Anyone invest in precious metals?

[Tpoppa]

If so how do you do it?  Physical, ETFs, funds, mining stocks?

I am considering moving a small portion of my liquid assets (savings account) into physical silver bars.  Reason is that I think that silver prices will grow more than the barely existent interest rates at the bank.  Thoughts?

[jacobhawkins]

I don't, but I have a money market at my credit union that pays 3%.  No transaction limits and instantaneous transfers if I need to move stuff around.  I'm mildly curious about this though, consider me subscribed. 

[mello dude]

I'm just a dumbass geek foole, but I think holding precious metals are for when the sky is falling. (Insert catastrophe here...) 

If you are just thinking about eeking some first funds out of the bank savings, open a Roth IRA.. (TD Ameritrade, Etrade etc) and start with ETFs or equitys that pay dividends and make sure the account is set up to dividend reinvestment. (DRIPS) So all div payment automatically rebuy more shares. Over time you end up with more shares and it compounds. 

Stock examples - BP, Duke energy, Dominion Energy (D) - REITs if you can stand a bit of risk Annaly Morgage (NLY) 

ETF example - Nuveen Variable income growth.  

 

The biggest catastrophe coming? -- When the interest in the Federal Debt becomes the top line item on the "budget" ~ 10 years out.... 

  Both partys are in denial and neither has the political will to address... 2008 will look like a party. . 

[Tpoppa]

15 minutes ago, mello dude said:

I'm just a dumbass geek foole, but I think holding precious metals are for when the sky is falling. (Insert catastrophe here...) 

If you are just thinking about eeking some first funds out of the bank savings, open a Roth IRA.. (TD Ameritrade, Etrade etc) and start with ETFs or equitys that pay dividends and make sure the account is set up to dividend reinvestment. (DRIPS) So all div payment automatically rebuy more shares. Over time you end up with more shares and it compounds. 

Stock examples - BP, Duke energy, Dominion Energy (D) - REITs if you can stand a bit of risk Annaly Morgage (NLY) 

ETF example - Nuveen Variable income growth.  

 

The biggest catastrophe coming? -- When the interest in the Federal Debt becomes the top line item on the "budget" ~ 10 years out.... 

  Both partys are in denial and neither has the political will to address... 2008 will look like a party. . 

I have a diversified portfolio that I am very comfortable with.  I also keep a certain amount in savings that I don't invest in case the market were to go to shit for awhile.

Precious metals tend to increase when everything else drops.  So it seems like a decent hedge when the market is in panic mode.

I'm considering moving around 10-15% of my savings into physical silver bars (which is trading at a very low ratio to gold right now).

Worse case, I throw them in a safe and my kids inherit silver bars someday 

 

[MidgetTodd]

My father in law, a city cop. My father, retired sheriffs office drug enforcement. 

Both dumped a fair amount of cash into growers and dispensary companies when the medical marijuana thing legalized. They did and continue to do very well. I thought ironic due to their professions.  

FWITW. I know not exactly what you asked about but worth a look. 

[Gixxus Christ!]

I have a stack of one ounce pure silver coins in my safe. For reasons. 

Edited April 12, 2019 by Gixxus Christ!

[Tpoppa]

Also, something like 12-15 states now consider gold and silver to be legal tender.

[mello dude]

1 hour ago, Tpoppa said:

I have a diversified portfolio that I am very comfortable with.  I also keep a certain amount in savings that I don't invest in case the market were to go to shit for awhile.

Precious metals tend to increase when everything else drops.  So it seems like a decent hedge when the market is in panic mode.

I'm considering moving around 10-15% of my savings into physical silver bars (which is trading at a very low ratio to gold right now).

Worse case, I throw them in a safe and my kids inherit silver bars someday 

 

I'm with you on that approach. I have the diversified portfolio also, but yeah, the precious metal as hedge something I need to get going on. Not sure how to pull it off. 

[serpentracer]

invest in tasty waffles. with lots of maple syrup.  honestly though, is investing really worth it to the average person?  I mean you literally have to do $20k to make a few hundred a year.   you can do a lot of other things to make money faster and in greater amounts. 

Edited April 12, 2019 by serpentracer

[ScubaCinci]

People who hoard gold for when the economy collapses crack me up. Gold (silver, diamonds, etc) has no inherent value...if things go to shit, food, water, and land are the real commodities.

That said, you can make some money trading precious metal commodities but it takes a lot of time, research and you really have to have a lot of money to invest to make real money. Buying a few thousand dollars worth of this and that won't amount to a serious payday. Big rewards come from big risks.

[Tpoppa]

Not talking about hoarding or a get rich quick scheme.  I am considering moving some liquid funds from savings into silver.

It's a hedge that can earn more then the interest rates at a bank without any tax consequences.

While silver ins't as liquid as cash, it's still liquid.

[ScubaCinci]

Sorry, the hoarder comment wasn't directed at you...just a general commentary.

Certainly if you can beat the bank interest rate (not hard these days) without compromising your liquidity, it's worth pursuing. I've not done so myself so I can't give any recommendations on doing so. I generally buy tech stocks after they or the market in general take a hit and make a little bit here and there. Far above any interest I would get with it sitting in cash.

