I have relatively small amounts to put toward physical on a periodic basis. So far, I've been going with silver due to the fact I can get several ounces with the amounts I'm investing. I'd like to start getting some gold and have seen it sold in amounts as small as 1 gram. Is there any downside to buying in such small increments? Are they harder to sell, etc.? Should I save up to buy larger quantities?Thanks in advance for your thoughts and advice.
Question re stacking physical
I would start by getting the 1/10 oz american eagles.
they have higher premiums but thats where I would start.
As Opalboy said, less then an ounce coins you do pay a higher premium. Depending on your ability, look at the fractional European coins as well. If you really want gold.
The thing that I would also keep in mind is the gold silver ration (GSR). As the world moves back to bimetalism, you might see that ratio fall.in other words, silver could buy more gold in the future then it does today.
From what you wrote, I would very much try to stack as many ounces as possible. If that is silver, that is fine. For, in the end, both gold and silver will be money. 100 pennies = ten dimes= 4 quarters = $1.
If stacking is your main priority, and funds are scarce, I would even be looking at junk silver. " Real" silver dollars or quarters.
I hope this helps you.
BTW, I think the prices of silver will do better then the price of gold.
Just my two cents.
Like Bob said, load up on silver now and then buy gold with silver when the G&S reaches your comfort level. That's one option.
You'll always pay a higher premium on fractional coins, bars, etc. Use this a relative guide to premiums.
Notice there are some that are actually negative from time to time (esp some foreign coins). Yes, you can buy gold for under spot. I own several bars and coins in different sizes and only paid maybe 1% over spot once, the rest up to 10% under spot. I tried to start a PM bargains on eBay thread on here but that went over like a fart in church. Guess everyone is convinced they have to pay 30% over spot or something ridiculous to validate their purchase. It's gold, guys...it's not moon dust...it's everywhere and it's not THAT rare.
Thanks, Dr. For the kind words.
Freddie, over the weekend there was a similar discuss in the Silver forum, "What Bullion to buy ......". You might find the discussion there of interest. Lots of people responded and had some good advice. Talk about premiums, priorities, junk silver, and what-not.
I will say this again, and I don't mean to beat the point. Everyone here has different levels they can afford. But, the more you can stack for yourself, be it gold or silver, the better off you will be. I would not buy gold just to have gold, if it stopped me from stacking more silver. Coins, bars, junk, whatever. The most important thing is you have whatever is enough stacked.
One reason silver will move higher, as the price of gold goes higher, is not everyone will be able to afford gold. And, more people will look at silver the higher the price of gold. Only my opinion.
But, what do I know?
This is the best answer to this question that I've read. It's from Rick Rules latest interview on King World News
"When asked about silver specifically Rule responded, “As usual I would defer to Eric Sprott on that, who is a frequent guest of yours. Eric makes the point that silver is trading low in historical terms to gold in the first instance. Secondly, that the trading volume of silver, relative to the physical supply available to trade, is laughably high.
The probability, in his view, of a hiccup in delivery in the futures markets is very high, which would have truly dramatic consequences. I buy precious metals mostly as a fear buyer. I buy them, at least in the physicals, to protect my portfolio. My friend, Eric, is more of a greed buyer, he buys them to maximize his benefit.
If you are a greed buyer, a speculator, I suppose silver is the place to be. If you are a fear buyer like I am, gold has traditionally been the harbinger of wealth.”