I need to know...

[cjones81-migration]

I make money with Amazon Kindle and Amazon Associates, plus my regular estate caretaker job. I wanna take the money i make from amazon which is about $300 a month and put 100% of it in bullion or numismatic coins. Right now i'm buy silver bars and silver eagles. I have 60 ounces all together. My end goal is that i want to be able to take the bullion, sell it and buy a piece of land. I have a hard time saving money, if cash is laying around it will be spent. The problem is, silver goes up and down. I'm lucky enough i live in a state that doesn't tax silver. Should i start investing in numismatic graded coins, if so which ones? I'm looking for something that will either hold it's value or rise in value.

[Davids5104]

This will be the start of a bad thread.... heres why...

 

too many awful, misguided OPINIONS. There will be a lot of amazing opinions too, but they will look the same. They will be well meaning, and may pan out. but the important thing is you are looking for an investment and investments are all associated with risk. Think of it as a 401k, its going up and down and what it does this week is of zero relevance. You want something that goes up over the long term and there is no way to predict. The best you can find is predictions for the future based on trends from the past.

 

Diversify is a rule that some people use, but you do not need diversification if you were in on the ground floor of Apple. same is true with your Eagles if they go up 600 percent but they likely wont.

 

I have no advice except this; this is a great hobby full of great people. Some coins go up some go down, start a Roth IRA and enjoy the hobby. I would not plan on eagles = land unless you acquire a lot more and/or the price goes up rapidly.

 

Good Luck

[Nutmeg Coin]

Numismatics is too high risk economically except for the super smart, lucky or well-connected and highly disciplined buyers/sellers.

 

90% silver, gold at around spot price, etc. are low risk generally but you never know. Invest in what you know where you have an edge. The learning curve is just too steep in numismatics for most people.

[cpm9ball]

This will be the start of a bad thread.... heres why...

 

too many awful, misguided OPINIONS. There will be a lot of amazing opinions too, but they will look the same. They will be well meaning, and may pan out. but the important thing is you are looking for an investment and investments are all associated with risk. Think of it as a 401k, its going up and down and what it does this week is of zero relevance. You want something that goes up over the long term and there is no way to predict. The best you can find is predictions for the future based on trends from the past.

 

Diversify is a rule that some people use, but you do not need diversification if you were in on the ground floor of Apple. same is true with your Eagles if they go up 600 percent but they likely wont.

 

I have no advice except this; this is a great hobby full of great people. Some coins go up some go down, start a Roth IRA and enjoy the hobby. I would not plan on eagles = land unless you acquire a lot more and/or the price goes up rapidly.

 

Good Luck

 

(thumbs u

 

Chris

[cjones81-migration]

Thank you. I won't be buying much land, one to two acres at the most. In the area i'm looking is around $4000 to $20k depending on location. If i make $300 a month from amazon, and every month (i range from 250 to 320 every month for already 2 years), and i take the entire $300 and put it in silver or numismatic coins, and depending on the price fluctuation, it should have around $3600?

 

I can afford that because the money i make on amazon is automated thinks to royalties on my ebook and my niche site.

 

What i'm trying to figure out, should i continue to invest it in just bullion rounds, maple leafs, libertad and generic bars, or just graded numismatic coins like morgan's, eagles etc.. What coins for $300 and under are most likely to hold its value?

 

Should i just continue buying just the generic silver rounds, bars, eagles, maple leafs and libertads like i have been?

 

I can't get into the reasons why i can't save the money, but this is the best possible way for me to do that. But i also realize there is consequences in doing this.

 

I know this all sounds crazy.

[Davids5104]

thanks for the added context......

 

simple answer for the amounts you are talking is ROTH IRA. no other option, just ROTH IRA.

 

do not buy coins for the purposes you are talking. once you acquire these coins you have to find buyers, they will not want to pay what you paid necessarily. Roth IRA

 

 

[MarkVIIIMarc]

Listen to them.

 

Now if you become an expert on these things over the next couple years invest your money in coins maybe.

 

You still have to beat inflation though.

