The Importance of Education When Investing in Silver by anamaulida


									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.

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