Purpose of Buying Silver
What do I want to accomplish by buying silver? This is one of the first questions you should ask yourself, especially when you are not sure whether you should buy silver bullion bars (silver bars), silver coins, especially silver bullion coins, or coin silver. The reason for this is because certain forms of silver are more suitable for certain purposes of buying silver than others.
Investors normally buy silver for one of three main purposes: Investment purposes, inflation hedge purposes or survival purposes, although some buy silver to serve two or all of the mentioned purposes.
Silver for investment purposes
Buy silver for investment purposes when you purely want to benefit from an increase in the silver price based on supply and demand. You basically buy silver at current price levels with the hope of benefiting from an increase in the silver price (as a result of an increase in demand or a drop in supply or a combination of both). It’s important to consider silver market manipulation when you decide to buy/acquire silver for investment purposes, especially over the short-term.
Depending on the size of your budget, we recommend you buy silver bullion bars (silver bars) when you have a substantial amount available to invest in silver. If not, we suggest you buy and store silver coins, especially silver bullion coins. The only reason we recommend you buy silver bullion bars (silver bars) when you have a substantial amount available to invest in silver, is because silver bullion bars (silver bars) can be a more compact form of silver than coins once one goes over a certain threshold. This threshold is determined by the current silver price and the money you’ve got available to invest. It is by no means set in concrete or cement which means a good measure of old-fashioned common sense should suffice.
However, despite the amount available to you to invest in silver, we recommend you give preference to silver bullion coins if you can afford it. The reason for this, at least from a South African perspective, is that silver will cost you less per troy ounce in the form of silver bullion coins ordered and delivered from overseas than silver bullion bars (silver bars) bought and delivered in South Africa.
In fact, if you buy silver bullion bars (silver bars) in South Africa, you can expect to pay premiums of 50% and more on top of what it would have cost you to order and deliver silver bullion coins from overseas instead. This means the silver price has to more than double for you to break even! More than double, because the cost comparison is made between the buying and delivery of silver bullion bars (silver bars) and silver bullion coins.
You should also not forget that most dealers will take commission the day you decide to sell your silver. Needless to say, the dealers or sources one uses to order or buy silver bullion coins from overseas play a vital role when it comes to keeping the cost per troy ounce as low as possible. However, in South Africa it’s virtually impossible to buy silver at reasonable prices, especially in the form of silver bullion bars (silver bars) and silver bullion coins.
For example: The buying of silver bullion bars (silver bars) in South Africa, especially from a private investor’s perspective, can be very expensive. The reason being is the fact that thus far only one company in South Africa has received approval and permission to produce and sell minted bullion bars to South Africans (at the times this was written). This means there’s little or no competition in the relevant market segment, the very reason why they feel at liberty to sell silver bullion bars (silver bars) at extremely high premiums to the spot price of silver! .
Silver for inflation hedge purposes
Buy silver for inflation hedge purposes if you expect inflation to get out of control. It’s after all no secret that inflation, especially hyperinflation, can eat pretty fast into the value of money which is in the form of worthless non-redeemable paper notes (fiat currencies)!
In fact, hyperinflation can destroy the value of non-redeemable paper notes overnight, making the notes worthless for any transacting in the real world. This happened several times in history and will happen again due to the “paper gimmick”! The notes will be dumped in the streets or at best used for wall paper!
On the other hand, silver would always have intrinsic value which equates to true or real value as opposed to perceived value and had been and can be used as money again. The reason for this is simply because silver cannot be created or destroyed. Silver retains and even increases in value when hyperinflation destroys fiat currencies and the monetary system, including banking systems, collapses. If you believe hyperinflation is going to be a problem, but that the monetary system (including banking systems) won’t collapse since you believe they will be able to bring hyperinflation under control, then you can safely invest in silver by buying almost any form of silver bullion. We do however recommend that you avoid numismatic coins as far as possible, except if you wish to go for a “double play” in terms of benefiting from the melt value of silver and the collector’s value (numismatic value).
In addition to the above, despite the form of silver you decide to buy as a hedge against inflation, you want to be certain that you don’t overpay for any silver content at the end of the day. A significant part of getting this right is education, a great deal of patience, and believe it or not, a pinch of luck!
Silver for survival purposes
Buy silver for survival purposes when you expect the worse to happen. Many of you may grin or even laugh when reading this, but when the monetary system (including banking systems) collapses and fiat currencies go down the drain, it will most definitely not be a laughing matter, especially if you don’t own any gold or silver.
History has proven more than once that non-redeemable paper notes (fiat currencies), not redeemable in gold or silver, all eventually become worthless. In fact, the history of fiat currency has proven that even paper money or paper currency backed by gold and silver has been open to abuse at one stage or another, the issuer had either started to print more paper notes than the gold and silver available to back it, or replaced it in full with non-redeemable paper notes which can only be used in a debt-based currency system. Please watch the video below which will give you a pretty good idea of what has been going on for ages and is still going on today!
As can be seen from the video above, the Federal Reserve in conjunction with corrupt government officials, who have been bought and paid for, is not only designed to enrich a selective few at the cost of hard-working, decent Americans, but to destroy America and many other countries in the process, including South Africa! In fact, we don’t know of any country on the face of this earth where the “paper gimmick” has not and is not being used to enslave and destroy people and their livelihoods. We feel it’s our duty to warn as many of our fellow citizens as possible before the card house comes down! What you do with the info presented to you is entirely up to you. You should however consider the risk of not taking our advice to heart. By following and repeating a few simple steps, you can reduce the risk to you and your family substantially!
Silver Bullion recommends that investors buy small silver coins and coin silver for survival purposes, especially pre-1965 U.S. 90% silver coins and 1-oz silver rounds. The reason for this is because silver in this form can easily be used as money to barter for goods and services. You for one don’t want to buy silver bullion bars (silver bars) for survival purposes. If you do, you must be prepared to face the challenges presented by its size in terms of security, bartering and more.
Why do you leave paper silver out of the equation?
You may be surprised that we leave paper silver (silver certificates, silver exchange-traded funds, silver shares, silver accounts, silver derivatives and silver spread betting) out of the equation. Frankly, all forms of paper silver present unacceptable risks to us.
For example: Silver derivatives, especially silver futures, are deemed by us and many others as a scam similar to the “paper gimmick”. The fact that the amount of paper silver or “short” silver exceeds the actual amount of physical silver available by a very large margin is worrying to say the least.