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Your Guide To Buying Silver

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Copyright © 2014 by Weiss Research Published By: Weiss Research Publication Date: March 2014
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Your Guide to Buying Silver: Why You Should Invest in Silver and How to do It
Most of us spend the better part of our lives working and planning for the future. We scrimp. We save. We defer present consumption for our future good. But what most Americans fail to realize is that all of the money we've earned and saved over the years is itself not reliable. By the time we choose to use it, it has lost value. And we have not only been cheated out of a part of our past but we have also been robbed of present and future  benefits. And what's worse, is it's happening right under our noses. History is littered with governments
 — 
 primitive and brutal ones, kingdoms and religious oligarchies, modern nations, fascist, communist, and democracies alike
 — 
that have corrupted the money they issue to their own advantage and to the detriment of their people. Even today's electronic, digital money is manipulated. Its corruption is very similar to the corruption of paper money. Just as more paper money is created by running the printing press, more digital money is created by a keystroke of a computer. By inflating the money supply, the value of the existing money
 — 
your savings
 — 
is diluted in the process. We are cheated out of our very own hard-earned money. Preferring not to be cheated, for thousands of years people have preferred gold and silver as money. As fiat government monetary systems break down, just as we are experiencing with both the euro and the international dollar reserve standard today, people are turning away from state-sponsored money and turning to precious metals as a superior standard of commerce and store of value.
 Important: While we are still very early in this process today, it is accelerating.
 While the monetary nature of gold has never quite been forgotten
 — 
nation states like the U.S. still hold gold reserves and central banks even demand gold collateral when lending to one another 
 — 
the monetary qualities of silver have been both out of sight and out of mind. And therein lies your opportunity.
A Powerful Case for Silver
Although silver has been used for commerce in more times and in more places than gold, it is not surprising that its monetary role has been eclipsed by its amazing applications in modern technological usage. Silver is prized and almost indispensable in solar energy, medicine, electronics and the in digital world, as well as in nanotechnology.

 
Despite the relentless growth in silver demand in modern industrial applications, it is important to remember that silver also has many desirable monetary qualities as well. Some of these qualities include:
 
Silver cannot be created out of thin air. Unlike fiat money, the supply of silver is limited. It is not subject to the value-destroying sudden and sharp inflations so characteristic of  paper money.
 
Silver has been prized around the world for thousands of years. Because of its universal desirability it is also highly liquid, a crucial asset in the event of bank holidays, closures and the freezing of assets
 — 
and against a time when the ATMs stop spitting out cash.
 
It is fungible. Silver is a chemical element; every ounce of pure silver is exactly like every other ounce. It is both durable and divisible. And it represents a compact form of wealth that is convenient in scale for the day-to-day commercial needs of households. In the event of a currency crisis, it can prevent commerce from deteriorating into primitive and cumbersome barter.  No wonder silver has provided such a dependable standard of commerce in so many times and
 places… or why after years of trading quietly in a narrow range, the sleeping giant is stirring and
silver prices are moving to explosive heights. Investment demand for silver led to the creation of silver ETFs in 2006. But that is still less than two ounces of silver per American. In fact, if the diversification away from a failing dollar during a crisis and the spontaneous re-monetization of silver led Americans to acquire a mere 10
ounces of silver per capita, only 40 ounces for a family of four, it would demand all the world’s
mining production at current levels for more than four years
 — 
with no production left over to meet demand from anywhere else in the rest of the world or for any other uses. Silver investing is not growing in a vacuum or because of the phases of the moon. It is growing in response to levels of spending and debt that are no longer manageable. It is responding to economic conditions that the numbers tell us are not improving, but are worsening. Just as fiat currencies around the world are beginning to break down, investment demand for silver is surging in China, India and Europe, just as it is in the United States.
It is the advanced stages of state insolvency that make silver investing imperative. It is the early stages of the re-monetization of silver that provide you huge opportunity as a silver investor today.
And I can show you exactly how to start building your stockpile today.
How You Should Buy Silver
There are a variety of ways to invest in silver, from physical silver available in a variety of forms, to secondary silver investments such as silver stocks and ETFs, which are useful in specific circumstances. While each entails its own advantages, each also has its own risk. And one day
 — 
a day that is fast approaching due to governmental risk, the very risk we saw much of

 
in the 2008 panic, and the counter-party risk more recently evident in the bankruptcy of MF Global
 — 
I will recommend that all such secondary vehicles be avoided entirely
.
 That is why today, the best way to invest in silver is real, physical silver.
Owning physical silver, regardless of alternatives, must be your first line of defense, your first step in protecting yourself and your family from an inevitable currency crisis
.
To do this, there are three ways I recommend buying silver…
 
