View Full Version : And introduction and a couple questions....

04-05-2011, 09:00 PM
And introduction and a hodge-podge of everything else...

Howdy all. A little background of myself and silver. I work with a guy that a year or so ago got into buying and then selling gold. At the time, he tried to get a few of us involved. With the price that gold was at, I just didn't see it as being very realistic as something I could pull off. About 3 months ago, he started talking about silver. I decided to at least look into it. I started watching the price, and it slowly kept rising. It was around $35 when I decided to jump in.

I wasn't real sure where to buy silver (except ebay). But I remember my local credit union always having a disply case with various coins and commemorative rounds. I was in the bank taking care of some other business, and decided to check them out. They had a bunch of generic (coins of america) rounds, a few silver eagles, some jewelery (also coins of america), and other us coinage. I asked about the price of a few of them, and the lady that was in charge of that stuff was gone that day. That was probably a good thing, as I would have more than likely jumped in without doing any research. I went home and started digging. Found out what an oz actually was going for, and also that the coins of america stuff was legit 1 oz .999. I have recently been told that silvertowne actually makes the coins of america stuff, and they just throw it in a purty (kansas accent) box.

The next day, I went back. Talked to the lady that was in charge of the coins. I asked for prices. She said she would have to get her cheat sheet as they've had some of them for a while. Seems that whatever price they buy them at, is the price they mark them at.....AND NEVER MARK THEM UP! She checked the price of the first one I pointed out....$21.95! I had $400 cash on me. I told her I would take $400 worth of the cheapest ones she had. I walked out with 17 rounds at $25.53 a piece. The cheapest I paid for the generics, was $17.95 - think I actually got 2 or 3 for that price. I got a gold plated silver eagle for $25! I eventually bought out all the rounds and silver eagles they had with the exception of 1, which is still priced over $50. I went back 3 different times. Ending up with a total of 50 or so rounds! Average price was right around $25.50. Had I not gotten this deal from the getgo, I probably wouldn't have jumped in like I have.

I ended up selling 40 of the generic coins of america rounds to recoup the initial investment. I sold at about $35 a piece. Looking back...stupid mistake. But it was to appease the wife, so maybe not too stupid?

That's the beginning of the saga.....

My largest purchase, which was about a month ago, was a 10oz englehart bar which I paid about .60 over spot ($380).

My first junk purchase was a week or so ago, I purchased 18 '64 and earlier halves, 28 '65-69 halves and 1 '64 quarter. All are in damn fine condition with the exception of the quarter. I paid $355 for all of it. If my calculations are correct, that's 10.83oz. So that would be $32.78/oz. Score?

Unfortunately, I've also made some mistakes. I bought some gold on fleabay. When I read the description, it was .80xx grams. After I hit the bid button, I cleared my eyes, and realised it was .080xx grams! Doh! I also bought a 1gram silver bar for too much. Lessons learned.

Now the questions.......

One of the silver eagles I purchase, and 7 of the generic rounds I still have, are gold plated. I took one of the generics to the jeweler I've been talking to, and he wasn't interested in buying or trading. He said he just didn't think he could sell it. He did say that he'd be a buyer on unplated anything. I didn't mention the gold plated ASE I picked up from the credit union for $25.00. I've also had another guy that I sold some of the original rounds to turn his nose up at the gold plated stuff. Is the gold plated stuff harder to unload? I've seen the gold plated ASE's going for about the same as uncoated on fleabay.

Storage - I know there are probably countless threads about this, but well, I'm lazy. Right now I just have them stored in my.....lol...yeah right! Is there really any concern about adverse affects to silver that drastically reduces the value? I know that they can/will tarnish. But that doesn't seem to affect the value that much. Most of the rounds I have bought, are either in an "air tight" container, or a little zip lock baggie. I don't have anything to store the halves I just bought. If not exposed to elements, what's the worst that can happen? These halves were sitting around someones house for over 20 years, and 95% of them look pretty good.

PM - What's this stand for? From the way I've seen it used, I think the P = physical. My only guess on the M = money?

And my last question for now......I haven't seen a "classified" section on the forum. I can understand why there isn't one....way too much potential for deals gone wrong. But is it common for members to buy/sell/trade through knowing each other on the forum?

If you've made it this far, THANKS! I'm sure there's going to be much more to come.

Golder Arches
04-05-2011, 09:07 PM
Grabbing the easy question. PM = Precious Metals.

04-05-2011, 09:10 PM
PLEASE PLEASE PLEEEEZE go back and do a search on storage or storing. I can't bear the thought of yet another thread. There have been three in past two weeks.

buy sell trade is there, just look thru the forum subjects more carefully. One thread for each type of transaction, and the rules are clear.

