Silver Futures

Silver Futures can be a confusing subject for many people. After all what has it to do with how to buy silver? To understand silver futures, one needs to understand firstly what a futures contract is.

What is a Futures Contract
A futures contract is a contract, traded on a special stock exchange called a futures exchange. The idea is to buy or sell, what is called, a certain underlying instrument, in this case silver, at a certain date in the future, at a specified price. Basically it is a bet that something will be worth something at sometime in the future. This gives new meaning to the word nebulous as no one can predict with accuracy what the value of a commodity will be at some date in the future. You can, of course, find heaps of experts that give advice or guidance but, intimately, no one really knows what the price is going to be.

Obligations of a Futures Contract
A futures contract is different to an option. Whereas with an option the holder simply has an option to buy or sell, the futures contract contains, as part of the contract, an obligation. You are required by law, in other words, to pay.

Both parties of a futures contract must fulfill the contract on the settlement date unless you opt to roll over in to the next months contract. Then cash is transferred from the futures trader who sustained a loss to the one who made a profit. Most futures trading is done on a cash settlement basis these days.

Do Future Traders Lose Money?
The US department of Agriculture did a study one time and found that 75% of people that speculated in futures in agricultural commodities lost their money.

In fact many investors have lost entire fortunes speculating in futures.

What are Silver Futures?
Silver futures are simply futures contracts where the commodity is silver. This is usually in the form of weight.

Futures contracts, or simply futures, for silver are usually 5000 troy ounces, One would trade in parcels or multiples of 5000 troy ounces, (although In November 2006, the National Commodity and Derivatives Exchange (NCDEX) in India introduced 5 kg silver futures) and the exchanges clearinghouse would act as counterparty on all contracts, setting margin requirements, and so forth.

Silver futures and options, currently trade on many exchanges around the world. In the U.S. it is primarily traded on COMEX (Commodity Exchange), a subsidiary of the New York Mercantile Exchange. Other major trading countries all have own futures and options (called derivatives) trading floors.

In short, silver futures are a bet that the price of silver is going to be at a specific price at some time in the future. This could be a high or a low price. If you are wrong you have to cough up the money, if you are right, you get the funds to the value of the current silver price on settlement day from the other trader

How Does a Silver Futures Contract Work
You simply agree to buy, say for example 1000 ounces of silver, in three months to the day at 6 dollars per ounce on that day. That future date is called the delivery date or final settlement date. The pre-set price is called the futures price. The price of the underlying asset on the delivery date is called the settlement price. If an ounce of silver on that day is worth 10 dollars, you win as you are only paying 6 dollars for an ounce of silver that is considered to be worth 10 dollars. You would have made 4 dollar an ounce profit. and the seller loses as you are only paying 6 dollars for something that is worth 10 dollars. If the price of silver goes down in the interim to 3 dollars, then you will find yourself paying 6 dollars for something worth only 3 dollars. That is a nasty situation to say the least. You will have lost half your money! Of course you do not get the silver. It is all a cash transaction so you cannot, if you lose, collect the silver and hold onto it in the hope it will go up again and you can sell it. However t you can roll it over into another contract.

The big issue here is the leverage. You don't have to pay up front all that you are buying,. Only a percentage of between 1 and 10 percent. Of course if you win you can win a lot of money. Most people lose and that means they do not just lose the 1000 dollars they put down but the entire amount they bet.

e.g. 5000x16.7USD (shall we say, is equal to 835900USD traded. So you only pay 835US Dollars with a 100:1 margin and control 83500 worth of silver. But if the price goes down by just 1 percent, you have now lost your initial cost of purchasing the futures contract and if it goes down by even more, such as 10 percent, as can happen in a flash, you start to lose some serious money. If you don't have sufficient funds in your account, and this happens to so many people, you are liquidated immediately if you cannot met the margin call within a few minutes.

You have to have sufficient funds to back up your call so you can ride out the dramatic changes that can occur from one moment to the next.

This is all done on a cash basis in most markets and in practice you would be working with a dealer so there is no "taking the silver and run."

This explains why silver futures traders are usually professional dealer with large capital bases who are buying and selling for large institutions. And even they can lose big time.

Quite honestly you would have a far better chance of winning at the casino.

Should you Buy Silver Futures?
Our advice is to not trade in silver futures unless you have many years of experience, more money than you could ever possibly want and a devil may care attitude. Silver futures require considerable experience and knowledge and even then, many an expert trader has come unstuck trading futures.

In answer to the question, should you buy silver futures, the short answer is no.

One should not buy silver futures, one should buy silver bullion instead.

Buy Silver in the UK.

There are a few points to consider if you want to buy silver in the UK.

Silver has been on a steady incline for some years. The accompanying chart shows that silver is on a 10 year rise and likely to so continue when you consider the world wide shortage of silver as well as the economic instability of world markets.

So, how does one buy silver in Britain or the UK ?

Unless your into silver for the very long term, it is better to buy silver in the UK rather than from overseas such as the US for example. Principally because of the tax considerations and shipping costs.

Tax on Silver
The customs and duty one pays to import silver into the UK is around 15 percent, plus you have the shipping costs which can be anywhere 3 to 5 percent. Moreover, the carrier is going to charge you for collecting the tax adding a further 8 to 16 pounds to the injury. It is even possible that would exceed the cost of the tax itself. That has gotta hurt!

This makes it unsuitable to import silver for investment and even for collectors unless price is not a consideration of course.

However, one can buy silver overseas and if it is kept overseas and not imported into the UK then you will not have an issue with the tax man. If you sell that silver at a profit however you will be liable for tax as a British tax payer.

So it would seem the best silver is the silver you can buy in the UK.

Buy Silver in the UK
There are some points worthy of mention here also.

There are not very many silver coin dealers in the UK surprisingly. You can buy silver in the form of bullion bars on eBay where private individuals and dealers generally trade. The issue here is that the premiums are high and if you want to buy silver for investment or to retain asset value, you need to look for that silver with the lowest premium.

Unlike gold, silver is not VAT exempt and, even on eBay you will find VAT will be added to the purchase price.

However, VAT is only payable on silver if the seller is VAT registered. The government says they want to encourages small businesses by allowing them to sell VAT discounted goods. This seems to have no effect on silver prices, however, since buyers do not distinguish between registered and non-registered sellers and generally do not care. Price and genuineness is a more major issue for buyers.

It takes a good sort around to find silver bullion with a low premium. Sometimes it might be worth while importing 1000 oz bars if the premium is really low and the VAT can be absorbed by the increase value long term.

As the silver price climbs higher the premium is likely to narrow for specific weight bars as the manufacturing costs, shipping and other costs remain the same, Only the value of the silver is different.

Silver coins generally have even higher mark ups than bars and, although they may be good for the numismatic coin enthusiast, they are impractical for the silver investor.

Old Silver Coins
However one solution which many British people employ is to accumulate old florins, half crowns and shillings. These are pre-decimal coins phased out in the early 1970s. Those coins minted prior to 1920 contain 92.5 percent silver, those from 1920 to 1947 are 50 percent silver.

These can often be bought in bulk at a relatively low premium and have little value for coin collectors, due most likely, to them being worn coins and not of collector quality. But they do contain silver! And, importantly, there is no VAT on their purchase.

Mostly these are for sale by coin dealers and likely on eBay

Silver Investments in the UK
Other options for buying silver in the UK are silver EFTs, mining stocks and Silver Accounts.

Silver EFTs, or exchange traded funds, are simply accounts where the silver is held by a bank or some such institution as custodian and your account represents your holding of silver by that institution. The advantage here is the easy of transactions, no shipping, storage or security issue to contend with. Barclays silver ETF is a good example of a silver EFT.