[AHFreak]

My advice is Ebay. ... keep doing what you are doing, (buying what you have been buying and what u r comfortable with) and start watching Ebay. .. most people in coins talk about how worthless ebay is, they call it feebay, and talk about every negative thing you can ever imagine. But my reality when it comes to coins on ebay is that Ebay has allowed me to make my living buying/selling coins and I've done it for almost 4 years now. My point is, there is alot of good in ebay. And for someone who is willing to put in some time here and there, you can find some amazing coins and very good prices. Stick with coins slabbed PCGS and NGC. Watch for a while before you buy, you should start noticing things. Like which coins do well, which don't. I wouldn't just look for cheap, because cheap now will be cheap when u sell. If you develope your eye for coins and only buy spot free/haze free, problem free coins with good eye appeal, then you will have no problem selling when time comes. I could make several specific recommendations but then there are so many different opinions here what I think is solid the next guy tells u is wreckless and crazy, and only time will tell who is right. So I would say just start watching and find little niche markets, and develope your eye by looking at coins so u know the good quality from the bad.

 

Or you could PM me, and I could point you in specific areas that I personally would want to and even some where I am actively investing...

[RWB]

There appear to be two distinct factors at work:

1. "I have a hard time saving money, if cash is laying around it will be spent."

2. "My end goal is that i want to be able to take the bullion, sell it and buy a piece of land.

 

#1. This is a problem of self control. You find immediate gratification stronger than delayed gratification, even though you claim the long-term goal is important. This is common especially in those under age 30.

 

Your related assumption is that by putting the money into silver (or gold) bullion, you will not spend it. Maybe you feel the illiquid metal bar is a good deterrent to your gratification habit.

 

One big problem, as you recognize, is the volatility of metals (or any commodity). You could cost-average silver bars but that takes time and discipline to maintain. It also does nothing about volatility when you want to sell, or the problems of assaying and disposing of small quantities (under 10,000 oz) of silver.

 

For #1, consider opening a mutual find account and putting the money in a domestic growth fund. Mutual fund companies now make it costly to pull money out for short-term/rollover use and this will help discourage you from spending. The money is also a little harder to get into your bank account.

 

#2 is really "I want to buy some land." This is about as fuzzy as one can get. What kind of land, what purpose, where, when, carrying costs, acquisition costs....? Establish a clear definition of what land you want and what you want to do with it. Then research your initial cost and the annual carrying cost. Once this is done, you will know how much you need to save, and what you can afford to own given future income.

 

I don't know why you want to use silver bars or gold - the likelihood of finding anyone willing to exchange your metal for land you might want is exceedingly small. Absent that option, the overhead and lack of clear return on investment for metals argues against metal accumulation. Remember, your metal earns no income; it's only gain is a capital gain with is completely out of your control.

 

Just some thoughts.

[KMAG100]

If i make $300 a month from amazon, and every month (i range from 250 to 320 every month for already 2 years), and i take the entire $300 and put it in silver or numismatic coins, and depending on the price fluctuation, it should have around $3600?

 

I can afford that because the money i make on amazon is automated thinks to royalties on my ebook and my niche site.

 

What i'm trying to figure out, should i continue to invest it in just bullion rounds, maple leafs, libertad and generic bars, or just graded numismatic coins like morgan's, eagles etc.. What coins for $300 and under are most likely to hold its value?

 

I would tell you that silver and gold is a hard asset, and trying to make money investing in them with a short term investment strategy would not be an optimal strategy. Like all hard assets they are a long term investment strategy. In fact, my guess for the near term we will see gold trade sideways and slowly decline in price as the fed increases interest rates, and the dollar continues to strengthen (IMHO). With the EU upside down with Greece (way over blown), and China in an economic downturn, the dollar looks to be where the smart money will be for a while not gold and silver. Typically, gold has an inverse relationship with the dollar..Dollar up gold down, dollar down gold up...Only when the US moves back into a recession and a loosing of the money supply occurs would I expect to see gold prices to start trending upward (again IMHO).

 

With that being said, yes big profits can be made flipping bullion coins, or your more traditional numismatic coins. I, much like you first started buying bullion coins as a way to save money. Then moved to collecting Libertad proofs, and now have moved into classic coin collection. But yes I wanted a way to save money other than saving cash in a bank until I found something to spend it on. Like golf clubs....I can tell you now I buy a coin instead of the golf clubs. Which I think is better because if I buy a set of golf clubs today for $600 and a coin(s) 1941 WLH PF 65-66 for $600, in 10 years I bet I can still get at least my $600 or more back, but the clubs forget it, I have to give them away.

 

So it works for me and I still get the rush of something new.