What kind of silver should you buy?
So, now that we've discussed the method in buying silver, the next question is "what type of silver should you buy"? Obviously, that will depend on how much silver you plan on buying over the 10+ week period. The larger the piece of silver you buy, the cheaper it becomes. For instance: if the spot price on silver is $35, you can expect to pay around $37 for a 1 ounce generic round. Probably $38 if you buy a U.S. silver eagle. On the other hand, if you buy a 10 oz or 100 oz bar, you can usually get it for about $0.50 - $1.00 over spot. Now; for most people, the additional $1.00 per ounce doesn't seem like much. And it isn't if you are just buying say 5 ounces for around $185. But if you're buying a 100 oz bar, that's about $100 difference. That's about 3 more ounces of silver. But again, it depends on how much you plan on buying. Maybe you can't afford to buy a $3,400 bar of silver. Or even a $350 bar of silver. Either way, I recommend that you buy the cheapest silver you can buy. The cheapest for the smaller denominations is usually a generic 1 oz round or 90% pre-1965 dimes, quarters, and half dollars.
Remember; your initial investments in silver are going to put you behind because of the markup you need to pay the coin shop or seller. Again; they need to make a profit too. This is how they make a living. Don't believe that there's anything wrong with them charging a little more than spot price. Usually, you can get the 90% pre-1965 for right around spot. But remember; 90% silver coins are not .999 silver. They are figured out at .715. That means for every dollar in pre-1965 dimes, quarters, and half dollars, they assume .715 of an ounce of silver. Most sellers use this percentage when determining price. So, if the spot price of silver is $35 an ounce, then 35 x .715 = $25.03. Most dealers round up, down or to the middle. So in this case, they'd probably charge you $25 for each DOLLAR FACE VALUE of pre-1965 coins. E.g. 4 quarters; 10 dimes; 2 half dollars, or any combination to equal $1.00 of FACE VALUE. The good thing is, if you watch carefully, you can actually get the 90% silver coins below spot price. This is going to help you out a lot in making profit. But even if it's above spot, generally the price won't come out to more than $0.50 above spot. So if the spot price of silver is between $35.00 and $35.30, there's a good chance you'll get the price of 90% change at $25 per $1.00 face value. That means when converted back, $25 per $1.00 face value equals $34.97 an ounce for silver.
Of course, those who are buying 90% silver coins for other reasons like survival and SHTF scenarios also think this silver will be better to use, because you've got smaller units like a dime or quarter which is smaller than 1/10th or 1/4th. With regular bullion rounds and bigger, the smallest unit is a 1oz. So what do you do if you're trying to buy something that isn't worth a a 1 oz piece of silver will buy, and the seller "Can't make change"??? But we aren't discussing buying for SHTF or Survival purposes. We are buying to pay down debt or buy something at a discount. So I recommend 90% pre-1965 coins. I then recommend 1 oz generic silver rounds. I then recommend U.S. Silver Eagles. But if you are going to buy at least 10 ounces, then I recommend a 10 ounce bar, or just as good, at the $35 an ounce example, buy $14.00 worth of 90% pre-1965 silver coins. (Assuming you get the 90% at $25 per $1.00 face value).
In my next post, we're going to do the Math. Basically, I'll take you through a 10+ week period of buying. While I mentioned buying 1-2 times a week for 10 weeks to get the amount of silver and money you want to spend accomplished; after about 3-4 weeks, you'll either start slowing down or speeding up your buying. We'll go over the math next time. CYA: SE
So, now that we've discussed the method in buying silver, the next question is "what type of silver should you buy"? Obviously, that will depend on how much silver you plan on buying over the 10+ week period. The larger the piece of silver you buy, the cheaper it becomes. For instance: if the spot price on silver is $35, you can expect to pay around $37 for a 1 ounce generic round. Probably $38 if you buy a U.S. silver eagle. On the other hand, if you buy a 10 oz or 100 oz bar, you can usually get it for about $0.50 - $1.00 over spot. Now; for most people, the additional $1.00 per ounce doesn't seem like much. And it isn't if you are just buying say 5 ounces for around $185. But if you're buying a 100 oz bar, that's about $100 difference. That's about 3 more ounces of silver. But again, it depends on how much you plan on buying. Maybe you can't afford to buy a $3,400 bar of silver. Or even a $350 bar of silver. Either way, I recommend that you buy the cheapest silver you can buy. The cheapest for the smaller denominations is usually a generic 1 oz round or 90% pre-1965 dimes, quarters, and half dollars.
Remember; your initial investments in silver are going to put you behind because of the markup you need to pay the coin shop or seller. Again; they need to make a profit too. This is how they make a living. Don't believe that there's anything wrong with them charging a little more than spot price. Usually, you can get the 90% pre-1965 for right around spot. But remember; 90% silver coins are not .999 silver. They are figured out at .715. That means for every dollar in pre-1965 dimes, quarters, and half dollars, they assume .715 of an ounce of silver. Most sellers use this percentage when determining price. So, if the spot price of silver is $35 an ounce, then 35 x .715 = $25.03. Most dealers round up, down or to the middle. So in this case, they'd probably charge you $25 for each DOLLAR FACE VALUE of pre-1965 coins. E.g. 4 quarters; 10 dimes; 2 half dollars, or any combination to equal $1.00 of FACE VALUE. The good thing is, if you watch carefully, you can actually get the 90% silver coins below spot price. This is going to help you out a lot in making profit. But even if it's above spot, generally the price won't come out to more than $0.50 above spot. So if the spot price of silver is between $35.00 and $35.30, there's a good chance you'll get the price of 90% change at $25 per $1.00 face value. That means when converted back, $25 per $1.00 face value equals $34.97 an ounce for silver.
Of course, those who are buying 90% silver coins for other reasons like survival and SHTF scenarios also think this silver will be better to use, because you've got smaller units like a dime or quarter which is smaller than 1/10th or 1/4th. With regular bullion rounds and bigger, the smallest unit is a 1oz. So what do you do if you're trying to buy something that isn't worth a a 1 oz piece of silver will buy, and the seller "Can't make change"??? But we aren't discussing buying for SHTF or Survival purposes. We are buying to pay down debt or buy something at a discount. So I recommend 90% pre-1965 coins. I then recommend 1 oz generic silver rounds. I then recommend U.S. Silver Eagles. But if you are going to buy at least 10 ounces, then I recommend a 10 ounce bar, or just as good, at the $35 an ounce example, buy $14.00 worth of 90% pre-1965 silver coins. (Assuming you get the 90% at $25 per $1.00 face value).
In my next post, we're going to do the Math. Basically, I'll take you through a 10+ week period of buying. While I mentioned buying 1-2 times a week for 10 weeks to get the amount of silver and money you want to spend accomplished; after about 3-4 weeks, you'll either start slowing down or speeding up your buying. We'll go over the math next time. CYA: SE
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