Friday, June 26, 2009

Silver Price Calculators

Here's a list of some useful links, I'll update them as I find more:

Thursday, June 25, 2009

Is Silver Price Manipulated?

One thing that I've read alot about online is that silver and gold prices are manipulated by the 'powers at hand'. Here is one interesting article by Theodore Butler that explains a bit of this:


I know that many readers have trouble fully grasping the manipulation issue. Admittedly, it is complex. I know that some believe that such a long-term manipulation is not possible. The CFTC has denied the silver manipulation for so long, that they have no graceful way to change their position, no matter how compelling the evidence. This manipulation is the most important market issue possible. That is evident by the attention that the regulators exhibit when dealing with it. However, it’s never about simple and direct answers, in a timely manner. It’s always a stall and never a fair and open debate. But the evidence of wrongdoing, in the form of a continued super concentration on the short side, has grown so compelling that another whitewash is likely to be as well received as the Iranian election. That’s why the silver manipulation appears to be on its last legs.

Once this manipulation ends we will be able to measure the full extent of the damage. The long-term price suppression is the prime component behind the depletion of silver over the past quarter century. The dangerous predicament that a few short sellers have placed our country and the world in is related to the minimal remaining inventories. We have no buffer to smooth out the coming shortage, except at extremely high prices. The artificial low prices caused by the short sellers are responsible for the depleted inventories. There is no water for the fire trucks to put out the fire caused by a silver shortage. The short sellers have seen to that.

Investors in silver, of course, won’t consider the wildly escalating prices as damage, nor should they. There will be great fortunes to be made in silver, but that still doesn’t excuse the dangerous predicament a few greedy short sellers and lax regulators have created. More people are becoming aware of the real story in silver and are doing what comes natural, namely, getting their share while there is still time. There are certainly no big government stocks of silver remaining in the world. We won’t wake up to any announcement that the IMF or any other official source will be selling silver, like was just announced in gold. How can they, when they don’t own any silver?

In addition to the crime of market manipulation and the pain to producers and their employees that these short sellers have caused, they are guilty of treason. That’s a very strong word, but I think it applies not only to the short sellers, but also to their protectors. That’s because they are placing our country in jeopardy in the manufacture of defense items. The US is dependent on imports for 70% of our silver consumption just like petroleum. We all know the danger in crude oil. That’s why we maintain a strategic petroleum reserve. We have no strategic silver stockpile, just empty vaults, thanks to the big short sellers. The coming world-wide silver shortage places us in jeopardy, not just for defense, but for all types of the manufactured goods produced here and the jobs that go with them. How a US regulator, the CFTC, can stall while this condition festers is beyond me.

Because of the manipulation, silver is a better long-term buy than at any time in the past 25 years. I see us reaching a more extreme shortage scenario with price peaks that are, quite frankly, so astonishing I don’t care to pinpoint them here. On the one hand we should be outraged about the continued illegality of the ongoing price scam, while on the other hand elated over the extreme price escalation that will undoubtedly occur because of it. There will be nothing moderate about the outcome.

read the entire article here

Wednesday, June 24, 2009

Inflation - Another Reason for silver

If this is true - its mighty scary. This shows how much money the US Federal reserve has printed - and what backs up the money? Certainly not gold or silver - two things you can invest to help fight off inflation. Here's a quote from the Daily Reckoning in Australia

Did you know that today’s dollar can only buy about 2% of what it could buy in 1900? Compare that to gold, which today buys 150% of what it could in 1900. So, in roughly a century, gold has catapulted to 75 times as much purchasing power as the dollar.

The government’s promise of a stable dollar reeks. Like the breathless pledge of a toothy codger to a hooker. Not sober. Not to be trusted. And it’s certainly not something you should rely on for your investment future.

The value of gold and silver does not hinge directly on a promise from a government’s central bank. It is not a promise to pay. It’s just gold and silver. The real thing. Those precious metals form a safe haven for your wealth, protecting you from the horrors of inflation and the destruction of paper currencies.


Saturday, June 20, 2009

Silver is Gold's Lapdog

There is something worth noting about the relationship between gold price and silver price - Here is an excerpt from Adam Hamilton, Zeal Intelligence LLC: http://news.silverseek.com/Zealllc/1245428853.php

Provocatively, the gold-price trends are the single most important driver of the silver price. The reason is simple. Silver investors and speculators all watch the gold price as well, it is the primary ingredient coloring their sentiment. So when gold is looking strong, they flood into silver and bid it up rapidly. And when gold weakens, many are quick to exit silver. The technical results of this behavior are striking.

