How to Start Investing in Silver







For those who do not enjoy taking risks with their investments, investing in silver may be the best option.  Commonly, we often perceive gold as the metal of choice when it comes to investing, simply because the price of gold is typically higher than that of silver.  However, when you look at the percentage increase that these metals experience in bull markets, you will notice that silver will many times triple in price while gold only experiences a double in price.


Your options for investing in silver are typically one of three things.  The first is silver numismatic coins.  These are essentially collector’s coins.  Investing in this type of silver is not really a good option for everyday people because it takes an expert in coins to understand the value of each and every coin.  The value of these silver coins can vary depending on where they were made, when they were made and how rare they are.  Of course, rarity of a coin can change throughout history as well.  Some people may hoard their collections for several decades and when the collection is broken up to different people, it may be discovered that more of the coins exist than was initially thought.  In addition, investing in silver numismatic coins takes a lot of research on your part and also requires are very trustworthy coin dealer.


That is why investing in silver bullion products is the best way to spend your money.  Silver bullions come in one of two types of products.  These are silver bullion bars and silver bullion coins.  Silver bars come in varying sizes and are not really the investment of choice for two reasons.  First, they can be easily counterfeited.  And second, they cannot be broken up into pieces when you need to trade them for cash.  You will need to sell the whole bar or nothing at all. 


For these reasons, silver bullion coins are the top investment choice when it comes to purchasing silver.  These coins are minted by governments and are more difficult to counterfeit than silver bars.  They typically come in one ounce weights (measured in troy ounces) and have a face value of one U.S. dollar, often giving them the label of a silver dollar.  The appeal of bullion coins is that they are easily exchanged for cash since they are in smaller amounts and are more easily recognized as legitimate silver.  One of the most popular silver bullion coins is the American Silver Eagle.  They are minted by the U.S government and contain 99.9% silver.  Another popular silver bullion coin is the Canadian Silver Maple, minted by the Canadian government.  This coin has a face value of five Canadian Dollars and has a silver purity of 99.99%. 


Another silver investment is silver rounds, which are not a form of legal tender.  These are .999 fine silver that have a weight of one ounce.  They are most commonly seen as Buffalo silver rounds but you may also find a silver eagle, which are different from the American Silver Eagle.  Another popular way of investing in silver is to purchase what is called junk silver.  This encompasses all U.S. dimes, quarters and half dollars printed during or before 1964.  They are labeled “junk silver” because they have no collector’s value but are beneficial for their silver content of 90%. 


While silver will provide higher returns on an investment that does not mean that you should rule at gold when you are increasing your precious metals investment portfolio.  Both gold and silver can also be an excellent choice for all investors.  Gold can often be purchased in the form of bullion gold bars as well as gold coins.  Common gold bullion coins include the U.S Gold Eagle, U.S. Gold Buffalo and the Canadian Maple Leaf.


When you are investing in silver be sure to do research on the company from which you purchase it.  Do not hesitate to search the company on the Better Business Bureau website and also ask others about their experiences with a particular company.