Sunday, April 5, 2009

Where to Buy Silver Bullion

Here we look at where to buy silver bullion.

There are many places to buy silver bullion. Dealers, auctions, mints, exchange traded funds, even online.

But which is the best place to buy silver bullion and how do we get it at the right price?

Dealers. Currently there is a waiting period for delivery if you buy silver bullion from dealers and mints. The premium can also be quite high depending on what type of silver bullion you buy. If you are buying coins such as American Silver eagles or one ounce silver bullion bars for example. The premium is going to be high. Silver rounds offer a better deal as there is less work required to produce the rounds. Junk silver coins (early US dollars, quarters and dimes with silver content)can be a good buy if you buy enough in one hit. But there are delivery, shipping and insurance charges to think about. All add to the cost of the silver bullion.

Auctions. There are auctions that one attends physically and online auctions where one bids sight unseen Rarely will you see silver bullion being offered for sale at auctions you can attend to. Perhaps some antique silver may be available but it is likely the price will reflect the current demand for silver and so be fairly high. Online auctions are another way to buy silver bullion. Again, here the price will reflect the demand. The premium here can be anywhere from 10 percent up to 60 percent or even double.

Mints. Mints offer proof silver coins and theme coins. Also silver bullion in the form of "biscuits" or small pressed bars. These invariably are presented in attractive presentation boxes which add to the cost. Here the premium can be the highest and the silver can cost you over twice the value of the silver. In addition there are delivery, shipping and insurance costs to take into account.

Exchange Traded Funds.
With ETFs (exchange traded funds) you are not actually buying silver but simply the right to trade it or, more accurately, trade the price of silver. There is some doubt as to the amount of silver backing Silver ETF funds and trading on the variable price of silver is not a very good way to preserve assets. A cursory glance at the trading price of silver compared to the real prices being asked for and offered for physical silver will quickly show the disadvantages of preserving assets with an ETF.

Online. Buying silver bullion online can be very convenient. It is easy to shop around and find a dealer with the lowest premium or mark up. By the same token you do need to verify the dealer is bona fide before parting with your hard earned cash.

GoldMoney. A very convenient way of buying silver bullion on line is GoldMoney. Here you can simply open an account and purchase any amount of silver with no minimum or maximum. You can easily save or accumulate silver bullion on a regular basis and there is no minimum or maximum. The premium is reasonable and you have no shipping, delivery or insurance issues to worry about. In addition, instead of waiting for the current 3 to 6 weeks or more for delivery, the silver is placed in your account. In other words, ownership of the silver bullion purchases, is in your account straight away. The silver in your account, as is the gold they are custodians of, is audited regularly and fully insured. Both silver and gold are kept in bank vaults in London, in the UK and in Switzerland. By going to GoldMoney you can open an account free and start to accumulate silver bullion at a regular comfortable rate you can afford.

It is good to know that there is somewhere where you can buy silver bullion without paying the earth for it.

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