Silver questions from a noob

[FSUFrank]

Hello folks,

I have a few questions regarding buying silver and was hoping to get some of your thoughts. Please note that I am buying silver not as a collector or as an investor but more as protection

1) If I am buying 1 oz or 10 oz of .999 silver bars does it really matter what type/brand/mfg bar I buy, I am under the impression that .999 silver is .999 silver regardless of who minted the bar. Is that correct?

2) Would you recommend bars, rounds or items such as silver eagles?

3) Does it matter if you buy fresnly minted "new" silver vs. silver bars/rounds etc...that are being resold? I know this new/used question sounds stupid, no harm in asking.

4) Any good sites to buy from or would you recommend buying from a local shop in person?

Thanks and good luck to all.
Frank

[osoab]

I'll reply later today FSUFrank.

Welcome to GSUS.

[Glass]

My thoughts are questions to think about.

Do you expect to barter with silver?

Do you expect dealers to be around when you want to get out of silver?

If bartering is your aim, trade for food or other stuff you don't have then you will need to find someone who recognises what you have. IMO recognisable coins make the job easier. American silver Eagle coins in America, Canadian maples in Canada etc. Bars might be a bit more difficult. Others need to recognise it for what it is. Not everyone is going to know what silver is, coin or bar.

Bars are a lower premium but again IMO you should buy recognised brand bars. May not be as barterable so may be a better wealth preserver than a barter item. You still need to have a market for them if you want to get out and recognised brands make it a bit easier. Also dealers need to be around your area who you can sell to.

Rounds are like bars. Not demoninated as money. So their value is silver content only unless they're collectables.

I prefer new in bullion coins. For bars I'd prefer new but I think with the industrial bullion bars it's hard to tell if new is new.

i don't think there is anything wrong with buying different types of silver. TS might HTF so you'd be covered. It might not go all in hitting the FAN which means you haven't lost anything by having a mix and you saved a few bucks on premium which meant you could pick up a few more ounces.

I think Apmex and Gainsville both offer good service and product.

welcome to GSUS.

[Sparky]

1) Of primary importance is that each item has stamped weight and purity. Stamped by a recognized manufacturer is of secondary importance, but is still preferable if you have the option.

2) Each type of silver has an advantage, so I recommend some each of 1-oz rounds, 10-oz bars, 90% pre-1965 coins, and Eagles. I don't like the 1-oz bars, but I have some. I'd suggest roughly 70% in rounds and bars, 20% in pre-1965 coins, and 10% in Eagles.

3) I would not pay a premium for "freshly minted". Your Eagles are for you potential buyers that like pretty.

4) Apmex has a good reputation here. It's also a good idea to build an association with a local dealer, though you will pay more per unit, which must be offset against shipping charges. Some states have sales tax if you buy locally.

I also recommend diversifying with some gold at some point, even if it's a small amount.

[madfranks]

Like Sparky said, make sure each piece has the weight and purity stamped on it. Personally, I prefer smaller denominations: most of my silver is in one-ounce rounds and "junk silver" (pre-65 American silver coinage). It's easier to liquidate smaller amounts this way. Think about it like this: would you rather have a wallet with a single $100 bill in it or $100 in smaller bills. It's easier to manage smaller amounts.

[osoab]

There was a decent amount of good info in this thread.
http://gold-silver.us/forum/general-...962/#msg147962

I prefer buying from my local guy the stuff that is everyday such as junk silver, SAE's, GAE's, 10 oz bars, etc. He beats online guys hands down and I don't have to pay shipping. Your results may vary with dealers, but cash and carry is the way to go imho. I have purchased from APMEX and Bullion Direct. I have not had any issues with either dealer. If you are looking to spend a massive amount of FRN's, you might want to look @ Tulvings site.

One reason to buy "brand" name stuff, is that it is recognized by many people. There would be very few issues with trading or selling them at a future date. I don't have many 1oz bars, but I did get a few for Christmas and I won't be throwing them out. Engelhard Prospectors would be an old 1oz coin worth getting. I don't think many here would disagree with that choice.

