Your Questions About Investing In Silver

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Paul asks…

Im new to investing in silver.. should i invest in silver dollars or silver bar?

I have about $3,500 to invest in silver but i cant decide buying 1878-1904 Morgan Silver Dollars 100-Coin Bag (VG – VF) or Johnson Matthey 100 Oz Silver Bar. Is there a better way to go about it? im kinda leaning twards the coins because they may have some added value for coin collectors but having a bar of silver would be pretty cool! Any opinions??

financi4 answers:

Unless you are expecting economic chaos, physical silver is an expensive and inefficient approach. Buy/Sell spreads are high. Storage, insurance and theft are issues.

Consider opening a discount brokerage account. Fidelity, Schwab, Vanguard are all good choices. You can buy the silver ETF (ticker: SLV) for a commission of under $10 without paying any of the markup on physical silver products.

Morgan Dollars contain .77344 ounce of silver each. Didn’t bother to figure out what the other answer messed up in his calculations, but this is 100% correct from an impeccable source. See below.

Chris asks…

Does anyone offer automatic investing programs in silver bullion?

I participate in an automatic savings plan and then filter the money into stocks and future down payments for investments properties. I would like branch out and do that with silver bullion. Does anyone know of any reputable companies that have automatic silver bullion investment programs without charging huge commissions or fees?

financi4 answers:

Do you want physical possession of silver bullion, or just to invest in silver?

For physical possession, I don’t recommend it, and haven’t looked into who offers that. For physical silver held by an intermediary, I don’t recommend that either, although at least it’s somewhat less problematic.

For investment purposes, it’s simple to invest via something like the iShares Silver Trust (SLV) or PowerShares DB Silver (DBS), so you could set up an automatic investment system via any brokerage. (It’s so simple, in fact, that that’s a very good reason to prefer this technique.)

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