A couple years ago I did a comprehensive study of the interrelationship between silver and gold since 1971. As the 7 comparative charts in that essay revealed, silver has almost always followed gold’s lead throughout our entire modern era. Where gold goes, silver follows. History is crystal clear on this. I like to joke about this nearly-ironclad relationship by calling silver “gold’s lapdog”. It irritates some folks.

This quip is certainly not intended to denigrate silver, but to illustrate a very profitable technical truth for traders. I am a long-time silver investor and speculator. I started recommending physical silver coins as investments back in late 2001 when this metal languished just above $4. Some of our best-performing long-term investments today are elite silver stocks we recommended way back in 2002. I’ve been long silver, very profitably, since before the great majority of today’s investors ever considered owning it.

And over this secular silver bull’s span, I’ve learned that gold is often the key to gaming silver’s short-term trends. To trade the white metal successfully, you have to understand the dominating role gold plays in shaping silver-trader psychology. While silver may temporarily decouple from gold in rare extreme situations, over time it will always revert back to following its far-larger and more-important cousin.

This is exactly why silver has more potential to rise this summer than in any other I’ve witnessed in this bull. During last autumn’s stock panic, silver traders panicked with the rest of the world and aggressively dumped the metal. Since silver is such a tiny and hyper-volatile market, this intense selling drove it down much faster and farther than gold was falling. The resulting unprecedented anomaly persists to this day.

This peculiar episode is easiest to understand when illustrated visually with a chart. The blue line is silver, superimposed over gold in red. Both metals are rendered on zeroed axes so there is no visual distortion. I ran the data back several years or so before the panic, so the baseline behavior of silver relative to gold can be established before the wild and crazy events of late 2008.

read more here: http://news.silverseek.com/Zealllc/1245428853.php

Tuesday, June 16, 2009

Pros and Cons of Silver Investment

I've found a great article on How to invest in silver - please go here to read. I've included the pros and cons below.

Please go here for full article:
http://www.midasletter.com/news/09061502_How-to-invest-in-silver.php

Exchange Traded Funds

Exchange Traded Funds, or ETFs, are passive investments that track the price of silver.

There are numerous ETFs available from different providers which offer exposure to silver, including ETF Securities Silver. Others offer exposure to a wider basket of commodities which includes silver, such as the i-Shares Dow Jones AIG Commodity Swap.

Advantages:
They are suitable for investors who want exposure to the physical silver market, but who don’t want to own the actual metal and the insurance and storage costs that come with it. Silver is listed on major exchanges and can be traded like equities, making it fairly easy to cash in their investment.

Disadvantages:
Because the ETFs are created to reflect the price of the silver, the market price can be very volatile on any given day.

Silver Bullion bars, coins and medallions

Advantages:
Bars benefits from usually being the least expensive way of buying silver. They are also readily convertible into cash, and again the price is widely quoted.

Disadvantages:
Bullion needs to be stored securely, which can incur costs, and holding the commodity in this way also yields no interest.

The pros and cons of investing in silver coins and medallions are broadly the same, although they cost more than bars. Medallions are also not always easily convertible to cash depending on where they came from.

Silver mining stocks

UK-listed mining stocks which have exposure to silver include FTSE 100 companies such as BHP Billiton. Smaller players include AIM listed Patagonia Gold, which has exposure to both gold and silver.

Advantages:
Shares have the potential for capital appreciation, although this is also linked to the company’s structure, management and other factors. Shares can also pay a dividend.

Disadvantages:
Buying shares can cost more than purchasing physical bullion, and shares are also particularly volatile, with the value of investments at risk of declining.

Silver mutual funds

Mining funds offering exposure to a variety of listed companies include the JPMorgan Natural Resources Fund, headed by Ian Henderson, as well as the BlackRock Gold and General fund, run by Evy Hambro.

Advantages:
The key advantage of any fund is that it offers diversification, and therefore is less risky than buying shares in a single company. Investors also get the benefit of professional fund managers who look after their investments for them.

Disadvantages:
Funds often have a minimum investment which could be more expensive than buying physical bullion. They also have a variety of fees and charges attached, and investors are handing responsibility for their cash over to a third party.

Silver accounts or storage accounts

Advantages:
These offer investors high liquidity but with competitive prices.
There are also no storage costs or risks, and no sales tax, while any dollar amount can be put into the accounts, rather than a set level.

