Action Step: Buy junk silver
This action step is designed to help you dip your toe in the world of precious metals. It’s a lot easier than you might think.
I used to be very intimidated by the thought of buying gold or silver because I had never collected coins and had never been in a coin store in my life. Chris Slife, of Howling Coyote Silver Company, gave me a great tutorial, which I posted here and here, and I made my first venture into the world of precious metals.
This Action Step is to purchase one or more ounces of junk silver. Junk silver is just quarters and dimes that are dated 1964 or earlier. These coins are 90% silver and are an easy way to begin buying precious metals. They may also come in handy someday when the dollar is devalued because they are easily recognizable as legitimate silver based on their date and denomination
Purchasing either silver or gold is also a smart way to preserve your wealth, since the dollar has been declining in value over the past several decades. This trend will continue and will likely accelerate as the federal government pumps massive amounts of “new” money into the money supply. The value of the dollar is never going to increase, so you might as well invest in precious metals as you can afford to, because those will always have value.
So, here’s the plan.
1. Visit a local coin store and ask to see a pre-1964 quarter or dime.
2. Compare that coin with a quarter or dime you have in your pocket. It will look and feel different.
3. Ask how much one ounce of this junk silver will cost. Be prepared for the store to add a “premium” to the actual cost of the silver. That is just their profit and every precious metals dealer charges a premium, but it isn’t always the same from dealer to dealer. If you’re a bargain shopper, call around and ask various dealers what their premium is on one ounce of junk silver. Be aware that the premium will likely decrease if you buy a larger quantity.
4. Keep track of current prices of both gold and silver by checking these. Unless you see a very big dip, don’t worry about the little ups and downs. This Action Step is one you should take every month, or more frequently, if your goal is to set aside a little gold or silver at a time. Some months the price will be a little lower, some months it will be a little higher. When you see a significant dip and you have the money, make another purchase.
5. Make a habit of checking the prices of gold and silver frequently. Become familiar with the going rate and what consists of a, “big jump,” or a, “bargain price.”
6. Store your precious metals in a very safe and secure place, but not a safe deposit box at the bank. Whatever you purchase, keep the information to yourself. As you accumulate more coins, store them in more than one location, so if a burglar ever finds one stash, he won’t be aware of others.
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