Saturday, January 24, 2009

Buy in Silver

To buy in silver generally means to invest in silver. This could be in silver stocks, or in shares in mining companies that mine silver.

But buy in silver can also mean buy silver at spot or buy silver by the ounce or even just buy silver.

If you buy silver stocks or the shares of a silver mining company, you are dependent more upon the company than the price of silver. That company may, and is quite likely, to have other mining interests including iron, tin, gold, copper or other metals. In fact, for most mining companies, silver is a by product of their main mining activities. So you are dependent more upon how well they do in those other activities and how good the management is and how well they can see into the future with regard to the price of those other metals, than you are on the value of the silver they dig out of the ground. This means that one is not actually investing in silver at all, but only in a company that may or may not have a significant silver activity.

Other factors, such as the cost of mining the silver, the efficiency of the management team, if they can get finance and how they operate, all can play a big part in the value of the company and therefore its share price.

Out of all these options, the best way to buy silver is to buy solid silver in the form of bars and rounds or coins such as silver eagles and silver maples.

When you buy silver eagles or silver maples or silver rounds or silver bars, you are buying silver in a more direct way and have much more control over your investment. You can, with some due diligence, buy close to the silver spot price and as silver increases your investment increases also.

Silver is the precious metal for the future. It is in very short supply and the amount being mined is not keeping up with the demand. In fact it is getting harder to find silver eagles now with the mint reducing production. Now is, indeed, an excellent time to buy in silver.

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