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Buying Silver

Monday, 04 June 2012 02:09 Written by 

Now, let me first caveat this article by saying I am new to purchasing silver. I would like to claim that I have extensive experience purchasing precious metals, and I have a safe full of coins and bullion. But, that is not the case. I have spent the past nine years working in the corporate environment, and have invested exclusively in my employer’s sponsored 401K. With that comes the ups and downs, and for the past several years have been mostly downs. Recently, I have come to the conclusion that my prepping mentality does not compliment having stocks and bonds which are represented as numbers on my computer. I cannot hold these shares. I cannot purchase anything with them. And if there was an economic collapse, they would be worth nothing. 

I am not saying cash out your 401K, or even quit contributing to it. In many cases contributing to your 401K is logical, especially if your employer has a matching plan. Who knows, the market may rebound. Right? But, I have decided to quit investing in my 401K, at least for the time being. If the market recovers, I can simply start dumping money back into it. Is this controversial? Probably, but we will see how this plays out over time.

I truly want something that I can physically control. Maybe my newly found interest in silver is derived from reading Patriots and Survivors, but I really believe that there is more to it. If you look at what silver has done over the past few years, and how gold has widened the historical margin, I think silver is one of those things that could prove more valuable over time. This coupled with the continued weakening of the U.S. dollar and concerns of inflation, has skyrocketed my interest in silver. Do I count on silver as a replacement currency as in the Rawlesian novels? I guess it is a possibility, but I am purchasing silver to diversify my investments. 

There are several options for buying Silver. You can purchase online, work with a wholesaler, or find sources locally. Just so you know, I am not affiliated with any of the businesses below. 

Buying Silver Online

If you do a Google search for “buy silver” you will return over 300 million results. To simplify your search, I recommend Provident Metals. I have purchased junk silver (90% U.S. silver coins) and silver bullion from Provident Metals, and I believe they have the best prices. Other options include American Precious Metals Exchange and Gainesville Coins, although I have not purchased from them.

Find a Wholesaler

I recently met an individual that buys gold and silver from people looking to make quick money. I’m sure you have seen the ads, commercials, and signs on every pawn shop. Generally, they will buy gold and silver between 60% and 75% of the actual value, and then wholesale it. There is a possibility of working with these individuals, and purchase silver at the wholesale price. As long as they are getting their cut, why would they care if they sale it to you instead? Keep in mind, if you use this option they may try to sale you jewelry, silverware, and other things with silver content. 

The Dreaded Pawn Shop

With the increase of pawn shop related reality T.V., every pawn shop employee believes they are a star. No, really. I recently called a pawn shop to check their inventory before I made the hour drive. I tried to explain what I was looking for, specifically silver coins without numismatic value, dubbed Junk silver. While trying to solicit information, I told him I was looking for Junk Silver. He instantly got offended, told me his silver coins were not junk, and hung up on me. Now this may not be the case for all pawn shops. In fact I was able to find one close to my house, and was able to negotiate within a few cents of the day’s silver spot value. When purchasing from a pawn shop, make sure you have done your research. 

Conclusion

So there you have it; my take on purchasing silver. While, I am focusing on diversifying my personal investments by purchasing silver, I am not recommended to stop contributing to other investment accounts. Take my point of view for what it is worth. I have also included my Junk Silver spreadsheet which calculates the value of you junk silver inventory. If you find it useful and would like it to be a part of the this website, leave me a comment. Sorry, it is a Microsoft Excel document. Be Prepared. Get Connected.

Last modified on Tuesday, 12 March 2013 18:04
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