How do you buy silver?

Real Estate Investor · Frisco, TX, TX · Member since 2010 · 388 posts · 138 votes

On another thread there has been some discussion on buying silver. Since I have been wanting to buy but am unsure I thought I would start a different thread for that. Here is my question. I go online to a site like:

http://www.providentmetals.com/bullion/silver/private-slv/100-ozt-bar.html

There are so many different types/brands of silver bars, how do I know which one to buy? or would you not rather buy bars but something different?

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Mike McKinzie

Investor · Westminster, CO · Member since 2009 · 1k+ posts · 1k+ votes

16y

This is one of your better sites to buy gold and silver:

http://www.apmex.com/

They show the spreads between buy and sell, they sell all denominations of coins with the 1/10 ounce American Gold Eagle being the most popular.

Good Luck

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Account Closed
OR · Member since 2008 · 1k+ posts · 845 votes
16y
It's been a couple of decades since I bought silver (got in on the Hunt Bros run-up, just by accident), but I liked bulk silver USA coins and one ounce silver art bars.

They are easy to recognize and don't require assay. Also, the small dollar per makes them easy to trade and barter.

Silver dollars are really satisfying to handle.

Just for fun, I sorted out the most attractive art bars and kept those. I have a small collection of art bars with pictures of horses, stagecoaches, and antique cars.

There is a one ounce silver coin called a unicorn. I wanted some but could never find them. Picture of a unicorn on the coin. I've seen photos, never seen an actual coin.

By the way, there is no premium on art bars. They sell at spot price.
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Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
16y
I don't think I'd buy 100 oz bullion. If you want that much value tied up in one chunk, buy gold. I think junk coins would be a good way to go. I mean the circulated, 90% silver US coins. To me, this is a "end of the world as we know it" investment, and you would want to have some medium of exchange in small enough units to use for day to day purchases.
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Mitch Kronowit
SFR Investor · Orange County, CA · Member since 2009 · 1k+ posts · 1k+ votes
16y
When I was looking to buy silver here in California, I remember being told something like I should buy a certain amount ($1,000 minimum if I recall) to avoid paying state sales tax on the purchase.
1 Reply
Jon Klaus
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
16y
It's been a while, but I checked the local dealer's pricing and went with one ounce rounds from a place just a few minutes from my house.

It was my first real investment of any kind.
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Rich Weese
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
16y
Ali- I'd call provident and ask them what they're paying for a junk bag of silver of quarters. ($1000 face value)
Check their site and see what they sell them for. The difference is the spread. You can then compare that with any other bullion dealer. I would not buy bars.

PNW- I wouldn't buy a unicorn or others in any significant amount. You pay a premium that you'll probably never get back.

Jon- Small coins are the way to go imo. That also goes for gold; 1/10, 1/20, 1/4 oz american eagles.

Rich
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Ali Samana
OP
Real Estate Investor · Frisco, TX, TX · Member since 2010 · 388 posts · 138 votes
16y

Thank you all for the great replies. This is what I was looking for. It seems like Coins are the best solution.

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Account Closed
Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
16y
I've been considering buying junk silver coins in bulk as well. Very easy to negotiate with for small purchases.
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Mike McKinzie
Investor · Westminster, CO · Member since 2009 · 1k+ posts · 1k+ votes
16y
This is one of your better sites to buy gold and silver:

http://www.apmex.com/

They show the spreads between buy and sell, they sell all denominations of coins with the 1/10 ounce American Gold Eagle being the most popular.

Good Luck
3 Reply
Rich Weese
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
16y
Mike M- 4-5% spread seems ok. I think it was 3 when I last bought, but more demand probably reason for higher spread.
Ali- now you have prices to compare.

I don't know why 1/10 oz gold is # 1 seller, but I've been suggesting that coin for over a year in other posts. Rich
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Account Closed
Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
16y
Mike thanks for the link. I also like to buy local when possible.
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Ali Samana
OP
Real Estate Investor · Frisco, TX, TX · Member since 2010 · 388 posts · 138 votes
16y
One other question, why would you buy coins instead of bars? is there a difference in value? are the coins more pure?

Thank you in advance.
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Mike McKinzie
Investor · Westminster, CO · Member since 2009 · 1k+ posts · 1k+ votes
16y
For me, there really isn't a difference between bars and coins. Bars will be more pure as coins have other metals in them to give them a little strength. For instance, the Morgan Silver Dollar is 90% silver and 10% copper as are the "silver" quarters and dimes.

Bars are exactly what they say they are, such a .999% silver.

