VIEWS: 0 PAGES: 1 POSTED ON: 2/12/2012
New investors looking at investing in physical silver for the first time will find that they have many choices available to them. However, without proper financial education, most investors will not know what type of silver is valuable and what is not.For example, I have seen ads on TV and in newspapers leading some investors to think that Numismatic or rare coins may be the best route for finding the best silver value. While it is true some of these coins are incredibly valuable, they can have huge premiums and can be subject to whatever a dealer or current demand is for these type of coins.Silver Jewelry is another area where investors may go to find value. While this is also one way to cash in on this silver bull market, there can be many interpretations on the value of a particular piece of jewelry by various dealers, pawn shops, the internet, etc... Another downfall to this type of investing is the temptation of fraud from the various sources listed above.Silver bullion is in my opinion one of the best ways to begin investing and adding value to a new portfolio. There are many ways to do this from investing in "junk silver" all the way to buying 1000 oz silver bars.In reference to "junk silver", I am referring to pre-1965 U.S minted coins. For example; a 1932-1964 Washington quarter is made up of 90% silver and 10% copper. If you use a spot price for silver of $30.36 as of today, these quarters have a face value of.25 cents, but a market value of $5.49 per coin!Another great reason I like investing in "junk" silver is the relative low premium that is added on to the sale of these coins. For example, some silver investors believe that 1oz american silver eagles are the best type of silver bullion to invest in. While this author will not dispute that opinion, at times these coins can have incredible premiums over the current market spot price. One instance of this was back in the fall of 2008 during the collapse of Lehman Brothers on wall street. At that time the paper spot price of silver fell all the way to $8 and change, and the cheapest price I could get for american eagles at that time was $15 per coin! That is a 80% premium over spot!Those who are interested in finding the best silver value will find that pre-1965 coins are one of the best investments that are available on the market, and there are many different reasons why investors should consider getting these coins for investment purposes.But all of this aside, the BEST investment in silver that one can make is to one's becoming educated in the silver market. Without proper education, it is very easy for a new investor to be misled and end up on the wrong side of the coin.
"The Importance of Education When Investing in Silver"