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Discussion Starter · #1 ·
My fiancee and I are young (23) but I want to make sure I prepare financially as best as possible. Thankfully, I've always been very good at organizing my money thanks to what my parents taught me. Right now my fiancee and I have outstanding jobs. We're both enrolled in a 401k plan, I have a light saving account for unexpected expenses, a heavier savings account for something larger such as a down payment on a house (it's in it's very early stages right now...), and finally I take advantage of my employee stock purchase plan (ESPP) which gives me a payout every 6 months (likely used for vacations or to put toward a large entertainment-like expense).

The only thing I am really missing is a non-retirement, long-term investment system. Something I can begin putting aside a rather small amount of our income toward each month that we don't have any purpose for. Down the road 10, 15, or 20 years, if the market is right, I'll cash it or invest it elsewhere. I know precious metals are great as a "fail safe" currency in the event of a collapse but I'm not interested in it for that purpose (at least, not right now). Is it smart to start learning about buying gold/silver coins and hang onto just to see how the market goes? Or do you think, for someone in my situation, I should just find some strong companies and purchase stock?

Again, I'm not ready to start dropping $5k into an account or stock up on a bunch of precious metal just yet. You gotta start somewhere with this type of thing and I want to get in as early as possible for our future.

Thanks!
 

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Terminator terminator
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IMO everyone should own gold. It just makes sense to have diversity and keep it for a hedge against inflation. 10-15% of your savings in gold would be a smart move and not too risky. I myself am like at 80%, but thats just me.

1. Do some research

2. Don't invest in Numismatics as a beginner

3. Don't think of it as buying something. Think of it as a special bank account that moves up in bad times ;)

Now for Silver. It is more volatile and risky than gold. If you have blood pressure or heart problems, stay away! All joking aside though, it's a good idea to have some around also. Look up charts for the silver to gold ratio and how to trade it (very interesting). Silver has an actually industrial use also, so it's fundamentals are a little more complicated. Good luck with all your research and feel free to PM me with questions.
 

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Now is a pretty good time to buy, as prices are still fairly reasonable. They have risen a bit over the past week, but it's nothing like it was before the last big drop. Gold is a little tougher to buy, as it obviously costs more, and your local coin shops may not stock as much of it as they do silver.

I prefer silver, but I like to buy both bullion and junk 90% coins. Granted, 99% of the time, when buying junk 90% coins, you won't get anything numismatically interesting, but you may. The best advice I can give you is to shop around and compare prices. You will almost always pay a premium over spot price, but sometimes it's less than others. If you're buying bullion, such as silver eagles and Canadian maples, I wouldn't recommend paying more than $3-5 over spot, otherwise you're losing a considerable amount of money. When buying junk 90%, I wouldn't pay more than $2-3 over spot per $1 face, and that's only if it's something I'm really interested in. Silver dollars such as Morgans and Peace dollars always carry a premium. This can be anywhere from $3-5 or more over spot, but typically when you resale, the premium will carry over.

With any investment, the best advice I can give you is to buy low and sell high. PM's aren't a get rich quick type of investment, and there are others out there who jumped in when silver was nearly $50 per ounce and gold nearly $1800 an ounce who have realized that they will have to wait a long time to recoup their investment. As I type this, silver is almost $34 an ounce, which isn't bad, but just a few weeks ago it was down to $28 an ounce.

I can't recommend using Ebay, but if you like gambling, go for it. I have gotten some sweet deals on there, but most folks are just willing to pay more for PM's there than I am. If you do use Ebay, scan the auctions for whatever you're interested, and make sure you also check the descriptions on the auctions. You wouldn't believe how many auctions I've seen go for cheap because the seller listed the item incorrectly.

Good luck if you do get in, but remember to have fun, and be smart with your money. Don't chase the high as it climbs, as you may lose money if it dips. When it topped out a few months ago, I lost quite a bit as I had been buying up until it hit about $40 or so an ounce, however, when the bottom fell out, I loaded up at less than $30 an ounce to offset my previous loss.
 
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