Silver investors are buying up silver faster than the supply can keep up. This high demand keeps premiums higher than normal. History shows us that this upward pressure will cause silver prices, to the individual investor, to rise even higher. Junk 90% silver coins currently carry a premium twice what it was just a few months ago. Still, right now is a good opportunity for small investors to add to their holdings.
Optimism in the stock market, a very fickle emotion, is helping to keep spot prices low. My buying point currently is when spot falls below $15 per ounce. As of this writing spot stands at $14.67 per ounce. The best prices that I was able to find this morning all came from jmbullion.com. In quantities of less than twenty, Silver Eagles list at $20.27, a $5.60 premium over spot. While Eagles are a desirable investment, they probably are not the best choice for the modest investor right now. The least expensive silver round, in quantities less than 20, goes for $16.86 per ounce, or a $ 2.19 per ounce premium. Just a few months back, the careful investor could purchase similar items for $.89 to $.99 over spot.
The upside, for the modest investor, is that the premium for some of the more collectable silver bullion coins is not that much more than the premium for common silver rounds. My personal buying strategy, when buying from bullion dealers, is to constantly pay by cash (check or e-check), and purchase silver products with a total purchase price of $100 or more, to save on shipping costs. Last week I purchased, from JM a small quantity of the newly released 2016 silver Kangaroo coins by the Perth Mint, for only slightly more than the cost of the least expensive silver rounds. Demand for Perth mint issues is very high, with their products having a history of increasing in value to collectors over time. This is the first issue in the series and, for me, a better investment.
This morning, under their, “On Sale Now” link, I purchased a small quantity of Somalian Silver Elephant coins at $17.55 each. These coins also tend to increase in value as each year goes by, thus making them a great investment opportunity. A good way of getting an idea of how different silver products increase in value over time is to see what they are selling for on e-bay. Just make sure you are looking at what they actually sell for, and not just the asking price on a by-it-now auction.
For a more in-depth look at silver investment, check out “A Poor Man’s guide to Building Wealth with Precious Metals” Just check the books link at the top of the page, or on the right hand side-bar.
Good investing to all, and I pray for God’s richest blessings to all my readers.