Precious Metals New Thread 2.0

So after stocking up on pm's who do you guys plan on selling to. I may need to sell in 6-9months.

 

I agree with the OP sentiment and applaud his raising the question, even on a truck forum.

I recommend owning a percentage of your net worth in PMs mainly as a hedge against a failing dollar. The US has held the status of world reserve currency for more than 40 years and history shows that fiat paper currencies fail and are replaced. There is much evidence that the US dollar will not remain the world reserve currency for long.

To protect yourself you do not need to own a "large" percentage of your net worth in PMs because most of all world people/investors own zero PM. History is on your side, as gold and silver have been the money of choice for thousands of years. Using beaver pelts, paper, and digital currencies are anomalies, not the norm, from a historical perspective.

Some will argue that gold and silver are not a good "investment". I do not view PMs as an investment in that sense. Others argue that WTSHTF gold and silver will not protect your family. I agree that there are better ways to protect your family.

Hedge accordingly. Cheers!

 

All depends on the form of silver you chose to invest in. You have silver bars or golden eagles no problem selling them. You have numismatic coins look for anywhere between 40-60 cent on the dollar.

 

10oz bars, new American eagles.

 

I keep say the best forms of PMs are well known brands, eagles and maple are the 2 best coins for easy resale and best value....
The next best is the cheapest or semi numismatic coins....
The generic coins bars allow you to buy more but have less demand for resale and sell for less...
Semi numismatic coins you pay a little extra but resale value will be higher but may be harder to sell....

Also 90% silver is really good because they are out of production and so many have been melted down but they are a little high right now, around 25-30 an OZ.. Buy you have to get what you want now because it won't be there later...

Diversification, most people start with generic coins, move to eagles/maples and finish the stack with numismatic coins, after they learn which coins hold their value....

I don't recommend selling till after 50-100 an oz, it will be worth it to hold out....
But if you have to sell, you can sell right to coin stores but they don't like generic coins and pay less but they like eagles and maples...
You can also ebay coins if you have an account established to get retail price.... Craigs list, word of mouth....

It's best to wait for sentiment to be higher, it is at a low right now...

 

Rich dad poor dad author Robert Kiyosaki....
He always has good points

 

HAHAHAHAHA Robert Kiyosaki is a well know scammer who has filed for bankruptcy not once but twice! Is this where you get your "wealth" of knowledge?

http://www.forbes.com/sites/helaineolen/2012/10/10/rich-dad-poor-dad-bankrupt-dad/

http://ethanvanderbuilt.com/2014/01/20/robert-kiyosaki-scam-artist-yes-opinion/

http://moneyminiblog.com/investing/robert-kiyosaki-fraud/

 

Numismatic coins are only numismatic if they go up in value....
There are lots of cool coins out there but they are just silver...
I don't trust buying $100 coins because I could have 5 eagles that I know the value of....
I like some semi numi coins because they have a track record of going up in value..
Kookaburras are good once you learn the buying cycle... they can go up 50% in a year and 100% in 2 years...
So it's nice nice to know that if I had to sell some of my coins I could still turn a good profit in a down market...

But for beginners the best overall value is the eagle and maple........

 

Markets are down and metals and miners are up....
Could be time to buy in or just another head fake...
If you are buying PM stocks go easy....
They may go back to zero rates and QE4ever...
They have to let the market go low enough to justify it and after they go back to 0 rates then all the trades will flip again....
Stocks are for trading not investing....
So think short term, trade by trade....
You invest in real hard assets not fake digital promises....

 

Let me preface by saying I do not daily trade. Have no time fo dat.

Growing up, was always told to contribute to 401(k), and start early to take advantage of compound interest. It scares me though. Not sure this is a good plan anymore. Interest can't compound enough if the market falls every few years.

Even though I still do contribute to my 401(k), I want to start securing wealth by buying physical assets. For me, PM's is a good start. I hope to add land or a rental property in the near future (once the housing market comes back down).

My plan on retirement is to have my house paid off and kids out of the house. Hopefully I can live off my 401(k), and to receive rental income. Hopefully (but not expecting), I can also collect social security. Selling PM's will come into play at some point in the long term, but that will depend on need and value.

