Silver isn't an investment, it's a commodity to be traded. If you aren't going to be using the commodity (in production of material goods, where a lot of silver is used), then you are speculating that the metal will go up in value. It is an investment of sorts in that regard, as investing carries risk of loss. If you're willing to accept that your silver might be worth less when you go to sell than what you paid (just like stocks and bonds and real estate and other things can be), then I advise trying to get as much silver as you can for the money you are spending.

For me, that's buying 90% silver US coins dated before 1965, aka 'junk silver'. These are circulated coins sold in bulk for their silver. They have no collector premium attached. If you shop carefully, you can often buy for below the current 'melt' value or 'spot market' price. You can NEVER buy silver rounds or American Eagle bullion coins (or the bullion coins of other countries, which may be a little cheaper than US) for below melt value. You will ALWAYS pay a premium for them. Even if you could get Sunshine Mint or APMEX or Ohio Precious Metals rounds or bars for a dollar over spot, why should you when you can get silver for below spot? A lot of people swear by silver rounds and bullion coins, and that's OK, it's their money. I'm good with paying less for my silver. I recently bought 500 silver dimes (about 10% were Mercury and the rest Roosevelt) for 10% under the 'melt' value.

To do what I do, though, you are going to have to know the up to the minute melt value of each coin. This site will give you that info.

www.coinflation.com

There's profit to be made on other US coins with less than 90% silver, and those are shown on the site as well. Learn the weights of coins and get a good scale so if you encounter what looks like a good deal, you will know what the coins should weigh and compare it to what they do weigh - a little silver weight will be lost over time due to simple circulation wear, and you need to factor that in.

American Silver Eagles will have a higher premium that you will recoup when you sell. So I normally purchase those if I'm buying Coins. Buying Gold and Silver is not necessarily an investment in the way you think of a stock or real estate going up in value through growth. Gold & Silver is more of a financial insurance instrument to protect against inflation. Keep in mind that the US dollar has been a fiat currency since 1971. Every single fiat currency in ALL of history has gone to ZERO!! The average lifespan for a fiat currency is 37 years! The Dollar is on year 42 right now! I recommend getting into Gold and Silver as a hedge. Don't buy online as they normally make you wait 30-45 days to receive you metal. I always buy from a local coin shop with cash. Another way to acquire Gold & Silver is to have a Scrap Buying Event. You can invite friends and family over to purchase their old gold and silver. You'll need a testing kit to insure the quality and value. I wrote an article about how to do it here.....

http://generationxyzsurvivalblog.blogspo...

It's a WIN-WIN. Friends and family can unload unwanted Gold & Silver at a discount and you can acquire Gold & Silver at a discounted price.

Good Luck,

TK

I personally think it's better that I have the physical ownership rather than electronic. IE... Having 100000 stock of wheat futures VERSUS computer meltdown and needing to eat physical food.

Owning "precious" metals is completely insane...they are LOUSY as an investment (silver has steadily LOST value since before the Americas were "discovered"; http://www.realistnews.net/Thread-silver... !)

Owning a numismatic coin requires proper storage and care not to scratch it or drop it or it will lose its premium and approach meltdown value. Determining market value and premium can be misleading and require an assayer.

Silver bullion rounds and bars are much easier to value, as you pointed out. Meltdown value will always be market value.

http://www.apmex.com/category/503/silver

http://www.tulving.com/goldbull.html#sil...

http://www.kitco.com/

My advice on trading forex:

http://answers.yahoo.com/question/index;...

Is it better to buy Silver Dollar Eagles or one troy ounce silver bars (example Sunshine Minting or Scottsdale Silver). I heard trying your luck with u.s. currency is more worth your while. I however never follow a coin market or know their prices. I figured knowing the market value of silver is just easier. If any expert could point me in the right direction I would appreciate it. I also heard Silver Dollar Eagles (1 troy ounce of course) you don't have to pay taxes if you were to cash in because they are kind of considered american currency.