Your Questions About Tips For Investing In Precious Metals

0
0
0
0
0
0
0
0
0
or copy the link

Richard asks…

Investing in silver. Tips and advice?

Hi, i’m 17 years old and i want to get into buying silver. I have done a lot of research and am fully convinced that its what i want to do. Id rather put my money into my future rather than clothes or electronics. I don’t have much money right now so gold is out of the question. I have enough money right now for about 3 or 4 ounces. Im thinking of starting out with American Silver Eagles or Canadian Silver Maples. Any tips on where to buy from? Gainsville coins seems like they have a good deal on 1 oz coins. Apmex is slightly more expensive but that can add up. Also, any tips on books or websites where i can learn more? Thanks in advance!

Justin answers:

For that small amount, you would be better off going to a local coin shop. Certain online dealers charge a premium for smaller orders, and you have to pay shipping. I would go to sites like bulliondirect.com, or kitco.com, or libertycpm.com, add to your cart what you want and get an estimate for the price of the metal + handling + shipping. Then go to a local coin shop and get a quote from them for something similar. Liberty Coin and Precious Metals (libertycpm.com) is in the San Diego area. Last I checked, their prices were cheaper than both bulliondirect.com and kitco.com. And if you are local, you can buy directly from their store.

You could also try craigslist, but you have to weed through the scams. But you can negotiate wth people trying to sell their silver and possibly get a better deal than you would through a dealer.

“If you can’t hold it, you don’t own it.” -Mike Maloney
http://www.youtube.com/watch?v=LFxMC9y4Njg

Robert asks…

I want to start investing, how do I go about doing this?

I have around 40k sterling in savings. I decided it was time to start thinking about the future and my retirement fund (which is not for a while yet might add). My knowledge is practically none exsistant on the subject of investing and was just wondering if anyone could give me any tips on where to start. I am a busy man and don´t have time start learning about the stock markets, so really just looking for the easiest way to go about maximising my money with the minimum effort.
All suggestions welcome.
Thanks.

Justin answers:

I have invested for over 30 years, and I have put my money in all different types of investment vehicles: ETF’s, Mutual Funds, Bonds, Precious Metals, individual stocks….etc….

The best investment I ever made was opening a DRIP plan over 20 years ago. It has given me annual returns of 10.4%. However, these plans are long-term and you must let the dollar cost averaging and dividend reinvestment take effect in order to obtain high returns.

They are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street.

The best part is you get solid annual returns from well-known, safe Blue Chip companies like: McDonalds, General Electric, Pfizer, Walmart, US Bancorp…….etc……..

They are inexpensive to start and maintain, and your dividends are reinvested for free.

They are perfect for small investors, as well as big investors. They are safe and allow you to not care about whether the market is going up or down.

John asks…

How to make a good rate of return with easy investing?

Hi,
I am 17 and starting college in the fall, and really wanna budget and handle money well since I expect to be having huge debts from student loans. We learned about investing and economics in class this year, and I was wondering what the easiest way would be to maybe invest and earn a little more than I would just in a savings account? I mainly want to start two accounts that I would put money into every month, one for money to put towards paying my parents back, and one as more of a car fund. Would going through Fidelity or a company like that be worth it for someone like me? And if so, how would I go about doing that? I dont want super high risk, and something like mutual funds might be good, but as a 17 year old I dont know how or if i could even do that for myself.

If you have any ideas or tips on how to easily invest that would be appreciated!!

Justin answers:

Precious metals.

David asks…

Can I pay off my student loans faster with money from investing?

I read that it takes the average person 15 years to pay off student loans. I know the economy is terrible and I’m not sure investing is even a possibility now. But, I have always wanted to invest and I was wondering, if I were to do so, does it seem possible to buy stock, bonds, etc. and use my return on investment/dividends (still learning the terms) to pay my loans before I’m middle-aged? I am not currently employed but I have been researching financial/investment tips for when I do receive a stable job. Any additional resources would be welcome.

Justin answers:

Of course you can’t believe everything you hear.

Going forward, your average return from investing is likely to be quite small unless you can magically access just the right assets. And it all depends on your outlook.

If you think that, over the span of your loan, inflation is going to kill the dollar then yes, precious metal assets will outperform a loan at some point in that time. However, you must have the courage and luck to declare the gain at a profit, pay the tax and liquidate the loan.

