Your Questions About Investing In Silver

Omar Mossadek answers:

If you want to buy silver, just buy the SLV etf. Why do you need to use your friend? What does he have to do with it?? Does he have some silver to sell??
I buy Morgan silver dollars on ebay. Silver is something I own thru my silver dollar collection. But personally, I think my mutual funds, and individual stocks are a much better investment.

Omar Mossadek answers:

Hello,

I’ve answered your question from the least source of value to highest…

Silver shot is the simplest form of silver bullion you can buy and it does not hold any premium except maybe a few percent over the spot price of silver. This is only because who ever is selling it needs to make some money to support their business.

The next is silver bars, most are just like silver shot, sold at a minor premium over the spot price for business purposes. Although this doesn’t always hold true, Engelhard, Johnson Matthey and Pamp Suisse silver bars are collected by some people (especially the smaller than one ounce bars) and they can have a high value attached to them.

Basically, when dealing with all types of silver bullion, if it has a collector’s value attached to it, it will hold a higher premium than other simple forms of silver bullion. (the same holds true for Silver Rounds)

Silver Bullion Coins like American Silver Eagles, Canadian Maple Leafs, Austrian Philharmonics all are mass produced and hold a slightly higher premium than the bars do.

However, Silver Bullion Coins like the Austrailian Lunar, Kookaburra, and Koala Coins are often sought by collectors and hold a higher premium than the previous Silver Bullion Coins. This also holds true for Mexican Silver Libertads, UK Silver Britannias, and Chinese Silver Pandas.
Although the Pandas are also being more mass produced like American Silver Eagles, so you may see premiums on them in the future come down closer to the spot price in silver. But this is for recently dated Chinese Silver Pandas (2010, 2011 & 2012), the older silver pandas have a lower mintages.

Lastly, Fine Silver Art I would assume to hold the highest premium. I say “assume” because I have seen very little of it except in jewelry. If you bought Fine Silver Art, one thing that you would want to be sure of, is that it is signed and (if possible) dated by it’s creator. Just like every other form of art (painted / sculpted, etc.) the item will hold more value if it is signed by the person who created it.

I hope this was of some help, Have A Nice Day!

Omar Mossadek answers:

Absolutely, there are so many uses in the digital age. Also, as an anti-bacterial agent silver is KING! More uses are being found every year. I am a silver bug and have been investing in physical bullion for years. Great investment!

Omar Mossadek answers:

As long as these 2 things continue to happen, the value of silver will only continue to increase
1) governments of the world continue printing ‘fiat’ money – backed not by hard assets like gold but backed only by debt. The more money they print, the less value the existing money has – therefore it takes more rupees to buy the same silver than it used to

2) the world is running out of silver – nearly all of the silver that has ever been mined in human history has been used up – lost forever to the landfills of the world in throwaway electronics and other industrial uses. It is not economical to recycle silver, therefore the only way we can produce more silver is dig it up, and we are running out of known silver ore deposits. The USGS predicts at the current rate of usage the world will run out of silver by the year 2020

Silver is probably the investment opportunity of a lifetime. The fact that most people tell you its not a good investment is actually a good sign – most people don’t know about the investment opportunity in silver yet so its not too late to buy. When everyone you talk to are all excited about buying silver, then perhaps it will be time to sell.

Omar Mossadek answers:

1.What’s the silver/gold spread ratio?

If one day gold for December delivery finished trading at $810.80 an ounce, while silver settled at $14.785.

Silver/gold spread ratio = 810.8/14.785

2.How to use it in silver investing?

If you think the spread ratio goes up, long gold and short silver.If you think down, do the opposite.

Omar Mossadek answers:

Www.bulliondirect.com
You can buy one or more 1 ounce silver bars.

At their product catalog the symbol for 1 oz. Silver bars is SIB999:0001.

Omar Mossadek answers:

Does it phase you that the self-proclaimed professionals are telling you that silver will rise to a price that the market thinks has 0 probability?

For example, if you look at SLV Jan 14 calls, the highest call available is 55 selling for $3 and the volatility of that call is way above the ATM call. There is no interest among traders to bet that silver will be $60 or $75 and certainly not $400. If you wwanted a Jan 2015 silver $400 call at the highest implied vol of any option traded on silver it would run you 0.000001 cents (my back of the napkin calculation).

I will sell you January 2015 silver 300 calls for $1. Please contact me.

Basically these are just idiots hawking silver who think that you aren’t smart enough to check what real professionals think about silver. Real professionals are the people trading it, not the morons on line telling you that you should buy it.