To Buy Silver

Hi Everyone and Welcome to the Site!

If you’re new to silver investing, start reading right here.
If you’re an old hand, scroll down for some fresh material.

 

Introduction


When considering places to park your hard-won dollars, your many options can confuse you and oftentimes even stop you from making a move.  Why not just keep your money in the bank or some sort of fund?  You can earn some interest and your money is safe there, no?  I will tell you right off the bat that, in my opinion, in our current economic environment, this is the worst thing you could do with your money.  Before I go further, I must say that I am no financial advisor; I am not licensed as one, and any opinions that I present are just that – merely opinions that you can choose to act upon or not. 

That said, have you seen a chart recently that shows the purchasing power of the dollar since 1913 (coincidentally the same year that the Federal Reserve took over the country)? 

Here is your reason to buy silver

Over the last 100 years, the dollar has lost over 95% of its value and we’re not stopping there.  Inflation is often thought of as a rising of prices; however, the true definition is a loss of value of the dollar.  How does a dollar lose value?  Simple:  Print more of them!  And boy are we.  The Fed, through its various forms of money printing (think Quantitative Easing) are creating billions, yes billions of dollars… per day… PER DAY (118 million dollars per hour… now close your mouth and continue reading).  That means that every dollar that gets created (this is done mainly electronically, not through actual printing in case you didn’t know) lessens the value of every electronic dollar that is sitting in your bank or fund.  That is  shocking to contemplate, but nowhere near as alarming as what is possibly coming to a Western Banking System near you – the BAIL-IN (think Cyprus).  I won’t go into details here, but basically governments are busy justifying their imminent ability to take your funds in bank and retirement accounts in exchange for government bonds so that they can pay off the outrageous debts that they are accumulating by spending too much and then printing too much money…!  Check out Jim Sinclair’s website.  He’s a great guy and a strong proponent of real money and GOTS – Get Out of The System. 

To Buy Silver

Speaking of “real money,” when you come right down to it, there are only a couple of forms around these days.  No, I’m not talking about Bitcoin – ha.  I’m talking about the metals of Kings, of the Sun and Moon; the “barbarous relics” that have been known as money for literally thousands of years.  Gold is the King, of course, but for our purposes, we’re going to focus on the Queen – “poor man’s gold”: Silver.  Why? Mainly because it’s more affordable for the poorer man.  It’s more accessible and it comes in some more practical forms than gold. Also, as you will learn through the reading of these articles, the fundamentals at this time strongly favor silver over gold.

silver spot price

You want to get yourself some of these!

The Title of this article reminds me, and I ask forgiveness of my younger readers here, of the Twilight Zone episode entitled “To Serve Man.”  I won’t tell you the plot, but the title can be read a couple of ways; therein lies the drama.  I can assure you that To Buy Silver contains no double entendres.  Throughout this series we’ll discuss silver value and we will discover how to buy silver, where to buy silver, the best place to buy silver and the best way to buy silver.  Notice that you’ve got some hyperlinks there in that last sentence.  If you’re a bit antsy and you want to get right to it, go ahead and click a link that will take you directly to that topic.  You can also see a list of articles in the sidebar on the right.   When it comes time, you’ll want to sell some or all of your silver.  “For dollars?” you may ask.  When it comes time for selling, anywhere from two to ten years from now, the economic world as we know it today will be much changed.  But that’s a conversation for another time.   We’ll discuss how to sell our silver and where to sell silver, and if you’re contemplating grabbing the silverware and heading off to one of those “cash for silver” joints, please hold off until you read a little bit more.

Volatility of Silver

Before we go further, I will tell you right off that silver is not a coward’s game.  It is for the brave and self-secure only.  Let me ask you:  Do you like to ride roller coasters?  If your reply is in the affirmative, then silver might be an investment vehicle for you.  Gold experiences volatility.  As the price has risen almost 1000% since the beginning of its bull market in 1999, it has experienced some serious drawdowns.  In fact, here in Summer 2013, we are finishing up one just about now when gold plummeted from $1900 to around $1200.  That’s over 35%.  Silver, and you might want to sit down for this, reached its most recent high in 2011 at $49 and is currently plumbing the depths of this correction at around $18.  That’s a might big drop, and personally I’ve been riding it all the way down, kicking myself some days for not selling a little around the peak (I had planned to sell a 1000 oz bar the week of the peak, believe it or not) and still comfortable on others when I realize that I bought a lot of it between $5 and $10 way back when.  And then when I consider the options (dollars or stocks or bonds) , I know that I’m doing the sensible thing by hanging on to the metal because I know that this correction will end sooner than later and we will be hitting new highs once again.

