Friday, May 27, 2011
Silver Coin investing
Other methods of buying silver have various problems storing pure silver bullion does not. For example, buying stocks in a mining company that mines silver also have the inherent problems of the stock value movements being dependent upon the management activities as well as the movement of the mining in primary minerals. Silver is usually mined as a secondary activity and so the stock price is not so dependent upon the price of silver.
Participating in Silver Exchange Traded Funds (STFs) means that ones investment is administered by banks and others. It also means that one is not actually investing in silver but only in the price of silver. This is an important distinction. You simply hold a paper promise of silver which you cannot redeem. You can simply 'cash in' your holdings for cash and paper money, as we are seeing, is rapidly deteriorating.
So there is a lot to be said for owning a number of silver coins. One does not have to cash in a whole bar or amount of silver holdings if one simply wants a small amount. A coin or two could easily be cashed in or even traded. Very few people would pass up owning a silver coin.
The next thing to look at is what type of silver coin is the best to have. Well, in fact, a variety of silver coins is good as some are worth more than others. Usually the silver value of a silver coin is worth more than the 'face value'. Some of the best coins to have are what are known as silver rounds. Each one has the silver weight stamped on it so you know instantly the value of that coin.
Silver rounds can be obtained from many dealers and it is probably a good idea to locate one close to you so you can physically meet the dealer, inspect the coins he has and take physically delivery of those you buy yourself.
Failing that there are many high quality dealers available on the internet and with a bit of sensible due diligence one can find a dealer to buy silver coins from at a good price. Of course you will have to pay a premium or mark up but with the price of silver rising steadily this should not be a problem.
With the steady increase in the price of silver and the deteriorating value of the dollar, the important thing here is to buy silver and silver coin investing is a good way to go so.