Your Questions About Investing In Silver

0
0
0
0
0
0
0
0
0
or copy the link

Richard asks…

Investing in $30 silver?

With silver finally breaking the magic $30 mark is it still worth considering investing in silver at this price, or have I missed the window of opportunity to see a real benefit in returns in relation to what it’s expected to go up by? Are any serious silver investors still snapping up silver at $30? Thanks, and have a silver Christmas.

Justin answers:

The first time i bought was march 09. It was at $12. Then at $16, then $21. I thpught about the same thing when i bought at 12 cos silver fot as low as $4 in 2005. Then i thought again at 16 and 21. As long as Ben bernanke continues to run mad, i will stick to metals. As soon as i get money, i’m heading to my dealer.

James asks…

investing as gold ETF is o.k. is there any silver ETF?

I want to invest in silver in a easy way without any problem so as to redeem easily thanks

Justin answers:

Hi,
you are in for the best answer.
Unfortunately, there is no Silver ETF available in India.
But you have what is called E-Silver available on National Spot Exchange.

Check the following link for more details –

http://www.finance-trading-times.com/2010/12/2184-trade-e-silver-national-spot.html

http://articles.economictimes.indiatimes.com/2010-04-20/news/27599886_1_e-silver-small-investor-small-savings

With Regards,
Vikas

William asks…

Investing in silver help please?

Hi, im looking to invest in some silver, i can find a bar of 999 silver for £765 cant find it cheaper? but that works out about £21 a ounce. what im wondering is when the prices go up (fingers crossed) where can i sell it for the most money? and where can i buy it any cheaper? thanks for the help 🙂

Justin answers:

Maybe just look around the country or area for a place that sells it cheaper. I usually try to avoid buying online because of shipping prices and scams. However, paying a dollar (or in this case pound) more or whatever isn’t that big of deal. Trust me silver will probably never be this low again. With currencies crashing and silver being mined less and less it will be the best investment.

Donald asks…

Where do i buy silver bars in the UK?

I’m thinking of investing in silver and i want to know where i can buy silver bars in the United Kingdom.

Thanks!

Justin answers:

Http://www.24carat.co.uk/frame.php?url=silver.html

Michael asks…

Which is better to buy, silver dollars or silver rounds?

Since the value of the dollar is going down I have been investing in silver and gold. But, i’m not sure which is better to buy. There are silver rounds, silver bars, and silver dollars (coins). Which one will hold its value the longest?

Justin answers:

Interesting question. Silver dollars are a little different from generic silver. They have some collector value. They are very popular with collectors also. I am not sure why because they are as common as dirt, but they do. The Morgan dollars are somewhat more popular than the Peace dollars although there were many many more minted. The Peace dollars are somewhat less common except for the 1922, 1923 without mint marks.

In general you will get a lot more for your money by buying the silver 100 oz bars. The mark up per ounce is a lot less.

Another alternative that you did not mention but which is worth a consideration is silver dimes, quarters and halves. These generally are available at a smaller premium than the silver dollars. And if worst comes to worst, they might be the preferred medium of exchange. You might be able to buy a pound of steak for a silver quarter for example.

If inflation takes off (perhaps I should say when), the collectible silver dollars might actually increase in price faster than generic silver. They absolutely skyrocketed in the early 1980s. By collectible I mean ms 63 grade silver dollars–absolutely uncirculated with a minimum bag marks. The common dates are currently going for about $40.00 to $50.00 each in the Morgan. In the Peace about about $35 to $40.

The cc mint mark Morgans are very popular indeed. They are currently running better than $200 for the most common dates. I recall when they were about $40 and the Peace and Morgans were about $6.00.

One thing about collectibles though. They can be somewhat difficult to sell for a fair price although Ebay has done a lot to level the playing field.

It helps to hedge your bets. Some of each.

Thomas asks…

where is a reliable place to buy silver and palladium bullions?

im looking at investing in silver in the form of bullions. does anyone know where i can buy silver? id prefer not to use the internet but if there is a reliable place then it will work.

is silver a decent metal to invest in or has it been pretty much replaced by modern precious metals?
thanks

Justin answers:

I own silver. It is a major holding that I have in addition to gold. IMO the bast silver bullion to buy are the Canadian Maple Leaf coins. I like them for several reasons.

(1) They are 99.99% silver. The purest silver in the world. American Silver Eagles are only 99.90%
(2) They have a $5 Canadian face value on them. Also the highest face value silver bullion coin in the world
(3) The premiums are lower then the US Silver Eagles and they hold the premium value for trade in more so then any other bullion coin
(4) They look really nice
(5) They come in tubes of 25 instead of the standard tube of 20 for other coins.
(6) Canadian Silver Maple Leafs are low mintage compared to American Silver Eagles.
(7) They are affordable

As for the best place to obtain silver bullion coins I have found that Monex is the best place and offers the lowest prices. There is a catch to Monex though. They require a $5000 minimum pruchase for silver to get started and then thereafter you can buy the coins in 100 ounce lots. Keep in mind they also charge you 1.75% commission on the purchase and a $30 shipping charge for the first 100 ounces and $5 for each 100 ounces after that. So a first order with monex on silver will run you over $6100 on the first order.