Mining stocks are another way of investing in silver. These are not so assured however since the mining company you are investing in may have other interests, such as other metals which may not be so favorable as silver in the market place. Plus various management policies, buying and selling of companies and takeovers, etc, all can affect the share price.

goldmoney.com is a company where you can open a silver or gold account and deposit funds which are used to purchase gold or silver. That gold or silver is kept in bank vaults and your amount of gold or silver is reflected by your purchase. This can be done through a broker or you can even do it yourself by going to goldmoney.com.

Cashing in your Silver in the UK
There are some implications to consider if and when you want to cash in silver in the UK. If you make a profit on a sale of silver you are up for the unpopular Capital Gains Tax (CGT). There are some changes in the wind with this tax apparently but analysts expect it to eventually be a flat 18 or s percent with none paid on the first £9,200 which could be shared with a partner.

You could offset some of the CGT on profits by investing in a Individual Savings Account (ISA). This can be as much as £7,000. This only applies to shares and EFTs however, not silver bullion.
Anyway by a judicious use of tax allowances one can legally avoid paying tax on the first £32,400 (about $65,000) of silver profits.

When the end of the tax year on April 5th is nearing, one could then maximize one's silver profits by selling just enough of one's silver before April 5th using up as much of the tax free allowance for that tax year and then repurchase again to take advantage of the following year allowance. Of course this strategy will depend on how much it costs to sell and buy back the silver plus other factors such as your own personal financial position. In all cases, with anything to do you’re your tax position and financial arrangements always consult your own personal financial advisor.

So there you have it. It is possible to buy and sell silver profitably in the UK provided you spend some time doing due diligence before you buy silver in the UK

Silver Stocks

To buy silver stocks, as distinct to actually buy silver bullion is precarious and subject to many other factors than just the price of silver.

Silver mines produce around 650 million ounces of silver a year. Plus about 200 million ounces from scrap recycling, and 100 million ounces from investor selling, or government selling. That's a total of around 950 million ounces a year.

Of all that silver just over 40 percent is used by industry, 28 percent in jewelry, an additional 20 percent in photography and around 5 percent in coins and medallion. That comes to 95 percent of the total silver available.

So there is an apparent 5 percent available for investment but, as investment is starting to increase this percentage is diminishing rapidly.

Silver consumption has been increasing since the 1950s and an increasing percentage is 'lost' in consumption each year due to deterioration, destruction and hoarding.

It has been estimated that there is only around 200-300 million ounces of silver available to the market at the present time and about 125 million ounces of silver at the NYMEX, the big commodity exchange in New York.

Silver Stocks & Shares
Stocks and shares are not silver but an investment into a company that either mines or explores for silver for future mining. Few companies actually mine silver as a stand along product as silver is usually found along side or with other minerals such as tin, copper, lead or zinc. Companies will mine whatever minerals they find and process to extract all the minerals available.

So, in fact, one is rarely investing in a silver mining or exploration company per sec. Shares are, then are a base metal investment, not really a silver investment.

This puts a completely different picture on the investment as the value of the shares and not related directly to the production of silver but to other factors, which may be the production of other metals, the success of the exploration as well as the cost of production per ounce to extract the silver.

In addition there are usually internal company influences, such as management policies and decisions, external influences such as company competition, economic and market forces

To spread their risk, then, some silver investors prefer to spread their risk by investing in precious metal mutual funds rather than one individual company.

Silver Mining Companies
If you find a silver mining company that mines principally silver in which you want to invest, the most important points to consider are, how much silver does the company have in the ground and how much does it cost to extract and refine it.

Finding out how much silver he company has title to and owns in the ground and then dividing the market capitalization of the company by those ounces will tell you if it is sufficient to warrant an investment.

In this way you will find out the cost per ounce of production and then how much you are paying for what you get.

Some CEOs will try and convince their investors that their ounces are better than the next mans. This is not about the quality of the refined silver. That is the same company to company. What it means is that they are saying that the cost to produce their silver is less and therefore their profits are going to be greater and the dividends to shareholders will be bigger.

So remember the two important questions, when considering an investment in a company are: How many ounces do they have? And How much does it cost to produce those ounces.

It's very simple. Cost per ounce in the ground. How much do you get, and how much does it cost?

Silver Stocks or Silver Bullion
Investors want to invest in as close to a certain and secure investment as possible. With silver companies, such as minding and exploration, there can be fantastic gains to be made, but the risk is very high and the number of variables make it a precarious investment compared to having silver in your hot little hand.

Owning one kilo of silver in storage is worth one kilo of silver regardless of the price. Owning one kilo of silver represented by an investment in a mining company can be wildly different, particularly if the company has other issues that affect the share price and regardless of the actual value of the silver.

Historically the price ratio between silver and gold was always around 10 ounces of silver to one ounce of gold. Recently however the ratio has increase with over 50 ounces of silver to one ounce of gold. Even though the trend of both metals as remained the same the gap between then has widened.

Silver is grossly undervalued right now and there is a lot of room for decreasing the gap between silver and gold. When it comes to silver stocks, an ounce in the hand is certainly better than two ounces in the bush.

Silver Dollars

One of the first places to find silver coins was in Germany in the late 15th century, where one finds silver coins being used called the Talers. This word has been translated from the German into many other languages including English resulting in the words daler, daaler and eventually dollar. So the word dollar is not unique to the US.

Why Buy Silver Dollars
There are some investment advantages to be gained, for example, when you buy silver dollar bags. These feature highly sort after and collectible silver dollars. One of the investment advantages, in addition to known numismatic value (all silver coins should assess at the grade of Very Good or higher) is that each bag contains a sizeable quantity of actual silver.

Silver dollars are also legal tender in the US and can be very effective forms of barter in small increments as well as entire bags. Silver dollars are recognized world wide and you can exchange them practically anywhere.

In addition, your asset or wealth, stored in the form of silver dollars, will increase as the years go by with the current steady rise of the value of silver.

Yet another advantage is that when you buy a silver dollar bag that bag has a built in guarantee. Regardless of the price of silver, the face value of the coins in the bag (legal tender remember!) are always going to be $1000 dollars. So if the value of silver ever did drop below the value of the amount of silver in your bag (unlikely), you would still have 1000 dollars worth of coins.

History of the Silver Dollar
Many of these early examples of silver coins can still be found in museums, private collections and, who knows, perhaps many more may be found on future treasure hunts down the track.

Closer to present day, The minting of silver dollars in the US began in 1794 as a result of the Coinage Act of 1972. the United State Mint produced silver dollar coins up to 1803 when production was stopped until 1836 when it was then resumed.

1,758 silver dollar coins were first issued in October 1794 and these were used to distribute to visiting VIPs. Coins after that initial strike were in varying quantities and designs. As a result of the early practice of hand engraving many different designs were instituted including two obverse designs, the Flowing Hair (1794-1795) and Draped Bust (1795-1804) and the two reverse designs used for the Draped Bust variety, the small eagle (1795-1798) and the heraldic eagle (1798-1804).

All these coins are highly prized and much sought after by coin collectors.

Latter Day Silver Dollar Coins
The term silver dollar is sometimes incorrectly used to describe any large white metal coin. A silver dollar in fact should contain silver and the fact that a coin is white and large does not mean it does contain silver or that it should be called a silver dollar coin.

A silver dollar should contain a quantity of silver and early silver dollars are usually of pure silver or mostly contain silver with an alloy of another metal to improve its durability.