#1: U.S. Silver Bags
 First, in a crisis it is important to have a currency unit scaled to the essential needs of daily
human life. Your house payment may be measured in thousands of today’s dollars or on a scale
compatible with gold prices. But making a house payment is a lower priority than purchasing a gallon of gas, a loaf of bread, or a pair of shoes.
In that case you will want small silver coins, a “bread and butter” currency that can be used
directly in everyday purchases.
That's why I recommend that every family own a “bag” of U.S. silver coins, often referred to as “junk” silver bags.
When the U.S. government stopped circulating silver coinage in 1964 (except for some half dollars with sharply reduced silver content that were minted until 1969), it issued instead base metal coins with a thin coating of a copper-nickel alloy to duplicate the appearance of the real silver coins. Not fooled by appearances, people immediately distinguished between the coins and  began setting aside and saving the real silver coins, which before long were trading at prices  based on the underlying silver content. When these coins were first put into circulation before 1965, they were delivered by the U.S. mint in bags of $1,000 face value. Silver bags, bearing coins with a face value of $1,000 dollars
 — 
although worth more because of rising silver prices
 — 
 became a standard trading item of the silver market. Each silver bag contains silver dimes, quarters or half dollars minted before 1965. Please note, these are not numismatic or collector coins. They are circulated, usually well-worn coins (hence
the name “junk”) that were an important part of the general circulating currency of the American
 people until 1965. Since those coins were minted with an alloy of 90% silver, they are also referred to as 90% silver  bags. To constitute a face value of $1,000 dollars requires 10,000 dimes, or 4,000 quarters, or 2,000 half dollars. But regardless of denomination, each silver bag has a content of about 715 ounces of actual silver. The price for a silver bag is based on this silver content.

 
you have landscapers or workmen doing adjacent work that would allow them to discover your valuables. And remember that such storage is discoverable by a metal detector. Similarly, you could simply place a few pieces of silver in a flower pot. It
won’t go anywhere
and it will always be on-hand, should you need it in a hurry. Do not forget to share the location with a spouse of trusted family member. At the very least, note it in a place that a survivor is bound to discover it. Many are the tales of a surviving spouse
who knows there is a hidden stash of wealth about, but can’t find it.
 Beyond that, be discreet about your ownership of gold and silver. That can be the best protection of all.
Final Thoughts for Silver Investors
Many of us already have an uneasy feeling that something is fundamentally wrong in the economy and with the monetary system. But many will fail to take the necessary steps to respond to the inevitable crisis. It is crucial that you take action if you wish to protect yourself from unwelcome events. Right now, our objective is to avoid risks inherent in the monetary system. And owning silver is a good place to start. But as you begin to purchase precious metals, there are a few avoidable risks that you should be
aware of…
 
#1: Many brokers and dealers work aggressively to switch buyers from the low mark-up bullion products recommended, to high mark-up, high commission numismatic or collector coins.
 Selling these products
 — 
rare coins, proof sets, commemorative coins, and old silver dollars
 — 
is a  profitable business for them. Often the sales tactic involves representations about what will happen in the event of governmental confiscation of gold and silver based on President
Roosevelt’s order confiscating the American people’s gold in 1933.
 In unspecified terms, that
executive order exempted “rare and unusual coins.”
 Representations that future government actions must duplicate that order are baseless. And
although Roosevelt’s order applied to gold, the narrative is used to sell high mark 
-up numismatics to silver buyers as well. These well-honed sales narratives, although persuasive, are usually incomplete and sometimes simply outlandish. But I understand that you may find such sales pitches hard to resist. Resist them anyway because in a crisis or bartering situation you will have some difficulty explaining to someone who wants two silver coins for something you desperately need, why he should settle for one silver coin that you paid twice as much for because it has a rare date.

 
That is why I urge you to follow the product recommendations I made in this special report
 — 
 junk silver bags, American Eagles and Canadian Maple Leaf coins, and silver bullion bars. Because if you do, you can ignore aggressive sales tactics and marked-up collector coins.
#2: Buying goods that cannot be delivered right away.
Unfortunately, in recent years, the precious metals business has experienced tight markets and slow deliveries of coins and bullion. In a monetary breakdown, shortages and tight markets will  be the order of the day. For the time being, the slow deliveries have only foreshadowed the crisis, reflecting a combination of limited mint production capacity and the surging investor demand I have described. This has meant delays in the delivery of some items by as much as six or eight weeks. Such delays are unacceptable to me and should be unacceptable to you. It is true that a metals broker, like a stock broker, enters the trading and wholesale markets on your behalf, acquiring goods for you with your money. Although all must wait for checks and
even cashier’s checks from you to clear before making delivery to you, sometimes there is a
short period of days before settlement is made. That is common in the industry. Still, many well-capitalized precious metal brokers can make immediate delivery to you from among the widely traded products I have recommended upon their receipt of good funds. But under no circumstances should you order and pay for precious metals that the dealer cannot deliver to you within days. If there is a shortage of a particular product, you have two choices: 1.) buy something else that can be delivered right away, or; 2.) ask to be notified when the  product is available and buy it then. The price will have moved in the interim, perhaps against you, but you will still have your money. Remember, this is the age of MF Global, Bernie Madoff, and derivative failures. A great deal can transpire in an unstable environment of risks that cannot be foreseen. That is why I advised you earlier to take physical delivery of your precious metals and under no circumstances leave them with the dealer to store for you.
#3: Be sure of what you are buying
.
 You must