[TimTheAzn]

14 hours ago, MidgetTodd said:

My father in law, a city cop. My father, retired sheriffs office drug enforcement. 

Both dumped a fair amount of cash into growers and dispensary companies when the medical marijuana thing legalized. They did and continue to do very well. I thought ironic due to their professions.  

FWITW. I know not exactly what you asked about but worth a look. 

Sounds like they know what the real, actually harmful drugs are. 

[Bubba]

If you're talking about buying overpriced jewelry for the SO, then yes.

My experience?  The return is lousy...IJS

[bowdog]

16 hours ago, MidgetTodd said:

My father in law, a city cop. My father, retired sheriffs office drug enforcement. 

Both dumped a fair amount of cash into growers and dispensary companies when the medical marijuana thing legalized. They did and continue to do very well. I thought ironic due to their professions.  

FWITW. I know not exactly what you asked about but worth a look. 

I as well have done this...I also have a shit ton in a stock called OPK that I am betting to hit the $5 maybe even $10 a share range in the next few years.

[motocat12]

Tax Implications of Selling Physical Gold or Silver
Physical holdings in gold or silver are subject to a capital gains tax equal to your marginal tax rate, up to a maximum of 28%.

[Tpoppa]

17 minutes ago, motocat12 said:

Tax Implications of Selling Physical Gold or Silver
Physical holdings in gold or silver are subject to a capital gains tax equal to your marginal tax rate, up to a maximum of 28%.

Terrific.  So, if I were to purchase something with silver or sell the silver to a private party...how, exactly could that be tracked?  It can't.

Do you pay taxes on jewelry that appreciates? 

https://gsiexchange.com/states-gold-silver-become-legal-tender/

[Gixxus Christ!]

1 hour ago, bowdog said:

I as well have done this...I also have a shit ton in a stock called OPK that I am betting to hit the $5 maybe even $10 a share range in the next few years.

When the FDA cleared aquabounty genetically engineered salmon for consumption in the USA I bought up some stock in the company that developed sells them. Hoping it blows up over the next few years as restuarants get on board with salmon that is cheaper, bigger and more environmentally friendly. 

[serpentracer]

I recently inherited a few silver dollar coins from the mid 1800's.  having a look at a few websites I have almost worthless coins.  their value is $12.  but get this, melted down they're worth $24. lol   there are a few editions of the same years but with different mint marks that are worth $400-500 and one so rare worth $20k. of course I have the $12 ones haha. 

Edited April 14, 2019 by serpentracer

[Gixxus Christ!]

7 hours ago, serpentracer said:

I recently inherited a few silver dollar coins from the mid 1800's.  having a look at a few websites I have almost worthless coins.  their value is $12.  but get this, melted down they're worth $24. lol   there are a few editions of the same years but with different mint marks that are worth $400-500 and one so rare worth $20k. of course I have the $12 ones haha. 

Yeah, a lot of older coins aren't worth their weight in the metal they're made of, along with current coins like the worthless penny that costs 1.5 cents to mint per coin. We are a nation of dipshits to allow this to continue. 

[ReconRat]

I like silver as coins. Good for shtf. But bought most all of mine when prices were below $4 an ounce. A word on value of silver increasing. It's tied to gold mining, where they always find silver when digging for the gold. So the supply tends to be greater than the demand, forever.

[Gixxus Christ!]

2 hours ago, ReconRat said:

I like silver as coins. Good for shtf. But bought most all of mine when prices were below $4 an ounce. A word on value of silver increasing. It's tied to gold mining, where they always find silver when digging for the gold. So the supply tends to be greater than the demand, forever.

$4? You must have gotten in early. I started buying silver in 07 when it was like $9. Sold at $21 after amassing a few pounds over the years, then kicked myself when I saw it hit $40. Dropped to $20 like 4 or some odd years ago and has been stagnant since. Was nice to ride the boom though, and since silver is a wildly popular industrial metal it shot up right at the beginning of the popularization of smart phones, along with gold.  

[Tpoppa]

I don't see it hitting $40 again unless there is a major financial disaster.  But, I do see it increasing again during the next bear market.

It's right around 15 right now. 

 

[theroamr]

I had about 10% of my 401 k invested in gold in roughly 2005 through late 2011. It hit nearly 1800 an ounce in 2011 so sold it off and rolled it over. Wish I would have had more invested at the time

[serpentracer]

On 4/14/2019 at 2:17 PM, Gixxus Christ! said:

Yeah, a lot of older coins aren't worth their weight in the metal they're made of, along with current coins like the worthless penny that costs 1.5 cents to mint per coin. We are a nation of dipshits to allow this to continue. 

what got me even looking into their value is that story a few months ago about the 1943 copper penny being worth $1.7M.  I have a big can of old pennies too.  and a bunch of 1943 but you can tell they're not copper but all of my 1942 and 1944 pennies are.  strike 2! LOL

https://www.foxnews.com/science/holy-grail-found-rare-penny-might-be-worth-1-7m-after-it-was-found-in-boys-lunch-money

Edited April 18, 2019 by serpentracer