The Best Ways To Buy Physical Silver

silver demandTony Daltorio: If you don’t already know how to buy physical silver, you need to now before it’s all gone…

Even with silver prices down for the year, sales of physical silver have hit record highs. The public has been buying a record amount of silver bullion coins from the U.S. Mint in the first half of 2013, with sales hitting 24.03 million ounces.

The acting director of the Mint, Richard Peterson, said that demand for such coins remains at an “unprecedented level.” He expects record sales for the year overall.

If you want to buy silver bullion coins, act now.

If you want to explore other options, we have a list here of what you should consider. As you bulk up your asset protection strategy, there are a number of ways to include physical silver.

How to Buy Physical Silver

There are several available options for buying silver:

  • Official Government Bullion Coins – These coins are issued by a government mint such as the U.S. Mint and the Royal Canadian Mint. The coins are easy to store and can be turned instantly into cash anywhere in the world. These coins are very inexpensive, but do trade at a small premium over silver bullion prices.
  • Silver Bullion – This silver usually comes in the form of bars that are at least 99.9% pure. Bars may be as small as one ounce – really cheap right now. However, larger bars carry a smaller premium. They must be stored securely, and at time of sale, may need to be assayed.
  • Rounds or Medallions – This is a round piece of silver that closely resembles an actual coin. It may be issued by a government or a private mint. But it is not considered to be legal tender. Investors should buy these from only the most reputable silver refiners.
  • “Junk” Silver Coins – These are a favorite method of owning silver for Money Morning Global Resource Specialist Peter Krauth. So-called junk silver consists of coins, minted before 1965, and is usually sold in bags with at least $1,000 in face value. These bags contain roughly 715 ounces of silver and cost about $2,000. However, some dealers will sell smaller bags.

Some of the coins found in these bags include: Morgan dollars and Peace dollars; Liberty Head ‘Barber’, Walking Liberty, Franklin, and Kennedy half dollars; Liberty Head ‘Barber’, Standing Liberty, and Washington quarters; Liberty Head ‘Barber’, Winged Liberty Head ‘Mercury’, and Roosevelt dimes; and ‘Wartime’ Jefferson nickels.

There are also a couple of choices for investors who are more comfortable dealing with paper assets, but with an option to convert the paper into silver bullion. These include:

  • Certificates or Storage Accounts – With these accounts, the investor purchases silver, but does not hold it. The silver is held for the investor in a segregated vault account. The investor can, if he or she chooses, have the silver sent to them in a matter of a few days.
  • Exchange Traded Vehicle – A security, such as the Sprott Physical Silver Trust (NYSEARCA:PSLV), is bought on an exchange like a stock.
    Pages: 1 2

Leave a Reply

Your email address will not be published. Required fields are marked *