[Samseau]

(04-23-2011 07:48 PM)shanefalco Wrote:  

I bought both silver and gold back in 2005 at $6.50 and $420. At one point I was about 80% silver and 20% gold. I sold out of all almost all my silver, I'm about 95% gold now.

When I bought years ago, I was a little naive about the PM markets. Today, I wouldn't buy any silver because the price of silver is too volatile, and can be manipulated. I would still buy gold now, but I plan to sell within the next 2-3 years.

For anyone considering buying silver, make sure you have an understanding of selling it. I got out of silver because I found out that you'll lose a considerable amount of money when you try to sell silver (in addition to taxes). What do I mean, check out this site:

http://www.coinflation.com/coins/1921-19...Value.html

The current melt price for silver is $36.10. Dealers are currently paying
$32.40.

http://www.apmex.com/Category/17/90_Silv..._Bags.aspx

If you're looking at buying eagles, they are currently selling for $52.65, but buying back at $48.56.

http://www.apmex.com/Category/160/Silver...Prior.aspx

So when the time comes to sell silver back, you lose money. Also, buying at $52.65, you're essentially buying something that is only worth $36 on the open market price.

Compare that to gold, where spot is 1507.70 and the buy price is $1,546.50.

http://www.apmex.com/Category/290/Gold_E...Prior.aspx

Dealers will consistently buy back silver at a lower price, but buy back gold at a higher price. For those who think gold is too expensive per oz. Look at buying the smaller denominations 1/10 oz for example.

With any investment, I wish you all good luck!

In spite of all what you posted, there is one itty bitty problem:

If Gold goes up, Silver goes up

By converting your silver to gold you've lost cash because Silver is undervalued compared to gold: silver has an industrial use whereas gold does not (although this could change sometime in the next ten years); silver is more manipulated compared to gold, which means silver has more upside potential (why would they manipulate the prices to be artificially high? JP Morgan is trying to hold a monopoly on the supply of silver... if prices keep rising they won't be able to afford it anymore)


I think you made a bad choice. Of course I could be wrong, this is all speculative at the end of the day, but inflation supports all precious metals (see 1979) equally. There's no reason to dump silver if you think gold will increase. They rise together and fall together; they are alternative currencies and are profitable due to the dollar's debasement