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DaveyDave

New stacker advice

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Hello, I am new to stacking, I’m very curious as to if the current silver spot price of $17.55 is a good spot price to be stacking with. After looking at charts from the past 20-50 years I notice that this price is seems fairly in the middle if not a bit high. Granted I’m only 25 and don’t know everything. Any advice on when it would be too expensive? Also would you recommend only American eagles for investments? My goals for silver is as a security blanket/investment.

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In my opinion, and very generally speaking, silver is relatively undervalued.  You can't reliably use past prices as a gauge, for a number of reasons, that I am simply too lazy to list at the moment...  Looking into the future, there is a very good chance that the value of silver shall increase significantly from where it stands today, for yet another list of reasons that I don't feel like embellishing. 

If you are one of those people that look at the ratio of silver to gold, you may notice that it likely favors the upside for silver as well.

Me personally?  I shall stack silver regardless of the price.  The only thing changing is the amount of it I buy at a time, as the price fluctuates.

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3 hours ago, DaveyDave said:

Also would you recommend only American eagles for investments? My goals for silver is as a security blanket/investment.

Buy as close to spot as possible. At under $20 an oz silver is a steal at the moment. As long as you get as close to spot as possible. Rather than obtaining a set number of oz’s per month, set a monthly budget of $’s as @MetalMandibledoes (and many others of us do). This will help you track your average $/oz over the coming years. When it does come time to liquify you will find that most people will view your stack at bullion spot price so why pay high premiums now? ASE’s are good coins to have - Maples generally cheaper, 10oz bars cheaper still. Have a little diversification in your stack. 

Enjoy stacking!  

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10 hours ago, MetalMandible said:

In my opinion, and very generally speaking, silver is relatively undervalued.  You can't reliably use past prices as a gauge, for a number of reasons, that I am simply too lazy to list at the moment...  Looking into the future, there is a very good chance that the value of silver shall increase significantly from where it stands today, for yet another list of reasons that I don't feel like embellishing. 

If you are one of those people that look at the ratio of silver to gold, you may notice that it likely favors the upside for silver as well.

Me personally?  I shall stack silver regardless of the price.  The only thing changing is the amount of it I buy at a time, as the price fluctuates.

Welcome to TSF @DaveyDave

Respectfully I disagree with the above, and like you have looked at the price and concluded it is a bit high. With the gold to silver ratio being so high at around 1:85 there are plenty of folk who believe silver is cheap and should catch up to the price of gold. However I'd say there's plenty who believe that ratio says gold is expensive and will fall back meaning silver isn't as cheap. I guess no-one can say definately if it's cheap or not.

If your goal is investment plus a hedge against inflation I feel gold is a better bet than silver especially if it's physical coins etc. Although it's more expensive it's worth saving up to buy over buying the odd ounce of silver. 

Personally I've both with gold making up about 85% of my precious metals. I've not being buying seriously for very long but I've not seen any real profit from silver, except a silver proof crown I bought in '96 at a car boot sale!

One thing I'd say is being young works hugely in your favour, you can take your time to find what you believe is a good price. If you think it's high now then there's no rush to go out and buy, in my opinion gold and silver are NOT great for short term investments.

Edited by Notafront4adragon
Missing words

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1 hour ago, Notafront4adragon said:

In my opinion gold and silver are great for short term investments.

Respectfully, I disagree with the above.  Gold and silver above all else, are a means of wealth preservation.  If your goal is to make an investment, for the very reason why people DO invest, metals would not be a great short term option.  They are simply too volatile and there are way too many options out there that generate far greater yields.

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48 minutes ago, MetalMandible said:

Respectfully, I disagree with the above.  Gold and silver above all else, are a means of wealth preservation.  If your goal is to make an investment, for the very reason why people DO invest, metals would not be a great short term option.  They are simply too volatile and there are way too many options out there that generate far greater yields.

Yeah that was a typo. Meant are not good short term! 

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Thank you all very much for the knowledge. One other serious question in mind is where would I typically sell my bullion? I know American Eagles are backed by the US treasury but what if I have silver bars or other types of coins? 

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11 minutes ago, DaveyDave said:

Thank you all very much for the knowledge. One other serious question in mind is where would I typically sell my bullion? I know American Eagles are backed by the US treasury but what if I have silver bars or other types of coins? 

Your local coin shop. A pawn brokers. Privately. Online - including here on the silver forum. 

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33 minutes ago, DaveyDave said:

Thank you all very much for the knowledge. One other serious question in mind is where would I typically sell my bullion? I know American Eagles are backed by the US treasury but what if I have silver bars or other types of coins? 

 

you probably need to do a lot more research into

why you are choosing precious metals and a plan

of how to make it work(it won't automatically work,

you need to work out at least some of the finer

details).

 

local metals dealer offer a baseline price to sell to

(usually not great, as they have expenses to pay).

private sales such as silver forums gives access to

actual buyers(better pricing) but will the silver forum

be around in 10, 20, 30 years time when you would

want to sell?

 

it takes some planning for decades long investments.

there is no rush, start slow and build up the knowledge

required to back up your investment.

 

HH

Edited by HawkHybrid

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Eagles are a decent investment. I don't have any though. I prefer Australian, Canadian, British and Korean silver. If I were you I'd buy post 2018 Maples as my standard bullion coin as it will be cheaper, has more security features and has higher purity. You'll develop your own preferences. I would say that you should look to get into all sizes of Perth Mint Kookaburras,  10 oz. British Valiants, 10 oz Canadian Magnificent Maples, 10 oz. Royal Canadian Mint bars and  10 oz. Britannia Bars. I can't get enough of them.

Edited by AgCoyote

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On 20/10/2019 at 04:52, DaveyDave said:

Hello, I am new to stacking, I’m very curious as to if the current silver spot price of $17.55 is a good spot price to be stacking with. After looking at charts from the past 20-50 years I notice that this price is seems fairly in the middle if not a bit high. Granted I’m only 25 and don’t know everything. Any advice on when it would be too expensive? Also would you recommend only American eagles for investments? My goals for silver is as a security blanket/investment.

Looking at the silver chart over a longer time period, it's useful to look at the inflation adjusted chart as well.

image.png.367938780c293b986a2788e6a66ca123.png

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