Recent college grad, new to investing!

[enyoctap]

Hello everyone,

Just graduated from Ohio State back in June 2011. I was fortunate enough to find a job right out of school and have now begun to have a bit of money just sitting in my bank account. I've started my 401k but outside of that I have not made the plunge into any sort of investing. I guess I'm too nervous to just throw my money anywhere before doing a lot of research! And that's why I decided to join this blog.

I have a lot of different questions but not sure if this is the spot to ask or not?

Anyway, I look forward to learning a lot!

Thanks,
Patrick

[WhyKnow]

Welcome here. Good spot to learn how the world works and how you can work in it. There is a lot of investing info here. The site is more based on saving, however. The idea that gold, silver and other metals are an investment is kinda tricky.
Again, welcome and good job graduating and having a job!

[TnAndy]

Welcome.

If you learn nothing else, learn, and come to FULLY understand this:

JP Morgan to Congress, 1912 "Gold is money, all else is credit"

[enyoctap]

Thanks for the quick feedback!

Well then, let me just jump right in and ask a question.

I was just surfing around the web to purchase some silver, and I found Gainesville Coins to receive some good reviews. After just doing some quick research I thought about buying: ($100 Face) Bag of 90% Silver Coins for around $2.4k. I did a little research but the reason I was looking at this particular deal is mostly random

My first question is, does this seem like a solid first time purchase or should I start with something different?
Second should I store it in their vault (at a relatively low price) or get it shipped? My concern is that I don't own a house and will be moving in a few months and likely be moving around a few times in the next few years. I'd just be nervous to have it "hiding" in my apartment.

Any recommendations at all would be appreciated.

[Silvergun]

Second should I store it in their vault (at a relatively low price) or get it shipped?

If you don't hold it, you don't own it.

Best advice that I wish I got before I started investing in metal was not to get to involved in the hype. Try to ignore all the "this time is different" and "last chance before lift off" comments. You can get caught up in that and end up burning yourself with silvers volatility. Just slowly stack and dont look back. Try to buy on dips, but dollar cost average and setup a budget.

Have fun stacking and welcome to GIM, its a great site.

[Weatherman]

My first question is, does this seem like a solid first time purchase or should I start with something different?
Second should I store it in their vault (at a relatively low price) or get it shipped? My concern is that I don't own a house and will be moving in a few months and likely be moving around a few times in the next few years. I'd just be nervous to have it "hiding" in my apartment.

Welcome. You are off to a great start, and GIM is a good place to keep your momentum going. Pre 1965 silver coins is a good place to start, and .999 silver is also good. After you have been here a while, you will better understand why many of us prefer to hold our own instead of having someone else store our stuff for us. The problem is counter party risk, which means that a time can (and probably will) come when the other guy will simply default on his promise, and he will refuse to give your stuff to you. If your only choice for now is to either store your purchase in someone else's vault or not buy yet at all, then my vote goes to buy the silver now, and work on moving it soon to a place where you can get to it whenever you want without needing the approval or assistance from anyone else.

Regardless of where or when you store your stuff, you should get into the habit of not telling anyone who knows you what you have or where it is. Even people you trust can tell other people about your private business, and the word can spread to the ears of people you prefer to not know you have any wealth. Silence is golden, and its great for silver too!

[Pragmatist]

Patrick,
I am making a few assumptions here. Do you have an emergency cash fund? Are you debt free? If not you may want to concentrate on that. Set goals. Have a plan and stick to it. Do research here and other places. Stash some cash (if you don't hold it you don't own it applies here as well) and have a goal (6mo to 1yr.) in savings then concentrate on debt. Getting your feet wet in metals would still be a good idea for a small percentage of income. Start with Silver. Dollar cost average and learn the ropes while concentrating the bulk of disposable income towards getting debt free/savings-cash goal. JMO.

90% Junk is a perfect place to start, especially on a limited budget. It can also be a lot better place for assets than an abundence of cash or a new toy. A bag of rice is not a bad idea either. Don't forget the big picture.

Welcome, Your In The Right Place and Good Luck!
~Prag

[DodgebyDave]

I am going boating.......I'll hold it for you.........

