Your Questions About How To Invest In Silver

Ruth asks…

What are some best projections of silver?

I have 1.2 grand sitting around i would like to invest in silver, it is downward spiral but i’m hoping if i buy low it will go back up

John answers:

Long term, I think silver is a better investment than gold. Silver is a valuable metal, especially in the consumer electronics industry.

It is around $30 an ounce. However, I still think it has a chance to move between $35-$40. It will largely move with gold.

Sandy asks…

What are good sources to buy silver from?

I want to spend about $100.00-$600.00 USD to invest in physical silver. 2 reasons why:

1. I’m a BIG saver, so I want some protection against Hyperinflation.
2. A possible investment to earn more money for my buck in the future.

Does anyone have any good websites/sources? Also any advice would be greatly appreciated, thanks!

John answers:

Your best bet will be to decide what you’re looking for and shop around. You can save some time by trying a comparison site like http://coininferno.com Just click the coin you’re interested in, and it’ll list current prices from online dealers. I personally buy most of my bullion through either APMEX or the Nucleo Exchange, although you’re probably best off just buying from wherever is cheapest.

EBay can also be a good place to buy, but only if you’re in a rebate program. Because everyone else uses rebates, prices on eBay always go high (but that can be okay if you’re using rebates too). Feel free to e-mail me if you need help getting setup.

If you’re simply looking for the most silver for your buck, you’re best bet is to either buy generic Silver Rounds, or junk silver. Junk silver is pre-1965 US halves, quarters, and dimes that were made of 90% silver. They are usually the cheapest way to invest in silver. In fact, APMEX has been selling junk silver for a bit less than spot recently. In my opinion, Silver Rounds are quite a bit prettier, and only cost a tiny bit more, so that’s what I usually go with.

You’d best stay away from fancy numismatic coins, proof sets, graded coins, and things like that. They have huge premiums, and you won’t get your money back if the collectors’ market ever collapses (like what would probably happen when Hyperinflation hits).

Finally, some people will probably suggest you invest through the stock market. “SLV” is an ETF that closely tracks silver prices. Personally, though, I feel that you just want another piece of paper, then bullion investing isn’t for you.

George asks…

What american silver coins should I collect?

my dad keeps telling to collect and invest in silver coins. So I’m starting to buy silver!

P.S i’m starting out spending small THEN spending BIG.

John answers:

Realistically the only place you’re going to buy silver coins from would be a coin shop. But coin shops have overhead and mark up their coins by a lot. What I would do If I was you is go down to the bank and buy quarter, dime and nickel rolls and look for coins before 1965. Before that time all U.S. Silver coins were about 90% silver.
Here’s the general silver prices of the coins you’ll find

Quarter before 1965: $6 each
Dime before 1965: $1.80 each
Nickel Before 1965: $2.50 each

Happy Hunting

Lizzie asks…

Do you agree to investing in silver ?

I was asked to invest in silver by a good friend of mine .
I want your opinionn first.
Thank you very much.

John answers:

If you want to buy silver, just buy the SLV etf. Why do you need to use your friend? What does he have to do with it?? Does he have some silver to sell??
I buy Morgan silver dollars on ebay. Silver is something I own thru my silver dollar collection. But personally, I think my mutual funds, and individual stocks are a much better investment.

Michael asks…

Do you think copper will skyrokcet like gold and silver?

Hello,im investing in silver.But when i look at copper i wonder if that’s going to go up like silver did,A while back silver was 3 dollars an oz,gold was 30 a long time ago.Do you think copper will do some thing similar?I mean i have a hard time believing because copper is so widely used,but every one thought investing in gold and silver back then was silly,people who did made a fortune.So whats the probability that copper will go up sharply?I have some copper and i was wondering if i should sell it at the scrap yard or save it,Thanks.

John answers:

I don’t think that the price of Gold is tied in any way to the price of Oil… What is common to both is the US dollar and it is the valuation of that currency not the relationship of Gold to Oil that has some effect…but not the total effect.

Gold and silver are precious metals and aside from Jewelery and a tiny bit of industrial use they are viewed as metals of refuge in times of trouble, so emotion drives the price quite a bit. Copper on the other hand is about 95% industrially driven…it is the backbone of a lot of industries…electronics, power utilities…the list goes on. It is not a rare metal as is Gold and Silver…it has no pressures of scarcity.

Some people mistakenly think it is a precious metal and “invest” which in my opinion is ridiculous.

First off just look at the bulk of a $1700 investment

Gold would be approximately one troy ounce coin or wafer
Silver would be approximately 57 troy ounce coins or wafers
Copper would be approximately 480 pounds in bars

Where are you going to store 480 pounds of copper metal??? Not in a safety deposit box as you could with silver or gold. In a public storage rental I suppose or your garage/basement probably.

A scrap metal dealer is really the only place to sell it.

Here is a website for Gold/Silver ( this is not an endorsement of the company there are many many sites)

http://goldsilver.com/buy-online/

Notice how as you scroll down the page…you are shown what they will sell the gold/silver products for and UNDERNEATH they show what price they will buy it back for….THEY WILL BUY IT BACK. Yeah the price is less for what they sell it for but it is pretty close AND THEY WILL BUY GOLD/SILVER

Now let us look at Copper (again this is not an endorsement…many sites sell copper)

http://www.copperbullioncoin.com/

Read this page….it is ALL about selling you COPPER…NOT one word about buying it back from you. Copper is NOT RARE…they don’t want it back to resell.

Http://www.copperbullioncoin.com/categories/Copper-Bullion-Bars-and-Rounds/?sort=featured&page=2

Aside from the FACT that they don’t want to buy it back….no indication of a buy back price.

LOOK AT THE PRICES THEY CHARGE!!!!

We shall consider the first one

10 one pound .999 fine copper + 10 one ounce rounds = a little less than 10.6 pounds of copper
YOUR PRICE = $97.50 or about $9/lb

You are paying almost 250% markup on this investment….Copper is only $3.66/lb (I just checked)

Where is the investment in that??? It has to increase 2.5 times in value to the point where the ONLY buyer (the scrap yard) will take it off your hands and you get your money back. Copper has NEVER been worth more than $4.75 in its history…your garage full of copper will stay there forever.

Look at that site for selling Gold/silver again

Gold buy it at $1743/troy ounce sell it back to them for $1642.41/ troy ounce…the spot price for gold is now $1658/troy ounce

Silver buy it at $36.21/troy ounce sell it back to them for $32.20/ troy ounce…the spot price for gold is now $31.18/troy ounce

sounds like silver is the real deal, eh….don’t forget that gold/silver prices are not updated on week ends is my guess

BUT IS THERE 250% MARKUP in the GOLD/SILVER buy prices….not at all.

I am not an advocate of buying the precious metals particularly…but tell me…after reading this…is COPPER Bullion an investment.

I hope the answer is NO.

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