F you think you’ll get the historical average of 5% pretax, and your loan is at 6%, then your proper investment is to liquidate the loan rather than trying to invest. (If you’re looking at a lower average return from, say, Treasuries or money market, then you’d be insane to carry a higher-interest loan.)

If you think you’ll beat the market by day or swing trading, you’re likely to lose twice: you’ll lose all your money day-trading and then have nothing left to pay your loan off. Same with options, commodity trading or any high-risk high-frequency trading scheme.

On the other hand, if you can find an investment which pays dividends at a rate higher than your loan rate, and the dividends are secure and will remain so – or even rise – for the span of the loan, then it makes sense to take the dividend stream. And, yes, given capital equal to the loan balance, that dividend stream will amortize your loan just fine and you’ll have the capital and stream when it’s done.

Since you are starting out, it’s easy for you to set up a real financial plan – a life plan – that will generate the funds to pay for all the things you want to do with your life. At your stage in life you need to set up a capital accumulation plan. That’s essentially a master budget in which you set specific goals (such as loan payoff) to be accomplished within a given time. The combination of the budget and the goals tells you exactly what your return needs to be to achieve those goals. That in turn tells you exactly what investment strategy to use to get there – or even if “there” is possible. Then you modify your goal and accumulation rate until you find a comfortable investment regime for you.

The capital distribution plan is the flip side of this. It’s a lifetime budget estimate, updated every year. You use it when you have achieved your lifetime financial goal to ensure that the money will last for your actuarial life span or beyond. It tells you at a glance whether your capital pool is healthy and your investment style is sufficient to maintain it.

Think of it as a grand campaign in which the “investment” part comes last. If your goals, budgets and timelines are your overall life strategy, then the investment techniques that you use are the tactics which you implement to get there.

Mark asks…

SSMR Stock Quote Good or Bad?

Sunshine Mining Corp. I herd my boss talking about it to his friend at a Party he seems to be some what rich. Is this a Yay or Nay

Justin answers:

Nay.
I never heard of it before, but you got me curious, so I did a very quick look. First, it’s a penny stock and I’ve learned the hard way it’s best to just monitor those and not invest until it proves its got legs.
“Sunshine Mining and Refining Company is primarily engaged in mining silver, and owns properties in Argentina, Mexico and the United States with significant silver reserves and silver resource potential. The Company owns the Sunshine Mine located in the Coeur d’Alene Mining District near Kellogg, Idaho and the Pirquitas Mine in the Jujuy Province of northwest Argentina. The Sunshine Mine produced 3.9 million and 5.2 million ounces of silver in 2000 and 1999, respectively. On August 23, 2000, Sunshine and its wholly owned subsidiaries, Sunshine Argentina, Inc., Sunshine Precious Metals, Inc. And Sunshine Exploration, Inc., all filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. In March 2002, Sunshine Argentina, Inc. Was sold. In February 2003, the Company sold approximately 79% of its stock in Sunshine Precious Metals, Inc. To American Reclamation Incorporated”
http://finance.google.com/finance?q=OTC:SSMR

With that kind of financial history and no info on its producing anything NOW, I wouldn’t rush in.

Your boss may have a legit hot tip that I sure don’t, but this doesn’t get me the least bit excited.

Thomas asks…

pool cue queston production vs coustom?

if you had a choice which would you spend your money on a coustom cue or a production cue looking for good input between 500 to 1000 to spend

Justin answers:

Custom. Always a custom cue. There are so many different factors that can affect the play of the cue, and while it’s true that a $10 sneaky pete will shoot as straight as a Cognoscenti, but it’s a matter of personal comfort. Cue’s are made in so many different ways, that a lot of the production cues with laminate finishes and ridiculous pictures aren’t even worth the money you buy them for. Stay away from the gimicks, plastic and graphite cues.

Before you purchase a cue, talk to the shooters at your local pool hall or tournaments. Ask you if you can hit their cues and see what you like. Ask what size the pin is. Take a look at how the joint is made (wood to wood, metal to metal, etc). Figure out what kind of wrap you prefer (linen, leather, exotic animal skin or just finished wood). You want to make sure the cue comes with at least two shafts in good condition. Are you comfortable with the diameter of the shafts? Tips and ferrels are replaceable, but carefully examine where the ferrel meets the shaft to make sure there are no scratches. Finally, what materials do find attractive? (Types of wood, inlay design, inlayed materials) Just don’t ever buy a cue without hitting some balls with it first.

