How many ounces of Silver have you added during the smash of the last few weeks?

Jim H
By Jim H on Tue, Nov 4, 2014 - 9:23pm
zero (0) ounces
31% (14 votes)
1 - 10 ounces
2% (1 vote)
10 - 100 ounces
24% (11 votes)
100 - 500 ounces
31% (14 votes)
> 500 ounces
11% (5 votes)
Total votes: 45
,

16 Comments

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2365
Silver Poll

Here's your chance to show, anonymously, how undaunted (or daunted) you have been in your buying of the gray metal as of the latest, ongoing blue light special.    

earthwise's picture
earthwise
Status: Platinum Member (Offline)
Joined: Aug 10 2009
Posts: 846
None

Although I am tempted to buy more silver and gold at this point, I've already spent my precious metal allocation of fiat on PM's back in early '09. My temptation, however, is tempered by the competing needs of other tangibles like more photovoltaic, further farm and garden development, and other prepper type activities. Although I don't subscribe to the old cunnard "You can't eat gold", I figger I got the best of both worlds with my stack-o-Kruggies as well as my "hedge" of edible critters.

pinecarr's picture
pinecarr
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Joined: Apr 13 2008
Posts: 2220
Agree with earthwise

I did make a modest purchase of silver last week.  But my struggle was not whether silver was a good buy, but whether I'd rather buy more tangible preps (that have an immediate value if the need arises) or PMs that have a store of value.  My gut is starting to lean me more and more towards the tangible preps.

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2365
Maybe invest in some Iron:Nickel then?

I hear ya' EW and Pine.. Silver is not the only metal worth investing in right now.. I would highly recommend folks interested in solar consider Iron:Nickel;

http://ironedison.com/

http://www.zappworks.com/

http://www.nickel-iron-battery.com/

The Nickel Iron battery often lasts in excess of 40 years and makes a perfect match for solar panels which also last for about 40 years or more.  

That being said, PM prices are dropping like a rock overnight.. this might be the day that sees the shelves get emptied.  Will be interesting...  

 

earthwise's picture
earthwise
Status: Platinum Member (Offline)
Joined: Aug 10 2009
Posts: 846
Other metals

Hey Jim,

I also have a significant investment in another metal (lead), and I had strongly considered the nickel/iron batteries for added protection against a grid-down type situation. However with the pending addition to my photovoltaic set-up, I don't think it's necessary. This is because my installer has informed me of a new type of inverter that includes an electrical outlet that an extension cord can be plugged into to access a portion of the output of the solar array in a grid-down emergency. 

With all that being said however, these prices look mighty tempting. Fifteen dollar silver ounces; haven't seen that since, what, maybe five years ago?

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2365
Premiums rising

Earlier today Gainesville coins wanted $2.59 over spot for Eagles, roll quantities, and it had been thus for months.  The premium is now $3.25.  

  http://www.gainesvillecoins.com/products/165812/2014-1-oz-american-silve...

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2365
Mint: Eagles sold out

http://www.silverdoctors.com/breaking-alert-us-mint-sold-out-of-silver-e...

The US Mint has just issued an alert to Primary Dealers across the US that Silver Eagle inventories, which according to the Mint began today at over 2 million ounces, are now SOLD OUT as of 12:30pm EST.

jasonw's picture
jasonw
Status: Diamond Member (Offline)
Joined: Sep 17 2011
Posts: 1018
Fiscal advantace to paying higher premium?

Jim - is there a fiscal advantage to buying silver eagles in BUC form with the higher premium compared to getting generic silver rounds or bars?  Just curious.

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1480
Silver eagles

Jason:

Here some of the reasons my only silver investments are in silver eagles:

1.  Silver eagles (and gold) are approved for self-directed IRAs.

2.  Silver eagles are exempt from 1099 reporting requirements for sales or purchases.

3.  Silver eagles are legal US tender and have a face value printed on them.

4.  Silver eagles are more recognizable than most other forms, and therefore might be more likely to be trusted as authentic by someone other than a pro.

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2365
Regarding coin premiums

My own philosophy is to always buy sovereign minted coins over generic rounds, and you have to pay a premium to do so.  Generic rounds might be $1.00 over spot... sovereign coins $2.50.  I am willing to pay the larger premium because;

1)  I value liquidity and believe these will be more readily salable someday.

2)  Sovereign minted coins are less likely to be fake - the secret service will not come after you for minting fake rounds.. but they will if you mint fake Eagles. 

3)  I believe that the extra $1.50 will be a nit someday given where prices will ultimately go for PM's.

