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Tax Advantage for Owning Silver Coins

July 26, 2011 By Leave a Comment

While taxation on silver purchases is common, there is indeed a tax advantage right now to owning silver coins. As we have mentioned before, there are many ways to buy silver, as well as several different places to get that silver from.

Most silver is currently taxed in a number of ways. However, silver in the form of coins and rounds will remain untaxed for the foreseeable future. Currently, silver futures and other silver purchases are taxed, however since silver coins and rounds are not taxed, this presents an interesting opportunity for investors to begin revving up their purchases of physical silver before a tax of this magnitude has even come to a vote.

Remember, new taxes can be put on us at anytime, especially as the budget deficit continues to grow and be a major problem. Because of these deficit problems, lawmakers will jump at the opportunity to tax anything they can. This includes Wall Street, which most politicians scoff at and condemn.

Now is a great time to protect your money by buying some silver coins and rounds. Silver American Eagles are a very popular choice right now, especially since they fall under the silver coin category that is currently un-taxable. We can’t be sure what the future will bring as far as silver taxes go, so jump at the opportunity now to invest in some silver coins.

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Where to Buy Silver Bars

July 25, 2011 By Leave a Comment

There are a few different options available to you when you make the choice to buy silver bars. There are basically four brands that truly dominate the silver bullion market – at least in the west. The big four include:

  • Johnson Matthey
  • Engelhard
  • Wall Street Mint
  • Sunshine Minting

Silver bars are made readily available for purchase from all four of these manufacturers. You can also buy with online silver dealers such as Monex or NMT Mint Bullion, which both deal in silver bullion bars.

There are a couple of other ways you can go about buying silver bars if you want to try some of these options out. You can try buying through auctions – both online and area, or you can even go to coin dealers, as they usually sell silver bars as well. The downfall of trying to buy like this is that you will rarely – if ever, find a 1,000 ounce silver bar made readily available for purchase. You will need to go through the big boys for that.

Also Read

Silver Bar Investment

What are Silver Bars?

What Silver Bars to Buy

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What Silver Bars to Buy

July 23, 2011 By Leave a Comment

There are different silver bars available to purchase. Which silver bar should you buy? Lets take a quick peak at a couple of the options available for you. There are certain industry standards that every silver bar must meet. To give you a better idea of what is available here are some details to look for when you are purchasing silver bars.

The 1,000 ounce silver bullion bar is considered by everyone to be the industry standard. This type of silver bar is usually used for trading and storage, but on occasion can also be taken for personal delivery, although this is not particularly recommended. Each silver bar is hallmarked to certify weight and purity. However, the actual weight can vary by up to ten percent above or below the 1,000 ounces. Silver bars that are sold to individuals are price adjusted to fit the actual weight.

There is also a 100-ounce bar. This is usually reserved – and is perfect, for individual purchase. These 100-ounce bars are easy to deliver and carry and they can still be sold for spot anytime. Other silver bars weights include:

  • One ounce
  • Ten ounces
  • One hundred ounces
  • One thousand ounces

Silver bars are also available from 1 gram up to 5 kilos.

Now that you have an idea of the various types of silver bars available, you can go out and make a more educated silver bar purchase.

Also Read

Silver Bar Investment

What are Silver Bars?

Where to Buy Silver Bars

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What Are Silver Bars?

July 19, 2011 By Leave a Comment

Silver bars come in a variety of shapes, sizes, and most importantly, weights. For some Silver Bars and Coins can be the best way to invest in silver – although others may argue different, because you are actually getting exactly what you buy. If you buy a 16 ounce silver bar, then that is what you get. Refineries manufacture silver bars and you can buy bars from 5 grams up to and over 5 Kilos or one ounce up to 1000 ounces.

Every silver bullion bar that is purchased is marked with a refiner hallmark, along with marks for weight and purity. If you are buying a very high-weight bar, then you need to make sure you have somewhere to store it, as a 1000-ounce bar is going to be close to the 70-pound range. This type of silver bar is mainly for serious investors who plan on holding on to them and keeping the bars in bank vaults.

There are several principle manufacturers of silver bars. They include:

  • Perth Mint
  • Engelhard
  • Royal Canadian Mint
  • Johnson Matthey
  • Pan American Silver

Silver bars are a great way to invest in silver. There are of course other silver investment options, depending on how you want to invest, but investing in silver bars will get you exactly what you pay for.

Also Read

Silver Bar Investment

What Silver Bars to Buy

Where to Buy Silver Bars

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Silver is the New Gold

July 18, 2011 By Leave a Comment

Many investors are loading up – and have been loading up for some time now, on silver. Why? With the economy still being slow to recover, job growth is still very slow, competition from foreign economies remains, and investors are worried and probably have a sick feeling in their stomachs. For many investors, the best way to deal with this is to stock up on silver and other precious metals.

The price of silver has been on an absolute tear since around 2007, when the stock market peaked. Investors are continuing to look to silver and gold and other precious metals as stores of value to preserve their assets if paper currency depreciates. This is pretty smart thinking, as silver seems to be as popular as ever with investors and industries. As has been the case for a while now, silver is a fantastic investment.

