# Silver



## armed_al (Dec 13, 2011)

Silver dropped below $30.It might be worth keeping a eye on.Any thoughts?


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## BillS (May 30, 2011)

I think it's a good time to buy silver and gold. With all the money printing I'm 100% certain we'll see hyperinflation and the death of the dollar as the world's reserve currency. I bought my silver months ago at about $40 an ounce and now it's below $30. I bought it to preserve the purchasing power of my money so the fact that it's dropped so much really isn't a problem for me.

I think the best silver to buy is junk silver coins. A 1964 silver dime has about .07 ounces of silver in it. Its melt value is about $2.15 right now. I bought my junk silver at Provident for 6% over the spot price. That included shipping, insurance, and the credit card surcharge. Here are some links you might want to check out:

Current Melt Value Of Coins - How Much Is Your Coin Worth?

90% SILVER Coins | Buy Mercury Dimes Online | $1 Face

Junk silver - Wikipedia, the free encyclopedia


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## armed_al (Dec 13, 2011)

Thanks for the links Bill.Btw I'm in Waukesha,Wi.currently looking for land out of state though due to High property cost and taxes.


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## ComputerGuy (Dec 10, 2010)

BILLS. Thank you so very much for the links. I have a new place to buy silver at a reasonable and fair price


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## SMOKEYMOUNTAIN (Dec 5, 2011)

I think under $30 dollar silver is a good price point to buy if you don't have your core stack in hand.

If you do have your core stack in hand, I would sit out on the sidelines and accumulate cash reserves. With the Eurozone debacle far from finished, I foresee a mass liquidity exit from the Euro and into the USD, which is the default global safe haven in times of fear, panic, and uncertain economic conditions.

This flood of European liquidity into the USD and US treasury bonds/notes will cause a temporary spike in the value of the USD. The increased purchasing power of the USD will cause temporary deflation which will throw PM's down and into fire sale discount mode. 

But, once fears subside, skittish European/global investors will realize the USD is no safe haven. With $15 trillion plus in national debt with daily negative amortization and all around red balance sheets, the decline of the USD is inevitable. This will almost certainly cause a mass exodus out of the USD which will be exacerbated with the snowball effect of fear and panic. 

As more and more people see their dollar-based nest eggs lose more and more purchasing power, PM"s will SKYROCKET. But for the next couple of months, I advise building cash reserves during this brief deflationary period and get in right before hyperinflation sets in. That being said, it's anybody's guess when PM's will hit the floor. Caveat emptor: Beware catching the falling knife. Additionally, if you do chose to wait out we may never see a discount in PMs and you may miss your buying opportunity altogether if PM prices soar once again. Nobody has the crystal ball. But doing some dollar cost averaging under $30 and below is a great start. I personally will pull the trigger when silver hits $25 or below. If it hits the teens, I will liquidate half of my net worth and go on a buying physical rampage.

Keep the powder dry my friends.


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## ComputerGuy (Dec 10, 2010)

SMOKEYMOUNTAIN said:


> I personally will pull the trigger when silver hits $25 or below. If it hits the teens, I will liquidate half of my net worth and go on a buying physical rampage.
> 
> Keep the powder dry my friends.


Smokey, I agree the price still has a ways to go down. For the last 4 months, I have been buying junk coinage, morgans, peace dollars. When the price is right, silver round bullion for me


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## SMOKEYMOUNTAIN (Dec 5, 2011)

ComputerGuy said:


> Smokey, I agree the price still has a ways to go down. For the last 4 months, I have been buying junk coinage, morgans, peace dollars. When the price is right, silver round bullion for me


Only silver eagles for me. I'm a numismatic type of guy. 

But I do buy junk coins, generic rounds and bars every now and then to "diversify."


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## ComputerGuy (Dec 10, 2010)

SMOKEYMOUNTAIN said:


> Only silver eagles for me. I'm a numismatic type of guy.
> 
> But I do buy junk coins, generic rounds and bars every now and then to "diversify."


