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How liquid is silver and gold bullion? For a novice investors that is!?

January 12, 2011 by  
Filed under Silver Investment FAQ

I want to invest in some metals, but I want to be able to liquidate my stash if required (probably $3000-$5000 initial investment). I trust a coin dealer in Detroit will sell me the bullion, but will they buy it back without taking a huge loss? If the price sky rockets, will I have access to full price buyers?
Thanks so much for the quick answers. I’ve read a How to Invest in Gold book and it does say ETF have risks (beyond the volatility of the markets). Does buying shares of GLD and SLV give you rights to the physical elements of Au (gold) and Ag (silver)? We already saw what happened to the banking system, who is to say this won’t happen to ETF’s?

Those are questions I have after reading the section on pitfalls of ETFs.

Comments

4 Responses to “How liquid is silver and gold bullion? For a novice investors that is!?”
  1. Space Invader101 says:

    It’s a lot easier to just buy an exchange traded fund GLD on the stock exchange. 10 GLD = 1 ounce of gold – minor storage costs. You’ll then be able to sell the ETF quickly on the market if necessary.

    I’d buy coins more as a collector than an investment.

  2. David M says:

    I’d say if u want the metal, go with Apmex.com. I have bought on multiple times. And it always worked for me. But it’s really up to you of course.

    And if u want the stock go for the GLD & SLV stocks. I have thousands of SLV shares in my portfolio and well, not as much GLD shares :)

  3. Kevin H says:

    Taking a loss would depend at what price you bought and sold. You would have buyer’s willing to pay what ever spot prices are at that time. Precious Metals are very liquid.

    It won’t happen to ETF’s like the banks. By law the ETF’s have to have that money backed by the same amount of metal on deposits.

    Banks are using a fiat currency. Not to mention over leveraged.

    Cut a 1oz bar of Gold into half and you have two half ounces of Gold that still has value.

    Take a dollar bill and tear it in half. Now you don’t have two 50 cent pieces, you have nothing.

  4. Jill Y says:

    I think all trading have involved risk. Well, buying gold and silver is just for old people. My uncle do collect some of gold coins and silver coins in Canada. It might worth much more after thirty years storage time.
    I and my husband are not investing in any stock shares or gold bullion. Gold shelter is more appropriate to the current economic downturn all over this world. As an economics graduate, I wish I could say something more favorable other than every trading is involved bubble and risk. The smart investor play it save by buying low and sell it with the minor gain active forever in the stock markets. Unlike most of my husbands’ friends have lost ranging from HK $10 k to more than ten millions in the risky investments of all kinds. However, it is up to you, it is your money.
    http://search.yahoo.com/search?p=Gold%20investment%20tactics

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