| Investors have a variety of instruments to gain | | | | 100 or more. |
| exposure to silver. Often, deciding how to buy | | | | At today's prices, a 100 ounce bar of silver costs |
| silver (in the form of coins, numismatics, futures, | | | | as much as $16,500 - which only a few banks, |
| ETFs, or stocks) can be one of the most | | | | coin dealers or investors may be willing to buy. In |
| important decisions an investor makes. | | | | addition, bars can vary in their stamp from the |
| Physicals First and Foremost | | | | producer, which authenticates its purity and |
| Physical metals, which you can hold in your hand, | | | | weight. Some investors will only buy silver |
| are the best way to invest in today's low silver | | | | stamped by certain producers, while almost all of |
| prices. The adage "if you can't hold it, you don't | | | | them will buy official US mint coins. |
| own it" couldn't be truer in today's world of | | | | Pricing Premiums |
| commodities investing. | | | | Physical metals do come with a higher premium |
| After the Great Depression, the federal | | | | than other "paper" forms of silver due to storage |
| government made gold and silver ownership illegal. | | | | and shipping costs. However, with physical metals, |
| Thus, silver and gold held in vaults were | | | | the premiums do not disappear after the silver is |
| confiscated at prices well below market value, | | | | purchased. In fact, the premium may actually |
| while physical gold and silver coins remained in the | | | | grow as demand for investment-grade silver |
| custody of their owners. While it might be a | | | | grows. |
| stretch to think the same may occur today, the | | | | One of the many reasons physical metals carry a |
| government's actions in the 1920s do shine | | | | premium is that there is much greater demand |
| importance on the ability to actually hold and own | | | | for small units of silver. In addition, physicals are |
| your precious metal investments. | | | | more readily demanded by investors than "paper" |
| Silver Bars and Coins: Making the Choice | | | | silver. |
| Of the different types of physical silver, investors | | | | Making the Right Investment |
| have to make a choice between silver coins or | | | | The lowest premiums and the highest liquidity are |
| bars. Coins usually contain as much as one ounce | | | | often found in old dollar coins and in junk silver, |
| of silver and can sometimes be mixed with other | | | | which is 90% silver by weight. The small units |
| metals to form a stronger coin that can last | | | | allow for small transactions, opening the pool of |
| many transactions. | | | | investors to whom you can sell. Their size also |
| Bars, on the other hand, are almost always | | | | increases the premium price you'll be able to |
| entirely pure, and vary in sizes, shapes and the | | | | receive for your silver in the future. In addition, in |
| brand stamped onto the bar. | | | | many areas, silver is being accepted at its spot |
| From the perspective of liquidity and acceptability, | | | | value, and coins like the pre-1965 quarter has a |
| coins are both easier to sell and authenticate, as | | | | value of roughly $3, making it easy to exchange. |
| the weight, measures, and silver content of each | | | | In the beginning, a lot of folks feel intimidated |
| coin is well regulated by the mint and published in | | | | about buying physical silver. However, in the end, |
| a number of coin books. Bars offer less liquidity, | | | | it may be the safest way to play. |
| as they can range in weight from 10 ounces to | | | | |