| Why Would I buy Silver? | | | | is supposedly worth $5000 because it is so rare is a |
| With money printing going on like never before in US | | | | risky prospect: who knows if someone will want to |
| history, and the annual deficits out of control, it is only a | | | | pay that much when you want to sell it. The best bet |
| matter of time before we experience hyperinflation in | | | | is to stay with a bar, round or coin whose value is the |
| America. The laws of economic cause and effect will | | | | intrinsic value of the metal itself. |
| not spare any country who ignores them. Soon China | | | | The most easily identifiable and 'coin of choice' is the 1 |
| will further reduce its purchases of US debt and the | | | | ounce silver American Eagle. Everyone knows these |
| budget crises of the many American state | | | | and you will never have any difficulty selling them. The |
| governments will hit critical mass. When this bubble | | | | only downside is that they come at a premium. The |
| bursts, the dollar will become worth less and less very | | | | premium on Eagles can be as high as $2 per ounce. |
| quickly. Just consult history. | | | | Bars and rounds are available from a multitude of |
| If our wealth is measured in paper dollars, which are | | | | different companies. How do you choose which one |
| being devalued by printing presses churning out more | | | | to buy from? The best way is to consult with a few |
| and more of them, then we will lose our wealth. The | | | | local coin dealers and ask them. They are the local |
| alternatives are stocks, real estate and precious | | | | experts and will be best able to tell you what is |
| metals. | | | | commonly accepted without hesitation. APMEX, |
| Given the uncertainty in Congress over new tax hikes | | | | Silvertowne, Johnson Matthey, Sunshine and Englehard |
| and the continued worsening of the economy, it will be | | | | are commonly accepted, but there are many more. Do |
| very difficult to know which stocks to choose. | | | | your own research. |
| Real estate is always a good way to preserve wealth, | | | | The one thing you MUST do before paying for silver is |
| but the prices are dropping like a rock and knowing | | | | ensure that there it says.999 Fine (this is investment |
| when the bottom hits is anyone's guess. Not to | | | | grade silver) and that it clearly states how many Troy |
| mention that real estate taxes are rising, and will have | | | | ounces it is. |
| to rise a lot more to fund local governments which are | | | | Where Should I Store My Silver? |
| being driven to financial collapse. Finally, income | | | | Paying 'vault charges' to let some company store your |
| generating real estate will not be as attractive soon, as | | | | silver for you is not a good idea (remember, you have |
| rents will not be able to rise fast enough to cover rising | | | | to trust these bankers...), so obviously you want to |
| real estate taxes and the dropping dollar. | | | | store your silver yourself. Many people immediately |
| That leaves us with precious metals. Great advice, | | | | think of a bank safety deposit box, but others are |
| learning lessons from history and with plenty of facts | | | | skittish. If there is an economic meltdown, history |
| to back it up, comes from Mike Maloney, author of | | | | shows us that a bank holiday would be declared and |
| "Rich Dad's Advisors: Guide to Investing In Gold and | | | | you can't retrieve your silver from a bank that is |
| Silver: Protect Your Financial Future." He and Robert | | | | closed. Furthermore, when banks fail, there have been |
| Kiyosaki believe firmly that the only winning strategy | | | | cases where it was not immediately reopened under |
| will be to invest in Gold and Silver as the bubble inflates | | | | the ownership of another, FDIC selected bank. In such |
| and, when it is looking like that bubble is nice and ripe | | | | a case, it may take a long time to get any possessions |
| for bursting, bail out and buy real estate. The reason: | | | | from a safety deposit box. |
| real estate will bottom out as precious metals top out | | | | Home storage of your silver is not without its problems. |
| Why Would I buy Silver Instead of Gold? | | | | First off, you must worry about robbery. If some bad |
| That is an important personal decision, but the rationale | | | | people get ahold of records and find out that you have |
| is very rational! As of this writing, an ounce of gold is | | | | bought silver, or if you or someone in your family |
| over $1150, which is not too affordable for the average | | | | mention it to anyone, you could be paid a visit by some |
| American. However, silver is under $19, which means | | | | gun wielding thugs. This happens all the time in |
| that anyone can afford to buy silver. More reasons: | | | | countries that have experienced economic collapse. A |
