Ok so you are convinced that you should be buying silver and buying gold. You’ve done some research and you have discovered that the safest precious metals investment is to hold the actual physical metal or have it stored at Brinks. But what do you actually buy; there are a lot of choices.
The first question you need to figure out is just how big your purchase is going to be. If eventually you gold and silver holdings are going to be more than a million dollars, you might want to consider those big commodity exchange bars. These are the 1000 oz. silver bars and the 400 oz. gold bars or 100 oz. bars of gold.
They have the narrowest bid ask spreads – the difference between the price at which the dealers are selling silver and gold to you and buying silver and gold back from you. So this is a very efficient way to invest and these bars are very liquid because it’s on the exchange dealers can buy and sell it at any time. It’s not a good idea to keep it in the exchange vaults though. Buy Silver Bars You could get it shipped to Brinks at Salt Lake City or Hong Kong.
If there was a default on the commodities exchange and there have been defaults in the past, you don’t want your metal in the commodity exchange vault, because they would make the plans of what they are going to do with your metal. It’s safest to have it out of there.
I believe you will see silver go over $100 /oz. But there is also the possibility you could see silver over $1000 / oz. That may seem crazy, but all you have to do is study the fundamentals underneath silver and a little monetary history, and you will see that stranger things have happened quite often in the past. Now if silver did go to $1, 000. / oz. and you had a 1, 000 oz. bar that would be a million dollars. When you go to liquidate your position you have to liquidate it at a million dollars at a time.
So it might be wise to buy silver and gold in smaller increments such as 100 oz. silver bars. Make sure you get the bars from a well-known refinery. They have a hallmark on the bar and a serial number as well as the weight and fineness stamped on the bar. So you basically have a certificate of authenticity right on the bar.
Then you have the 10 oz. and smaller gold and silver bars which again have the weight and fineness stamped right on them. These bars also stack nicely in a vault.
My favourite is the 1 oz. government mint coins. American silver eagle coins are one troy ounce fine silver or a Canadian maple leaf says 1 troy oz.. 999 silver right on it. Other coins available are US gold eagles, US gold Buffaloes, Silver Austrian Philharmonics, the gold Canadian maple leaf and the gold South African Kruggerands are the most common.
The reason I like these coins is because there is no IRS reporting on quantities less than 1000 ounces of silver or 1 kilo of gold (32. 15 oz. ). This makes buying and selling these coins a private transaction between you and the coin dealer.
There are also $1000 face value bags of old silver quarters available. This is called old junk coinage – 90% silver coinage. Some people think this would be good emergency coinage in a currency crisis, but I disagree. In a currency crisis you are going to hear the price of silver per ounce and the price of gold per ounce on the radio or TV every hour.
A junk silver dime is. 072 oz. and a quarter is 2 ½ times that and a silver dollar is about. 77 oz. Now you will be hearing silver prices per ounce, but 99% of people will not have a clue how much that old junk silver is really worth. So if you have 1 oz. bullion coins there is no debate about these coin prices, the weight and purity are stamped right on them.
You can buy these silver coins in cases of 500. The Canadian maple leafs come in cases of 20 tubes with 25 coins per tube. The silver eagles come in cases of 25 tubes containing 20 coins each. If you leave the mint straps on the case there is a good chance the dealers will not open them up and have to count the individual coins when you sell.
Here is another thing to consider. When there is a frenzy Government coinage could develop a premium because mints only have a certain capacity and if demand is high there will likely be shortages. If there is a shortage on the product you want to buy, it is best to buy silver bullion alternative products that are available. It is far better to have the safety of gold and silver than to be holding on to dollars.
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