Thursday, September 18, 2008

Buying Silver

The silver to buy is most important as the price of silver when buying silver affects the value of the investment.

You can pay a big premium when you are buying silver, or better, buy it at next to the spot price (the market price).

So the question is then, which silver to buy? Silver bullion, Silver coins, Silver rounds, silver bars or biscuits even.

Some people like buying silver eagles, or Canadian silver maples. These can be very expensive however. Theme silver coins are very expensive, up to three times the value of the silver content, which is rarely 24 karat or 100 percent pure silver. These are nice for collectors and people who enjoy a hobby collecting silver coins. Some investors collect or buy silver bars. This is a better buy of course, but you do have to buy large bars to offset the premium. Smaller bars and ‘biscuits” as the small pressed bars are called, again attract a very high premium and are therefore a poor investment.

Silver rounds, or the larger one kilo or over bars, are a better buy as you pay a smaller premium, so it does not take so long to recoup your loss for the premium you have paid. Of course paying spot price or as close to it as possible when you buy in silver is the optimum.

Silver ETFs do not qualify here at all as you are not actually buying silver, you are buying, instead, a promise on the value of the price of silver.

The very best way to buy silver is probably through something like for example. Here you can buy silver at virtually spot price AND have it bought and stored for you in bank vaults in London or Switzerland, and have it insured and guarded. No transport or security risks and just a small storage fee means that your silver is safe and sound. The costs are much less as they are shared around with other silver and gold owners. But the silver, and gold, you own is completely yours. Much more convenient.

Information on opening a free account is available at where you can buy silver now and have a solid silver investment for a rainy day.

And that certainly beats buying silver at a high premium.

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