Gold or Silver? The Mental Block

in LeoFinance8 months ago

         It's easy to look up how many grams are in an ounce. (It's 28.3495g per oz.) Sometimes, I forgot how big the difference is when putting them side by side. It's been a long while since I have bought any gold and I thought it would be fun to order some again.

compare.jpg

         Above, you'll see an ounce of silver next to a gram of gold. I soon remembered why I'd preferred to buy silver over gold. Of course, price is always a consideration as I could obtain a lot more silver than gold.

         It's so much easier to handle an one-ounce bar than keeping track a speck of gold dust. Then again, it's not like I am always moving them around like someone would with digital assets. Not to mention, it feels somewhat unsatisfying.

         Buying gold is like buying Bitcoin. Most of the times, you could only afford a fraction at a time. Unlike BTC, it's not as easy for me to combine all the fractions I own into one whole unit. In fact, I have never smelted anything before in my life.

         At the end of the day, it goes back to value. It's like the classic example of giving a child ten pennies and a dime and ask which one is worth more. Having quantity does not always translate to more value.

         Would I still prefer silver over gold? In my mind, always. Would it stop me from diversifying my holdings? No. That's usually the safest approach even though I would still say it's not financial advice.

         Take a look at your crypto portfolio. Are you all in on HIVE? If so, you have more guts than I do. Nothing is certain in investments. Sometimes, you luck out and strike big. Sometimes, you lose some through no fault of your own. The rest of the times, you ride the waves to eventual gains over the years.

         When it's all said and done, do what you think will benefit you the most, but don't expect everyone to agree with you.

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My end goal in stacking is gold. Thanks for the discussion!

Just the bars or do you consider things from Mene as well?

Oh, I am a #menemaniac. Check this out (scroll to the bottom and see how I save slow and steady in gold Mene) https://hive.blog/hive-136819/@silversaver888/saving-in-gold-and-platinum-part-2

That’s quite the collection!

Thanks, my friend @enforcer48. BTW, I nominated you for membership to the Silver Gold Stackers Community here:
https://hive.blog/hive-136819/@vgholdingsllc/silvergoldstackers-official-nomination-post-5-17-2020

Oh cool.

What does that entail?

Welp, you need a SECOND to the nom-nom-nomination ( I will do that!) and then you get reviewed, and I think there is a vote? It's been a while LOL

I know you are a 1000% stand-up guy, great to see you in the Stacking Mode!

second that nomination!

That is pretty cool! I would love to get my hands on some silver at some point. Is there a site that you recommend? I'd like to be sure I am not getting scammed or anything.

I usually use APMEX for purchases.

I firmly recommend SDBullion.com
Usually the best prices overall for the most popular items,
they beat the bigger places because of less advertising overhead ;)

That bar of silver sorta looks the colour of gold in your pic. I was thinking, it's a little ugly for an ounce of gold. Usually, they make it prettier because it is much more valuable.

I much prefer gold to silver. It's hard for me to buy the P things here, otherwise, I would. One idea is to buy paper gold until you have enough to acquire an ounce. Actually, there are banks in Korea that do that and just charge ~10$ to exchange for physical when specific amounts are traded. Physical Gold here is taxed though (10%!!!), so I avoid it and try to buy when I travel instead or pick up paper gold where it isn't taxed.

Yeah sorry, it was trick of the light.

Dang...10%. Leave it to government to make things complicated. Kinda like US and crypto.

I started picking up some stuff from mene a little while ago. I figure at least my wife can get some use out of part of the precious metals investment. You can go into their website and generate a report at any time, and even sell your stuff back to them at the going rate.

Mene Investment Performance.png

That's actually not a bad idea.

I should look into acquiring gold from Mene instead.

JIC: Mene.com/invite/oRntiT

:-)

Mene.com/invite/oRntiT

You sly dog, you. :v

Thank you for your referral! You’ve earned $5 in Menē Credit

You work fast!

Neat, that's some sexy metals. Will you please give them to me?

Take a look at your crypto portfolio. Are you all in on HIVE? 

Nah. I have all kinds of shit coins. I just need one to moon and I'll be settled :D

Posted Using LeoFinance

Yup. One big break is all we need.

Are you still doing the metal recycling thing??

Some youtube scrappers collect and sell scrap metals then buy Silver and Gold 😂

Gotta get some funds to buy goodies somehow.

@enforcer48 I think this is worth trying. I will definitely look into it. Regards

Try what?

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DERP

31.101g per TROY OUNCE (ozT)

Avoirdupois is for mundane weights and measures 😜
TROY Ounce is for Precious Metals!

💪😎👍

I always wondered about the cut you take storing gold.

If I bought $1000 worth of gold for X today, and immediately had a hardship and had to sell it, how much would I lose? That difference is what I am curious about. I know selling physical gold locally you take a major hit as Gold Shops pay a fraction of what things are worth.

Maybe someone like @silversaver888 or @underground from the ssg community could answer in detail.

As far as I know, you lose at least the amount over spot.

I always wondered about the cut you take storing gold.

IF YOU DON'T HOLD IT, YOU DON'T "OWN" IT!

I never take a cut (for storage), I am self-storage and self insured ;) That being said, there are many good ways to sell PM's AT SPOT or ABOVE, depending on the market conditions. I've never sold, but my son did. He bought around 100 ozT Silver after his first ND (Bakken) trip, and the price went up a little... He then sold the 100 ozT and made a nice profit, he sent it to a place that I know, they paid SPOT +$1 and all it cost him was shipping. There are many good places like that now, Malcomb. Some are better than others. Some of the bigs still rape the sellers, like KITCO. They have "allocated accounts" also, I'd never consider buying into that. I'd avoid KITCO. I have bought phyzzz from them, (physical) and did OK. My personal favorite is SDBullion.com

Now to the original question, I cannot tell you the storage fees at all, but right now, the "premiums" are (were?) running around $150/ozT at my last purchase. This assumes buying AGE (American Gold Eagles) so you would lose the premiums. Storage fees on $1,000 would be negligible, and "storage" usually assumes one has ltos of gold. I believe you just picked a number to get an idea, but most people who use storage would have kilos or maybe even "400 ozt good delivery" bars. Most small buyers are HODLers and $1,000 is a small buy. BUying by the gram is also another bad deal if you can buy larger quantities. I have bought grams before, but only the ones "on sale" with low premiums. A gram has about a $20 premium right now, so that is like paying an extra $600 per ounce! 😱 I have an old blog post detailing "what to buy" if one is buying less than one ozT. It lists premiums as a percentage on all the popular sizes, and there are a couple of sweet spots.

To sum it up, I am firmly in the "6 Figure Club" as far as precious metals goes, never thought about Storage. YES, the local buyers will rape the sellers, I had a long talk with a sweet lady who broke it down for me, at the mall they were paying 55% of SPOT. She knew I was a serious stacker and prefaced it with "you don't want to ever sell your metals here". I'm this close to being a local BUYER, I think my model will forever put these guys out of business LOL

PS: I had a place "roll your IRA into GOLD" that did quote me some fees, it was way less than 1% per year...
BUT it assumed $100,000+ and it was more geared towards you selling the gold/silver as opposed to taking possession at some future date. There are only a small handful of places that offer storage that I would ever consider, like SDBullion. I think Ted Butler is the guy with the low-down on that. I still advise to self hold any amount.