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Silver Bullion - What are silver
certificates?
Silver certificates in the context of the
Silver
Bullion website can refer to one of two types of silver certificates: The first type refers to silver
certificates used to buy and sell physical silver without the need to move the
physical silver. The second type refers to silver certificates or representative money used in the issuing of
U.S. Dollars from 1878 to 1964.
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Physical Silver vs. Paper
Silver
Silver certificates: First type…
Silver certificates of this type allow the
silver investor to buy and sell silver without the
need to move the actual physical silver. Yes, it can save time and money
associated with the transfer of actual physical silver, but like most other forms of paper silver, it leaves the door wide open for
silver market manipulation and other
abuses. It also exposes the holder of silver certificates to a great deal of risk when it comes to silver confiscation. In fact, the “Perth Mint
Certificate Program (PMCP) is the only government-guaranteed silver-certificate program in the world” (Wikipedia). However, the true silver investor knows that
even participating in the Perth Mint Certificate Program (PMCP) presents an unacceptable risk, because the
guarantee that is provided by the Australian Government is just as strong as the relevant government
itself. During times of great political and economic distress, you bet chances are good that they’re not going
to honor such guarantees, even assuming that they did honor it at the time this was written. Be sure to have a
look at the second type of silver certificates on the next page and you will see why such a guarantee
is up to scratch at best.
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