[enyoctap]

OK I figured holding would be best. Perhaps I'll invest in a safe... or just store at my parents place.

I luckily am debt free. And was thinking of buying metals at on a monthly basis... For example, every paycheck (or when I see a dip) put 10% of it towards buying silver. Please let me know if you think I should follow a different strategy.

Lastly, Is there much difference in buying online versus going to a coin shop? And if I buy online, I'm assuming that I would have to pick it up at the post office, right? I live in an urban area and wouldn't want my silver just being dropped off on my doorstep.

Thanks again for the advice.

[Fiat Metaler]

there is a lot of wisdom and lore to investing. you have be willing to educate yourself and have the mental courage to do something different from the pack and conventional wisdom.

i would subscribe to the free daily newsletter dailywealth. also, porter stansberry's monthly pay newsletter which costs i think $99. with it you get his daily digest in which he provides a free education in investing. i have a degree in finance and have been investing for 30 years and still find a lot of wisdom in it. some of the ideas sound simple - like have trailing stops or invest in dividend paying stocks - but slow and steady wins the race and it will limit the number of expensive mistakes you make.

other than that, buying junk silver coins is pretty good advice as well. its not the sort of glamorous stock tip you can brag about, but at the outset of any investment you have to decide whether you are trying to make money or be popular.

[JFN111]

OK I figured holding would be best. Perhaps I'll invest in a safe... or just store at my parents place.

I luckily am debt free. And was thinking of buying metals at on a monthly basis... For example, every paycheck (or when I see a dip) put 10% of it towards buying silver. Please let me know if you think I should follow a different strategy.

Lastly, Is there much difference in buying online versus going to a coin shop? And if I buy online, I'm assuming that I would have to pick it up at the post office, right? I live in an urban area and wouldn't want my silver just being dropped off on my doorstep.

Thanks again for the advice.

Welcome Patrick,
If you live in a large city you might want to check out the coin show schedules. It's a great opportunity to talk with different dealers and compare prices.
http://www.numismaster.com/ta/inside...nShowsCalendar

[glockngold]

OK I figured holding would be best. Perhaps I'll invest in a safe... or just store at my parents place.

I luckily am debt free. And was thinking of buying metals at on a monthly basis... For example, every paycheck (or when I see a dip) put 10% of it towards buying silver. Please let me know if you think I should follow a different strategy.

Lastly, Is there much difference in buying online versus going to a coin shop? And if I buy online, I'm assuming that I would have to pick it up at the post office, right? I live in an urban area and wouldn't want my silver just being dropped off on my doorstep.

Thanks again for the advice.

As wacky as this place can get, when a young person shows up & asks for advice, the crap stops & help is given.
that's nice isn't it?
You have gotten good pointers so far.

Look online at current selling prices.
Take that knowledge, & carry it into local coin shops.
Spend a little money & then talk to the guy behind the counter.
Most of these guys are willing to chew the fat & show you up close & personal examples of what is available.
If they try to steer you to "graded & older numismatic" coins at this time walk away & find another place to do business.
Also, don't be afraid of gold just because it is "so expensive"
A 1/10 ozt gold eagle, or some Dos pesos are within your reach.

[Not Sure]

Welcome here. Good spot to learn how the world works and how you can work in it. There is a lot of investing info here. The site is more based on saving, however. The idea that gold, silver and other metals are an investment is kinda tricky.
Again, welcome and good job graduating and having a job!

Gold & silver are not "investments" per se. They are means to retain the value of the money you worked for / received. Devaluation of a dollar is a guarantee.

"Investment" is gambling. Not to say there aren't legitimate ways to "invest," but most of it is no different than Las Vegas...only the casino is on Wall Street.

[Not Sure]

Do you have an emergency cash fund? Are you debt free? If not you may want to concentrate on that.

Emergency cash fund, precious metals, then debt service. You can always default on the debt, but can't obtain cash or metals in an emergency. The bankster holding the debt ain't gonna care if you have no money to live or eat.

