Silver Spot Value Up Over 200%

Last summer the spot price of silver was floating around $17.00 to $18.00 per ounce. I knew without doubt that silver was headed for a dramatic rise and so I tried to encourage people to invest in it if they were able. Now I think that there may be some folks out there who are regretting that they didn’t take advantage of this opportunity.

Today, less than a year later, silver is about $38.00 which is about a 210% increase! Will silver continue to go up? I believe that it will. My own opinion is that silver will pass the $100 per ounce mark in the near future. When? I can only guess but I believe it will be sooner rather than later and would not be surprised to see it within a year.

You hear a lot about gold, especially if you watch television news. But could gold give you a 210% increase? To me this looks like a ‘sell your gold and buy silver’ time. I think there will be some folks who make a fortune just by doing that.

Don’t Get Ripped Off  on Silver Premiums

Beware of sellers who charge too high a premium. Most of those silver and gold coins and programs you see advertised on television and in mass media like magazines and newspapers tend to charge a very high premium. Also be aware that when making smaller purchases the total premium you end up paying can be very high.

The “premium” is the amount over and above the actual spot value of the coin, bar, or round. If silver spot is at 36.50 and you pay 50.00 for a 1 oz. silver bar or round you have paid a $13.50 premium for 1 ounce. Silver would need to raise significantly for you to recover that premium and make a profit.

Be Aware of the Terms and Buy Sell Trade Policy

Engelhard Silver Bars

Engelhard Silver Bars

When preparing to purchase silver be aware of the numbers and terms. Many merchants buy and sale based directly on the spot. Example; They sell 1 oz. coins and bars for “spot + $3.00” and buy for “spot – $2.00”. If a person is careful and savvy they can actually buy silver from these merchants and sell it back at a profit.

Where To Get Silver

  • Pawn shops, auctions and flea markets can be good places to find deals on junk silver.
  • Online at auctions or coin dealer websites. I do not endorse or represent any certain ones but with some research you can find something on your own fairly easy. If you buy your silver online be aware that some online dealers may have prices that appear to be low but when you check the “fine print” you may discover excessive shipping and handling. Be sure that you know the “real” price before committing yourself to any purchase.
  • The U.S. Mint issues 99.9% pure silver 1 ounce American Silver Eagle coins. Silver Eagles are recognized and traded around the world. They do carry a hefty premium but their value is typically higher than spot because of  collectible value due to limited mint runs and dates.

Silver Bags and “Junk Silver”

90% Silver Coin Bag

90% Silver Coin Bag

Pre-1965 90% silver coins are commonly sold based upon current spot. In fact old U.S. coins are some of the best ways to invest in silver. You can get silver at a very small premium, especially when buying bags like “$100 face value”. $100 face value of 90% silver coins holds about 71.5 oz. of pure silver.

90% Silver Coins

90% Silver "Junk" Coins

Silver bags are also sometimes referred to as “junk silver” which just means that they are average circulated 90% silver coins with no rare dates or mintmarks. Common dates and average circulated condition.

Silver bags can usually be obtained in face values of $5, $10, $50, $100, $500, $1000. The higher face value bags have the lowest premium and of course the lower bags have the highest premium. However the premiums on silver bags are generally lower when compared to other ways to buy silver.

Keep in mind that everything I have said here is just a basic overview of the current situation with silver. I would highly recommend that you read more about silver and seriously consider whether or not you can invest. But I am not trying to sell silver or anything else here.

This is my opinion and is published here for information, consideration and thought only. So, think about it over there!

D. Slone, Copyright 2011 CoinCollectorGuide.com



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