The Silver 1804 Dollar
This is perhaps the most well known of the silver dollars. It is also the rarest in that was not actually struck in 1804. No silver coins were in that year. was not actually in 1804 . In fact they were struck in 1834 for the purposes of presenting gifts to Asian rulers at that time in exchange for trade advantages.

The then mint officials, not realizing that the 19,000 plus dollars recorded as being produced in 1804 were all dated 1803, then proceeded to make new dies dated 1804. Only 15 of these silver dollars with the date of 1804 are known to exist. In 1999, one of them was sold by auction for over million US dollars.

The Morgan Silver Dollar
Produced from 1878 to 1904 and, after a break in production, resumed again in 1921. The Morgan Silver Dollar is very popular with a real collectors market for the pre 1921 uncirculated or mint condition issues. The post 1921 are also popular but are more common and do not command the high prices the earlier issues do.

The coin was named after it's designer, George T Morgan. George T Morgan was born in Birmingham, England and came to the US to work in 1876, getting a job as a junior engraver in that year. Morgan designed a number of coins but will always be remembered for the Morgan Silver Dollar

There are a number of different Morgans and half the fun in collecting these is studying up on the 'Morgans' and picking out which ones one would like to collect.
The Pittman Act of 1918 ordered that 270 million silver coins be melted down. As a consequence it is estimated that only about 17 percent are in existence today
You are going to need a lot of money as some have sold for the princely sum of three quarters of a million dollars or more.

Peace Silver Dollar
The Peace Silver Dollar is another coin that is popular with coin collectors. The Peace Silver dollar was designed by Anthony de Francisci to promulgate the signing on=f formal treaties between the allied forces and Germany and Australia. It was introduced in 1921 and in 1922 the Mint made all silver coins their top priority ceasing only in 1928. With the Great Depression no coins were minted until 1934 when it was resumed for two years.

Moving right up in time, over 300,000 Peace Silver Dollars were minted in 1965 at the Denver Mint and dated 1964, however these were never completed and virtually all were melted down again. It is believe that a few choice specimens are owned by certain Congress members and Presidents of the US. Curiously it is the only coin in the US that is illegal to 'own' and may be confiscated if found.

Other Silver Dollar Coins
There are other silver coins of course, some dollars, some not. Collecting silver dollars is an interesting activity, particularly if you have oodles of money. It is an activity for collects as a hobby rather than for investment purposes. A silver investor would be more likely to buy silver rounds or silver bars.

But silver dollars have a magic all their own. Who has not seen the cowboy in the movie flicking the silver dollar in the air. And another catching it!

Silver EFT

Silver EFT or silver exchange traded funds are a relatively new way to invest in silver. They offer a convenience for the busy investor who does not want the hassle of taking delivery of pure silver and the additional problems of storage and security.

Exchange Traded Fund Defined
EFTs are portfolios of securities rather like a mutual fund, that are actively traded on a stock exchange in the same way are shares of common stock).

There are over one hundred ETFs traded on the US Stock Exchange, with many more in other countries. ETFs having gained popularity over the years ever since they were introduced on the US Stock Exchange in the mid 1990s

What are Silver EFTs
Silver EFTs are a special type of exchange traded fund. These types of funds are only track the price of silver much as gold EFTs track the price of gold. Silver exchange traded funds are traded on all the major stock exchanges including London, Paris and New York.

When a person opens a silver exchange trade account they then buy in silver and their holding is an amount of silver represented by their account. The silver is stored in vaults around the world, usually in 1000 ounce silver bullion bars. If one has paid in say, for example, 5000 USD into a silver exchange traded account, one would own that equivalent of silver expressed in ounces less any charges. Usually a commission of 0.4% is charged for trading in silver ETFs and an annual storage fee is also charged as of course one actually owns the silver.

Tax considerations can be a drawback however. In some countries, ETFs may represent a way to avoid the sales tax which would apply to physical silver coins or bars but in the UK be aware that VAT may be charged on even overseas purchases and many countries will have tax considerations to watch for. It is suggested that you discuss with your financial adviser before embarking on any silver exchange traded fund activity.

Silver exchange-traded funds (or ETFs) can be a quick and easy way for an investor to gain exposure to the silver price, without the inconvenience of storing physical bars.

The other viewpoint is that one's silver is more subject to the vagaries of the market when entrusted to others. many people feel more secure holding their own silver and storing it either in bullion bars or silver rounds.

Some silver ETFs are:

iShares Silver Trust (NYSE: SLV), launched in April 2006 by iShares.
Central Fund of Canada (TSX: CEF.NV.A, NYSE: CEF) has 45% of its reserves held in silver with the remainder invested in gold.
In September 2006 ETF Securities launched ETFS Silver (LSE: SLVR) which tracks the DJ-AIG Silver Sub-Index, and later in April 2007 ETFS Physical Silver (LSE: PHAG) which is backed by allocated silver bullion.

There are many others. While silver EFT may be a convenient way of investing in silver there is really nothing quote so satisfying as actually having and handling one's own silver bars and coins.

Allocated & Unallocated Silver Accounts

There is a very useful way to buy silver without actually having to take delivery of sold silver in the form of bullion bars or coins and that is through allocated and unallocated silver accounts.

There are two different types of pooled silver accounts or certificate programs, allocated and unallocated.

Allocated
Allocated accounts are opened when a client requires specific metal such as gold or silver bars and coins to be stored separately and a detailed account of the physical characteristics of the precious metal, such as weights and assays, is recorded. The client has full title to these assets and the dealer or mint simply holds these assets on behalf of the client as a custodian. Usually there are storage fees to be paid on the holding and sometimes other fees also.

There are a number of dealer that provide for allocated precious metal accounts.

A good example is the Perth Mint. With the Perth Mint Certificate Program (PMCP) You own title to specific coins and/or bars, which are placed in a physical form in the PMCP storage facility. You also meet the quoted precious metal cost, fabrication charges and storage fees at the time of your purchase. The storage fees are based on the purchase value of your precious metal, so your storage costs will not rise if precious metal prices increase and the annual storage fees are collected every three years in arrears, with one year's storage payable at time of purchase.

Most of the dealers of allocated silver accounts operate this way with some variations.

Unallocated Accounts
This is quite different in that the precious metal is not segregated or separated from other account owned metal. Instead it is pooled. Each person owning some of the pooled precious metal shares that with all the others also owning a share of the pooled precious metal. However, it is the most convenient, cheapest and most commonly used method of holding metal.

Again using the Perth Mint as an example. The PMCP gives you legal title to precious metals held by The Perth Mint on a unsegregated (unallocated) basis. The Certificate is in your name and identified by a Certificate number. The PMCP is also the only Government Guaranteed certificate program in the world, making it one of the safest ways to own precious metals.

When you buy unallocated silver from the Perth Mint, they will issue you a Certificate confirming your purchase of the requested precious metal, which is stored at the Mint on your behalf.

With unallocated silver, usually the units of these accounts are one ounce of silver based upon a .995 LGD (London Good Delivery) .999 fine LGD silver bar. Based on the LBMA. The LBMA is a small market in terms of transacting participants, but since it operates as an OTC market, the transaction levels on the LBMA dwarf those of any other physical gold market in the world. Note the IMF statement earlier that nearly all loans and swaps involve unallocated gold (i.e. not audited).

Many of dealers and mints around the world operate in a similar way, again with slight variations as in the allocated accounts.

PMCP
The PMCP offers investors a unique range of precious metal storage options on attractive terms:

Account opening minimum: USD 10,000 (AUD 5,000 for Australian/New Zealand residents)
Minimum subsequent purchases or sales: USD 5,000 (AUD 5,000)
All Certificates are purchased through a reputable international Approved Dealer network a list of which is on the Perth Mint website.