If the Monex minimum is too much for you then I personally keep an eye on Ebay. The problem with attempting to buy silver or gold from local dealers is you are subjected to higher prices as they usually get their product second hand. Some do deal directly with the bullion banks but again they will charge more due to the fact that a local dealer doent do the volume that online bullion dealers do.

As for other metals, they have no history of being money or have been used as money anywhere in the world. I personally dont own other metals but think it may not be a bad idea to own a small amount of other metals other then silver and gold.

Also you need to understand that gold is not an investment. Gold is and acts more like an insurance policy. You are insuring that something in your portfolio can never go to $0.00. All paper assets have the ability to go to $0.00. Silver is also in the gold realm as well, so when talking about gold, silver is included.

Gold is money and a store of value. It is the “Currency of last resort” as Greenspan has stated many times through the years. Gold doesnt pay interest, dividends, doesnt restate earnings, has no lawyers, accountants, CEOs or CFOs lying to you on television. Gold doesnt ask for bailouts, doesnt go BK and cannot cook its books. Gold cant be debased or printed at the will of a company or governmetnt and holds its purchasing power.

Gold sits there as a store of value, is labor intensive, and a one ounce coin will not split into a bunch of half ounce coins at the direction of the pin striped bandits on Wall Street. Also Gold is the ONLY asset class in the last ten years to increase in value and retain every dollar of its purchasing power. This is also true for silver as well.

David asks…

what do you think about silver coin investments?

I recently decided to start investing in silver coins because of my concerns about the economy and what’s happening in the world. I even started a blog because I feel so strongly about it. What’s your take on this?
I just don’t feel confident about cash at the minute and silver coins seem a reasonable investment, one that should hold their value better even if the market fluctuates, I’m sticking with American silver eagles at the moment because they are easily recognised and .999% pure.

Justin answers:

Your question is about investing in silver coins, so I won’t make the argument that others have that there are better things to invest in, nor will I give my opinion on if now is a good time to buy or not. I will leave those choices up to you and stick to the coins.

American Silver Eagles are good to have if you can buy them right. Stay away from the numismatic coins, which means all proof coins and those business strikes that sell for more than the average. Canadian Maple Leafs are also good coins.

The problem with them is the premium you will have to pay above the spot price of silver. You will need an upward movement of a minimum of 15% in the price to break even.

You can buy Engelhard bars for a 10% markup or even less at times, on eBay. My personal choice, however, is buying 90% pre-1964 US ‘junk silver’ coins. The term ‘junk’ here is the common name for coins sold in lots at a certain multiplier times face value, not that the coins are junk. Pick your spots and you can buy below ‘melt’. The more worn these coins are, the more of the silver will have been worn away, but this will only come into play if you were to actually have them melted down. Trading them back and forth, the ‘shrinkage factor’ has already been taken into consideration by the buyer, and it’s insignificant.

These coins do not have the eye appeal nor marquee name that the Eagles have, but they are just as recognized by smart investors. The purity of 90% is just as trusted as the .999 bullion coins. And there’s the added benefit of finding some better date/mintmark coins in with the ‘junk’.

The site below keeps track of the value of US silver coins.

Http://www.coinflation.com/

John asks…

Interested in investing in Silver. Are there any recommendations out there?

Justin answers:

Buy physical silver, I would prefer a coin or bar that has a 999 or 9999 on it opposed to something that does not say that. The reason why is because those 9’s represent the percentage of silver within that bar or coin. Other whise the coin may have 90% or 35% silver. If you don’t want to hold onto physical silver then buy shares of slv which is an etf that follows the price of silver. Honestly its good to have both. If you need cash and the market is closed, you can run to a coin store or a cash for gold and get money for it. Apmex.com and providentmetals.com are good places to buy. Keep in mind when buying since the market price changed every day so does the retail price

Ken asks…

Investing In Silver?

Does anyone know a secure website that you can easily invest in Silver at? Gold is almost 1000 bucks an oz while Silver is slowly rising and around 20 bucks an oz. Investing while you can will make sure you have a future when we go into a depression which will happen the way the FED keeps printing money. But seriously, anyone know of a website they’d like to share?

By the way, if you dont want a depression, you should vote for Ron Paul. If you dont, dont blame me when the stock market crashes again and you’re living off of bread and potatoes. 🙂

Thanks for the information everyone!

Justin answers:

Gold has a big use as a hedge against inflation. Silver has industrial uses and gets consumed. While silver is sometimes regarded as “poor man’s gold” they’re really not substitutes.

I don’t see the importance of the price per oz. In gold being high. $1000 of value is worth $1000 whether it’s 1 oz of gold or 50 oz of silver at $20, unless you feel better seeing a bigger number of ounces.

Why buy on the web? They hold it for you, in which case you have risk of them going bankrupt or skipping, and there goes your hedge (plus they may charge safekeeping and insurance fees) or, they can send it to you, in which case you have shipping and insurance. Just go to a coins dealer. Most of them also deal in bullion and bullion coins. You can see what you’re getting and take it with you.

Powered by Yahoo! Answers