How to start Investing in Silver
“…Owning Physical Silver and Gold is the best policy against Inflation, Deflation, Currency Crisis or other economic upheaval that our governments and banks have prepared for us through banking system of creating money out of debt, through insatiable appetites of government apparatus and Free Trade / World Trade which removes manufacturing from our countries and replaces it with telemarketing. Own something of value that everybody recognizes and that is never going to become a “zero”. In current economic situation we are nearing collapse of the almighty Dollar and that is a reality. Don’t be left holding governments and banks IOU’s in the form of paper, own real Silver and Gold.“
To start investing in Canadian Silver or Gold is simple. Just start buying it. However simple questions arise:
- Where do I buy Silver or Gold in Canada?
- What is a safe practice?
- How do I know it is Silver?
- What is the price of Silver ?
- How long do I hold the silver for?
Where do I buy Canadian Silver or Gold?
Silver or gold can be bought just about anywhere. We will cover more specifically this topic in it’s own page ” Where and how to buy Silver” , but here is a broad overview of possible places to buy Silver and Gold. Silver and Gold can be bought in various forms in various places.
On the Internet: You can buy Silver and Gold from a reputable Bullion dealer online, or on commonly known and used websites like EBAY, Craig’s List, KIJIJI, Various USED -type Classifieds by locality. There are numerous internet based dealers that will carry a wide variety of bullion products like coins and bars.
Through local newspapers and ads you may find a variety of places that buy and sell Silver and Gold. Pawnshops, Coin Shops, Antique Stores, Hobby and Stamp shops even.
Last but not least your local bank will order Silver or Gold for you.
What is a safe practice?
Familiarize yourself with types of coins and bars available, their dimensions, identification marks, stamps, or brands, and best of all stick to the well known, commonly traded types like the Silver Eagle coins, Maple Leaf coins, NTR bars, Royal Mint bars, other well recognized products.
How do I know it is Silver?
Silver is not magnetic, so if you are buying something on the street or in a pawnshop, carry a high power magnet like the rare earth magnets available at Lee Valley.
Silver has a very nice ring to it, bell like, bright and loud ring if struck with metal object.
It is highly unlikely that official minted coins could be faked, but be careful with unmarked bars or scrap also the silverware and silver household items. For more info on Sterling Silver and Junk Silver visit dedicated page that will describe those markets in detail.
What is the price of Silver ?
Market price of Silver and Gold is referred to as a “SPOT”! Spot price reflects only the value of traded silver stocks or ETF’s, which as we know have no relationship to physical silver. Overinflated ETF Silver market is believed to be manipulated and kept low for variety of reasons. Physical silver is valued higher then spot and you can see the relationship between spot price and Maple Leafs price difference.
As the type of investment varies so does the price. Premium coins like Canadian Maple Leafs are priced always a little higher then the spot price. But they are also sold at a premium too. So depending on the type of investment, the price will reflect it’s value in Silver and as a type of investment. For example at spot price may be of 27.00 USD per Oz , Maple Leafs are 34.00 and Sterling Silver items are 16.00 Oz. The price difference is justified, since you will have a hard time paying for gas at a gas station with a silver spoon then with a Silver Maple Leaf coin, let alone an ETF with no delivery options. Keep in mind though that local and private sales may have a higher price but it is justified by the fact that the transaction is instant, no shipping charges, and no paperwork of any kind.
How long do I hold the silver for?
Through history Silver has shown it steady growth or I should say a steady position against inflation, currency crisis, and all kinds of economic upheaval.
There are many opinions and strategies in long and short term investments, however one thing is certain that the silver is able to hold its value, grow at a steady rate, and has potential for an explosive growth in the short term.
Right now there is much talk about Silver and Gold price manipulation by the FED, JPM, HSBC etc. Whatever the outcome of that is, Silver will likely to continue to grow and be a good part of your overall investment portfolio for a multitude of reasons.
Set your own goals for long or short term, pay attention to the market and enjoy the ride.