That being said, you have to watch for what coins are the best deal.  Up until this morning, Eagles were as good as Maples, or Phils, or Perth mint coins to my perspective... but now that the Eagles have dried up and premiums have gone up, I would lean toward some of the others.  That is exactly what I did today.. bought some of these;

  http://www.gainesvillecoins.com/products/167754/2014-canadian-silver-bal...

...because they were still at a low premium.. oddly enough, even lower than generic Maples from the same site. 

All of that said, I recognize that as the price of Silver dips, the "reasonable" premium of $2.50 per coin becomes more and more in percentage terms... so the attraction of rounds becomes stronger.  If I were buying rounds, I might go for something non-generic, mint dated and proprietary like this;

https://www.texmetals.com/2014-texas-silver-rounds

 

DisappearingCulture's picture
DisappearingCulture
Status: Bronze Member (Offline)
Joined: Jun 21 2014
Posts: 38
Other metal investments

I too like lead; it has been shaped into many shapes, sizes, and weights by various manufacturers; all impressive.

DisappearingCulture's picture
DisappearingCulture
Status: Bronze Member (Offline)
Joined: Jun 21 2014
Posts: 38
ASE's or generic?

Jason,

Here are the reasons I like generic.

1] Today I can still buy in small quantities for less than $1.50 over spot, or pay about 15% more for ASE's, and the ASE premium will increase in the next few days.

2] Once you buy and take into your possession it doesn't mater if it is IRA approved or not. If you are buying for deposit in a IRA it would probably go into an account that is not in your possession, and quite possibly not allocated [if you could trust that when the SHTF].

3] I don't understand a PM IRA. The government gets to track exactly what you have, where, when you sell it, and will be in line for capital gains taxes as well.

4] 1099 exempt or not, ASE's are not exempt from capital gains reporting.

5] The resale price difference through a local bullion dealer of generic versus ASE doesn't justify the ASE when the premiums are jacked up on it [like now].

At a time premiums are low on ASE's they are fine.

 

DisappearingCulture's picture
DisappearingCulture
Status: Bronze Member (Offline)
Joined: Jun 21 2014
Posts: 38
Counterfeits

"Sovereign minted coins are less likely to be fake - the secret service will not come after you for minting fake rounds.. but they will if you mint fake Eagles."

Actually ASE's are more likely to be fake. They are counterfeited in countries like China where the secret service has no reach. They are counterfeited because they are recognizable. 

shastatodd's picture
shastatodd
Status: Bronze Member (Offline)
Joined: Oct 16 2010
Posts: 49
too inefficient

iron nickel is a horribly inefficient battery technology - instead consider flooded lead calcium batteries. i have a set from the power plant i used to work at from 1986, which are still going strong.

surrette's part number for these is fc420.

http://rollsbattery.com/public/specsheets/spec_272.pdf

http://solarprofessional.com/articles/products-equipment/product-launche...

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2365
Efficiency vs. Longevity

Shasta, I need to explain where I am coming from;  I believe based on my own research that Ni:Fe batteries are your best investment for a solar system designed to take an owner forward into an uncertain future... a future where it's unclear whether you will ever be able to get a new set of batteries again in your lifetime.  From one of the websites you listed;

  [Springhill, Nova Scotia] Surrette Battery Engineering is wrapping up beta testing on a new flooded lead calcium battery designed for standby applications. Product development of the FC-420 was spurred by ongoing requests from designers and installers. The 6 Vdc nominal L16-style battery has a capacity of 315 AH at the 20-hour rate. It is rated for 800 cycles at 50% DOD, and Surrette expects a service life of 12 to 15 years in standby/float applications. The cost is anticipated to be 20% to 25% higher than Surrette’s S-460 model. The FC-420 has been undergoing field testing at 20 different locations since June and is scheduled to ship in Q1 2009.

800 cycles!  That is nothing.  If you are using these daily, for day/night cycles... you have lost significant capacity after two years.  The 12 - 15 year service life is only for standby operation.. i.e. sitting there waiting for the rare event where backup power is needed.  The Edison cell has nearly limitless cycle capacity if it is cared for;

http://www.nickel-iron-battery.com/nickel-iron-cycle-testing-1995.pdf

I am not saying they are cheap, nor the best investment for a short term horizon.  I am saying that these batteries are one of the best investments I can think of if you are a prepping for a difficult future and want to store electrical energy.    

 

Adam Taggart's picture
Adam Taggart
Status: Peak Prosperity Co-founder (Offline)
Joined: May 26 2009
Posts: 2828
Picked up 100 Silver AEs today

Hadn't bought in a while. Felt good.

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