How to Invest in Silver

Your Step-by-Step Guide for Making Your First Silver Purchase

Okay, everyone, if you haven’t yet read The Case for Silver article, then you should go right now and do that.  If you have already read it and you’re reading this right now, you’re probably itching to make that first purchase.  We’re going to walk you through it.  Sound good?

What Silver To Buy?

Before we get to the heart of it, I want to tell you right off the bat that you should be buying physical hold in your hand, hide in a safe place silver, especially if you’re a new investor.  You do have other options.  There are ETFs (electronically traded funds) like SLV that allow you to purchase “paper silver”.  They track the price of silver and you can purchase shares in these ETFs like you do shares in a company that trades on a stock exchange.  You can also purchase shares in mining companies.  They’re prices have been beaten down over the last couple of years so they may be a real bargain right now.  Have you heard of “futures” or “options”?  These are purchased on the Comex (Commodities Exchange).  They’re basically a promise to purchase physical silver at a specified price in the “future”.  You also have the “option” of taking actual physical delivery of the metal.  This is some pretty sophisticated stuff and I definitely do not recommend it for a newbie.

For our purposes, we’re going to deal with solid, shiny, heavy, physical silver.  It will come in bars of varying sizes – from 1 oz. silver bars all the way up to 1000 oz. monster silver bars.  You can also purchase silver coins or “rounds” that typically come in the 1 troy ounce size.  (A troy ounce is a little bit bigger than the standard food and body weighing ounce.  Precious metals are measured in troy ounces.)  Silver rounds can be minted by a government (American Silver Eagles, Canadian Silver Maples) or they can be produced by independent refiners.  You’ll pay a little bit more for government coinage, but you’ll get a higher price or “premium” when you sell.

1 oz Silver EagleWhere to Buy Silver?

You’ve got a couple of options here.  The first is a coin shop or a precious metals dealing in your local vicinity.  We’re not talking about a Silver for Cash or Cash for Silver joint.  We’re talking about a legitimate business that deals in precious metals.  Check your internet or phone book — do they still have phone books?  Your second option for a purchase is online.  There are dozens and dozens of dealers of precious metals online and it seems like there are more everyday.  Make sure you do your research and find a reputable dealer.

There are advantages and disadvantages to both the local and online dealers.  Your local dealer will probably charge you a little bit more because of overhead.  They probably won’t have the selection that an online dealer can offer as well.  The great advantage of the local dealer is that you can walk in with cash and walk out with metal; almost complete anonymity.  There’s no such thing with an online dealer.  Plus, after you make your purchase, you will have a very heavy box delivered to your home (?) that will surely raised the eyebrows of your delivery person.  You probably don’t want that kind of attention.

Final Silver Thoughts

There is certainly much more to learn about silver buying and the silver story in general.  There are lots of great sites that provide great information.  In fact, you can find five of them in the Five Best Silver Sites article.  Thanks for reading!


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