[Scorpio]

'yer doin' fine,

you have found this place, you are already debt free, and developing a plan,

from here on, it becomes your preference as you crawl down the rabbit hole,

you may find you have a liking for 10 oz'ers, or maybe Eagles, etc.

there is only 1 thing to pass on to you,

keep stackin'

[Tinbox]

Gold & silver are not "investments" per se. They are means to retain the value of the money you worked for / received. Devaluation of a dollar is a guarantee.

"Investment" is gambling. Not to say there aren't legitimate ways to "invest," but most of it is no different than Las Vegas...only the casino is on Wall Street.

id strongly disagree, something that can lose 90% of its value is far from a guarantee of retaining value. Silver went from $50 to $4 and stayed there for a long time, even gold lost over 50% going from $800 to $300.

I'd call it an investment when you can lose that much value.

[newmisty]

I'm a fan of History Students advise to diversify and keep several "baskets".

Ie: Gold, silver, fractionals, larger size, numismatics etc. They all serve a bit different purpose and can all have their strong points during different climates.

[Not Sure]

id strongly disagree, something that can lose 90% of its value is far from a guarantee of retaining value. Silver went from $50 to $4 and stayed there for a long time, even gold lost over 50% going from $800 to $300.

I'd call it an investment when you can lose that much value.

Silver at $50 in 1980 was a gross anomaly. We both know why.

How much was gasoline in 1963 using silver coinage? How much is gasoline now?

How much was a fine suit in 1925 using gold coinage? How much is a similar suit now?

Metals never go to zero. Paper always goes to zero, eventually. Electronic digits are already zero.

[Goldhedge]

And if I buy online, I'm assuming that I would have to pick it up at the post office, right? I live in an urban area and wouldn't want my silver just being dropped off on my doorstep.

Thanks again for the advice.

You assume correctly. You'll need a photo ID and a signature because they'll ship it insured and want to know it was delivered...

and welcome aboard!

[Pragmatist]

Emergency cash fund, precious metals, then debt service. You can always default on the debt, but can't obtain cash or metals in an emergency. The bankster holding the debt ain't gonna care if you have no money to live or eat.

As I said... "concentrate on debt. Getting your feet wet in metals would still be a good idea for a small percentage of income." Interest bearing debts are nothing like attractive women. If you ignore them, they do not simply go away.

Patrick, if you have no debt, Congradulations!! The best advise I can give you is to stay that way.

~Prag

[Dude]

Gold & silver are not "investments" per se. They are means to retain the value of the money you worked for / received. Devaluation of a dollar is a guarantee.

"Investment" is gambling. Not to say there aren't legitimate ways to "invest," but most of it is no different than Las Vegas...only the casino is on Wall Street.

id strongly disagree, something that can lose 90% of its value is far from a guarantee of retaining value. Silver went from $50 to $4 and stayed there for a long time, even gold lost over 50% going from $800 to $300.

I'd call it an investment when you can lose that much value.

Silver at $50 in 1980 was a gross anomaly. We both know why.

How much was gasoline in 1963 using silver coinage? How much is gasoline now?

How much was a fine suit in 1925 using gold coinage? How much is a similar suit now?

Metals never go to zero. Paper always goes to zero, eventually. Electronic digits are already zero.

There's always a risk in whatever you decide to do with your "extra" earnings - and the time you have on this earth. You can't take it with you.

I won't discuss frugality/life style/working a second job, but I've done the frugal, the second job, the low budget life style, and a higher budget life style over my 50 years. I'd be retired right now if I had been a frugal SOB, but maybe not as happy because even though I work 7-4, it is a good life.

In regard to your original post (OP, as we mostly say), your decision on a 401K is somewhat unpopular here, but I think at your age the risk is worth it if you have some matching funds.

Gold and silver is an investment, IMO, in the economy we now live in. Tell the folks that bought $48 silver bullion a few months ago they preserved their wealth. It's going for $34.35 at APMEX. They sent me an email of their 10oz. bars 99 cents over spot.

I will play at $29, but not now.

I did get a pre 1933 gold half eagle on ebay for $450 something last week, on a whim.
My last double eagle purchase was $650, but it has 4 times the gold - just a few years ago.

Just random thoughts from an old guy. No, actually - don't do less than 10% of your investment dollars in gold and silver physical. It's a bucket.