How to Leverage Precious Metals Positions to Make Money?

I'm wondering if there's anyone out there who might have some advice in precious metals/investing.

Let's say I have a store of extra silver/gold/other precious metals that I want to use to actively invest and grow my wealth. I'm just thinking about if there is a way to utilize something with a physical store of wealth as a way to enter into other investment positions. In the stock market, you can invest US dollars. What about in real life, the tangible stuff?

In particular, I have a lot of silver I don't really care about (like a 1/2 troy pound Mark Mcgwire coin that is .999 silver and 1 of 1,500 made). It's a beautiful piece, but I could care less about Mark McGwire and would much rather have some Mexican Libertads or Canadian Maples. I've developed a taste for certain types of rounds/bars and have a lot of other silver I would rather use to take some risks and try to make a profit, or to exchange it for something I would like instead. Any ideas?

I know usually people buy precious metals as a hedge against inflation and for long term savings. But I'm wondering if I've overlooked a possible way to leverage the physical that I have already accumulated to make additional gains.

Other than liquidating my positions and using US dollars to invest in things like the stock market, real estate, start up companies, etc., how could I use my physical metal as an economic engine to create more wealth? Any thoughts would be appreciated! Thank you all.

Your friend, FamCore

a reply to: FamCore

I consider metals to be more of a defensive investment. They go up when other things go bad. However, I do invest in gold stocks and one of the best is Randgold (ticker GOLD). They have performed very well for me.

I also keep physical gold in my safe deposit box for SHTF scenarios. Silver is more of a commodity metal, however, if Trump builds the wall with all those solar panels you might see silver spike up. Each solar panel takes about an ounce of silver to create .

Also, I wouldn't take investment advice from some guy on the internet.

a reply to: Metallicus

I have dabbled in investments with G and S for 25 years. It is all a risk, I would not put my money in paper gold or silver. I also would only buy easily recognizable coins and I have never owned blanks or bars. Then you can get into proofs and rare stuff, I have never gotten hot and bothered over these though.

It is a fun and quick way to loose money, but I have made more than I have lost.

originally posted by: FamCore
I know usually people buy precious metals as a hedge against inflation and for long term savings.

The reason to buy gold is as a hedge against the inheritance tax.

a reply to: FamCore

Short them?

a reply to: dfnj2015

I'm sorry but I'm not technically literate in financial terminology - what specifically would I need to do to "short" my physical metals?

a reply to: FamCore
Thats simply the wall street word for sell. If you don't like that specific coin/medallion one of your better options is to simply bring it to your local coin dealer and negotiate a trade. I have done this a handful of times.

Also, advertising a list of what you are looking for on Craigslist under the barter category will typically draw some inquiries.

You should check out the new Mason Mint Heritage round being released. Its Masonic, so itd be like a conspiracy related coin! Cool to have or diversity sake.

Ebay may fetch you the highest price for your coin though if you just want to liquidate for the best money.

Also flea markets, not the urban indoor type that just sell clothes and jewelry either, are an easy pace to trade silver for a better value than most brick and mortar or online coin dealers.
My local bullion dealer pays the best as far as their competitors go, but I can typically still get more money at the flea market.

originally posted by: Snarl

originally posted by: FamCore
I know usually people buy precious metals as a hedge against inflation and for long term savings.

The reason to buy gold is as a hedge against the inheritance tax.

And That exactly sums up why the government frowns upon it. They can't tax what they don't know about.

But in ALL seriousness.... buy metals once you have secured food and water.... seriously.

a reply to: infolurker
Gold to dodge inheritance tax?? You may make out better with a whole life insurance policy instead. Tax free payout to the beneficiaries. It can usually return a higher dividend than the amount of gold one would accumulate in the same time frame.

originally posted by: worldstarcountry
a reply to: infolurker
Gold to dodge inheritance tax?? You may make out better with a whole life insurance policy instead. Tax free payout to the beneficiaries. It can usually return a higher dividend than the amount of gold one would accumulate in the same time frame.

Not specifically inheritance tax.... tax in general.

When you buy gold or other metals with cash, then convert them to cash later, there is no way for the tax-man to hit you with capital gains tax or other taxes. If you hold physical metal, and we still have cash, people can circumvent the tax-man and they do not like that.

a reply to: infolurker
This is true. Several US states are in fact passing legislation that is removing taxes that were set until certain thresholds were met.
I remember Iowa and Arizona being two that have essentially removed any form of taxation on gold holdings and purchases.

Technically if the gold we buy gains over the year, we are supposed to report it as income. I doubt anybody actually does. But the point is that some states are removing that from their legislation, so that taxation is no longer on paper for this money. Those are states making moves in the right direction IMO.
Florida has not gotten there yet. So If I want to buy any bullion that is not USA government minted, I will be taxed unless my purchase is $500+ . If I am buying $501 in foreign or private mint, it is then considered an investment and I do not pay sales tax.

I like my American mint, but I also like diversity. I got chinese, korean, mexican, canadian and Turkish gold as well as American. Had a chance to get me some Israeli gold at a very good price last year, but missed my window by twelve hours. Have not come across any since.