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Call MONEX in Newport Beach, CA (800-949-4653).
They handle the whole gamut of precious metals investments:
silver, gold, platinum, coins, etc.
Their quote for 1000 oz. silver bars (1:45 p.m.) is
Bid $4917 / Asked $5084
If you want ten (10) one hundred ounce bars they tack on an extra
fifteen cents per ounce, or $150.
Bags of silver U.S. coins are another way to play this market:
* Kennedy half-dollars (40 pct silver, 295 oz per $1000 face value):
Bid $1480 / asked $1594 (note: low downside risk)
* Pre-1964 coins (90 pct silver, 715 oz per $1000 face value):
Bid $3533 / asked $3727
Last time I traded with them they added a two percent commission on
top of their bid/asked spread. If you leave your coins/metal/other
with them you can leverage by buying on margin.
Prices can move quickly and suddenly. This market can lead to white
knuckles, as I found out in 1979-1980. Don't climb into this market
if you want to avoid biting your nails!
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R.W. Bradford, a coin and precious metals dealer in Port Townsend, WA,
puts out a monthly newsletter. As you might expect, he hawks his wares
a bit, but he writes a pretty objective and insightful commentary.
To get on his mailing list call 800-854-6991.
In his 07/12/95 issue Bradford illustrates the connection between
production/consumption balance and the price behavior of silver
with a bar graph going back to 1950: whenever consumption outstrips
production, prices will head higher; and overproduction leads to
lower prices [duh, I knew that].
We're now in the fifth consecutive year of overconsumption.
According to Bradford "the indicators suggest significantly higher
silver prices are likely and downside risk is minimal." He feels
that 90% silver coins are the best way to buy silver, followed by
40% coins and silver bullion. Bradford thinks other forms of silver
are a waste of money. Coins are now selling at a slight discount
to melt value.
Of course if you'd miss those lavish 3.8% bank CD yields then
precious metals aren't for you.
-Jerry
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