Some of the advantages of allocated and unallocated silver accounts include confidentiality, low cost security, flexibility and, in many cases, no sales or other taxes are levied (Check with your own financial advisors as far as the tax laws in your country are concerned) for one's precious metal assets

The advantage with the Perth Mint, which other metal storage facilities do not have is that All precious metal held by the Perth Mint Depository in both allocated or unallocated storage accounts is covered by a Western Australian Government Guarantee.

Appealing to many investors with the Perth Mint Certificate Program is that transaction confidentiality is provided for under the Gold Corporation Act 1987 and the Perth Mint Certificate Program's administrative procedures.

The Perth Mint Certificate gives you legal title to precious metals held by The Perth Mint on either a segregated (allocated) or unsegregated (unallocated) basis. The Certificate is in your name and identified by a Certificate number. The PMCP is also the only Government Guaranteed certificate program in the world, making it one of the safest ways to own precious metals.

If you want more information about the Perth Mint Certificate Program (PMCP) you can locate a dealer here: www.perthmint.com.au/cp_dealers.aspx

All of these types of allocated and unallocated silver accounts offer an alternative to the problematic issue of storing large amounts of silver or entering the more economically dependent silver exchange traded funds or, even worse, silver futures!

Silver Bars

Silver was once the commercial currency of the world alongside gold. Changes in government attitudes have resulted in paper replacing silver as a currency. But this has not diminished the value of silver. Far from it. It is more valuable now than it ever was.

The inflation of the early 1970s prompted investors to protect their assets by investing in silver. In order to accommodate this sudden demand many small refiners began churning out .999 fine silver products such as silver bars.

When the mid 1970s arrived refiners such as Engelhard and Johnson Matthey were manufacturing one hundred ounce silver bullion bars and could hardly keep up.

What are Silver Bars
Silver bars come in many shapes, sizes and of course, weights. As well as silver rounds, silver bars are the best way of investing in silver. All bars are manufactured by refineries of course, and you can buy anything from 5 grams bars up to and over 5 Kilo bars or one ounce up to 1000 ounces.

Every silver bullion bar is marked with the weight, purity and the refiner hallmark. 1000 ounce bars generally weight between 930 to 1080 ounces or around 70 pounds. Not something you can pop into your pocket to take home and show your friends. They are mainly for serious investors and companies interested in preserving and storing their assets and are generally stored in bank vaults around the world.

The principle manufacturers of silver bars include:

Royal Canadian Mint
Pan American Silver
Johnson Matthey
Perth Mint
Engelhard

As well as the one thousand ounce trade bars they also manufacture the one hundred ounce bullion bars that offer silver bullion investors a silver product with a low markup over spot and a bar that can easily be carted around. These are reputable sources and the bars are known in the industry as a reliably pure bulk product.

They are an excellent way of accumulating silver and storing it. The premium is much less than on silver coins and the value of course will continue to grow.

Silver Bar Investment
According to the Northwest Territorial Mint. "Bars of silver do offer an important investment advantage: they carry a low premium over spot silver. Silver bars are also recognized around the world as a trading medium and are therefore very liquid."

Silver bars can be stored in bank vaults, which they often are, or even in your own home or office, although, for the larger bars, that is not recommended. Silver bullion bars are able to be used in an IRA account according to the IRS and can make an excellent addition to a retirement fund.

Silver has been on a steady uptrend for some years and this is due, in part, to the economic uncertainty of our times but also, significantly, to the general shortage of silver in the market place. Most silver produced is used in industry and photographic paper manufacture and only a small percentage in jewelry or silver investment. The amount of silver being mined is less also. However the investment portion is growing steadily as more and more people and businesses see the advantage of storing assets in silver.

It could be said that silver bars have emerged as a popular silver investment because they are uniform in size, easy to handle and convenient to store. But the overriding consideration is likely that silver is seen as a valuable, convenient and worth while future investment.

What Silver Bars to Buy
The one thousand ounce silver bullion bar is considered the industry standard and usually used for trading and storage, but can also be taken for personal delivery, although this is not particularly recommended. Each bar is hallmarked to certify weight and purity. The actual weight, however, can vary by up to ten percent above or below the 1000 ounces. With bars sold to individuals the price is adjusted according to the actual weight.

The one hundred ounce bar is usually reserved for individual purchases. The big advantage with these is the low premium over spot making it a viable purchase for the individual investor. One hundred ounce bars are easy to transport and deliver and can still be sold for spot anytime.

The various bars available include:

One ounce
Ten ounces
One hundred ounces
One thousand ounces
As well as from one gram up to 5 kilos

The larger the bar you can afford to buy the lower the premium on a bar of course. The premium covers the manufacturing costs, admin and profit for the mint or dealer. When taking delivery of the larger bars it is prudent to ensure the shipping is secure and insured.

Where to Buy Silver Bars
Four brands dominate the western silver bullion market: Johnson Matthey, Engelhard, Wall Street Mint, and Sunshine Minting and silver bars are available from these manufacturers for purchase. They will supply silver bullion bars from the 1000 oz down to one or ten grams in some cases.

You can also go to a silver dealer such as monex.com or nwtmintbullion.com who deal in silver bullion bars

One can also go to gold and silver coin dealers. They often sell silver bars as well.

It is possible to buy silver bars at auction as well. On eBay, for example, you can find silver bars for sale. Here you will fine bars from one gram up to 100 ounces. Rarely you would find a 1000 ounce bar. There is plenty for sale here and the bidding on the larger bars is lively. One needs to be sure that the bar for sale is genuine and has not been "altered" in anyway. It is a good idea to pick a Power Seller with at least 99 percent positive feedback. Also it is wise to ensure the seller has a returns policy if the bar is not up to scratch.

Engelhard and Johnson Matthey Silver Bars are probably the most popular however, and one hundred-ounce .999 fine silver bullion bars have become the popular way for investors to buy silver. 100-oz silver bars are uniform in shape, which means they are easy to stack and store.

Storing Silver Bars
A 100-oz silver bar weighs only 6.86 pounds and so are easy to tote around and store.

All 100-oz silver bars are .999 fine, which means that silver bullion investors are able store a great deal of wealth in a small space. Additionally, as 100 oz silver bars are acceptable trading units, they are just as easily sold as they are bought.

With the decreasing supply of silver and the uncertainty about the world economy, silver bars look set to become one of the prime investment resources of the future.

Silver IRA

In 1997 approval was given to accept silver and gold bullion into Investment Retirement Accounts (IRAs). Prior to then only Gold and Silver Eagles were approved.
According to the US Inland Revenue Service (IRS):

"Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U.S. gold coins, or: one-ounce silver coins minted by the Treasury Department."
"It can also invest in certain platinum coins, or certain gold, silver, palladium, and platinum bullion."
Reference: http://www.irs.gov/pub/irs-pdf/p590.pdf

The pre 1965 US 90 percent silver coins, it should be noted here, are not eligible for IRAs investments. They would come under "collectibles" and would possibly incur the 10% additional tax on early distributions.

IRA accounts of course should be designed for the long term and silver bullion is an ideal candidate for an retirement investment. Many IRAs now accept gold and silver bullion coins and gold and silver bullion coins can lay a solid foundation for Individual Retirement Accounts (IRAs), which should be designed for the long-term.

This change was particularly advantageous to investors who preferred silver. All IRA accounts should contain an amount of silver as part of its portfolio. Particularly in view of the healthy rise in the price of silver in the long term.

The only silver coins specifically approved for IRAs is the American Silver Eagle. But silver eagles carry a high premium and are not a very suitable investment unless it is very long term where the high premium can be recouped. In addition the could actually shrink in a rising market. Far better is silver rounds or silver bullion bars where the premium is much lower.

