Oh boy — silver blew through $14 an ounce today and almost hit $15 before retreating a little. It hit $10 only six weeks ago!
Gold still doesn't seem to be getting much respect, but it's above $630/ounce now. Silver's getting even less, apparently. How high does it have to go before it gets some more attention?
Investing the Middle Way has an excellent post on buying gold and silver buillion if you're interested in learning from his experiences.
There is lots of good information in this post. To it I add a few points:
- Don't forget about coins on eBay! If a seller has an excellent feedback record this is just as good a place as any to buy gold and silver coins. It's sometimes possible to buy the coins for less than the melt value, shipped to your door, with insurance!
- There are lots of other pretty gold and silver coins besides the modern ones. Pre-1965 common US silver coins are bought mainly for their silver content and don't really command much of a premium above that unless they're in a high uncirculated grade. For not that much of a premium above the spot price, though, you can buy gold eagles or silver Morgan or Peace dollars — beautiful, old coins!
- Buying can be anonymous to some extent, but you may have to report when you sell. If you buy with anything but cash, from anyone except a private individual, there will be some kind of paper or electronic trail of the transaction. In addition, some coins, like Krugerrands and Canadian Maple Leafs, must have a 1099 filed with the IRS when they're sold. If you're in this fortunate situation, seek someone much more competent than myself to advise you, as I will swear I never said a word to you if you take this as personal investment advice, because it isn't 😉
John,
Thanks for the acknowledgement. You're right selling gold coins (and 90% bags?) may be subject to reporting. If memory serves, the limit is 25 oz for Krugs and Maples. Its interesting to note there is an exemption for Eagles.
The potential for abuse (tax evasion or money laundering) does exist with gold and silver bullion. It's a sensitive issue and my approach has always been to obey the law to the letter. It's just not worth it to do otherwise.
Best, ML
When I was first getting into bullion I overlooked silver and went for gold, but looking back I probably would have gotten more bang for my buck in silver. hi-ho silver indeed.