I agree, ther silver eagles are beautiful. I have a few of them. Shoulld I be taking any special care of this stuff. I get it in the mail, and toss the coin into the bags with the rest of them. I remove the cases to save space.


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## SMOKEYMOUNTAIN (Dec 5, 2011)

ComputerGuy said:


> I agree, ther silver eagles are beautiful. I have a few of them. Shoulld I be taking any special care of this stuff. I get it in the mail, and toss the coin into the bags with the rest of them. I remove the cases to save space.


Yes! Silver is a highly reactive precious metal and is susceptible to tarnishing. I keep my silver eagle rolls in the plastic holders that apmex sends them in (rolls of 20 ASE's) and throw a sack of desiccant in there and seal with tape.

When not in rolls, I individually store my eagles in air tight plastic round cases.


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## ComputerGuy (Dec 10, 2010)

I have some cleaner called Magic Wadding polish. Shines them right up


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## SMOKEYMOUNTAIN (Dec 5, 2011)

ComputerGuy said:


> I have some cleaner called Magic Wadding polish. Shines them right up


I would not keep them in a bag. That's how they get jingled around and scratched and/or oxidized.

If space is an issue, I would store them in 20 coin rolls like I do. They have specially made ASE plastic roll holders at most of the popular online coin sites. Usually get a plastic roll holder for free if you purchase 20 or more. They have plastic coin holders that hold 20+ as well.

The rolls keep the eagles nice and snug. Throw in a small desiccant pack in there for good measure and seal it.

Prevention is the best protection. I would prevent my eagles from oxidizing in the first place then have to polish and risk scuffing them with abrasive polishes and cleaners.


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## BillS (May 30, 2011)

SMOKEYMOUNTAIN said:


> Only silver eagles for me. I'm a numismatic type of guy.
> 
> But I do buy junk coins, generic rounds and bars every now and then to "diversify."


I'm not big on generic rounds or bars. I'd be too concerned about getting things that aren't authentic. I wouldn't want to sell things and get rounds or bars in return either for the same reason. There's been counterfeit silver coins hitting the market. Some based on new coins. Others made to look like antique coins. That's one reason I think junk silver dimes and quarters are the safest bet.


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## k0xxx (Oct 27, 2011)

ComputerGuy said:


> I have some cleaner called Magic Wadding polish. Shines them right up


The problems is, the coins with an numismatic value in excess of their silver content will be probably be damaged by polishing. They'll look nice, but a collector can generally tell a polished coin.

As SMOKEYMOUNTAIN stated, "Prevention is the best protection." :thumbraise:

I buy collector grade coins in addition to bullion, as it's been a hobby of mine for years. But for Economic SHTF, junk dimes, quarters, and halves would probably be the best bet.


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## SMOKEYMOUNTAIN (Dec 5, 2011)

BillS said:


> I'm not big on generic rounds or bars. I'd be too concerned about getting things that aren't authentic. I wouldn't want to sell things and get rounds or bars in return either for the same reason. There's been counterfeit silver coins hitting the market. Some based on new coins. Others made to look like antique coins. That's one reason I think junk silver dimes and quarters are the safest bet.


As long as you buy generic rounds and bars from reputable LCS's or online dealers you have absolutely no worries of getting counterfeits. Feel free to shoot me a PM if you'd like.


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## ComputerGuy (Dec 10, 2010)

SMOKEYMOUNTAIN said:


> As long as you buy generic rounds and bars from reputable LCS's or online dealers you have absolutely no worries of getting counterfeits. Feel free to shoot me a PM if you'd like.


Any bars I have been getting from NWTM. Problem is their fill time on the orders you place.


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## ComputerGuy (Dec 10, 2010)

Also Thank for the advice and website. Just ordered 2 more American Eagles, and 2 of the 20 coin case holders.:congrat:


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## BillS (May 30, 2011)

SMOKEYMOUNTAIN said:


> As long as you buy generic rounds and bars from reputable LCS's or online dealers you have absolutely no worries of getting counterfeits. Feel free to shoot me a PM if you'd like.


That's true but how would I know that YOURS are legit? If you're buying them as an investment today that's fine. But if you expect to use them as barter after the SHTF that could be a problem.


