Buying Silver

What Silver Bars to Buy

July 23, 2011 By Jeremy 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

The Best way to Buy Silver

July 9, 2011 By Jeremy 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.

Filed Under: Buying Silver Tagged With: Buying Silver, Investing in Silver

Silver Sales Continue to Rise

June 22, 2011 By Jeremy 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.

Filed Under: Buying Silver Tagged With: Buying Silver, silver sales

High Cost Mining Stocks

May 4, 2010 By LinkSales 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?

Filed Under: Buying Silver, Silver Mining Tagged With: Buying Silver, ETFs, Silver Mining

How to Buy Physical Silver

May 2, 2010 By LinkSales 3 Comments

Demand for physical silver has soared due in part to strong industry and a desire for physical metals for investment portfolios. But not all physical silver is created equally. Investors need be careful to buy only physical metals that are worthy of investment, not collection.

Numismatic Metals

New investors in physical metals often make the mistake of purchasing numismatics, or those coins, bars, medallions, and ingots that are meant for collection rather than investment. Generally, numismatics earn their value from their rarity, perceived value, or from their appeal as art. Numismatic coins can often sell for multiples of the worth of the metals themselves, making them poor investments.

Investment Grade Silver

Choices in investment grade silver are plenty. From junk bags of pre-1964 coinage to rounds and coins both foreign and domestic, there are a myriad of opportunities for the silver investor. These silver products are better suited for investment because their value is derived directly from the amount of silver in the product. For example, a 10oz bar will sell for 10x the current silver price whereas a rare American silver coin can sell for hundreds of times the value of its silver content.

Mind the Premium

Unlike exchange-traded funds or futures, physical metals do carry a premium over the current spot price. This premium, usually 2-3%, helps cover the cost of transport, storage, and marketing of the metals itself where the futures exchanges don’t have as much overhead. The premium isn’t all a lost cause since you’ll be able to recoup the premium upon sale of the silver, as all physical metals carry a premium over spot. They have for the last century, and they will for the next.

Filed Under: Silver Investing Tagged With: Buying Silver, Silver Bars

Price of Silver Sinks With the Market

October 1, 2009 By evossman 10 Comments

The market was down, commodities were down, everything was down. So where do you put your money? Especially if you can’t put your money in precious metals, which are supposed to save you from inflation.

Well, we don’t think the world has gone crazy and decided to take their money out of everything. We think rather, the market is correcting itself. Investors are taking profits from both equities and commodities and we’re seeing a sell-off. But that doesn’t mean you shouldn’t look into buying these.

We think instead, you should think about buying into the market, especially something like SLV or GLD. Both of these ETFs look to provide you with buying opportunities in the coming weeks. Especially if we see another pull-back in the market. What around or get in now, either way, it looks like there might be some dollars to be had in the precious metals world.

Filed Under: Buying Silver, Gold, Inflation, Silver ETF Tagged With: Buying Silver, ETF, GLD, Inflation, SLV

Silver is the Only Commodity Below It’s All Time High

June 17, 2008 By evossman 19 Comments

Silver investing is what this blog is all about. Buy silver, invest in silver, get into silver! That’s what we say every day. But why do we say that?

Well, it’s not because we have to say that, we’re not analysts, we’re not paid by any of the big silver ETFs, we just like silver! One interesting point that we found in an article over at business 24 – 7 is about one fact.

The fact that silver is the only commoditiy that hasn’t jumped above it’s all time high during this commodity boom. Yes you read that right, every thing else has jumped above it’s all time high but silver. The precious metal silver is behind. And from what we’ve heard (only third hand so do your research) the silver supply is low and demand stays the same or is growing.

So why the low price?

We’re not sure. But it just adds to the reason why you should buy silver.

Filed Under: Precious Metals, Silver ETF, Silver Investing Tagged With: Buying Silver, Commodities, Gold, Investing in Silver, Price of Silver

Silver Investing Looks Up On Goldman Sachs News

June 17, 2008 By evossman 1 Comment

Silver has been a roller coaster ride lately with ups and downs and in betweens. No one can figure out this market. And if you can, you’re kidding yourself.

Buying silver, which historically, buying gold and silver has been done when the markets or dollar is down, is even a risky investment. Investors in precious metals have seen both of the major metals swing more than 15% in a months time. Going from 52 week highs to lows within a week.

However, the latest news from Wall Street, that Goldman Sachs beat estimates this quarter, comes as a boost to all commodities. Not because it’s finally good news from the investment banking world, or the banking world in general. But because the reports say that Goldman has had better than average returns in the commodities world or it’s investments.

To some this may seem obvious. Oil is up, way up, and buying things like gold and silver is just safe plays on a weak dollar and a strong commodities market. Traders don’t even have to buy just mining companies. They can get in by investing in silver ETFs like SLV.

But to others, just jumping on the bandwagon, it’s not that obvious and can still be a strong play in their investment portfolio, even in this run-up. As Blog Silver has said before, the demand is high and people are hesitant to dump their money into a volatile stock market. So they go looking for safer investments. Safer investments like gold and silver ETFs that can get large boosts from earnings reports that boast about commodities earnings.

Filed Under: Buying Silver, Wall Street News Tagged With: Buying Silver, Commodities, Dollar, Earnings, ETF, Gold, Goldman Sachs, SLV

Buying Silver as Oil Rises

June 12, 2008 By evossman 3 Comments

Some may think that buying gold and silver right now is crazy. You may think that the markets are possibly on a turnaround and the dollar isn’t doing so bad. Buying precious metals at a high point would be crazy.

But what about the rest of commodities around the world? And better yet, the worlds use of those commodities.

It’s increasing, and increasing at a huge rate. China and India, named way too many times to count in this blog and similar financial blogs, are all about buying the commodities that China and India are buying and need to survive. Some of those commodities are gold and silver, which you may want to consider buying.

Buying silver now may not be the worst idea. Oil is on the rise, stocks are chaotic at best, and the dollar, although rebounding on news that the fed is done lowering rates, is still not as nearly as strong as it’s closest rivals. You need to consider the rest of the market, not just those historical indicators of the price of silver.

There are a ton more investors in the game now and with Silver ETFs gaining popularity along with all the other sector ETFs out there, you may want to think about getting into silver right now.

Filed Under: Buying Silver Tagged With: Buying Silver, China, Commodities, Dollar, ETF, Gold, India, Oil, Precious Metals

SLV, iShares ETF Holding Strong

June 7, 2008 By evossman 3 Comments

The iShares silver trust ETF, SLV is holding strong amid all this up and down buying and selling of silver and gold. The silver trust may be the best way to get into a silver market that some say is going to go even higher.

As oil continues to rise, gold and silver are tending to follow the trends set by the market. When there’s a sign that the economy could rebound and the dollar could be on the rise, the precious metals fall. But as the market shakes with rising oil prices, people are back buying silver and gold. A big way they buy these precious metals is to buy into the silver or gold ETFs (Gold, IAU).

These funds are easier to trade and cost an investor less in the long run than buying silver or buying gold directly in the form of bullion bars or coins. The two trusts are holding strong, fluctuating with the price of gold and silver as they should since they are backed by the precious metals.

Filed Under: Buying Silver, Silver ETF, Silver Investing Tagged With: Buying Silver, Dollar, ETF, Exchange Traded Funds, IAU, iShares, SLV