Precious metal investing

[Calendyr]

Hey guys,

how are you all doing during the down season?

I have been in vacation for the last 2 weeks and I am loving it :)

I decided to take a real estate investing course this winter and start building a rental property investment during the downtime for detailing.

My goal is 66 doors, and I expect to be able to do that within about 5 years.

I also started investing in precious metals as a hobby, and I am converting my emergency funds into physical silver right now.

If you are interested in that subject or are curious about it, here is a video I posted yesterday on a new youtube channel I created :
https://www.youtube.com/watch?v=AyGeRunzvG0

If you feel like it, have a look, comment on it, subscribe and give a thumb up or down. All these will help me.

I copied the style of the other youtubers doing silver stacking videos. I don't know if that is something people will enjoy, I like it but I don't think the same way most people do... so any advice would be welcome.

[dcjredline]

Real Estate is a great idea, metals not so much. If you just like shiny things and enjoy displaying them thats cool but dont replace an emergency fund with gold/silver bars man!!! REALLY BAD investment over the long haul. Then there is the matter of them being "Valuable if the economy collapses" FALSE. If the economy collapses things like FOOD and WATER will be more valuable.

[Calendyr]

Real Estate is a great idea, metals not so much. If you just like shiny things and enjoy displaying them thats cool but dont replace an emergency fund with gold/silver bars man!!! REALLY BAD investment over the long haul. Then there is the matter of them being "Valuable if the economy collapses" FALSE. If the economy collapses things like FOOD and WATER will be more valuable.

What makes you say it's a bad way to keep emergency funds? If you leave it in the bank, you loose 2 to 3% per year in inflation. Metals keep up and outperform inflation slightly. And are super liquid. I can go to my local metal dealer today and sell everything I have. The only downside to physical metals is that when you purchase it you pay a premium, which is the store's commission. That varies from 2% to about 15% on the stuff I am interested in. So if I was to seel immediatelly after purchasing, I would have a loss. This is not exclusive to metals, mutual funds have the same issue, stocks as well.

And yes, real estate is the ticket. I cannot wait to finish my training and get started.

[Bobby B.]

Very cool! I just started collecting poured silver pieces in October just before Halloween. I'm not really doing this as an investment, but more as a hobby for me and my son. I know I pay a high premium for poured silver, but I like custom unique pieces and limited edition numbered pieces.

I appreciate coins and the artwork that goes into them, but haven't purchased any coins yet. I don't know enough about coins to start collecting them. I was going to go up to Orlando last weekend for the FUN show and figured I would just wait until next year when I have some more knowledge about coins.

I fallow a bunch of pour artist on Instagram and it's just amazing to see what they can create out of Silver & Gold. I hope to purchase at least 1 or 2 Gold pieces this year for my collection.

Good luck!

[jdgamble]

What makes you say it's a bad way to keep emergency funds? If you leave it in the bank, you loose 2 to 3% per year in inflation. Metals keep up and outperform inflation slightly. And are super liquid. I can go to my local metal dealer today and sell everything I have. The only downside to physical metals is that when you purchase it you pay a premium, which is the store's commission. That varies from 2% to about 15% on the stuff I am interested in. So if I was to seel immediatelly after purchasing, I would have a loss. This is not exclusive to metals, mutual funds have the same issue, stocks as well.

And yes, real estate is the ticket. I cannot wait to finish my training and get started.

You can get a CD at 2% and it’s a much safer and liquid investment than precious metals. And decent mutual funds cost zero dollars to buy and sell... regardless of how long you hold them. Only front loaded funds would lead to a loss if sold quickly, and frankly, if you buy a front loaded fund, you got suckered.

I do like your real estate strategy though! Keep working on that one!


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[Calendyr]

Very cool! I just started collecting poured silver pieces in October just before Halloween. I'm not really doing this as an investment, but more as a hobby for me and my son. I know I pay a high premium for poured silver, but I like custom unique pieces and limited edition numbered pieces.

I appreciate coins and the artwork that goes into them, but haven't purchased any coins yet. I don't know enough about coins to start collecting them. I was going to go up to Orlando last weekend for the FUN show and figured I would just wait until next year when I have some more knowledge about coins.

I fallow a bunch of pour artist on Instagram and it's just amazing to see what they can create out of Silver & Gold. I hope to purchase at least 1 or 2 Gold pieces this year for my collection.

Good luck!

There is a youtube channel where the guy pours silver during a live stream, if memory serves the channel name is Silvers Dragons. I watched 2 of those live pours and it's very tempting to purchase one ;) Not as an investment but just for the cool aspect of it ;)

For coins, you have to decide if you want to be a stacker (buy the coins and bars for the metal value) or a collector (buy in the hope the items will become wanted and increase in value) or a mix of the two. My next video touches on that a little bit. Me, I am a stacker but I am also making a collection of bullion coins with no collector value. It allows me to make a hobby out of the investing. Loose a little bit of money doing that, the coins usually cost 2 to 5$ more than an equivalent bar, but that's ok, I get a lot of fun doing it so I don't mind the expense.

Can you give me the links to the artists you follow on Instagram?

I plan to get into gold this year too. I think I will start with a 1/4 ounce Maple Leaf.... will see ;)

[Calendyr]

You can get a CD at 2% and it’s a much safer and liquid investment than precious metals. And decent mutual funds cost zero dollars to buy and sell... regardless of how long you hold them. Only front loaded funds would lead to a loss if sold quickly, and frankly, if you buy a front loaded fund, you got suckered.

