Silver

[marklind]

Hi, I am new to the site and need some advice. I am 49 and I am on disability. I lost my career as an aircraft mechanic and most of my money including my 401k due to my illness. I know it was not very smart but in 2011 instead of rolling over my 401K into an IRA I took the bad advice/tip of a friend and bought $70,000 worth of silver. Well, shortly after the purchase the price has gone down and my investment is now worth $30,000. This is all the money I have. My questions is should I take the loss and sell the silver and reinvest the remaining $30K in mutual funds or wait until silver goes back up and hopefully sell at my buy in price. Of course I have no idea how long this would take and I also stand to lose it all if the price keeps going down. Any advice would be helpful.

[SPECS137]

Silver

That is a hard question to answer.There are those that would say Silver right now is a much more better investment than gold in the long run. How long will you see silver go back up to $49-$50 level at their highest in spot price is anybody's guess.How long can you wait? Do you need the use of this money within 5 years or so?
The other important question i guess is how much can you get out if you invest $30K in a mutual fund? What type of mutual fund should you invest in and make sure the company your investing in is Stable and Reputable... also more importantly is how much they would charge you for handling your money for you?

Also you have to remember if you sell your silver to companies like APMEX they will buy these at or below the current spot price. Your local bullion or coin shop owners will pay even less. These are all things that you should consider.
Send me a private email as i do not know how to send one yet (i just joined today)

[greenskeeper]

It will go back up, but how long will it take to sort out the price manipulation that is currently going on. The traditional ratio for G/S is by far in the corner for silver.

Unless you absolutely need the money now, I would hold where you are at and if the price recovers and you don't like holding all of your savings in silver then you could sell and reduce that holding to 10-15%, investing the rest in whatever you choose.

I would in the meantime try to put aside money in a new roth IRA to begin building that, slowly but surely can add up over time.

[corn18]

I've been wanting to buy some gold or silver and this thread reminded to do it. Should I get 15 x 1 kilo bars (482 oz) for $1.19 over spot or just go big with 5 x 100 oz bar for $0.59 over spot? Looking to buy about $10,000 worth.

Tom

[greenskeeper]

I've been wanting to buy some gold or silver and this thread reminded to do it. Should I get 15 x 1 kilo bars (482 oz) for $1.19 over spot or just go big with 5 x 100 oz bar for $0.59 over spot? Looking to buy about $10,000 worth.

Tom

I started out with 10oz bars and then moved up the 100oz. I still buy the 10oz if my leftover "silver money" for the month doesn't quite buy a 100oz bar.