Your Questions About Investing In Silver

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Thomas asks…

Investing in Silver Bullion?

Suppose I wanted to invest in silver bullion, partially as a serious investment, partially for the novelty of having some “portable property”.

Suppose I went to a coin dealer and bought several silver 1oz pieces, or a large bar, would I be able to sell them later without excess testing and fees? Assuming that I took and kept possession of the bar(s) to avoid storage fees.

What I mean is when I go to sell the bars (back to a dealer) will the process be: “Your bars have the right mass, here is your money”. Or will it be more convoluted?

I’ve heard stories about a person who took his bars in, and had to pay for the dealer to drill holes in bars to ensure that the bar hadn’t been hollowed out and filled with a cheaper metal.

What is a typical pathway from purchase to sale of a bar of silver?

Justin answers:

If I took one of my bars in to a coin shop to sell, and they wanted to drill in hole in my J/M serialized bar – I would give them a piece of my mind (loudly) and leave!

You should have NO problem selling them as long as they are a known refiner / assayer.

As far as the fees – thats a different matter. I have only bought from a coin store, never sold to them. Always sell to individuals – as they should atleast pay spot price (if price is in down trend) or more then spot if price is in uptrend. I doubt a coin shop will pay over spot price, as they can get it AT spot price or just a tiny bit over, and thats thier worst case scenario.

And along the same lines. SHOP AROUND – can’t stress that enough. I found that coin shops in my area had very noticable price differences for the same thing – call each coin shop one morning, and ask for the price of a 10oz .999 silver bar. Go visit the lowest 3 or 4 prices you get – (visit with empty pockets) just a get the feel of the place and see if you like who you’ll be giving your money too.

I should also say (since you asked), take it with you! DO NOT pay for storage – its no good if you can’t get to it when/if you need it. Also, any fees over time will eat up some profit you will make if the price goes up, and it will add to the lose if the price goes down.

If its just an investment, buy in on a physical ‘pool’, like at kitco.com. Its about 1/3 the way down on this page:
https://online.kitco.com/sellprice/selling.html
I only mention this as an option. Personally, I would suggest getting physical if your interested in it.

Last but not least – If you do decide to purchase some silver from a local coin shop – PAY IN CASH!! No credit cards, no debit cards, no checks, no names, no nothing – just pay, say thanks and leave.

Good luck!

Edited:
“Nobody buys the actual metal as an investment anymore.”
Nobody??? Really??? Check E-bay – find a .999 silver “anything” that sells for less then spot price. 1000’s of oz.’s per week are sold on E-bay at what I consider high prices, especially when you take shipping into consideration.

John asks…

where can i buy silver coins or bars for a good price?

I want to start investing in silver and gold [the dollar is too cheap to buy gold for a good price ATM] so where is the best place to get a deal on silver

Justin answers:

Here is a good option.

Daniel asks…

..Investing in Silver?

I want to invest in silver, and since you cant invest in silver (actual metal) directly through the stock market, how or what is the best way to invest in silver? If there is a company which will definitely go up when silver goes up then please tell me.

Justin answers:

The easiest, cheapest, secure way is the ETF: SLV

SLV is the largest holder (in a vault) in the world of silver.

Joseph asks…

Investing In Silver Bullion?

I’m starting to put a few dollars of my income into silver bullion and i have a few questions.
Are silver rounds better to buy than silver bars?
When does a person sell their silver?
What places around the house can you store your bullion (hidding spot)?
What’s the best amount with the least premium (1 ,5 ,10 ,50 , 100 oz)?

Justin answers:

It’s nuts to pay the high fees/commisions (hidden and not hidden) of buying silver bullion… Plus shipping &/or storage costs. The largest deposit of silver in the world is with the ETF “SLV”. Use your on-line broker and your total commisions will be between $1 and $25 (depending on your broker)….

If you don’t have a broker…. Why would you start with silver? Commodities are really best bought/sold by experianced investors or traders. Always invest only in things you totally understand!

David asks…

Would you invest in silver through the stock market or in physical coins?

I am wanting to invest in silver and wonder if it would be better to invest in the stock market with a company who holds silver or to buy actual coins and bars?
To declining price of silver
Yes but still is went from $15 to $30 an ounce so far this year….and as the federal reserve prints more money the price of precious metals seems to be sky rocketing.

Justin answers:

The really smart people don’t invest, they trade. They buy on price declines and sell on the upswings, and they do it over and over. Historically, silver has been prone to huge movements up and down. It may still have some room to go up, but the easy money has been made in this recent bull market. Anyone who bought in the last year at around $15 ought to lock those profits in and buy again on the next big correction. Some think it’s going to $40 in ’11, and it might, but others think it’s a bubble waiting to burst and it could be back down to $10 in a very short time, and it might. That’s why investing, to hold, is not a good idea with metals. You trade it, keep your money moving.

This can be done with paper trading or physical silver. I prefer physical silver, because I don’t trust the paper-shufflers, I hate paperwork and record-keeping in general, and I know how to buy physical silver for below spot market in coin or collectible silver round form. Often, sellers don’t know exactly what they have, or buyers I compete against don’t know exactly what they’re looking at. I search the auctions and buy the ones that ‘slip through the cracks’. I went to an estate auction a few weeks ago, spent an hour so of my time. I watched people overpay for common silver dimes ($2.50 apiece in bag lots of 50 coins, plus a 10% buyer’s fee) because they all knew that silver is hot, and walked away with the best lot in the auction, a grouping of odd collector medals and world coins that nobody knew the weights of the silver, for less than half of spot price. More fun than trading paper, too.

Ken asks…

Is it a good idea to invest on silver coins or bullion?

I bought a canadian silver maple leaf coin at a coin shop. The owner sold it to me for 40$ instead of 45$. Do you think it’s a good idea for me to invest on silver coins and bullion even after the price of silver has dropped?

Justin answers:

Sounds like you got taken by the coin shop, silver spot is only at $31 per ounce, at my local coin shop you can buy canadian maple leaf coins for about $2.75 over spot. That means I could by the same coin for 33.75. You can also get them on ebay for like 33.50. I only invest in bullion because I really don’t care about the coin just the silver. The answer is yes because everyone needs a diversified portfolio of investments including precious metals.

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