So obviously after holding some PM's in your hands, then you may want to look at investing in some PM mining stocks.

Especially if you are one of those "silver is going to $100" types. Which I can tell you is BS.... But people have evidently been falling for that regularly since the late 80's.

Realistically, silver MAY go back up to $20-25. IF their is another economic shakedown, but in the short term, IMO, barring a major economic shakeup, most likely PM's will stay in the doldrums they have been in the last few years.

So your physical silver coin presents a problem buying and selling. Selling them to a dealer means taking a hit- by the very nature of his wholesale purchasing business, he is most likely NOT going to give you full spot price. Further, when you purchase coins, you typically pay spot plus a certain amount. Rarely you can find Apmex or one of the big places doing a certain coin at spot. I've done this a few times with Apmex on Ebay years ago wherein they were doing Gold at spot for specific coins- Maple Leaves one time and generic 1 oz. bars another time.

So with physical coins, you typically are behind the curve at the onset (paying spot PLUS) and you typically take a hit on selling (wholesale buyer paying slightly less than spot). Nature of the business. So essentially you aren't going to make anything off of small moves in price, but only larger moves.

And of course the whole huge marketing apparatus of the PM industry loves to push the "buy and hold forever" mentality. And for certain things this is a viable option, but in general it becomes an excuse for the people that paid $38-40. an ounce for silver (believing the hype that it would soon be $100. ounce) or the ones that paid $2K an ounce for gold. The silver guy in this illustration is down close to $25. an ounce on the silver and the gold guy in this illustration is off close to $1,000.

AFTER you have some tangible backups in this regards, and if you want to do some contrarian investing, buying precious metal MINING stocks might be a good idea.

Several I'm familiar with-

ASM- Avino Silver and Gold mines- close of market 8/20 this was .95 a share. 52 week low (about a week ago) was $.85 a share, 52 week high was $1.80
We have purchased this stock as low as $.72 years ago and sold as high as $3.00 within six months.

This is a stock that a $.10 change in price could be decent quick cash if you had even just 1,000 shares. 1,000 shares @ .10 profit = $100. less $10-12. trade fees.

Normal range for the last year has been between $1.20 per share and $1.50 With silver and gold low in spot price right now, this may be a good time to buy this stock.


AUMN- Golden Minerals Company-
close of market 8/20 this was $.24 a share. 52 week low (also last week) was $.21 a share 52 week high is $.48 a share.
I've seen this stock at $.85 in the last couple years.

I don't think this one is on as solid a footing as Avino and I only have about 2 years experience with this one.

EGO- Eldorado Gold Corp- close of market 8/20 this was $.96 a share, 52 week high was $2.44 a share.

Political issues in Turkey created a big drop in this one in the last year, drop in PM prices further beat it up. Most risky of these three IMO. I'm down on this one currently, but would buy more in the $.80 cent range if/when it gets there.

EGO pays a small dividend I believe also, but nothing like the MLP's and REIT's I've listed elsewhere on this forum.

I offer these up solely for the contrarian investors that want to have a hedge against a major economic shakeup. As PM prices go up, all of these stocks typically rise. It's been 7-8 years since we've seen a drastic rise in PM prices. If you believe a major economic malfunction is right around the corner, it may be worth taking small amounts of these and holding them for a while. Prices seem to be near yearly lows.

Remember it's not about holding these forever- most pay nothing for a dividend so no sense marrying the darn things... But having maybe 10% of your stock/fund investment in some of these would be a good contrarian play. When you can make a little cash, sell them. Even 1,000 shares sold at a ten cent gain is $100. before fees. On potentially as low as a $200. investment (AUMN for example), that's a great return, especially if your fortunate enough to do that within a month or so.

You only have to do that once every so often to end up getting more return than the measlely 1% a money market returns right now....