Don’t Waste Your Money on Gold and Silver!

We hear a lot about gold and silver these days. If you watch news programs very much at all you will notice that a lot of the sponsors are selling gold and silver. Don’t be duped by these shysters!
Gold and silver can be good investments, there’s no doubt about that. But the problem that comes into it, especially for the novice, is that when you buy your gold or silver from these “sponsors” you generally pay a very high premium above the actual metal value of what you are purchasing. Not a wise investment method to say the least.
So the news programs and “personalities” advocate the acquisition of gold and silver while their sponsors offer to sell it to you via their easy toll free number. I would say that is a fairly beneficial relationship for both parties. For the most part, they are telling the truth about the importance of gold and silver, especially as a hedge for the coming economy and they do give good advice. Where they have become weasels is in the selling price. And in order for you to profit, or even break even, on your investment the metal spot value must see a dramatic increase. So by all means take their advice to buy gold and/or silver but just don’t buy it from them!
Don’t Waste Your Hard Earned Money!
Think about it this way: If you pay a high premium above the metal value you have started your investment in negative numbers. Keep in mind that this is a simplified overview and that there are often other factors than metal content that affect the value of any certain coin.
If a particular coin is rare (and in demand) a premium would be in order as the coin has “collectible” value. As an example many pre-1964 US silver coins are valued much higher than their silver content. However, I am focusing here on investing in metals and not collecting as a hobby.
The best way to add silver and gold to your portfolio is with circulated coins.

Roosevelt Dimes are a Good Choice for 90% Silver

When I was a teenager it still wasn’t too uncommon to find a silver dime or a silver quarter in your change. But that was quite awhile back I reckon. These days one’ can’t rely on pocket change to build a gold or silver portfolio. But if you search and compare prices from an informed perspective you will get the best prices and hence make the best investment.
Silver seems to be on the steady rise. I read a report earlier today that claimed silver was going to approach the $250 per ounce range in the near future. I don’t know how realistic that is but I have very little doubt that silver will see a dramatic rise.
It really wasn’t that long ago when silver was around the $4 range. It would go up near 6 drop back a bit then up then down fluctuating around $4 to $5 for a time. Now it is getting into the $18 to $20 price range and it doesn’t appear likely it will ever drop into the single digits again.
What will the value of silver be when our children, or grandchildren are grown? It very well could be in the hundreds of dollars! In fact I will be surprised if silver isn’t approaching $100 per ounce well within the next decade.
Those silver coins we put back for our children, or as part of our retirement plan or both may become a major asset one day!
Copyright 2011 David Slone all rights reserved.

8 thoughts on “Don’t Waste Your Money on Gold and Silver!”

  1. I just finished reading a hub that suggested that silver was a good investment. Oh well, it’s back to the drawing board for me.

    • Silver IS certainly a good investment. My point here is that you have to be careful where you buy it and try to get it as close to the spot value as you can. Any extra above spot that you pay is considered a premium.
      Gold and silver are both among the very best investment items a person can have but there are a lot of profiteers and shysters out there who try to convey the image that they are helping you plan for your future while they are actually ripping you off for huge premiums.
      It would be a rare occasion when a person was able to obtain gold or silver right at spot value. You do expect to be some premium margin but it must be reasonable or you will have offset any future profit potential. Would you rather pay $8 above spot for an ounce of silver or $50 more? It can be that dramatic when you purchase from the wrong places.

  2. I think they can be still helpful if you have some things to sell.they have to make something too.Its nice to have a friend that buys and sells tho because even tho they have to make money too they are trust worthy to not keep too much for

    • Not the ones that I am talking about. They charge way too much and they pay very little. I am not talking about eople trying to make an honest living and making a little bit too. I am talking about those companies that advertise on TYV on news programs especially and they tell you that the economy is going to bust and you better buy gold. They are crooks and nothing at alkl good in them. That is who I am trying to warn folks away from. You’d need to read the article to see what I mean
      Right now you could pay anywhere from 31.66 to well over $100 for 1 ounce of silver depending upon who you buy from (actual prices not just guesses). That is why it is important to read and learn and compare before buying. The same is true for gold but on a higher scale. If you pay too much then if you ever decide to sell you will lose big time. Imagine paying 85.00 for an oz and then silver doubles and you find you can only sell for about $60… that is what happens to many many people

  3. When you sell silver bullion, the IRS taxes you on the amount of money you make from the sale. To calculate a capital gain, you subtract the original amount you paid for the bullion from the total amount for which you sold it. A positive amount results in a capital gain, and a negative amount results in a capital loss. If you inherited the silver bullion, you use the fair market value of the metal and subtract that from the total amount for which you sold it.
    From: Income Tax Consequences of Selling Silver Bullion

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