I do like your real estate strategy though! Keep working on that one!


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That's true. Mutual funds have management fees though, and it is very possible to loose money even if the market is up because of it.

Precious metals are not for everyone. I like them but can totally understand why you might not.

[57Rambler]

Ask the Hunt brothers about investing in silver ...

[jdgamble]

That's true. Mutual funds have management fees though, and it is very possible to loose money even if the market is up because of it.

Precious metals are not for everyone. I like them but can totally understand why you might not.

I’m an index fund investor. I pay basically zero management fees. Fidelity actually has zero fee funds. They track the indexes exactly. Vanguard is about 0.03%.

For a hobby, I get what you’re doing. I used to collect coins and I liked them.

For an investment, not so much. There are many better options.


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[AV8R]

Stop listening to Fox news on sirius! lol

[MarkD51]

I knew an old acquaintance years ago who was buying 1-1/2oz of Krugerrand a week and did such for quite a long time. Yeah, you read that right, a week, not a month.

He'd show them to me, and I have to say, how I wished I had the money to "play" like that!

Have no idea what he done with all of them, but the value has at least doubled since then.

[Calendyr]

I’m an index fund investor. I pay basically zero management fees. Fidelity actually has zero fee funds. They track the indexes exactly. Vanguard is about 0.03%.

For a hobby, I get what you’re doing. I used to collect coins and I liked them.

For an investment, not so much. There are many better options.


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The reasons for buying stocks and completelly different than buying silver or gold.

The goal for stocks is to make money.

The goal for precious metal is to convert fiat currency into hard currency that do not depreciate. It is possible to make money if you sell when there is a spike in the price, like in 2012, but in general, the prices are stable on the long term. The fluctuation is small when you look from month to month. Of course there are exceptions, like what is currently happening with Palladium that went up 20% in the last month alone and 67% in the past year. But those occurrences are rare. Of course if I had purchased Palladium when it was at a much lower price, I would be selling right now with a big smile on my face ;)

As for stock, every time I have purchased some I was taken for a ride by crook brokers or the industry.

3 years ago, AMD was coming out with the new series of processor code named Rysen. I knew from various sources those would be super competitive with Intel's processor and should revive that company (AMD) that was slowly dying from the previous processor line they released almost a decade ago. So I purchased AMD stocks. The processors came out and were a big success, the market shares of AMD tripped in the first few weeks of the release. Meanwhile the stock prices kept falling and I was loosing money hand over fist. That is when I realised the market was completely controlled by the big players and actual company values had no longer anything to do with the stock price. I finally sold after loosing 50% of my money. It took almost a year of crushing the market before the stock rose to the price point I had paid and it has tripped since then. And other example is the movie the big short. All the properties held in the bonds were defaulting and the bonds's price were going up. Complete and total scam. If you choose to invest in those fake instruments, that is up to you but for me, it sounds like a very bad idea. I guess EFTs of the entire market are less risky, but still...

Last time I invested was for my retiment plans. I purchased a bunch of dividend stock that were paying good dividends every years (AT&T, Coke, etc), the broker was charging me interest fees on my own money I had invested. I am in Canada and was purchasing US stocks. So what they did is they did not convert my funds to US Dollars. They were lending me the US dollars at a 25% interest rate and were keeping my money in an account that paid no interest. I noticed it a year later when I did my tax return. When I called them they said I had to do a conversion to avoid that... very convenient. I will never, ever buy stocks again.

So as I mentioned earlier, precious metals are not for everyone and there is manipulation in that market as well, but the difference is that it's not made up paper stuff that can vanish if a large enough group decides it. I have the physical metal in my possession and it has intrinsic value on it's own. Very similar to real estate, they may destroy the market but you still have the building and can still sell it or rent it. Physical assets are much better than paper ones.

Every time there is a bubble, it gets worse. I don't know if you have see what Dalio did. He took a very big option about the market failing in March. It's an edge to protect his stock position, but still, it's scary to see. If I was in stock right now, I would very likely be selling before the #### hits the fan.

[Calendyr]

I knew an old acquaintance years ago who was buying 1-1/2oz of Krugerrand a week and did such for quite a long time. Yeah, you read that right, a week, not a month.

He'd show them to me, and I have to say, how I wished I had the money to "play" like that!

Have no idea what he done with all of them, but the value has at least doubled since then.

Are you talking about Silver or Gold Krugerrands? Silver ones are very affordable. Depending when that was you are talking about 10-20$ each. So 20 to 50$ per week. Nothing crazy. If you are talking about the gold ones, then that is different... probably 1000-1500$ per week... I wish I could afford that LOL

The one thing people don't understand about these coins is that they are money, real money. So you are not so much buying them as exchanging one form of money to an other.

[Calendyr]

I have a new video up on my youtube channel explaining the basics of precious metal investing. If you guys are curious about how it works.

[dcjredline]

At least stocks, mutual funds, and Index funds are valued on something real. IE: a company building wealth by making something good or doing a useful service. Gold and silver (and other items that are simply dug from the ground) have artificial value depending on peoples feelings about shiny things. DUDE you dont want to invest in stocks cause they can lose value then you must think that gold has never lost money? LOL Yer funny. Im glad though that you like what you are investing in that is important. Also an emergency fund is different than investing, the emergency fund is there to secure your investment money. If something happens and you remove money from your investments you are losing the interest it would gain if you had an emergency fund and left the investments to do what they are supposed to do (gain value). Maybe you are new at this financial stuff I dont know.