silver bar chart1Instability

So how do I know that new highs are a’ comin’?  Well, being the financial advisor that I am not, I cannot tell for sure, but a quick check of the nightly news tells me that things in our country, and around the world are pretty shaky.  In the past, when world economies get shaky, there’s been a run to the dollar.  This has been demonstrated yet again over the last few months, as per usual, but it is the status quo is no longer.  The dollar is ill, like an over active immune system, it keeps producing antibodies (dollars) that will eventually kill the system.  So if the world cannot rely on the dollar any longer, what will the world do?  They’re going to do what you’re going to do: buy some silver.  And that is what is going to send the price to the moon.  The only thing is, you’re going to buy it much sooner than the rest of the world – like right now when the price is lower and then you will appreciate the massive appreciation of your holdings.

Silver Paper Games

Much has been written about this latest price crash in silver.  There are plenty of cries of manipulation by several banks (JPM is a main culprit), and much too obvious passivity by the US government (CFTC).  Ted Butler has done amazing investigative work in regard to this topic and I suggest you check out some of his work and maybe even subscribe to his service.  The oddest thing about this latest price drop is that while the price has been dropping, demand has been rising… strongly and steadily.  This phenomenon flies in the face of basic economic theory.  There’s been plenty of talk as well about a silver shortage.  Some, like Mr. Butler, claim it’s obvious that there is.  Others say it’s just crazy talk. 

Buying the Precious

My friends and readers often ask what form of silver should I buy?  We’ll discuss how to buy silver coins and where to buy silver coins.  We’ll also discuss the best places where to buy silver bars.  And what about junk silver?  What’s that you ask? Is that some form of discounted, cheap silver knock off?  Patience, grasshopper, we’re getting to it (or just click on the link.)  What about the various incarnations of the genus ETF Silver?  Well, we’ll discuss that too.  If you choose to go the physical silver route, you’ll need some place to keep your holdings (amassed silver can get a bit… bulky).  We’ll discuss that too.  More to come, friends.  Buckle up!

I’d like to officially welcome you to our site and hope you gain and learn from it.  I’d like to hear from you as well.  Please let me know if you have any comments or questions.  You can click on the “Contact” page above to reach me, or share your comments at the bottom of any article.  Also, be sure to link to the site on your favorite forums and/or social medium, and sign up for email/RSS updates on the right sidebar.  Thanks for joining us!

Joe


2 comments

  1. silver says:

    From a reader’s email –
    hi am new to this game found your blog really interesting invested in silver bullion and a little gold back in april after reading many different articles by different analysts got in just before it seemed to bottom out watched it move down for months previous to buying now seeing some movement up so starting to feel a bit happier about my purchace would like to subcribe to your site thanks colin

    Reply-
    Hi Colin- Good to hear from you. Yes, this correction has been rough couple of years, with a lot of calls for a bottom all the way down. I’ve got a new article coming out about all of the “noise” in these markets. I’ll get you on the (newly formed) list.

    Please don’t be a stranger, and feel free to hit me up with questions and share your experience. Also, please link to any articles that you enjoy on your favorite forums. Welcome! Joe

  2. silver says:

    From Thomas: I have traded some gold for silver last week and just wonder at what ratio should I sell and buy gold or should I hold on to the silver? Just need some guidance since I am new to all of this!

    Response: Hi Thomas-
    Good to hear from you! An excellent question you asked, sir. If you read our gold silver ratio article, you know that the well-accepted ratio is about 15:1. During the last rise into 2011, the lowest the ratio reached was in the low 30s.

    I’m not a buy/sell all at once kind of guy. So, what I plan to do is start my swapping of silver to gold in the 30s a little at a time and see just how low we’ll go. I’m not sure how much I’ll swap just yet; I’ll see how the market looks at that time. I’ll probably take a small cash position as well.

    It was a wise move to get some silver, Thomas. You’ll definitely get more bang for your buck with it. Be aware of the dark side (greed) when price zooms up.

    Sign up for email updates if you’d like and feel free to link to us, Thomas. Welcome! Joe

    PS- Also, this was not – repeat – was not investment advice! I am not licensed to give it and all comments herein should not be deemed as such. Make sure you’re doing your own research. Investing in anything, especially silver, can be risky. J.

Leave a Reply

Your email address will not be published.