If you have no exposure now:

-I would DCA (dollar cost average) in, who knows what the future price of silver holds. With this recent dip, I would get some now, but more weakness in the metal prices could occur if anymore changes with the margin requirements and position limits happen. Don't forget any movements in the USDX.

-I would look for the cheapest bargain you can get. There is no sense in paying $4 over spot for an SAE if you can get a generic round for $1 over spot.

-Search different bullion sites and compare prices. That should give you an overall range of what you might expect to pay. Just search for gold silver bullion dealers in a search engine. I'm sure more than a few will pop up.

[milehi]

Hello folks,

I have a few questions regarding buying silver and was hoping to get some of your thoughts. Please note that I am buying silver not as a collector or as an investor but more as protection

1) If I am buying 1 oz or 10 oz of .999 silver bars does it really matter what type/brand/mfg bar I buy, I am under the impression that .999 silver is .999 silver regardless of who minted the bar. Is that correct?

2) Would you recommend bars, rounds or items such as silver eagles?

3) Does it matter if you buy fresnly minted "new" silver vs. silver bars/rounds etc...that are being resold? I know this new/used question sounds stupid, no harm in asking.

4) Any good sites to buy from or would you recommend buying from a local shop in person?

Thanks and good luck to all.
Frank

1. As long as the weight and purity are marked on the round, It makes no difference in the melt bucket.

2. My coin dealer's junk box often has scruffy Eagles, Maples, Englehard rounds and bars and almost always, Onzas. I cherry pick these 'cause these hold a premium to the right party.

3. Aside from heavy wear, see the first answer.

4. I've had great service from www.monarchpreciousmetals.com

5. Buy Mercs.

[hoarder]

Buy the most troy ounces for the least money. Often that means pre-1965 90% coins, which is OK. There is no question of authenticity with these coins. When you buy dips buy whatever you can find.

[wvojak]

1) If I am buying 1 oz or 10 oz of .999 silver bars does it really matter what type/brand/mfg bar I buy, I am under the impression that .999 silver is .999 silver regardless of who minted the bar. Is that correct?
OK as long as you avoid lesser known mints or strange rounds like the "Santa Claus" or painted rounds. I have a couple Christmas rounds but I gave them to my daughters as Christmas stocking stuffers. My first purchase were some Sterling Silver rounds (see avatar). Knowing what I know now, I would have not bought Sterling Bullion.

2) Would you recommend bars, rounds or items such as silver eagles?
Mostly 1 ounce rounds (or bars). I like rounds better but that's just personal preference. You can buy tubes to store them in. Have a few Silver Maples, but only because my dealer was out of rounds that day. Having some AEs and SM is fine, but only if your not paying a big premium over rounds.

3) Does it matter if you buy freshly minted "new" silver vs. silver bars/rounds etc...that are being resold? I know this new/used question sounds stupid, no harm in asking.
No, as long as you can look at the used ones and verify that they haven't been abused and look like crap! Technically speaking that shouldn't matter. . . But it never hurts to have nice shiny and clean rounds.

4) Any good sites to buy from or would you recommend buying from a local shop in person?
Ampex, Westminster Mint. But now I buy in person form Affordable Jewelry & PM in Portland OR. Cheaper than the on-line places and I walk out the door with product in hand. After a while they start realizing that your a repeat customer, and you start getting deals (I got four 1/2 ounce sunshine gold rounds for $40 over spot per OUNCE)

[Sparky]

Buy the most troy ounces for the least money. Often that means pre-1965 90% coins, which is OK. There is no question of authenticity with these coins. When you buy dips buy whatever you can find.

The most troy ounces for the least money are 40% Kennedy halves from 1965-1970, and then 1942-45 War Nickels (35% silver). No question of authenticity with these coins. I wouldn't recommend either.