Published by
William Anderson
When it comes to adding exposure to Precious Metals in your Investment portfolio, you can take a few different routes. There are paper assets like Gold & Silver Mining stocks, Mining stock ETF’s (good for diversifying exposure) & Streaming & Royalty companies, and then the real way: Investing into the actual physical metal through buying and holding. This will give you exposure to a true Hard Asset and is very important in the modern day of paper & digital assets. Before we dive into ways to invest, let’s talk about why Silver specifically deserves your attention right now.
Silver is on a tear recently, breaking through $100 and recently topping out at $120. Even at a price of $100, Silver is still undervalued relative to where it could be in a decade. You have to ask yourself if the U.S. Government is going to ‘figure out’ its debt & fiscal spending problems? They are not even pretending anymore. Most investors aren't preparing for what's coming: the U.S. debt crisis will eventually force a reckoning, and dollar devaluation may be the only politically viable escape route for politicians who've spent decades kicking the can down the road.
So how do we protect our purchasing power when governments can’t stop spending money? We buy & hold Hard Assets. One of the best is physical Silver,and it's important to purchase it as close to the “spot price” as possible. The spot price is a reference price and is considered the price you can buy Silver for right now. Metals are purchased through “Dealers” and the Dealer will tack on a premium to the spot price. You want to find a dealer you trust that will give you a low premium relative to spot.
Most Affordable Silver Investments
1. Junk Silver - Junk Silver are coins that were minted before 1965 that contain 90% Silver. These coins should be valued for the content of Silver contained in them. Look for these items:
-Pre-1965 Dimes (Roosevelt, Mercury, Barber)
-Pre-1965 Quarters (Washington, Standing Liberty, Barber)
-Pre-1965 Half Dollars (Kennedy, Franklin, Walking Liberty)
Junk Silver is typically sold in “Face Value” amounts for simplicity. $10 in Face Value of Pre-1965 Coinage contains about 7.15 Troy Ounces of silver. As of right now, the Junk Silver market is backed up because the price of Silver has moved up so much that a lot of people are cashing in on their old Silver. This is a buying opportunity because the Refiners are so backed up that they are not accepting it, and dealers don’t have the cash flow nor risk tolerance to buy and sit on it. If you want to buy Junk Silver cheaply, consider going to some local dealers and seeing if they are willing to work with you on buying their Junk Silver at a favorable price for you, since you now have the information that the market is in the Buyer’s favor.
2. 10-Oz Generic Bars - Buying in bulk saves you money: the more weight you buy, the lower premium you will pay. A lot of the Bullion Business is marketing; convincing people they need to own a certain brand of bars or a certain type of coin. I keep telling people, you want to own the metal as close to the spot price as possible. 10-Oz Generic Bars are an excellent way to get exposure because of the weight and stackability. Buy and hold these for the long-term. The Bullion X sells 10-oz Silver Bars for some of the lowest premiums I have seen from a dealer.
3. Generic Silver Rounds - The traditional approach to buying & holding Bullion is to purchase American Silver Eagles. These coins are great and Investors love buying them, but the premiums can be a bit higher than Generic Silver Rounds, which serve the exact same purpose. Again, when you want to own as much metal as possible, that translates into wanting the lowest premium possible. So stick with Generic stuff because at the end of the day, you want to own the metal and benefit from its price appreciation.
I find myself thinking about the value of paper versus the value of something physical. If metal & commodity prices have continually appreciated through time because of dollar devaluation, what would stop it from continuing? What is the price of Silver in 10, 15, or 20 years? I believe it will be much higher than it's current price of $88 (We are currently seeing a huge correction in the Silver market, it's down 24% off of it's highs of $120, currently trading around $88.)
This is an excellent time to get in & start investing for what will most likely be higher prices in 5+ years time.
Make sure and reach out if you have any questions.
Happy Investing
William Anderson
William@thebullionx.com
