Tuesday, September 30, 2008

Silver to Buy

Knowing what silver to buy is very important. One does not just buy any silver. The silver price is very important when it comes to buying silver.

For example, it is possible to buy silver that is very expensive. Numismatic coins and theme coins, for example, are the sorts of silver that is the most expensive. The main problem with buying silver so expensively is that it takes a long time to recoup the cost of the silver.

The quality of the silver is important also. Buying silver that is less than .999 percent fine or 100 percent silver is not a very good investment. Such silver you find in jewelry or in ornaments such as silverware. To buy sterling silver is very nice for silverware for the dinner table but it is not the best silver to buy for a future investment. It always pays to buy pure silver.

The best silver to buy is silver bullion in the form of silver rounds or bars. Preferably the largest you can afford. Ten and fifteen kilo silver bars are good as the premium is not so large, usually just a few percent depending on the dealer but as these are a bit harder to sell due to their size and you may not want large amounts of cash having some smaller, one kilo and less bars are a good idea too.

In addition it is a good idea to buy silver on a regular basis. This tends to even out any day to day fluctuations in the silver price and you can work out the average cost of your silver as you progress.

As well as the premium there are such costs involved as storage and transport. These have to be figured in the total cost of the silver. The total cost of all these is what you actually buy silver at.

If you can buy silver in reasonable quantities, where these costs are mitigated and the silver you buy is pure silver, or 99.5 percent and up (There is no such thing as pure 100 percent silver), with no extra costs, such as fancy packaging, then you can recoup very well on your investment at a later stage when the value of silver has increased, which, due to the shortage and current demand, is likely to occur in the not too distant future.

When it comes to investment into silver, it is important to know what silver to buy, how to buy it and when.

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