Probably the best silver bullion bars for IRA investment is the one-thousand ounce and one-hundred ounce 999 fine silver bars, sell at a much less premiums to spot. Silver eagles can have a premium of $1.60 or more per ounce.

In fact, one hundred ounce silver bars have become popular for IRAs. They are easy to buy and an IRA investor can purchase them on a regular basis without breaking the bank.

But for a large IRA silver investments, the larger bar you can buy the better and this means the one thousand ounce silver bars with a minimal mark up over the spot price.

Nowadays one can use GoldMoney for a silver IRA investment. Some advantrages include it being an overseas investment, the silver being deposited in Switzerland and London UK and the premium is very low.

Opening an account at GoldMoney is free, there is no minimum balance required and you can always sell your gold and silver back to GoldMoney anytime at the Current Spot Rate with no exchange fee required. You can also swap or exchange between precious metals with no additional fees.

You can open an account 24 hours a day seven days a week at GoldMoney.com.
GoldMoney.com

Probably a mix of silver, gold, property, share and stocks is a good idea for a IRA portfolio. One would need to consult ones financial adviser to work out the best mix for ones own IRA fund or account.

Canadian Silver Maple Leafs

Canadian Silver Maple Leaf Coins are considered one of the most beautiful coins made and are among the most popular of the silver coins made. After the success of the Canadian Gold Maple Leaf coin in 1979, The Canadian Royal Mint, in 1988 produced the first Canadian Silver Maple Leaf. Since then there have been a rich diversity of Canadian Silver Maple Leaf Coins

All Silver Maple Leaf coins, sold in the1 oz. size, are composed of fine 99.99% pure silver. The total weight is 31.104 grams of which 31.10 grams is fine silver.
Each five dollar coin contains one full troy ounce of silver and features the queen's portrait on one side and the famous Maple Leaf design on the other. It also contains the special Titanic privy mark! The coin, when purchased, should be Brilliant Uncirculated (BU) and sealed in its original mint soft clear plastic. The face value is shows as five dollars.

For the original 1988 and 1989 issues, the portrait used was the "decimal portrait" as used on British decimal coins since 1971. From 1990 onwards, the portrait was then changed to one similar to that used on British coins from 1985 to 1997.

The idea of the Canadian Silver Maple leaf coin is to enable people to purchase smaller quantities of silver in the form of coins and the design of the coin was created to appeal to collectors around the world.

The Canadian Mint produces a variety of silver coin which can be viewed at http://www.mint.ca/royalcanadianmintpublic/ Canadian Silver Coins and it is possible to buy directly from the mint.

A good example is the holographic Canadian Maple Leaf One Ounce Silver Coins. The holographic beauty of the coin is produce by a special advance process in which the hologram is struck directly onto the coins surface.

Another good example is the Titanic Silver Maple Leaf coin.

The name Titanic in this case refers not it’s fate but the size of the coin which seems to indicate that it will continue to be very much in demand. The Titanic is a 5 dollar silver coin originally minted in 1988 as a one ounce pure 99.99 percent silver coin.

Each Titanic Silver Maple Leaf coin contains one full troy ounce of silver and features the queen's portrait on one side and the famous Canadian Maple Leaf design on the other. It also contains the special Titanic privy mark! If you can get one, it should be Brilliant Uncirculated (BU) and sealed in its original mint soft clear plastic.

Although it is believed 26,000 of these coins were minted, at the time they were all sold to one dealer. As a consequence they have been in short supply ever since. I is possible, however to locate dealers who come across a small supply and the price

You can often get some excellent deals from established silver coin dealers around so it always pays to shop around.

Canadian Silver Coins are an excellent investment for coin collectors as well as being some of the most beautiful coins available today.

Canadian Silver Maple Leafs are much prized by collectors. Anyone who can manage to get one or more of the 5 dollar Canadian Silver Maple Leaf Coins will be a very happy person indeed!

American Silver Eagles

American Silver Eagles have been the official silver bullion coin of the United States since its first release in 1986. It is only ever struck with a face value of one dollar and carries one troy ounce of .999 pure silver. It is authorized by the US Congress and backed by the US Mint for both weight and content. The coin is minted in the U.S. Mint's West Point, New York facility,

Each coin contains one troy ounce of pure silver and measures 1.598" (or 40.6mm) in diameter with a thickness of .117" or 2.98mm. They are impressively large and substantial coins and are America's only official investment grade silver bullion coins.

It is also legal tender in the US although hardly likely to be used as such since the value of the silver in the coin heavily outweighs the face value.

The obverse design is based on the U.S. "Walking Liberty" half dollar, which was originally minted in 1916 and designed by the German-immigrant sculptor Adolph Alexander Weinman. He was the designer of the famous U.S. "Mercury" dime, also introduced in 1916. The reverse side of the coin features a bald eagle and shield, with 13 stars, representing the 13 original American colonies, positioned above the eagle's head.

The United States Mint also produces proof versions of American Silver Eagle coins for collectors. These American Silver Eagle Proof Coins undergo a specialized minting process, which begins with a manual feeding of burnished coin blanks into presses fitted with special dies. The coin is struck multiple times so the softly frosted, yet detailed images seem to float above a mirror-like field. After scrutiny by white gloved inspectors, each American Eagle Proof Coin is sealed in a protective plastic capsule and mounted in a handsome satin-lined velvet presentation case with its own official Certificate of Authenticity. Since American Eagle Proof Coins are produced by the United States Mint, each coin's content, weight and purity are guaranteed by the United States Government. Each issue of American Eagle Gold, Silver, and Platinum Proof Coins have a limited mintage and can be purchased directly from the United States Mint.

Beginning in 2006, the United States Mint added an additional member to the American Eagle family of precious metal coins. Collectors can now choose to purchase American Eagle Uncirculated Coins in silver, gold and platinum directly from the United States Mint.

Like its proof counterpart, the American Eagle Silver Uncirculated Coin is available in a one-ounce size, while the American Eagle Uncirculated Coins in both gold and platinum are available in one-tenth, one-quarter, one-half and one ounce sizes, as well as a complete four-coin set containing one coin of each size. The American Eagle Platinum Uncirculated Coins carry the same reverse design as the American Eagle Platinum Proof Coins.

In a process similar to that used to create the magnificent American Eagle Proof Coins, American Eagle Uncirculated Coins are hand-loaded into the coining press, struck on specially burnished blanks and carry the "W" mint mark of the United States Mint at West Point.

For collectors with limited resources or funding, one can purchase one or a few at a time without breaking the bank and they are easy to store, transport and, in an emergency, resell.

Along side the Canadian Maple, many consider the American Silver Eagle to be among the most beautiful coins minted anywhere in the world and to buy American Silver Eagles is, understandably, one of the most popular activities of silver coin collectors.

Silver Coins

To buy silver coins is easy these days. There are hundreds of mints, dealers auctions around the world eager for you to buy their silver coins. Coins can be purchased anywhere from your local coin shop up to the big international dealers and mints. In addition the internet has made it much easier to buy silver coins from virtually anywhere in the world.

the question then becomes, not where to buy silver coins but which are the best silver coins to buy. There are many different types of silver coins. Each have their own unique benefits which are favorites with various coin collectors.

Some of the most popular coins for collectors have been the American Silver Eagle, the Morgan, The Canadian Maple and the British Silver Sovereign.

Other collectors like to specialize in rare silver coins, Proof silver coins as well as Brilliant Uncirculated, Silver Rounds, Commemorative and the increasingly popular Piedfort range of silver coins.