There are other stocks to invest in 2011, some of which should do well. However, id you are not into stock trading and risking money you don’t have on something that isn’t proven, then the best choice is still to invest in silver or other precious metals.

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The Best way to Buy Silver

July 9, 2011 By Leave a Comment

People buy silver in a variety of ways. Silver is very hot right now, and will remain that way for the foreseeable future. While it is always good to invest in a precious metal like silver, the very best way to buy silver is to buy silver rounds. This is especially true right now, when the value of silver is on the rise.

Mint coins are of course the most expensive way to buy silver, and while very nice, the returns might now be what you want. Buying silver bars is another popular choice, but still doesn’t give the return that most people seek. If you are interested in silver purely as an investment, then certificates or exchange-traded funds are another way to go.

However the drawback here is the tax considerations because these are considered an investment and virtually all investments incurs a capital gains tax and possibly other taxes, as well as they are considered investment rather than collecting silver as a hobby.

If you indeed like the idea of coins and bars and enjoy it more as a hobby than as a serious investment, then there are many delightful coins to collect and, over time, you are still likely to improve your asset holding in silver as the value continues to increase.

The very best way though is still to buy silver rounds. Silver had its heyday in the 80’s, and then dropped pretty badly. It seems now though (like many other precious metals) that silver is making a huge comeback and is more popular than ever. Investing in silver is a great way to get out of debt as well.

Silver is now on a rising trend and looks to remain there. Having some information about the best way to buy silver is a good idea, especially if you are looking to invest substantially.

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Silver Sales Continue to Rise

June 22, 2011 By 2 Comments

Many jewelers are reporting that the combination of recent gold prices and silver prices have began to shift customers away from buying new gold to buying new silver. Repairing old silver jewelry has also started to climb, as silver prices continue to fluctuate and gain interest of everyone around.

Currently, silver is right at around 43 times less expensive than gold at $36.38 per ounce as of today. “Silver is becoming the new gold,” said Jack Turner, an independent jeweler in Hallowell. “Let’s say a gold ring is $500. A silver ring that looks just like it may be $80.”

Overall, prices for precious metals have been pushed up by investors struggling with weak currencies and historically low interest rates. Because of this, many jewelry companies are rolling out wider lines featuring sterling silver. The cost is much less expensive, but it seems the rewards are far greater right now with the current demand for silver at an all time high.

The one place that sales for gold have stayed strong is the engagement ring market, mainly because gold is still much more durable than silver. Many jewelry companies have reported that they are moving from selling jewelry, to buying gold and silver and fixing jewelry.

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Jim Rogers Still Thinks You Should Buy Silver

April 20, 2011 By 1 Comment

Although this was on March 30th of this year, I think it still holds true. Jim Rogers thinks you should buy silver, and he knows commodities.

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iShares SLV Silver Trust Moving Higher

May 27, 2010 By Leave a Comment

Investing in precious metals has always been a way to hedge against the woes of the US economy and inflation, especially in turbulent economic times like these. Well many of you know, the iShares silver trust has been the easiest way to do this by buying into the ETF which holds silver reserves for the market cap it sits at.

Well, today and yesterday the price of NYSE:SLV broke through it’s 50 day moving average of 17.60 to sit right now in mid-day trading at just over 18. That’s a big move for the precious metals market which has been out of luck lately as some groups around the world are dumping their gold and silver reserves.

But don’t worry, just as much as those groups are dumping their reserves, groups like SLV trusts are buying up these reserves which has offered some resistance to huge price decreases, so we think.

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High Cost Mining Stocks

May 4, 2010 By Leave a Comment

Investors looking to get the most out of precious metals should look no further than high-cost mining stocks. While mining operations are traditionally leveraged to the change in price of the underlying commodity, high-cost mining stocks enjoy even more leverage due to the inner finances of the company. I’ll explain below.

High Cost Mining Stocks
High cost mining stocks are stocks that represent a company that pays nearly the full cost of a commodity to bring it to surface. An example of a high cost mining company would be one that spends $15 for every $17 ounce of silver it brings to the surface and refines. Because of the accounting, high cost mining stocks offer huge potential to the upside and are a favorite among investors looking to rev up their returns.

The Hypothetical
Let’s assume that there is a mining company known as XYZ Mining. XYZ Mining operates several silver mines and trades at a price to earnings ratio of 10. Also, the company is a high cost operation, meaning it spends $15 to produce just one ounce of silver. Let’s also assume that the company produces 1000 ounces of silver per year.

So, when silver is $16, XYZ Mining earns $1000 per year. ($16 per ounce X 1000 ounces – $15 cost per ounce = $1000 profit)

However, should silver rise by just 6% to $17 per ounce, XYZ would earn $2000 per year. ($17 per ounce X 1000 ounces – $15 cost= $2000 profit)

As you can see, a small change in the price of silver (6%) generated a profit increase of 100%. If the company were to continue to trade at the same Price to Earnings ratio, it would double in price with just a 6% change in silver prices. Now do you see the value in high cost miners?

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