Here is a site I visit daily:
http://www.coincommunity.com/
On the left side of the home page are several links that will help with coin and bullion questions. This site is like the BP of coin collecting.
1 Reply
Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
16y
The thing I like about the junk coins is that they're recognizable. They're designed to be difficult to counterfeit. No doubt people will try if things really do get nasty. But its pretty easy to recognize a liberty quarter or mercury dime. A bar OTOH, involves some trust.

Here in CO you always pay sales tax. Is there really a cut-off in CA where you can buy without the tax?
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Mike McKinzie
Investor · Westminster, CO · Member since 2009 · 1k+ posts · 1k+ votes
16y
Jon

That is not correct:

http://www.colorado.gov/oed/industry-license/240IndDetail.html
Retail sales of coins and precious metal bullion are exempt from sales tax.. See FYI Sales #60 - Sales Tax Exemptions for Coins and Precious Metal Bullion.

http://www.colorado.gov/cs/Satellite/Revenue/REVX/1193047059515

If your retailer is charging sales tax, you need to educate them about the law.

1 Reply
Rich Weese
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
16y
One other item that no one has mentioned. I just went on a couple sites and they were selling 1 oz American Liberty coins as "brilliant uncirculated" for $3.99 per coin extra. This is NOT what you're after when you buy bullion. I also saw coins that were mis-minted for an extra premium. That is Not want you want. It reminds me of when I was buying baseball cards. An incorrect card drew a premium, they aren't worth much more now than the normal cards.
If you are trying to buy investments, buy some old collectibles, but for bullion, nothing fancy. Just the silver coins, ingots, bars etc. Rich
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Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
16y
Thanks for that link!
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
15y
So if I want to buy silver not physical what type of stock do I buy??

Gold is at something crazy like 1,500 an ounce,silver is at about 41.00 an ounce.

No I am not a stock person as you can tell.
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Account Closed
Los Angeles, CA · Member since 2008 · 557 posts · 70 votes
15y
If you want to play with paper gold and silver promises you can purchase the "SLV" and "GLD" ETFs through any online brokerage. However, if you're in it just to trade you'd be "chasing" at this point. Silver is practically parabolic over the last six weeks. Though Gold has been pretty steady on its ascension.

There is the option of waiting until June. The Fed may create the perception that QE will end. Perhaps it will for a bit. And summer is seasonally lower for the metals as well. You "might" be able to get it sale with those two factors.

I am still long term bullish on both. So if it does drop this summer I would consider it a summer sale. But not the end of the precious metals bull IMO. Though it does appear the parabolic phase of the bubble is getting closer.

As of today you'd be buying gold at all time highs and silver and it's highest since 1981 when the market was cornered.

However, I read about a good stock buy today from Stewart Thomson. I respect this guy's opinion even though he is kind of crazy :) (like many gold bugs).

However, he's an ex banker, a good trader from what I've seen and his advice has been spot on for a while. He is recommending GDX in his latest article on goldseek

http://news.goldseek.com/GoldSeek/1303226348.php
2 Reply
Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
15y
My lady friend, hmm (?) significant other, is into gold and silver. Her father was a jeweler and very knowledgable of the business of buying.
She has me hitting garage sales (something I rarely stopped at before meeting her) and second hand shops. She likes to hit the non-profit re-sale shops where people donate and sell jewelery. She buys at these opportunities for pennies on the dollar, amazing. I'm not kidding, she has suitcases full of gold and silver as well as sterling silverware, I have moved them an I know there is over a hundred pounds in one case. Don't get any ideas, it's in a vault.

Yes, she mentioned yesterday that gold hit $1,500 an ounce and was rather happy about it. LOL

When you can buy $200 worth of gold in a ring that you paid $5.00 for in a second hand shop )the help is not well versed in identifying real gold) that's a pretty good return. She has bought sterling and gold at garage sales for practically nothing. Now, I don't mind stopping!

I would not buy any gold certificate or bar. While you might buy coins more expeditiously in bulk, I'm sure you're paying more than she has been.

OTH, when is the gold bubble going to pop? Silver as well?
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James Vermillion
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
15y
Thats the real questions, when will the bubbles pop? When you start seeing as many commericals about gold and silver you have to assume the bubble is in full effect, in fact I think it is getting close to shorting gold (I will be watching over the next 3 months).
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Account Closed
Los Angeles, CA · Member since 2008 · 557 posts · 70 votes
15y
I won't short gold over the next few months. When everyone - the media, stockbrokers, the public etc... - is talking about how great of an investment gold is I will sell. Right now too many people are calling a top. That and most signs at coin shops and jewelers read "We buy gold". I am looking for the signs to read "We sell gold" and for the general public perception that "gold will never stop going up".