But silver coins are not just for the collectors and enthusiasts. They are an excellent value for people in all walks of life as a way of building and preserving assets

Silver coins are easy to collect, relatively inexpensive and expected to increase in value over the coming years as the world silver shortage continues.

Interestingly silver coins, such as the American Silver Eagle, may be used as funding in an IRA (Individual Retirement Account).

The traditional silver coins, such as those mentioned above, are also legal tender in the country they are struck for. The face value of such coins is invariably less than the value of the silver content. But by being legal tender, they are sold as coins rather than as pieces of silver. This means that there is usually no tax. One does not get taxed on coins of the realm. But of course there are exceptions and if it is possible for a government to find a way of taxing something, then sure as large pieces of green cheese are large pieces of green cheese a way will be found.

For example, although you can buy silver coins that are legal tender from the Perth Australian Mint, Residents of Australia pay a Goods and Services Tax (GST) on these coins. In the UK, the purchase of any silver coins, such as the Britannia’s for example, is subject to a Value Added Tax (similar to the GST in Australia only more). Other countries may now have similar taxes. This can apply even when buying collections of the standard coins used in general commerce.

Such taxes do not apply in the USA as yet, (Some state taxes may apply on certain types of coins).

Generally such coins are not collected from an investment point of view, but more for the enjoyment of a collector and the price of the silver coin or coins is not so critical.

From an investment point of view silver rounds and silver bags make more sense as the emphasis is on the silver rather than on the coins and the premium is less so your costs are much lower. Such coins are not considered collectors items. The silver rounds are specifically struck coins for those people who are interested in collecting silver. Silver Bags are collections of U.S. 90% silver coins minted prior to 1965.

So what silver coins you buy will depend largely on your reason and purpose for buying silver coins.

When you have established that, you will know which silver coins to buy.

Silver Bags

Silver bags are probably the best silver investment next to silver rounds.

It was the mid-16th century British Economist, Sir Thomas Gresham, who formulated the principle known as Gresham's Law: "When coins of equal face value but different intrinsic value are put into circulation side by side, the coin with the higher intrinsic value will be hoarded and only the coin of lower intrinsic value will remain in circulation."

This is demonstrated very well with Silver Bags. Silver Bags are collections of U.S. 90% silver coins minted prior to 1965.

History
In the 1960's the Public Law 88-36 was passed to eliminate silver as the underlying exchange for one and two dollar bills. The U.S. government discontinued minting U.S. dimes, quarters and half dollars with a 90% silver content switching instead to the cheaper cupro-nickel coins with less intrinsic value.

Naturally Gresham's Law held good and the pre 1965 silver coins have fast became collectors items resulting in the sale of the 90% silver bag.

Benefits of a Silver Bag
One of the prime benefits of a 90% silver coin bag investment is that the bag has a built-in guarantee, unavailable with many other silver investments. Regardless of what happens to the price of silver, the value of your 90% silver bag will never be worth less than its $1,000 face value since that is the face value of the coins contained therein. If the price of silver dropped (most unlikely given its steady trend over the years and the world wide shortage of silver) you would still have 1000 dollars worth of coins.

Something that is also worth knowing is that when the premium on a 90% Silver Bag moves up, this is a good indicator of the future price of silver. By the same token, if the premium drops, then the price of silver is likely to drop. But you still have your face value remember!

Contents of a Silver Bag?
All silver coins struck in 1964 or earlier were with a purity of 90% silver. The balance being copper and other metals to increase durability. Each Silver Bag usually contains either all dimes, quarters, or half dollars. Generally there are no mixed bags, that is to say they will not contain dollar coins. If you want dollar coins they are sold as Dollar Bags and due to the weight may be shipped as two separate bags.

The Face Value of $1.00 is divided by the coin denomination, i.e. $1 face = two halves, or four quarters, or ten dimes with a total $1.00 face value. Every $1.00 face value is considered 1 oz. of Silver Bullion, but after accounting for wear and tear of general circulation, the average amount of Silver per $1000 bag averages a little over 710 ounces.

These are not proof or even mint coins. They are coins that have likely been used and the condition is going to be good at best and poor at worse. They are collected not for being pretty coins but purely for the silver content.

Future of Silver Bags
Although they are easily obtainable at the present time, there is a limited supply of Silver Bags. No more silver coins are being minted that would be suitable for silver bags. Current silver coins are usually one ounce and mint or proof coins and the premium is high.

Currently, Silver Bags are easily obtained from dealers such as the Northwest Territorial Mint, Goldfinger Coin and many dealers. Some people like to collect them on the premise that if there is an issue with the currency of the day, one can still offer a or some silver coins for purchasing goods and services and the coins will likely be accepted.

But as well as a nice little investment for the future, collecting bags of silver coins can also be a rewarding and fun activity and, who knows, you could even find that elusive silver coin worth thousands when you buy 90% Silver Bags

Buy Silver Rounds

Silver Rounds are silver coins which have been struck by private mints. There are many private mints or manufacturers of silver coins. Such private companies as the Northwest Territorial Mint, Sunshine Silver, The Phoenix Dollar to name but a few, manufacture silver coins and even bars of silver.

Silver rounds are silver coins but have no status as legal tender. Basically they are pieces of silver in coin form. Rounds can be ordered from such mints and even from dealers of course.

The word round was ‘coined’ simply because the silver metal was formed into coins and could be stacked in ‘rolls’ for easy handling and transport. So wherever you see the word 'rounds' bandied about, you can take it to mean coins privately minted.

Silver rounds come in all sizes from less than one ounce to ten kilos and over. The one ounce coin contains one ounce of pure silver and an occasionally alloy, usually copper, to give it more durability. The silver content is usually refined to a purity of 99.9 percent or more.

Probably the biggest advantage of buying silver rounds over the traditional silver coin is the price. The well known and popular coins with numismatics and coin collectors such as the American Silver Eagle, Canadian Silver Maple, Morgans and such like carry a heavy premium. The cost of purchase of these coins can be over twice the value of the silver content. Then there is packaging in a pretty container, shipping, insurance etc. It all adds up and makes it very difficult for the investor to recoup the cost. But silver rounds are a different story. For investors, they are probably the best way to purchase silver coins as far as silver investors go since they are produced in one ounce pure silver coins, can be easily traded and most importantly, have the lowest premium above spot price.

A good example of a silver round is the Pan American Silver bullion coin. Available through the Northwest Territorial Mint, Pan American 1 ounce Silver Rounds are minted from .999 fine silver. They feature the well known silver hammer logo of Pan American Silver on the obverse and a classic miner drilling for silver ore on the reverse.

Another example is the Northwest Territorial Mint own private label 1 ounce Silver Rounds. These are minted from .999 fine silver and feature a set of scales on the obverse and an eagle on the reverse.

The Phoenix Dollar is another one ounce coin available to silver enthusiasts. The Phoenix Dollars is a physical one ounce Silver Dollar .999 fine, and comes with a reeded edge security feature to deter physical debasement. The Phoenix Dollar is weight denominated and, like all silver rounds, the price fluctuates based on the market rate of silver.

There are many silver rounds to be found and with the price of silver on a steady increase to buy silver rounds is probably an ideal strategy for any investment.

Buy Silver

This article is all about silver, how to buy silver, the best ways to buy silver, and what silver coins and bars to buy. It also has information on silver exchange traded funds, silver stocks, silver futures and other silver products and services.

A Short History of Silver

Silver has been in use as a currency for hundreds of years. The first currency of the modern Greek state was called the Phoenix. Originally issued in 1828 in the form of a silver coin equal in value to the French Franc, its official denomination was the lepton.

