d like optical range to match the 5.56′s range) and I also wonder if you have any reading I could look at for leadership skills in a BOB style group. I am the “defacto” leader, but will rely on my dad (75 yo) and son (24 yo, fresh out of the Marines)
I have a 5.56 bought from a friend who built it from scratch with HBar and high quality receiver, trigger and other high wear parts. This is a 500 yard rifle but could go father out on a good day with no cross wind.
But 5.56 is still a light round at 55 to 75 grains, effective in close engagements since most combat radii are way less, down at 50 to 250 yards. I put a 3×9 power Osprey scope on this one since my eyes need help and I like the option of close to long target/round placement. I shoot for target sporting not hunting since the 5.56 is not a good round for hunting. I don’t hunt at this time but could with my Mauser K98k if needed or with my AK 47. I can iron sight shoot with both to 200 yards.
If I had options for a 5.56 I would not use Eotech. It is very expensive. I equipped my first M4 with the Eotech holo laser sighting system and 3 power Eotech scope, good for 6 inch groups at 400 yards. But the optics cost more than the 2.23. At that time I had more money that good optics buying sense
I would go with a laser sighting system that can be found on many web sites including http://www.cheaperthandirt.com, nachezshooting supplies or http://www.sportsmansguide.com Their selections of optics are great. Nearly any price range and system can be had for $100-150. Greater costs are usually just a name and special specs that jack the price 500%. Yes, the gun might come in handy in a life and death situation, from 5 yards to 250 yards. The lowest quality is not worth the price but great optics can be had on a budget. Once I found $100 optics that were as good as $1,000 sighting systems my thirftygene came into play.
Determine what you want to use the rifle for—keeping bad guys at bay—-target plinking—-2nd Amendment defense—-hunting 4 legged critters and your decision will be more easily made. I like the good old fashion crossover of a low power 3 to 5 power scope that is durable, accurate to 250 yards (or 500 yards on a lucky day) and has an internal laser setup system for close combat snap shots out to 25 yards.
As for setting up the BOB team, your son, a Marine, will have everything you need. Share with him your concerns and bring him around to your thinking, explaining what you fear and how you want to deal with it. He will be a wealth of info and probably give you access to some intel on firearms, optics, ammo selection, shooting scenarios and solutions and all those othe talents that come with experience. I would generally say this only regarding a Marine since they are first and foremost a Rifleman. No other service can say that. I hope this helps in your decisions.
" I feel ya Mary. My average buying cost is around $30....Although as you said, I still believe in all the fundamentals, and where silver SHOULD be, its hard not to get discouraged at WHERE IT ACTUALLY IS!
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