Buying Silver and Buing Gold, silver bars or mint coins

Here are some secrets to buying gold and buying silver.

Ok so you are convinced that you should be buying silver and buying gold. You’ve done some research and you have discovered that the safest precious metals investment is to hold the actual physical metal or have it stored at Brinks. But what do you actually buy; there are a lot of choices.

          The first question you need to figure out is just how big your purchase is going to be. If eventually you gold and silver holdings are going to be more than a million dollars, you might want to consider those big commodity exchange bars. These are the 1000 oz. silver bars and the 400 oz. gold bars or 100 oz. bars of gold. They have the narrowest bid ask spreads – the difference between the price at which the dealers are selling silver and gold to you and buying  silver and gold back from you. So this is a very efficient way to invest and these bars are very liquid because it’s on the exchange dealers can buy and sell it at any time. It’s not a good idea to keep it in the exchange vaults though. You could get it shipped to Brinks at Salt Lake City or Hong Kong.

          If there was a default on the commodities exchange and there have been defaults in the past, you don’t want your metal in the commodity exchange vault, because they would make the plans of what they are going to do with your metal. It’s safest to have it out of there.

          I believe you will see silver go over $100 /oz. But there is also the possibility you could see silver over $1000 / oz. That may seem crazy, but all you have to do is study the fundamentals underneath silver and a little monetary history, and you will see that stranger things have happened quite often in the past. Now if silver did go to $1,000. / oz. and you had a 1,000 oz. bar that would be a million dollars. When you go to liquidate your position you have to liquidate it at a million dollars at a time.

          So it might be wise to buy silver and gold in smaller increments such as 100 oz. silver bars. Make sure you get the bars from a well-known refinery. They have a hallmark on the bar and a serial number as well as the weight and fineness stamped on the bar. So you basically have a certificate of authenticity right on the bar.

          Then you have the 10 oz. and smaller gold and silver bars which again have the weight and fineness stamped right on them. These bars also stack nicely in a vault.

          My favourite is the 1 oz. government mint coins.  American silver eagle coins are one troy ounce fine silver or a Canadian maple leaf says 1 troy oz. .999 silver right on it. Other coins available are US gold eagles, US gold Buffaloes, Silver Austrian Philharmonics, the gold Canadian maple leaf and the gold South African Kruggerands are the most common.