In Germany in the late 15th century one finds silver coins being used called the Talers. This word has been translated from the German into many other languages including English, resulting in the words daler, daaler and eventually dollar. So the word dollar is not unique to the western world.

Many other examples of these early silver coins can still be found in museums, private collections and perhaps, who knows, many more may be found on future treasure hunts down the track.

Silver currency has many distinct advantages not the least of which is it’s value. Around 1980 there was about 2.5 to 3 billion ounces of silver mined and a surplus above 300 million ounces yet silver was able to break above $50 an ounce at that time!!!

Today above ground stockpiles of silver have dwindled to almost nothing and warehouse inventories are down to 100 million ounces, of which two thirds are already spoken for. Yet silver is absolutely essential for industry, being used in many things from keyboards to phones, refrigerators and thousands of other manufactured goods. Also silver production is mostly a by product of other mining such as lead, gold and zinc for example. There is little actual silver being mined and silver consumption has been outstripping supply for over 14 years.

Unlike gold which, for the most part, is retained in circulation, silver gets used up with the amount of silver left dwindling.

This, coupled with the decline in the value of the dollar and other fiscal currencies around the world, means that silver is seen as an excellent hedge against a lessening of asset value.

This has resulted in the value of silver being on a steady increase for some years.

In the silver market both coins and bars are extremely liquid. In a melt down situation where silver might be at a premium, coins and bars would be easier to barter with.

Buy Silver Coins

To buy silver coins is easy these days. There are many mints and dealers around the world eager for you to buy their silver coins. Coins can be purchased from your local coin shop up to the big international dealers and mints around the world. In addition the internet has made it much easier to buy silver coins from virtually anywhere in the world.

There are many different types of silver coins. Each have their own unique benefits which are favorites with various coin collectors.

Some of the most popular coins for collectors have been the American Silver Eagle, the Morgan, The Canadian Maple and the British Silver Sovereign.

Other collectors like to specialize in rare silver coins, Proof silver coins as well as Brilliant Uncirculated, Silver Rounds, Commemorative and the increasingly popular Piedfort range of silver coins.

But silver coins are not just for the collectors and enthusiasts. They are an excellent value for people in all walks of life as a way of building and preserving assets

Silver coins are easy to collect, relatively inexpensive and expected to increase in value over the coming years as the world silver shortage continues.

Interestingly silver coins, such as the American Silver Eagle, may be used as funding in an IRA (Individual Retirement Account).

Silver Coin Prices

Silver coin value is basically determined by four factors, rarity, grade, quality and popularity.

Rare coins have the highest value of course and the value can be higher than the quantity of silver in the coin. The rarity can be due to the limited number of coins struck by the mint as well as number of coins available or in circulation.

Grade of silver coins can be important. For collectors, proof is the best grade of all and Brilliant Uncirculated the next best. One should not really consider lesser grades unless one is specializing in rare and antique silver coins. The quality of the coin should be as stated for that grade of course

As far as collecting for investment is concerned, then one looks for different factors. Proof coins would not be the best option in this case as the premium is too high and getting a return on your investment on resale is not guaranteed. Proofs are more for coin collectors and enthusiasts than for silver investors. Certain types of coins such as silver rounds would be a far better option for silver investment.

The popularity and the price of many coins depends on which coins collectors like to collect of course. This is really a matter of personal taste. For silver investors it is more a case of, "what coins are going to appreciate in value over the coming years?"

Numismatic Silver Coins

While numismatists are often thought of as students or collectors of coins the term actually covers a wider range to include the actual study and history of coins in general.

Numismatic silver coins, however, could be understood to include all silver coins from the past and this would include such rare silver coins, such as early Morgans, the Double Merk of 1578 issued by Charles the II of England, the 30-shilling coin between 1567 and 1571 struck by James VI of Scotland and the Greek Phoenix silver coin issued in 1828, equivalent at that time to the French Franc.

But several misnomers abound when it comes to numismatic coins however. Not the least of which is dealers labeling some coins numismatic when they are not, thereby justifying being able to sell coins such as the US$20 for example, for a higher premium than if it were not called a numismatic coin. This on the basis that if the government decided to recall all gold coins from circulation (as in 1933), numismatic coins would be exempt. This is quite incorrect as the exemption at that time was vague and generalized. quote, "gold coins having a recognized special value to collectors of rare and unusual coins" (The presidential proclamation of 4/5/1933). US$20 coins are definitely not rare or of special value to collectors.

Some dealers will tell you that the Law in the US defines US$20 gold pieces as 'numismatic" coins. This is totally incorrect and there is actually no law in statute or any regulation to say so.

Together with other factors, such as dealers trying to redefine the definition of numismatic coins has resulted in much false information about sliver coins in the US.

The crunch comes when the time comes to sell and many a silver investor has received a shock to find they did not get the price they expected and, in fact, generally got under spot price for the coin.

A good way to find out what kind of dealer you are dealing with is to ask the dealer the question, "If I was to sell you this coin what would you pay me for it?"

There is little, if any, value for the silver investor to hold numismatic coins, better to convert them into bullion coins

Buy Silver Dollars

To buy silver dollars is one of the main purposes of many coin collectors.

These vary with the year of mintage as well as the condition of the coin. Silver Morgan dollar coins, for example, range from just a few dollars to many thousands depending on the condition and the rarity.

There are also unusual silver coins available from other countries that have a high value. Early Britannia and European coins from the last century are good examples.

Buy Silver American Eagles

To buy American Silver Eagles is probably one of the most popular activities of silver coin collectors and investors.

The U.S. Silver Eagle was authorized by Congress in 1985 and first minted in 1986. All U.S. Silver Eagles are pure .999 fine silver, and are considered the finest silver coins ever minted in the U.S Each coin contains one troy ounce of pure silver and measures 1.598" (or 40.6mm) in diameter with a thickness of .117" or 2.98mm. They are impressively large and substantial coins and are America's only official investment grade silver bullion coins.

Along side the Canadian Maple, many consider them to be among the most beautiful coins minted anywhere in the world.

The obverse design is based on the U.S. "Walking Liberty" half dollar, originally minted in 1916 and designed by the German-immigrant sculptor Adolph Alexander Weinman, the designer of the famous U.S. "Mercury" dime, also introduced in 1916. The reverse side of the coin features a bald eagle and shield, with 13 stars, representing the 13 original American colonies, positioned above the eagle's head. The U.S. Silver Eagle is the official silver bullion coin of the US and is backed by the US government for content and weight. The U.S. Silver Eagle is minted in the U.S. Mint's West Point, New York facility, with a legal tender U.S. coin with a face value of one U.S. Dollar.

U.S. Silver Eagles are an affordable, cost-efficient way to kickstart a silver investment. One can purchase one or a few at a time without breaking the bank and they are easy to store, transport and, importantly, easy to sell.

Morgan Silver Dollar

The Morgan silver dollar is one of the most popular US silver dollar in existence, not only for the silver content or the beauty of the coin but also for the fascinating history of how it came about.

First minted in 1878, the Morgan silver dollar was actually the product of America’s largest silver strike, which occurred at the Comstock Lode in northern Nevada in the mid-1870s. Although it never gained any broad appeal while it was being struck during 1878 to 1904 and again in 1921, the connection to an important period of American History has increase the interest among collectors and made it a much sought after piece. Many of the older Morgans were melted down to make the 1921 Morgans and consequently much rarer.

U.S Peace Dollars

The US Peace Dollars are another example of coins that have become rare. First struck in 1921 to commemorate the ending of World War 1, the Peace Silver Dollar has now become another one of the most popular coins as evidenced by the fact that a complete set of US Peace Dollars can fetch anywhere from 1,100 to 2,300 dollars depending on condition. A complete set would be from 1921 to 1935 with the different mints in the US minting them. The US Peace Dollars were intended to be recalled but it seems there are still some coins available to be found.