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## SMOKEYMOUNTAIN (Dec 5, 2011)

BillS said:


> That's true but how would I know that YOURS are legit? If you're buying them as an investment today that's fine. But if you expect to use them as barter after the SHTF that could be a problem.


That is another reason why I buy SAE's. Like 90% junk coins, SAE's are minted by the United States Treasury via the Bureau of Engraving and Printing and the United States Mint.

As such, SAE's are minted with the specificity and uniformity of all other U.S. coins (including 90% junk).

SAE's have a $1 dollar cash value, but more importantly, a uniform and consistent .999% pure silver rating.

You can easily tell if my SAE's are authentic. Magnet test. Ridge test. Weight test. Length-Width-Height Test. Etc.

Sovereign bullion coins are the most familiar and recognizable forms of precious metals along with 90% junk coins. But SAE's are .999% pure.


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## ComputerGuy (Dec 10, 2010)

What a great day for us buyers. Got plenty of American Eagles at great prices


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## SMOKEYMOUNTAIN (Dec 5, 2011)

Silver spot breaching into the $26's! 

Back up the truck!!!


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## ComputerGuy (Dec 10, 2010)

SMOKEYMOUNTAIN said:


> Silver spot breaching into the $26's!
> 
> Back up the truck!!!


Happy Dance!! :congrat:


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## UncleJoe (Jan 11, 2009)

Before you jump on a bunch of silver, read this.

charles hugh smith-Weblog and Essays

--------------------------------------------------------------------------------

*Are Commodities Topping Out?*

*The Big Picture*

As developing world nations such as China, India, and Brazil have expanded, their consumption of basic commodities has skyrocketed, pushing prices higher and stimulating exploration for additional sources of these materials.

*Now there is evidence that these developing world economies are slowing, along with the developed economies of Europe, Asia, and North America.
If demand for commodities falls significantly while supply remains ample, then prices will soften.* If demand continues to exceed available supply, then prices will rise.

In other words, there are two potential drivers of commodity prices: demand and supply. If supply of a specific commodity were to plummet due to geopolitical turmoil, its price could skyrocket, even in a recessionary environment of declining demand.

Absent a sudden drop in supply, however, a global recession would crimp demand, and thus commodity prices could be expected to fall.

So the question, are commodities topping out? boils down to the question, is the global economy expanding or contracting?


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## k0xxx (Oct 27, 2011)

The demand may be going down, and that is helping to drive down prices somewhat, but I believe that the larger factor is the increase in the Dollar Index. As the Euro continues to look like it will die an agonizing death, more money is moved into Dollars. That in turn makes the Dollar stronger, and it's purchasing power greater. 

In April, when the Dollar was at it's lowest for the year, silver was at it's highest. We are currently in the same neighborhood, Dollar wise, as where we were in January. Silver is also on par with where it was in January. 

The question we have to ask is, where is the Dollar headed? If you believe that it will continue to grow stronger, then selling silver would be the thing to do. If we believe that the Dollar will eventually get destroyed under a mountain of debt, then this would be a time to buy.

Personally, I don't worry about the short term trends, only the long term. That is why I am buying, and will continue to do so until the Dollar is toast and another currency (whatever that is) or a new, more stable Dollar takes its place.

YMMV


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## tac803 (Nov 21, 2010)

I wouldn't mortgage the house to do so, but it looks like it's getting to be a good time to buy some silver. A strong dollar means lower silver prices, but why is the dollar strong? Perception? Public opinion? The whole financial circus is based on the public being sold a bill of goods that the paper dollar is worth it's face value. Sorry, I'm not holding my breath that suddenly somebody is going to come up with a solution to this worldwide debt crisis. 

Throughout history, silver could always be traded for something of value. On the other hand, I'm afraid our dollar is going to take the place of the old sears and roebuck catalog.


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## Immolatus (Feb 20, 2011)

My takeis that the dollar is rising because its the alternative to the euro. i will still be buying silver but it could still drop even more, but in the long run (we are all dead...) its still...as good as gold?


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