Daughter started in PMs

[Pipers]

Today my oldest Daughter came around (29 I know I'm old).  She said 'Dad can you help me buy some silver, I've been looking online but everything looks expensive!' On went the kettle, the table was cleared and i turned the laptop. 

Yes I thought someone to talk to about PMs, it is true i buy coins for my younger children but they like the animals and angels on the coins.  This is diffenent i thought to myself.  What are you interested in then i asked?  Not losing money she replied, anyway i thought silver had gone down in price why can i not find any to buy like you do?  Well I said its not like that, the silver price has capitulated the market has broken.  The Silver market is made up of various parts and the price is set into 2 parts the paper and physical markets.  After a long talk about her expectations, invesment time lengths, a conversation about storage safes, which metal/ metals to invest in  and a search on the web for price of coins/ bars. She does not own her own home and moves around with her job.         

We ended up looking at a vaulted company, In the end my daughter signed up with Bullionvault though it could of been one of a few companies.  The reason for her using a vault was the following 1 It was fully allocated.  2 The price of Silver at the vault was very competitive with low charges compared to buying from a bullion dealer at this time. 3 She may want to convert to Gold at a later date. 

One point i would like to make here is my daughter would of bought some silver coins herself but for the fact the premiums are extremely high, the bullion dealers have lost a customer and infact have lost a long term customer to the vaulted system.  I am positive there must be lots of younger people who are in the same place they want to buy into Silver then they see the premium at which point they look elsewhere.    

 

[Seasider]

May I ask if you looked at an ETF/ETC like PHAG.  It says its replication method is currency/commodity physically held so I assume it is not just promises on paper.

[kimchi]

Very, very interesting, thanks for posting that @Pipers.

[Lowlow]

3 hours ago, Seasider said:

It says its replication method is currency/commodity physically held so I assume it is not just promises on paper.

It's different promises on different paper.

[Pete]

If my daughter asked me about investing in silver and didn't own her own home and was so young I would advise her to stay clear.
PMs falls into high risk commodities and not for the faint hearted.
There will be many who disagree but the wise old owl differs.
Once a young person has other savings, investments and nowadays a SIPP ( and is paying the necessary percentage of income to ensure a decent pension pot ) THEN have a flutter on PMs rather than casino apps and scratch cards.

[Tattoedamat]

Agree with Pete. But congrats to your daughter @Pipers for starting

[Notafront4adragon]

My biases would meant that I would have told to her forget about silver, especially if she wants to store her money, skip directly to gold and still consider physical. It's dense enough that moving around with it is possible. BUT any discussion on how to encourage them to think about their wealth is always good. 

 

[Pipers]

10 hours ago, Pete said:

If my daughter asked me about investing in silver and didn't own her own home and was so young I would advise her to stay clear.
PMs falls into high risk commodities and not for the faint hearted.
There will be many who disagree but the wise old owl differs.
Once a young person has other savings, investments and nowadays a SIPP ( and is paying the necessary percentage of income to ensure a decent pension pot ) THEN have a flutter on PMs rather than casino apps and scratch cards.

Pete, She is a Nurse and there is no way she can afford a morgage for a house, she has the NHS pension plus she has other savings, she wanted to invest while  commodies are low and looked herself at silver as a commodity/ PM. 

1 hour ago, Tattoedamat said:

Agree with Pete. But congrats to your daughter @Pipers for starting

Thanks I'll let her Know

1 hour ago, Notafront4adragon said:

My biases would meant that I would have told to her forget about silver, especially if she wants to store her money, skip directly to gold and still consider physical. It's dense enough that moving around with it is possible. BUT any discussion on how to encourage them to think about their wealth is always good. 

 

By herself she saw the price reduction of commodities and thought there was an investment oppurtunity.  I showed her Gold silver Platinum it was up to her, It was Gold silver ratio that was the factor in the end.

16 hours ago, Seasider said:

May I ask if you looked at an ETF/ETC like PHAG.  It says its replication method is currency/commodity physically held so I assume it is not just promises on paper.

No I advised against an ETF as she wanted to own silver and not a dirative of, what she has is an fully Allocated account but  you do not own a specific bar as the London bars ar to big.  There are Many Vaulted companies that are fully Allocated Goldcore,Goldmoney,Bullionvault being the most well known. 

15 hours ago, kimchi said:

Very, very interesting, thanks for posting that @Pipers.

Thanks Kimchi,  I posted because my daughter saves every month and when she wanted to buy into SIlver (Gold) she saw straight through the rip off prices the bullion dealers are asking  ATM. 

[Melon]

17 hours ago, Pipers said:

Today my oldest Daughter came around (29 I know I'm old).  She said 'Dad can you help me buy some silver, I've been looking online but everything looks expensive!' On went the kettle, the table was cleared and i turned the laptop. 

Yes I thought someone to talk to about PMs, it is true i buy coins for my younger children but they like the animals and angels on the coins.  This is diffenent i thought to myself.  What are you interested in then i asked?  Not losing money she replied, anyway i thought silver had gone down in price why can i not find any to buy like you do?  Well I said its not like that, the silver price has capitulated the market has broken.  The Silver market is made up of various parts and the price is set into 2 parts the paper and physical markets.  After a long talk about her expectations, invesment time lengths, a conversation about storage safes, which metal/ metals to invest in  and a search on the web for price of coins/ bars. She does not own her own home and moves around with her job.         

We ended up looking at a vaulted company, In the end my daughter signed up with Bullionvault though it could of been one of a few companies.  The reason for her using a vault was the following 1 It was fully allocated.  2 The price of Silver at the vault was very competitive with low charges compared to buying from a bullion dealer at this time. 3 She may want to convert to Gold at a later date. 

One point i would like to make here is my daughter would of bought some silver coins herself but for the fact the premiums are extremely high, the bullion dealers have lost a customer and infact have lost a long term customer to the vaulted system.  I am positive there must be lots of younger people who are in the same place they want to buy into Silver then they see the premium at which point they look elsewhere.    

Thanks for sharing - an interesting story. I'm around you daughters age and I must say if I asked my parents for advice on Silver I imagine I'd just get shown the christening spoons 😄 

One interesting conflict I'm seeing a lot on the forum just lately is captured nicely by the two bold parts above. Those of us who buy PMs seem to universally believe the silver spot price doesn't reflect the physical market, but we also believe that the dealers are ripping us off by increasing premiums. Those two seem to be at odds with each other! We're a greedy bunch 🤣

[Pipers]

7 hours ago, Melon said:

Thanks for sharing - an interesting story. I'm around you daughters age and I must say if I asked my parents for advice on Silver I imagine I'd just get shown the christening spoons 😄 

 

I also have hollow ware!😄

7 hours ago, Melon said:

 

One interesting conflict I'm seeing a lot on the forum just lately is captured nicely by the two bold parts above. Those of us who buy PMs seem to universally believe the silver spot price doesn't reflect the physical market, but we also believe that the dealers are ripping us off by increasing premiums. Those two seem to be at odds with each other! We're a greedy bunch 🤣

Well yes, you put it about right, we are a greedy bunch of b-stards🤣😂

[dicker]

Many thanks for sharing the story, I have work to do on getting my kids interested!

Best

Dicker

[firestacker]

Quote

What are you interested in then i asked?  Not losing money she replied

To me it sounds like gold would be a better option here. Gold has quickly recovered whereas silver is back where it was over a year ago.