Hello, friends! We're going to discuss how to make your first purchase of silver coins or bars in order to take advantage of the future (massive?) price increases. If you're new to the topic, you should be asking, "Why Silver?" An excellent question! As a quick review, let’s take a very brief look at the silver story and why it would behoove you to make a purchase soon:
- It is a monetary metal that will protect you against the continued devaluation of your dollars
- There is a (debatable) shortage of silver
- There is an (undisputed) ever-increasing demand for physical silver by private investors
- Countries such as India and China are importing as much physical silver as they can
- Physical silver provides financial security and financial privacy
The list of reasons to buy silver is much longer than the one provided. Nonetheless, you can see that the silver story is compelling; hopefully so compelling that as soon as you finish this article you will run to your Local Coin Shop (LCS) or browse to your nearest online dealer and make yourself a purchase. If you’ve bought or sold precious metals already, you’ll probably want to find another article to read. However, if you’re new to the game and are considering jumping in, then read on.
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What to Buy?
There are several options for silver investing. There are ETFs that track the price of the shiney. You can purchase these through a broker as you would any common stock. There are hundreds and hundreds of mining stocks that you can invest in. The mining stocks have hit the bottom of this latest correction (or will hit it soon), so now would be a good time to buy. We’ll have to talk more about the miners in another article. There are also silver futures that can be purchased through the Commodities Exchange (COMEX). I really don’t advise anyone venturing along this path, especially a beginner. My advice to you is to purchase real, whole, honest, shiny, heavy, physical silver.
You will find physical silver in bars of varying sizes: 1 ounce silver, all the way to 100 oz. and even 1000 oz. silver bars. Physical silver will also come in coins, otherwise known as "rounds." The coins are minted either by some country’s government, or by an independent refinery. Some popular silver coins are American Silver Eagles, Canadian Silver Maples, and Chinese Pandas. The government minted coins will cost you a bit more in premium, but you get a bit more back when you sell. Some popular silver bar refiners are Johnson Matthey and Engelhard.
How to Buy Silver
The two ways to make your purchase are to head to your LCS, the Local Coin Shop, and purvey their wares, or to head to your local computer and check out any of the dozens upon dozens of precious metal retailers online. I suggest the online seller mainly because the selection will most likely be greater than what you will find in your LCS. Also, the prices will more than likely be lower because of the lower overhead. I highly suggest that you go to a well-known and reputable dealer. If leave a comment with your email (see below), I can provide some suggestions for you. Check out reviews for dealers as well. Do a websearch for “reputable online silver dealers” or something like that. If you eventually make a purchase, you’re going to be sending a possibly large sum of money to this company and you will be expecting them to send you a possibly large (and heavy) amount of metal. You want to make sure you can trust them.
When shopping for your treasure, you will see or hear about three different prices when looking to purchase silver. The first is the “spot price.” This is the generally accepted price of silver as set by the Comex, and is the price of silver as displayed on a price chart. The other prices are the “bid” and the “ask.” The bid is the price that a dealer will purchase silver from you. The ask price is what you’ll actually to pay for it. If you get confused, just know that the higher price is the one that the dealer will charge you.
One of the drawbacks to dealing online is that, as mentioned, you’re going to receive a heavy, heavy box full of metal that will probably raise the eyebrows of your delivery person. This is not such a great thing, but it’s not a deal-breaker. I say this because you probably don’t want many people (read anyone) knowing that you’re having physical silver delivered to your home. The reasons for this should be obvious to you. Where to store it and how to store it is definitely something to be considered carefully.
There is obviously more to think about when deciding to purchase physical silver. I encourage you to do more research, but I strongly encourage you to do it soon because the prices are relatively low now and I believe we're going to start another launch soon.
One more thing- Though I am thoroughly convinced in the silver story, anything I suggest in this article is just that - a suggestion, and should not be construed as investment advice. You must do your own research and due diligence before investing in anything.