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Investors have a number of instruments to gain exposure to silver. Often, deciding how to buy silver (like coins, numismatics, futures, ETFs, or stocks) can be one of the most important decisions an trader makes.
Physicals First and Foremost
Physical metals, which you'll hold in your hand, are the best way to get today's low silver prices. The adage "if you can't hold it, you don't own it" couldn't be truer in today's world of commodities investing.
Following your Great Depression, the federal government made gold and silver ownership illegal. Thus, silver and gold held in vaults have been confiscated at prices well below market value, while physical silver and gold coins remained in the custody of their total owners. While it may be a stretch to think the same may occur today, the government's actions in the 1920s do shine importance on to be able to actually hold and own your platinum investments.
Silver Bars and Coins: Making the Choice
Of the different types of physical silver, investors have to generate a choice between silver funds or bars. Coins usually contain up to one ounce of silver and can occasionally be mixed with other metals to form a stronger coin that will last many transactions.
Bars, on the other hand, are almost always solely pure, and vary with sizes, shapes and that brand stamped onto the bar.
From the viewpoint of liquidity and acceptability, coins are both better to sell and authenticate, for the reason that weight, measures, and silver content of each coin is well regulated through the mint and published in alot of coin books. Bars make available less liquidity, as they are able to range in weight with 10 ounces to 100 or more.
At today's prices, a 100 ounce watering hole of silver costs even though $16, 500 - which only a few banks, coin dealers or investors may very well be willing to buy. Additionally, bars can vary within their stamp from the producer, which authenticates its chastity and weight. Some investors will only buy silver stamped by certain producers, while almost all of them will buy official US mint coins.
Pricing Premiums
Physical metals do contain a higher premium than other "paper" options silver due to storage space and shipping costs. Nevertheless, with physical metals, the premiums do not disappear after the silver is purchased. In truth, the premium may actually grow as demand for investment-grade silver grows.
One of the many reasons physical metals take a premium is that there's much greater demand for small units of sterling silver. In addition, physicals are usually more readily demanded by investors than "paper" silver.
