How to Invest in Silver
| From: |
Curt Schultz
|
| Sent on: |
Wednesday, February 27, 2008 3:49 PM
|
This message is from Art Arbutine out of the Clearwater, FL Meet Up Group.
I hope it helps. If you are a local coin dealer (or know of one who is a Ron Paul Patriot) and would like to offer help to the group, please let me know.
Curt Schultz
-----------------------
I will explain the different ways to own silver. If you want to read
my
complete philosophy about investing in metals, go to my website
belleaircoins.com and click the icon, Everything you wanted to know
about
investing in precious metals..... Ways to invest in silver:
1. Buy sell contracts on the commodity exchange. You need asbestos
pants,
lots of money you could afford to lose, and the guts of a pro hold'em
poker
player to play this game.
2. Buy shares in silver mining companies. If you want to invest and
not
own physical metals, this is a good way.
3. Buy old American coins, the ones made of 90% silver, the kind we
used
before 1965. This is a good way as right now you pay just about the
exact
value of the silver. A dollar's worth of silver coins contain exactly
.72
ounces of pure silver. These are very liquid during any crunch time,
and if
the you-know-what hits the fan, it would be nice to have a widely
recognized
silver dime to buy small items.
4. Buy US Silver Eagles, one troy ounce .999 silver coins with a
denomination of $1. These have been issued by the US government since
1986.
Note: Ron Paul was the politician who was instrumental in initiating
the
American Eagle silver and gold program, so that Americans could own
silver
and gold coins made in the US. The mint charges the "distributors"
(only 10
in the US), $1.40 over the silver price. They must buy a million
dollars
worth of coins, and pick them up at the West Point depository. These
distributors sell the coins to dealers like me in lots of 500 coins at
$1.60
over the silver price. We in turn sell them by the roll for $2 over
the
silver price, and singles for $2.50 over the silver price. We DO NOT
recommend buying silver eagles because of the relatively high premium.
Our
theory is that when silver goes to $50 an ounce or so, no one will care
about what anyone paid, that an ounce of silver will be an ounce of
silver.
Note: This is EXACTLY what happened during the gold rush of 1980, to
both
gold and silver coins.
5. Buy .999 silver one ounce generic rounds or rectangles issued by
private
mints, refiners, etc. These are universally accepted by dealers as one
ounce of silver, no matter who issued them. These have been around for
a
long, long time, and there has never been any scandal concerning them.
People who want to spend 5% or 10% or their paycheck love these. The
premium on these is currently spot silver + 50c.
6. Buy .999 silver bars, most common sizes are 10 and 100 ounce.
These are
usually produced by Englehard, Johnson Mathey, Sunshine Mining, and
other
refiners and producers of silver. These are completely liquid and
widely
accepted. The newer bars (past 15 years) are diestruck just like coins
and
have serial numbers. These are very compact and can be hidden or
stored
very easily. The premium currently is 50c an ounce over spot silver.
7. Buy the one ounce .999 silver Liberty dollars, costing about $5
over the
silver price. Not recommended due to the high premium.
8. Buy Liberty paper dollars backed by silver stored in Iowa. The
premium
here is also high and you want your metals "under your mattress" and
not out
in Iowa.
Looking this over, I think it explains just about everything. First
time I
have published anything like this. I think I will print it out and
just
hand it to potential silver buyers, will save me a whole bunch of
talking
and explaining.
Art Arbutine 727 585-4502