Investing In Silver

If you’ve landed on this page, you’re probably considering investing in silver. This article will show you 2 popular and relatively simple methods for doing so, silver eagles and silver bullion bars. And while there are numerous other ways to own silver, silver eagles and silver bullion bars are 2 of the simplest ways of doing so.

Silver, Poor Man’s Gold
There is no question that silver has been one of the best performing assets over the last decade. The recent level of enthusiasm and resulting increased investment demand for silver has pushed silver prices much higher. One of the main reasons for the increased investment demand in silver, is that gold’s recent historic run has put it out of reach for many investors.This explains the often cited reference to silver as “poor man’s gold”. Regardless of the hype surrounding the precious metals market, it’s very important to take your time when getting started investing in silver. It needs to be noted, that severe corrections are common place, usually come after great run ups and can last for months. Okay now lets look at 2 popular ways to invest in silver.

1) Silver Eagles
Silver eagles were first minted by the U.S. in 1986. Silver Eagles are the most sought after silver coins ever issued by the United States. Each coin contains 1 full troy ounce of silver, plus a small amount of copper, which is added to increase the durability and to help resist scratching and marring.

2) Silver Bullion Bars
Silver bars have always been one of the more popular ways of investing in silver.  More recently and with the financial crisis , they offer a simple method for investors who want to flee or diversify from the paper market and “own physical”.

Silver bars range in weight from under 1 ounce to 1000 ounces.  They are easy to locate and relatively convenient to store. With the rapidly increasing price of silver, investors are turning to silver bars to store their wealth.  The most popular bar in the investment market is the 100 ounce silver bar.

Reasons To Consider Silver Eagles and Silver Bars
One measure of an investment is it’s liquidity. Simply, how easily can it be converted to cash when you absolutely have to? Silver Eagles, with their unique U.S. Government backing, can be sold for cash at most reputable coin shop and precious metals dealer worldwide. The Eagle is the world’s only bullion coin whose weight, content and purity are guaranteed by the United States Government. Contrast this to silver rounds which have been known to raise an eye due to the potential for counterfitting.

Silver Eagles have a small premium over the spot silver price. However, it’s important to remember that you will also receive this premium when selling your silver eagle.

Where To Buy Silver Eagles and Silver Bars
You can purchase Silver Eagles and Bars from most major coin and precious metals dealers, as well as brokerage houses and some banks.  It is important to try and check out the people you’re buying from well in advance, especially if you’re buying online. Do a Google search or look for online reviews from investors who have done business with the company you’re considering working with.  I prefer building a relationship with 2-3 good sources where I can pick up the phone and talk to someone I know.  If you are just getting started in the precious metals market and are looking to place a smaller order, I’d recommend checking out Ebay Auctions. You can find plenty of Silver Eagles and Silver Bars on E-Bay. Just be sure to check the sellers reputation first.

Remember to take your time, look at several different sources and shop around.  From experience, patience and a little due diligence can save you as much as 10% and more. Like any other asset class, when investing in silver, remember to take your time and do your homework.