Disclaimer

Investing involves some degree of risk. Investors should inform themselves of the risks involved before engaging in any investment. I accept no responsiblity for your failures as an investor. Disclosure - Long physical Gold, Silver, and mining companies.

Monday, July 6, 2009

Where to buy Silver?

I had a couple of people ask me where to buy Silver or Gold. Of course, everyone has their favorites. The main consideration when buying Gold or Silver is the premium that's attached to the spot price plus shipping and handling. Another consideration is when you hit the submit how long does it take to get it in my grubby hands! In my opinion, anything longer than 2 weeks is outrageous. Let's talk about what a reasonable premium for silver is....You probably won't be able to buy Silver at spot, but if you can find a place let me know. A fair price for bars or rounds is 1.29 plus spot per ounce. I prefer to buy at .79 or lower plus spot per ounce. A fair price for Numismatics would be 1.99 plus spot per ounce. Usually, Canadian Maple Leafs are your best bet, but look around. Now let's move on to gold. I don't like to buy gold bars or rounds. It's just personal. I prefer Numismatic gold coins. They come in different sizes - 1/10, 1/4, 1/2, and 1 ounce. The European and foreign coins use .1867 and .2354 of an ounce and different variables of those. Also, 1/10 of an ounce is about the size of a dime and 1/4 ounce is about the size of a quarter. O.K... now for the premiums. The premiums can range from 9.99 to over 100 dollars an ounce. A little outrageous to say the least. 1/10 of an ounce coins will charge you around 10-20 dollars premium. Now times that buy ten for a full ounce and you just paid 100 to 200 dollars over spot. Not a good deal! The "best" buy is to buy one ounce coins. You can generally pick them up between 29.99 to 59.99 over spot plus when you sell them you generally get between 19.99 and 39.99 premium plus spot. What coins would I recommend? One ounce Eagles, Maples, Philharmonics, Kangaroos, and Krugerrands. If your a big spender and want graded numismatics I would recommend Liberties and Double Eagles. The can fetch a huge premium if they're graded over MS-62. (Don't recommend for the average investor.) If you can't afford the Gold one ouncers I mentioned above, BUY SILVER INSTEAD! If you don't have a lot of money, stick with silver. What silver coins would I recommend? Silver Eagles, Maples, or Philharmonics. Watch the premium on these coins! Don't pay over 1.99 plus spot. There a lot places that charge between 5 and 10 dollars a coin. That's way too much! O.K....here's the place I use. I don't receive a commission or one dam thing for that matter from who I'm about to recommend. I wish I did. They have great customer service and generally deliver in 7 days or less. Hell, I sold gold to them at the top of the market with no questions asked and had the check in my hands 7 days later.

Here it is: www.apmex.com

2 comments:

Chris said...

Is there any advantage of have the 1 oz silver rounds over the 1oz silver bars or vice versa?

CC said...

No....the only exceptions would be Eagle, Maple, and Philharmonic bullion. Rounds or Bar...not much of a difference