How to Buy Physical Silver — Silver Investing

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Demand for physical silver has soared due in part to strong industry and a desire for physical metals for investment portfolios.  But not all physical silver is created equally.  Investors need be careful to buy only physical metals that are worthy of investment, not collection.

Numismatic Metals

New investors in physical metals often make the mistake of purchasing numismatics, or those coins, bars, medallions, and ingots that are meant for collection rather than investment.  Generally, numismatics earn their value from their rarity, perceived value, or from their appeal as art.  Numismatic coins can often sell for multiples of the worth of the metals themselves, making them poor investments.

Investment Grade Silver

Choices in investment grade silver are plenty.  From junk bags of pre-1964 coinage to rounds and coins both foreign and domestic, there are a myriad of opportunities for the silver investor.  These silver products are better suited for investment because their value is derived directly from the amount of silver in the product.  For example, a 10oz bar will sell for 10x the current silver price whereas a rare American silver coin can sell for hundreds of times the value of its silver content.

Mind the Premium

Unlike exchange-traded funds or futures, physical metals do carry a premium over the current spot price.  This premium, usually 2-3%, helps cover the cost of transport, storage, and marketing of the metals itself where the futures exchanges don’t have as much overhead.  The premium isn’t all a lost cause since you’ll be able to recoup the premium upon sale of the silver, as all physical metals carry a premium over spot.  They have for the last century, and they will for the next.

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With the way the economy has been going and 100 banks failed this year, it is not a bad idea to have some of your money in gold and silver.

This provided you some true investment diversification by not having all of your money in the banks or stock market.

Cole Chambers –

The best way to buy gold and silver is physically allocated and stored in a safe place like Switzerland. I came across an excellent service for that purpose: it’s called Global Gold .

I have to disagree.

Silver bullion rounds, like the Buffalo, are .999 pure and can be had for spot prices.

The pre-1964 coins are valuable, but only have .900 silver content.

This must be taken into account during purchase, as any trader will mark it down by 10% when you go to divest yourself in the future.

This is the reason it sells for “less” in the physical markets.

Even silver jewelry is a better bargain than silver US coins (.925).

Just IMHO.

Buy silver any way you can get it, though.

Every ounce you buy keeps it from the hands of banks.

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