Correct me if I am wrong but wasn't the long lines at coin shops in the early 80s composed of people standing in line to "buy" gold. And not to "sell" their gold? If that's the case we're not there yet. And the drivers to buy gold are bigger this time around.

I am using the real estate bubble model. If gold was real estate, it feels like we are in early to mid 2004. Think of late 2005/2006. Anyone in the mainstream talking about a "real estate crash" was touted as crazy. That is my equivalent sell signal for gold.

Silver on the other hand has been suppressed so much that it may rise all the way to a 20:1 ratio to gold before correcting a bit. The parabolic rise is scary. I wouldn't buy now. A dollar a day rise can't go on forever. There will be some short *probably big* pullback coming soon.
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Nathan Wigington
Real Estate Investor · Dallas, TX · Member since 2010 · 1 post · 3 votes
15y
The question should be: When is the paper bubble going to burst? The value of currencies across the globe keep depreciating as the central banks print trillions. Precious metals currently make up less than 1% of all investable assets. Furthermore, silver and gold are not even close to their all-time highs in real terms. The bull markets in precious metals and commodities have a long way to go before they reach bubble status.

Buying junk silver, rounds, or bars are all good ways of owning silver. Don't get caught up in numismatics unless you enjoy it. Silver50.com is good if you don't mind slow shipping. Apmex.com is also good but carries a higher premium.

"Gold is at something crazy like 1,500 an ounce"

There is nothing crazy about it. If you want to see something crazy, check out the dollar index.
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James Vermillion
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
15y
Originally posted by Matty M:
I won't short gold over the next few months. When everyone - the media, stockbrokers, the public etc... - is talking about how great of an investment gold is I will sell. Right now too many people are calling a top. That and most signs at coin shops and jewelers read "We buy gold". I am looking for the signs to read "We sell gold" and for the general public perception that "gold will never stop going up".
Correct me if I am wrong but wasn't the long lines at coin shops in the early 80s composed of people standing in line to "buy" gold. And not to "sell" their gold? If that's the case we're not there yet. And the drivers to buy gold are bigger this time around.

I am using the real estate bubble model. If gold was real estate, it feels like we are in early to mid 2004. Think of late 2005/2006. Anyone in the mainstream talking about a "real estate crash" was touted as crazy. That is my equivalent sell signal for gold.

Silver on the other hand has been suppressed so much that it may rise all the way to a 20:1 ratio to gold before correcting a bit. The parabolic rise is scary. I wouldn't buy now. A dollar a day rise can't go on forever. There will be some short *probably big* pullback coming soon.

If you wait until the signs say we sell gold it will be too late to short...I believe right now is the time to short, my reasoning, everyone of you thinks now is the time to buy...that top is coming a lot closer than you think.

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Josh Green
Financial Advisor · Tampa Area, FL · Member since 2008 · 956 posts · 214 votes
15y
in the 80s, gold would have been trading at $2300 (in inflation adjusted dollars). with the ending of qe2 coming, some people are assuming the pullback. we shall see. there is also a possibility of qe3. nothing is off the table.

while i cannot give specific investment advice (as my compliance department are like hawks), i can say that many of my clients are exposed to gold and silver in 'GLD' and 'SLV'. what i really like about this particular funds is that it is backed by PHYSICAL bullion in london vaults.

disclaimer: these are general opinions and may not specifically address your investment objectives and risk tolerance. for specific advise, please sit with your financial advisor.

:D
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Chris Vasquez
Real Estate Investor · DFW, TX · Member since 2011 · 81 posts · 11 votes
15y
What timing. As I'm reading your post Ali. I've got Jim Cramer on in the background. Caller asks him about Silver. His comment "With silver being an Industrial Metal used around the world mainly for that purpose and with indicators of slowing growth around the world would cause silver to take a bigger hit % wise compared to gold. Matty and Josh make good points in their posts. If you are worried about that end of the world scenerio, buy the physical. If you just want to play the market assuming silver could hit 50 and above? The SLV ETF might be more liquid to get in and out of. Just sell your shares when ever you want.
One point. I read it here but I'm not sure the title of the post. The Obama Care health bill had a hiddent tax provision. The new 1099 $600 filing provision said something about, if you buy gold (not sure about silver), and spend over $600. You now have to declare it with the Gov. If this sounds familiar to anyone on BP, they may be able to expand or correct me.
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