Saturday, April 4, 2009

Buy Silver Bullion Online

It is possible to buy silver bullion online without paying too much by way of a premium.

The first method that comes to mind of course is simply buying large quantities of silver bullion at once where the premium, or mark up, can be nominal. Conversely, the smaller amount of silver bullion you buy in one hit the larger the premium will be. So one way of paying a minimal premium on silver bullion is to buy large quantities, several kilos in fact. But if you cannot do that and you are on a budget then an alternative method is needed.

Seeking out silver bullion in the form of bars and coins or better, silver rounds with a low premium is one way of doing this. Some silver dealers can provide silver bars and rounds for a premium but the premium can be up to twice the value of the silver. On the other hand, what is often called junk silver coins, early US coins with silver content, sold in bags up to about 10 kilos still remains an economical method of buying silver as the premium is still low.

Some people use Silver ETFs (exchange traded funds) but you don’t actually own the silver and cannot redeem the silver in etfs. Of more concern, is that there are serious questions about the amount of silver backing the etfs. So is one really investing in silver at all under these circumstances?

Buying silver bullion at auctions, such as eBay for example, has its, disadvantages. The premium over the spot price is still going to be quite high, and you have to be really sure that the person you deal with (the seller) is genuine and that you are actually buying the full weight of silver. Some sellers have been known to drill out the contents of silver coins and bars and replace the contents with lead then putting a fine coast of silver over the hole. Thereby reducing the value of the coins and bars. The larger bars are more at risk here of course.

One effective way of buying silver where the premium is not too high and is proportional to the amount of silver you buy is with GoldMoney. Here you can open an account and buy silver bullion online by going to goldmoney.com. You can can buy silver bullion online in a safe and convenient manner without all the associated problems one has dealing with unknown sellers, high premiums, shipping and storage problems, as well as well as be able to take the silver bullion into your ownership right away and not wait weeks and weeks for delivery. You can also buy gold bullion as well and even take delivery of 1000 gram gold bullion bars for a nominal sum.

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