Disadvantages:
It can take several days' to get hold of the actual investment, and the silver is not in the physical possession of its owner.

Silver Accumulation plans

These plans allow you to own silver without having to actually store it yourself.

Advantages:
The plans have low investment levels, and offer discounted commission rates, while they are highly liquid. There is also no sales tax and no storage fees.

Disadvantages:
Again the actual commodity is not in the physical possession of its owner.

Silver futures contracts and options

Silver futures contracts entail a legally binding agreement for delivery of silver in the future at an agreed upon price.

Advantages
It is a good option for investors wishing to speculate that silver will rise in price, while silver futures contracts are also liquid and can be traded widely. There is also no storage risk or cost.

Disadvantages
Like all stock market related investments, futures are particularly risky, and investors could lose all their money.

Silver Coin Rationing in the USA?

Here's another interesting article about Silver Coins in the USA:
original (but requires subscription)
alternate source:

“The government rationed food during World War II and gasoline in the 1970s. Now, it's imposing quotas on another precious commodity: 2008 dollar coins known as silver eagles.

The coins, each containing about an ounce of silver, have become so popular among investors seeking alternatives to stocks and real estate that the U.S. Mint can't make them fast enough. In March, the mint stopped taking orders for the bullion coins. Late last month, it began limiting how many coins its 13 authorized buyers world-wide are allowed to purchase.” . . .

The rare shortage offers a glimpse into the growing love of a commodity known as "poor man's gold." With more silver mined than gold traditionally, silver has always been far cheaper than gold and today has less than 2% of gold's value.

But silver is growing in popularity, and some investors are betting that its value will surge as inventory shrinks. Big investors are loading up on silver eagles, which are the only American silver coins allowed in individual retirement plans. For small investors, they are an accessible way to get into the metal boom.

This WSJ article confirms that silver in smaller denominations is in very, and increasingly, short supply which will result in higher prices in the coming months and investors would be wise to invest in silver now prior to the coming price spike.

As knowledge of shortages in the silver coin and small bar market enters the mainstream there will be powerful and possibly unprecedented demand for silver eagles and all forms of silver in smaller denominations in the coming weeks.

The silver market remains a tiny finite market (all of the above ground refined silver in the world is only worth at today's prices roughly a miniscule $9 billion <500>) and if even a fraction of the world's increasingly skittish investment capital flows into the silver market prices will rise to multiples of the current price.

Gold Investments continue to believe that silver should surpass $25 in 2008, its non inflation adjusted high of $48.70 per ounce before 2012 and its inflation adjusted high (as many other commodities including oil already done) of some $130 per ounce in the next 5 to 8 years. These are conservative estimates.
This is with Silver Bullion coins - junk silver is still available and at reasonable prices. Will the US impose restrictions on Junk Silver? Stay tuned!



Buying Gold is different than Junk Silver

There is great article on buying gold from goldworld.com. This article has some great points about buying gold. However, while I think these rules are fantastic for gold - silver is a bit different. I've listed some of there points here that make buying silver, especially Junk Silver, different.

3.) Buying from Multiple Dealers — If you buy gold from several different dealers, you'll pay several different markups. Buying from one will limit this expense and likely lower your overall costs, due to discounts on bulk rate purchases. Research your vendors carefully; find one that suits your needs and stick with them. Do not test-drive vendors any more than is absolutely necessary.

Comment: Junk Silver can actually be bought from individual sellers cheaply - because you are not typically dealing with high premiums, and the marketplace is more diverse, especially if you buy from Ebay, you can buy from as many different dealers and get great bargains.

8.) Buying American Gold Eagles — I feel the need to point out the American Gold Eagle specifically when mentioning gold coins. Avoid this one! American Gold Eagle coins, first of all, are minted from 91.67% gold and are, therefore, vastly inferior to those minted from .9999 fine gold. But this does not stop their minters from applying high premiums. You end up spending more money on less gold. Furthermore, as US legal tender, the American Eagle actually leaves you exposed to inflation — which you're trying to avoid by buying gold in the first place. Find a better bullion coin like the Canadian Gold Maple Leaf or South African Kuggarand.
Most Junk Silver is typically 90% Silver. But the idea here is different. Yes you can buy bullion silver, its more expensive with the premiums - the bargain to be had with Junk Silver is that it can be bought below spot price most times! The mentality is different between gold and silveer. You won't find these bargains with gold - how many gold coins do you know that have been in circulation, even if they are legal tender?