Once you really start playing with your cue, you’ll notice a difference when you pick up another stick. When you’re spending 7-800 plus on a cue, make sure you do your homework, so that you don’t get ripped off. The thing is, when you buy a custom cue, it’s not just a pool cue, as most may view it. It’s really a work of art that a lot has a lot of time, money and precious materials invested into it’s production.

Once you find the right cue and make your purchase, you’re going to be very happy with it every time you pull it out of the case. The other thing about custom cues versus a production cue, is that custom cues (from the big cue makers) generally don’t go down in value – as long as you don’t abuse it. Take a look at some of the custom cue makers I’ve listed below.

Southwest
Phillippi
Scruggs
Cognoscenti
Coker

All of these cue makers, and all well known cue maker’s work can be found in the Blue Book of Pool Cues or the Billiard Encyclopedia. Good Luck!!

James asks…

Has there been any great change in gold prices recently?

I have no experience with gold, and called a company that advertised with an 800 number on one of the news network channels.
I was told they would send me a brochure a week ago, which I haven’t received yet (a week later).

It annoyed me that some guy named Arthur from this company called me and left a message that there were some “maaajor changes happening today” in the gold market, and to call him back “as soon as possible”.
That sounded like horse excrement to me, and high-pressure sales tactics.

So HAVE there been any changes? Is there anything that would warrant this call?
It frankly makes me reluctant to deal with ANYONE in this company, and seek my advice elsewhere.
It’s particularly scammish that I haven’t received any information, and they were already hustling me to buy.

I know at thanksgiving gold was about 750 an ounce, and has been fluctuating somewhere over 900 recently.

Any advice on where to go for LEGITIMATE advice and purchase of gold?
How risky or stable is gold?
If not gold, what would you recommend?

Justin answers:

Couple corrections.

1. The USD and Gold do not always move opposite of each other. The declining value of the USD can move gold prices up however the USD has declined continually since 1967, and Gold has not climbed up in value anywhere close since 1967.

2. Gold does not move with inflation than anything else. If this were true, Gold would be the perfect inflation hedge and those not wanting any risk in the stock market could just buy gold. This of couse would be false.

True> If you want to speculate or hold gold, I would rather own GLD unless you think that the USD will collapse and the US gov will be default on US Treasury interest payments.

Gold tends to peak interest in times of crisis (1977-1980, 2001-2008). Gold tends to fall in a booming stock market (1980-1982, 1986-2001).

US Dollar History
http://www.google.com/search?q=us+dollar+chart+history&hl=en&client=firefox-a&rls=org.mozilla:en-US:official&hs=2sV&sa=G&tbs=tl:1&tbo=1&ei=UNoRSpv8OYyYtAPY_P3mAg&oi=timeline_result&ct=title&resnum=11

If your primary concern was inflation, then I would avoid gold altogether and consider Treasury Inflation-Protected Securities (TIPS).
Http://www.treasurydirect.gov/indiv/products/prod_tips_glance.htm

Keep in mind that gold is NOT an industrial metal. It is a precious metal. The lack of industrial uses for gold is part of the reason why precious metals have not had the long term demand as industrial metals such as copper, steel, and aluminum.

My recent “Golden Posts” (posting on gold)

Would it be a terrible idea to buy gold as an investment option right now?
Http://answers.yahoo.com/question/index;_ylt=AhxzmMNWuQSVZtnZGleaVdLty6IX;_ylv=3?qid=20090218201546AA3Ee63&show=7#profile-info-xngu6kkqaa

Why does gold price raise?
Http://answers.yahoo.com/question/index?qid=20080407025341AAcTVUn&show=7#profile-info-BGBjVeCTaa

Investing in gold versus the market?
Http://answers.yahoo.com/question/index;_ylt=ApMG0Rfp0Ku32qLXpNTStOzty6IX;_ylv=3?qid=20090225122413AAwQpV1&show=7#profile-info-AA10198250

Powered by Yahoo! Answers