PM = Precious Metals

plated = collector/numismatic. I stay away from them as does most anyone who is a bullion person.

04-05-2011, 09:14 PM
Hey there and welcome to the nut house!

Gold plating is almost always extremely thin (like microns). They sell a gold plated replica Buffalo for under $10, and do it at a hefty profit. Verifying the real metal under the plating is more hassle than it is worth.
Silver is silver when it comes to selling. Only thing you'd need to protect from aging is numismatics (collectibles). As for what to put them in, you'd be surprised how many common container materials actually tarnish/tone silver over time (plastics containing PVC are notorious). If you really care about it, read up on the numi sites, otherwise store in whatever.
PM - most are going to tell you "precious metals", but I like the more technically correct Pusillanimous Mug-warts
As for buy/sell/trade, haven't done any here, but I think there is a forum area for that:buy/sell/trade (https://www.kitcomm.com/forumdisplay.php?f=36)

04-05-2011, 09:16 PM
PLEASE PLEASE PLEEEEZE go back and do a search on storage or storing. I can't bear the thought of yet another thread. There have been three in past two weeks.

buy sell trade is there, just look thru the forum subjects more carefully. One thread for each type of transaction, and the rules are clear.

PM = Precious Metals

plated = collector/numismatic. I stay away from them as does most anyone who is a bullion person.

Ok...ok....ok. I'll do the search for storage. :D

And I just checked and the buy/sell/trade forum JUST showed up. :eek:


04-05-2011, 09:17 PM
the two coin shops near me buy and sell plated ASE (american silver eagle) for the same price as generic silver. but not for the premium regular ones get. keep checking or just keep them, some people like them. great start to your stack.

04-05-2011, 09:33 PM
wow nice score!

I'm going to have to go to some banks next time i go to americaland.:D

04-05-2011, 09:57 PM
Never tell your wife/friends/us about your P.M. deals.That gold plated stuff..personally I would never touch it even at a discount.Have fun flipping coins as the price moves up I'm sure we will see more and more new posters.Just hope you take the time to understand the basics of what is and will take place.Many here have the knowledge that would put most financial advisers to shame,your lucky you found us when you did..stack well time is not on your side...luck & always dyod

04-05-2011, 10:15 PM
Never tell your wife/friends/us about your P.M. deals.

I can understand about keeping it somewhat under the radar, but the wife definitely needs to know. My friends have very little to no idea. And I'm small fish compared to probably 95% of you all.

I'm beginning to understand the basics. What I did understand well, was that the price will go up. If I was going to buy, I needed to do it now and as much as I can while not over extending myself. And I also understand that the price could drop to nothing over night. I have slowed quite a bit, but still make 2-3 purchases every 2 weeks (either fleabay, locally or thatguyslist).

But come on, who doesn't like to share their excitement when they make a damn good deal?

04-05-2011, 10:24 PM
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/4/5_Richard_Russell_-_US_Dollar_Collapse_Will_Accelerate_files/shapeimage_26.png ... anybody

04-06-2011, 08:26 AM
"...Unfortunately, I've also made some mistakes.

IMO one of the first mistakes you made was selling 25 of the rounds to recoup your FRNs.

If you're going to acquire silver as an investment for capitol gain or as an insurance policy to protect some of your wealth in the face of the ever declining in value dollars,

you need to think, flexibly plan, and then act "long" vs. "short" term.

04-06-2011, 08:36 AM
Welcome aboard. You will learn a lot here. I also like gold seek radio! King world news broadcasts on Internet also great. DCA is dollar cost average....like me you are late to this game...but in the big picture you might be early compared to the masses...of that I'm not sure...things are really heating up out there!

04-07-2011, 11:17 PM
"...Is there really any concern about adverse affects to silver that drastically reduces the value?"

Don't store any silver in plastic that contains PVC. Any food plastics like the sandwich "baggies" you mention are fine...there isn't any PVC in plastics used for food.

Watch out for vinyl flips that contain PVC. Don't store coins in them. If you buy some flips get them from a dealer who knows whether they contain PVC or not, or if on-line, only buy from a site that reports whether specific flips are suitable for coin storage/long-term. A general rule is that if the flip is soft and pliable it MAY contain PVC. It it's hard and brittle it doesn't.

It's not good to store 90%/80%/40% silver coins in paper tubes. There mayu well be sulpher and other chemicals in the paper that will work to damage the surface & rims. Plastic tubes are fine but cost money. Loose in heavy duty zip-lock "pint" &/or quart freezer bags work well. Press the air out of the bag, zip-lock it, roll or fold it flat, and tape it for storage. Flat stacks well.

Store in multiple places, keep an inventory and make sure you tell a trusted (a family member is probably best) person about your stash & inventory, and where the inventory is stored.