Canadian Silver Maple Leafs

Canadian Silver Maple Leaf Coins are among the most popular silver coins coin enthusiasts seek. There is a rich diversity to this coin and a striking example of this is the Titanic Silver Maple Leaf coin.

The name Titanic in this case refers not it’s fate but the size of the coin which seems to indicate that it will continue to be very much in demand. The Titanic is a 5 dollar silver coin originally minted in 1988 as a one ounce pure 99.99 percent silver coin.

Each five dollar coin contains one full troy ounce of silver and features the queen's portrait on one side and the famous Canadian Maple Leaf design on the other. It also contains the special Titanic privy mark! If you can get one, it should be Brilliant Uncirculated (BU) and sealed in its original mint soft clear plastic.

British Silver Coins

The British Silver Britannia is another 1 troy ounce silver coin 99.9 percent fine and very popular due perhaps to having the queens profile stamped on the coin. As with the other coins various years are available and the value of the coins depend largely on the mintage and popularity of each coin.

Australian Silver Coins

Australian Silver Coins are becoming more popular these days. The Australian Silver Kookaburra was first struck in 1990 and the original 300,000 issue was heavily over subscribed at the time. Since then, the Australian Silver Kookaburra has continued to be a very popular coin with collectors.

The Australian 2004 Silver Kookaburra comes in 4 sizes, one, two and ten troy ounces, and a one kilo. The 1 ounce coin is 99.9 percent pure silver and is legal tender in Australia. It has a face value of one Australian Dollar and a weight of 31.635 grams.

Both the Australian Government mint in Canberra, and the Western Australian Perth Mint produce a very diverse range of silver and gold coins.

Buy Silver Rounds

Silver Rounds are coins minted by private mints. The Phoenix Dollar is an example of a silver round. They are basically silver coins but have no status as legal tender. Rounds can be ordered from a mint, Such as the Northwest Territorial Mint for example, who will custom design the reverse and obverse to your specifications. The word round was ‘coined’ simply because the silver metal was formed into coins and could be stacked in ‘rolls’ for easy handling and transport.

So wherever you see the word 'rounds' bandied about, you can take it to mean coins privately minted.

Silver rounds come in all sizes from less than one ounce to ten kilos and over. The one ounce coin contains one ounce of pure silver and an occasionally alloy, usually copper, to give it more durability. The silver content is usually refined to a purity of 99.9 percent or more.

Fort investors, they are probably the best way to purchase silver coins as far as U.S. citizen go since they are produced in one ounce pure silver coins, have the lowest premium above spot price and can be easily traded

Silver Junk Coins

Sir Thomas Gresham, a mid-16th century British Economist, formulated the principle known as Gresham's Law: "When coins of equal face value but different intrinsic value are put into circulation side by side, the coin with the higher intrinsic value will be hoarded and only the coin of lower intrinsic value will remain in circulation."

This has never been so true as it is with Silver Junk Coins, or more properly, U.S. 90% silver coins minted prior to 1965.

In the 1960's when the Public Law 88-36 was passed eliminating silver as the underlying exchange for one and two dollar bills, the U.S. government discontinued minting U.S. dimes, quarters and half dollars with a 90% silver content and switched instead to cheaper cupro-nickel coins with less intrinsic value.

Of course Gresham's Law held good and the pre 1965 silver coins fast became collectors items resulting in the 90% silver bag.

One of the prime benefits of a 90% silver coin bag investment is that the bag has a built-in guarantee unavailable with many other silver investments. Regardless of what happens to the price of silver, the value of your 90% silver bag will never be worth less than its $1,000 face value.

Something worth knowing also is that, when the premium on a 90% silver bag moves up then this is a good indicator of the future price of silver. By the same token, if the premium drops, then the price of silver is likely to drop. But you still have your face value remember!

As well as a nice little investment for the future, collecting bags of silver coins can also be a rewarding and fun activity and, who knows, you could even find that elusive coin worth thousands when you buy 90% Silver Bags

Buy Antique Silver Coins

Although a more specialized activity, antique silver coins can be a worth while activity for the coin collector and investor. This requires a bit more than the usual knowledge of coins and many collectors, specializing in antique silver or gold coins, build up some very impressive and highly valuable collections.

Buy Silver Bars

Silver bars come in all shapes and sizes. Nest to silver rounds, this is an excellent way to buy silver. All bars are produced by mints of course, private and government, and you can buy anything from 5 grams bars up to and over 5 Kilo bars or one ounce up to 100 ounces and higher.

You can also buy silver bars at online auctions as well as privately from individuals and clubs.

It is worthy to note that the 1000 ounce bars carry the lowest premium or mark up the spot price. All silver bars are marked with the weight, purity and the refiner hallmark. 1000 ounce bars generally weight between 930 to 1080 ounces or around 70 pounds. Not something you can pop into your pocket to take and show your friends. They are mainly for serious investors and companies interested in preserving and storing their assets.

These are an excellent way of accumulating silver and storing it. The premium is generally less than on silver coins and the value of course will continue to grow.

According to the Northwest Territorial Mint. "Bars of silver do offer an important investment advantage: they carry a low premium over spot silver. Silver bars are also recognized around the world as a trading medium and are therefore very liquid."

Buy Silver ETFs

The idea with silver ETFs (silver exchange traded funds), is that an investment in certificates backed by silver, administered by banks and brokers, are traded instead of actually trading or buying and selling real silver.

When the gold ETF was launched, it took off like a rocket and there is considerable speculation that the silver ETF will do the same.

It is entirely possible that the launch of silver exchange traded funds is going to ride on the back of the deficit in silver supplies and this would help to boost the value of the ETFs.

However, you do not have the same amount of control over your holdings as you would by actually holding silver coins in your hand. You are more dependent upon the market force outside of your control with ETFs

One important issue to consider when purchasing ETFs is that of tax. Whereas buying silver coins generally incurs no tax since the coins are a legal currency, silver ETFs are considered an investment and one may be subject to some form of tax, such as capital gains for example. One should, as with any investment strategy, consult with your financial advisors, before embarking on any silver investment of any kind.

Buy Silver Stocks

To Buy silver stocks, especially silver futures can be a hair raising experience indeed.
The value of stocks depend not on the spot price of silver but on the management habits of the company in whom one has the shares as well as the effect of market forces. Along with the tax implications of owning shares, this can introduce other factors which may interfere with the value of your holdings.

This is an area best left for the professional stock investor.

Buy Silver Futures

Silver futures are a very precarious way of investing in what you think silver is going to be worth sometime in the future. Playing the silver futures market is a bet that the value of silver will either increase or decrease over a specific period. This is like playing the roulette wheel as of course you have no control over what silver is going to do in a specific period. You may consider that silver will rise, for example and so play the market in that expectation. But if it does not rise within the time period specified it can end up costing you much more than your original investment. You not only have to know if silver is going to rise but also when.

Playing with silver futures can result in a gigantic loss if a wrong call is made. Remember, you are competing against experienced professionals in the field who play with vast amounts of money for a living and can afford some of the losses likely in this arena. The purchase and ownership of actual silver is far safer and guarantees that you will have the value of the silver all the time you actually own the silver coins or bars.

Conclusion

To buy silver coins is not only a rewarding experience, it can be a profitable one too. There is heaps of information about particular coins and types of silver available. You can easily find out what is your personal preference when it comes to buying silver coins and bars.

Provided one does a bit of study and browses around one can pick up some real bargains when you buy silver coins and bars.