 

Sadly, also remember the PM's don't get to side step taxation the same way that some investments do. I'm not fully aware of the 401K system in the USA in that I don't know it's in's and out's, but in Canada to invest in PM's you need to pay tax on your earnings (~25-40% depending who you are), GST on the sale of the coin (5%), and then pay a capital gain on any profits made on the sale (half of 25-40%, depending on taxation level). On my RRSP's, which I think are similar to 401k's, I get to skip taxes until withdrawl... which is a huge gain since taxes only count against the principle and only count as earnings. While that doesn't say you shouldn't invest in PM's, keep that in mind when counting any losses or gains against your other holdings including anything that manages to dodge or defer tax.

 

401K used to be great but now I'm not sure....
They do have a cash option that you can switch to during bear markets and than switch back....
Also having a trading account is a must, 401K are too restrictive and trap your money, but they are pre tax....
PMs are a great option to have until you get larger assets.....
I hope my PMs are just bonus money, but in the long run I will make more on PMs than my 401K or my trading account...
That's why you buy the cycles, buy what's down and sell what's high or risky...

 

All investments have tax, PMs aren't investments they are money.....
PM's in the US are "constitutionally money" so far now there is no tax on PMs and they aren't suppose to charge sales tax...
You can't tax money....
Gold and Silver are money in the US so there is no tax.... That's one of the secrets they don't want out...
The dollar is suppose to be based on gold, it's the law here, but that limits spending...
so they have "changed the law" and printed over $60,000 per oz....
Plus PMs have no tracking system, another reason they don't want us to buy them...
So PMs are much more than buying shiny coins....
and technically you don't make money PMs you will exchange it for currency...
and we will sell when the exchange rate goes in our favor...
Gold is gold it's value is the same, the currency just goes down but demand can go up...
That's why they fix the price... so you can't see the currency failing.
and finally after the dollar finishes it's cycle it will be much easier to exchange PMs for goods... also tax free...

 

You still have to pay the tax on the earnings you make to buy them today. No deferring. Unlike RRSP's up here. Is it not the same for your retirement savings down there?

I had no idea they were money as enshrined in your constitution. Do you have a link. I'd like to read about that.

Yes, if you exchanged for goods there were be no capital gains here either.

As for the guess on how much and when PM's will be worth as much as you say I have no idea. I'm going to buy some palladium, as we've spoken about, soon just as a hedge bet on my kids education. If nothing else it'll be something interesting for her to pay off her first months rent or a down payment on a small car when she turns 18.

Since you are into economics it looks like China is close to having the bottom fall out. They've got dozens of factories full of workers building nothing and they are forcing growth in the economy as demand is decreasing. The next little while could be very interesting economically because I don't think the world has ever seen a period like this with these causes. The markets are going to stall, fairly universally, and it'll be interesting to see what happens next.

 

Agreed. With such uncertainty, and never before seen circumstances, all previous trending of market corrections go out the window.

 

So some coins are exempt from tax some are not if you sell to a dealer...
You get a 1099 on generic silver coins sales over 1000 oz
and 35 oz of gold...

http://goldsilver.com/article/irs-1099-gold-reporting-private-gold-private-silver-bullion/

The constitution clearly states that only gold and silver can be used as money and is unconstitutional to have fiat currency...
http://www.heritage.org/constitution/#!/articles/1/essays/70/state-coinage

They may tax in the future unless we go back to a gold standard... Because you can't tax money...

 

PMs are a great way to transfer wealth to the family...
and over the next 5-20 years PMs are going to go way up...
Palladium will be the first PMs to hit shortage, unless we stop making cars...

 

Good vid about BAIL INs
Your bank account "investment" is not insured against, bail ins, hacking or glitches....
bank savings rates are negative anyway, so you have all the risk with no reward....

 

Now it's sounding like more people are jumping on the "market crash" band wagon...
But doesn't mean it goes straight down...
I've been betting against the market since may and I'm ok because the market is at the end of a bull cycle...
So I say bet against the market, but do it wisely and in small increments to make sure things go the way you think...
Reduce positions, take profits, hold cash and look for new positions....

Look for the fed going back to 0% rates and QE4ever (inflation) and the market will jump, how much or how high, no one knows...
I still feel the market top is 17500-18500 range but if we don't get QE4ever look for big lows....

The PMs are at the bottom of their cycle so it's the perfect trade off, back off stocks, shift to cash and buy PMs...

But physical PMs can't be sold as easy so take that into account....
The soon to be real market crash will most likely be the end of the petrol dollar and thus the rise of PMs...
The dollar dying (inflation ) and PMs will have an inverse relationship...

So buy the overall trends and in the end you always win..