| - Unlike Gold, silver is used up in industrial applications | | | | fireproof wall safe will do you no good if a man holds |
| and the supply is less than it has ever been. | | | | a gun to a loved one's head demanding that you |
| - Silver is at a historical low versus gold. The ratio has | | | | produce the silver... Many insurance companies will |
| been about 16:1, meaning that it has taken 16 ounces of | | | | NOT cover more than a couple hundred dollars worth |
| silver to purchase 1 ounce of gold throughout history. | | | | of cash or precious metals, whether the loss is from |
| The ratio is now over 60:1. While everyone does not | | | | theft or fire. Do your homework. |
| agree that the ratio should be 16:1 these days, due to a | | | | A lot of people have taken to the old fashioned "bury it |
| lot of different factors that have not existed in the | | | | in the backyard" approach. This is made easy with a |
| past, just about every expert agrees that silver has a | | | | simple length of PVC pipe and two end caps from the |
| lot more of an upside potential than gold. However, | | | | Home Depot, which makes a great burial capsule. |
| these economists are unanimous that both metals are | | | | However, a bad guy with a metal detector will find it in |
| poised for great gains in the near future. | | | | no time if you have loose lips! |
| What Do I Need to Know to Buy Silver? | | | | Where Should I Buy My Silver? |
| First off, silver (as well as gold) is sold by the Troy | | | | As of this writing, there is no reporting or record |
| ounce. This is a bit different than a normal ounce, as | | | | keeping requirements for purchases of precious |
| there are only 12 Troy ounces to a pound instead of | | | | metals of under $10,000. Even then, it is only cash |
| 16. | | | | purchases of over $10,000 that require any record |
| Second, silver can be purchased in basically two | | | | keeping, due to the Patriot Act. For this reason, it is |
| forms: physical silver, which is in either coins or bars, | | | | best to keep each transaction under $10,000. For |
| and "paper" silver, which is in the form of mutual funds | | | | security purposes, some prefer a local dealer (since |
| or ETFs. (Some also regard stocks in silver mining | | | | there is no need for your to give your name and |
| companies as a legitimate investment, but a couple | | | | address), and some prefer a national dealer (which |
| dishonest executives in any company can ruin | | | | means that nobody in your locale knows that you |
| everything: think Enron. Stocks in an individual company | | | | bought silver). |
| are very risky). Paper silver is as good as your faith in | | | | Most local coin dealers are not in the business of |
| the Wall Street bankers that issue it. Enough said. | | | | dealing with a lot of silver. Think about it: there is a |
| Physical silver can be stored for you by a company in | | | | huge risk in maintaining an inventory, as the price |
| their vault (which means you have to trust them...) or | | | | fluctuates every single hour. Because of this, most |
| you can take delivery and hold the silver yourself. This | | | | local coin dealers charge a high premium over Spot |
| is by far the best option. | | | | price. |
| Third, silver is priced by the market. Today it may be | | | | There are many online dealers, including those with |
| $18.20 per ounce and tomorrow it could be $75 higher | | | | radio advertising campaigns featured on the nationally |
| or lower. For that reason, you buy it at whatever the | | | | syndicated talk shows. Shop around. The premium you |
| "Spot" price is when you make the transaction. | | | | will pay over spot will vary widely, and will also depend |
| However, if the Spot price is $18.00 an ounce, you will | | | | on the quantity you buy. It is important to find out what |
| NOT be paying only $18.00. There is a premium over | | | | the shipping charges are, as this can add substantially |
| Spot that accounts for the melting and minting of the | | | | to your effective per-ounce purchase price. |
| silver, as well as the commission of the dealer. Beware | | | | There is always risk in any investment. While it seems |
| (and read to the end of this report), because the | | | | that silver presents the best hedge against the coming |
| premiums you pay can vary a great deal. Don't trust | | | | Depression, each person should consult their own |
| anyone who is going to sell it to you. | | | | financial advisor and nothing herein should be construed |
| When buying silver, you can choose between bars | | | | to be legal or investment advice. It is everyone's |
| from 1 to 100 ounces, or rounds ("coins" issued by a | | | | responsibility to do their own research into the financial |
| company that does not have minting authority of a | | | | and legal ramifications of investing their own money. |
| government), or coins. Buying a single ounce coin that | | | | |