Sunday, December 30, 2007

Best Way to Buy Silver

The best way to buy silver for investment and to conserve assets is actually by buying silver rounds. With the value of silver on the rise, this is a very wise thing to look at.

Mint coins are probably the most expensive way to buy silver. There is a premium or mark up over the spot price of silver and it can take some time to make up this additional cost. In terms of a return on investment it is not very fruitful.

Bars are better, especially the larger bars, where the premium is substantially less. If you are interested in silver purely as an investment, then certificates or exchange traded funds are another way to go. The cost of purchase and redeeming the silver is less and are a better proposition in terms of investment as you do not have to take delivery, store and on sell the silver yourself. It is all done through paperwork essentially.

However the drawback here is the tax considerations as these are considered an investment and virtually all investments incurs a capital gains tax and possibly other taxes as well as they are considered investment rather than collecting silver as a hobby.

But if you like the idea of coins and bars and enjoy it more as a hobby than as a serious investment then there are many delightful coins to collect and, over time, you are still likely to improve your asset holding in silver as the value continues to increase.

If you are collecting coins then some of the best are the American Silver Eagle for example where the coin is pure silver. The American Silver Eagle is established as legal tender of course but the face value does not match the silver content. The Territorial Mint in the US also produces silver rounds with a low premium as well.

If you are buying silver bars at an auction, such as for example, then it is a good idea to stay the smaller one and 10 ounce bars. The 100 ounce bars can easily be counterfeit by drilling holes in the side, filling the bar with lead and covering up with silver again and these are almost undetectable without cutting the bar in half.. With the smaller bars this is not a worth while activity so holding a dozen or so 10 ounce bars is preferable to holding one 100 ounce bar

Buying silver bars from a mint is a different thing of course. You get a certificate and the bar is sealed in its own protective plastic capsule and this should be unbroken when you get it and should remain so throughout the bars life.

Pure silver products 999 percent fine are produced by Mints around the world with 1 ounce coins and bars ranging from 1 to 1000 troy ounces. All the coins should be hallmarked with the purity and weight of the coin.

To buy silver can be a great hobby as well as a excellent long term investment. Silver was it its hey day during the 80s and dropped heavily over the subsequent year but now is making a big come back as there is a general shortage of silver world wide and the use of it increasing. Silver is now on a rising trend, so having some information about the best way to buy silver is a good idea indeed.

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