Monday February 6, 2012      
 

COMMISSION FEES:
3% front end commission - 0 % back end commission for all orders

   
Silver

Junk Silver Bags
The most popular way to invest in silver bullion is the 90% U.S. silver bags.  Silver bags can be made up of dimes, quarters, or half dollars which are dated 1964 or earlier.  The industry estimates each bag which contains a face value of $1000.00 has 715 troy ounces of actual silver.  Bags can be purchased in the following sizes:  one-quarter, one-half, three-quarter or full bag of silver.

There are several advantages when acquiring bags of silver.  First they provide small increments for barter.  Secondly, the bag carries a low premium over spot silver.  Thirdly, they are legal U.S. tender.   Finally, silver bags are recognized around the world as a trading medium and are therefore very liquid.

An investor should expect to pay around melt value plus 3% to 4% which includes dealer premiums and commissions.  Generally an additional premium is levied for half dollars over dimes or quarters.

Silver Rounds

Silver Round wpeF.jpg (4085 bytes)

Silver Rounds

Silver rounds are popular because of their appearance. They are new minted coins which come from private mints (i.e., Johnson Matthay, Engellhard, or Credit Suisse). Silver rounds are also available from other U.S. private mints. Premiums and commissions can run from fifty to seventy-five cents over the spot price of silver. While premiums vary depending on the particular mint and market demand, these coins are excellent for barter - especially since junk silver is not as widely recognized by the public.

When liquidating, premiums among dealers is larger than those of junk bags. However, due to the new shiny look, feasibility studies have shown the American public likes and identifies silver rounds as something they would take over silver bags.

Silver American Eagles and
Canadian Maple Leafs

American Silver Eagle American Silver Eagle

Silver American Eagle

Silver Candian Maple Leaf - Obverse Silver Canadian Maple Leaf - Reverse

Silver Canadian Maple Leaf

While the silver American Eagle and Canadian Maple Leafs are also one ounce coins, they do carry a higher premium since they are issued by governments. These coins can cost an investor between $1.40 to $1.65 over spot silver. The beauty of these coins, however, is unsurpassed by other silver coins. Further, they are readily recognized by investors all over the world. Even though their premiums are higher than silver rounds, it is a good idea to hold some of these coins due simply because of the recognition they command nationally and internationally., Remember when liquidating in the future, these will bring a higher premium. Possibly as the price of silver rises, their premiums will rise as well as has been the case in the past.

The Australian Kookaburra
Silver Bullion Collector Coins

The Australian Kookaburra

The Australian Kookaburra is the only major, legal tender, pure silver coin to change its design yearly.

The 1997 coin's design depicts two kookaburras sitting on a branch, and is the eighth design in the series.

Only 300,000 of these coins are produced annually for sale worldwide compared with the millions of its competitors.

Australian Kookaburra Obverse 1oz

Technical Specifications Of the Australian Kookaburra

Silver Bars
Silver bars can be accumulated in either one, ten or one hundred ounce bars which are issued by major refiners (i.e., Johnson Matthay, Engelhard, or Credit Suisse).  If unconcerned about barter and when looking at investment potential only, these bars are an excellent medium to hold silver.  Like gold bullion, one can hold silver bars within a fungible program so that the investor never has to take possession of this heavy metal.  Premiums on bars are relatively low and silver actually sells below melt value when liquidating.  Therefore, one can usually buy one hundred ounce bars at spot or spot plus two percent (inclusive of premiums and commissions).