When starting a silver investments, there are 4 major types of silver to consider investing in:
1) Coins
2) Bars
3) 90%
4) Loose
Coins
Coins may be general or collectible. Generic coins are often called "negotiating rounds." Collectors Items coins are often referred to as "numismatic" coins, a hobbyist term based on the Latin word "numisma" for the coin.
Generic coins, or rounds, generally produced by private mints, which creates coins with interesting patterns, but has no soul or special value attached to them. They are commonly printed with the words ", 999 Fine Silver" and "One troy ounces" to make the content of the coin ready. The value of a round is based on the content of the precious metal, not for the condition or rarity of the coin.
Numismatic coins are almost always more expensive to buy than generic rounds and usually a premium price when you go to sell them. Like generic rounds, they often indicate purity and weight of metal on the coin, but unlike the generic rounds, they have a perception of value to the public in addition to their precious metal content. These coins are often sealed in airtight packages and have a professional numismatic association's rating associated with it.
Examples of numismatic coins include the American Eagle and Canadian Maple Leaf coins. Each of these coins typically require a price 10% -20% higher than a generic coin of the same weight and quality. Some items are very rare and require a price that makes their precious metal content insignificant as far as their value, such as the child's 1804 silver dollar sold at auction for over $ 4 million.
In general, investors prefer generic rounds of numismatic coins. While currency dealers sell American Eagles at a premium, for example, they will often not pay the same premium when you sell the medal back to them.
Coins can be purchased in bulk from major distributors, or can be purchased by ounces of coin shops across the country. Almost every county in America has at least a coin shop, and their book may contain dozens of items, or can be completely sold out during periods of high demand from investors.
Bars
Many investors prefer bars for their investments. They are easier to stack and store than coins, and is accessible to a much greater weight than the typical one oz coin. Bars are in a ounces, five ounces, ten grams, 100 grams, 400 grams, and 1,000 ounces varieties in the United States. Bars can also be found in the unequal weight, such as 105 troy ounces, but it will still be considered a "one hundred ounces" bar. When you buy bars, you have to pay for the actual weight of the bars you buy.
Some companies manufacture rods specifically to invest such as Johnson Matthey and Engelhard, and these bars are beautifully designed and polished for display. The second type of bars you can find will be a general manager block with the weight of the bar, "999", and perhaps the company's logo embossed around the plunger on it. These bars are meant more for industrial use instead of the investor, but has seen the same value for investors as beautifully designed and polished bars. On the open market, "investor" rods could carry a small premium, but for the most part, bars equal weight to bear the same value.
Beams are more rare to find in the coin shops than rounds, but they are available from time to time. More likely you will buy rods from a large dealer network by phone or online. Popular retailers include APMEX Bullion Direct, and you Tulving Company.
90%
American coins minted before 1965 (except Nickels and ear) contained 90% silver and about 10% copper. Back in the old days, our money represented something we could melt down, and it would indeed be a valuable metal. From 1965 to 1971, the United States cut back on use silver to a 40% formula for coins, and after 1971 the precious metal content was gone.
Sacks with 90% silver coins can also be seen in the coin shops or at auction on eBay. Again, there are some coins valued purely for their metal content, and some are valued because of their issue date has been rare and falls in numismatic category. Again, most investors stay clear of numismatics as generic coins are easier to sell to their full potential value.
Loose
The last category of investment is silver metal, which is loose. Many investors have items that were perhaps meant for the industry, or have been packaged in unique ways. For example, recently one of the largest online retailers ran out of rounds and bars, but was willing to sell silver "shot." It was just small ball-shaped pieces tossed in a bag. Other options include wire, or sheets, which were clearly meant for some industrial uses. Or maybe you've inherited some sterling dinnerware, which has no collector value.
No matter which market it was created, when it reaches your hands, it is still valuable as an investment. Sterling contains only 92.5% of the precious metals, so it's not as valuable as the "fine", 99.9% black, but not sell it in your garage sale. These points will be harder to sell than coins or bars, but the coin shops, scrap yards, and eBay are all reliable opportunity to receive 80% -95% of the precious metals market you hold.
Brian A. Brown
Silver investment author and silver investor
http://www.silverinvestment.org/
Article Source: http://EzineArticles.com/?expert=Brian_A._Brown
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