This point that the article makes is especially import for junk silver investors:

7.) Buying Numismatic Coins Instead of Bullion Coins — Whether you're buying bars or coins, at the end of the day, your goal is to own gold. Numismatic coins derive their value not just from their precious metal content, but also from their rarity and collectability. Again, the demand for such things is hard to predict over time, plus gold purity in old and rare coins is often hard to confirm. To avoid the risk of buying coins at prices inflated by dealers, or coins containing significant percentages of non-precious metals such as copper, stick with standard bullion coins.
When buying junk silver - always look at the silver value, not the Numismatic value! Think of junk silver as the 'poor mans bullion' - don't fall in love with the rarity of coin, but rather look at it purely for its silver value.

Again read the full article here - its well worth it.





Friday, June 12, 2009

Is Silver Rarer than People think?


Mike Kachanovsky makes some great points why silver can sky rocket in the future. Here is an excerpt, the emphasis is mine:

In terms of the distribution of silver and gold in the earth’s crust, there’s about 15 times more silver than gold. If you look at the market price for the last 100 years, the ratio has trended a lot higher than that. You usually have about a 50-to-1 ratio of gold price to silver price. And so I think you’re going to find that there’s going to be a narrowing of that gap.

Part of the reason that silver has been at such a discount to gold is the impression that it’s plentiful, which is just not the case. In fact, we know in the United States, for example, there was a 5-billion ounce inventory of above-ground silver, and that’s been almost entirely depleted in the last 30 or 40 years. Now there’s perhaps about 300 or 400 million ounces of documented silver inventories and I do not think new mine production will be able to keep up with demand in the years ahead. There is going to be a shortage.

Most of the gold that has been mined since the beginning of history is still sitting in bullion form some place in the world. Whereas, most of the silver that has been mined has been consumed in various industrial applications and is effectively gone forever. It’s in such small quantities that it’s not easily recycled and restored back to the market.

So, I think as you see silver decline in availability, you’re going to see it close that gap in pricing compared to gold. I think gold is going to be rising rapidly, as I mentioned earlier, from monetary pressures—inflation and the economy. Silver should rise more rapidly just on the scarcity premium as less and less silver is available to meet worldwide demand.

These are the kind of things that will be driving factors to make silver outperform gold, and both are going to be excellent investments in the future. But I really believe that silver is going to be a much stronger performer.

For the entire article, its well worth a read, go here

Cleaning Junk Silver - Do or Don't?

A common question regarding junk silver is whether to clean it or not.

Those who insist on cleaning it often prefer the shiny, clean look of junk silver - it presents the silver in its best light and makes it look more presentable for resale.

Those who don't clean the silver argue that its not worth it - people buy 'junk silver' for the silver value, not the coin value. At worst, cleaning may leave abrasions on the coin. Also those who actually might pick up the coin for numismatic value often prefer the tarnished look of silver, saying worn silver coins with high polish look often look unnatural.

For me - it depends on the condition on the condition of the coin. A bit of tarnish doesn't bother me, however, i do like to make sure that date and and mint mark is legible. These two features are fairly essential to identifying a coin, so I will try to clean coins where it is difficult to see the dates and mint mark.

Here are some ways of cleaning silver that I've found on the net. I myself have used lemon juice bath, it doesn't get the coins super shiny but it takes often enough tarnish to make it the features clear.


Which Junk Silver Coins?

As a New Zealand, which junk silver coins should you invest in?

Its good question. But I think it basically comes down to 'Junk Silver'. There are great coins to invest in New Zealand - but I've find these hard to come buy and the 'premiums' quite high. These coins are probably better used for numismatical investments than junk silver.

I tried to find deals on Australia coins, Canadian coins and UK coins, but I find when you calculate the silver value, you always pay substantially more. I am always on the look out for deals in these markets but I find that the best value on the net comes from American coins.

I belive that the American coins where more numerously produced than the above countries and the marketplace in America is larger too.

I am open to suggestions to buy other junk silver coins - so if you know of source of junk silver coins that can be bought close to or at silver spot prices, let me know!

Calculate the value of junk silver coins

I've found a great aussie site recently which as some great tools to calculate the value of your junk silver coins - not just from the USA, but Australia, New Zealand and Canada: The site is Australia-Threepence.com:


Monday, June 8, 2009

Finding Junk Silver on Ebay - Tips and suggestions for New Zealanders

The best place to find junk silver, hands down, is ebay.com! Here is list of Ebay tips that you should for finding junk silver:
  • Don't just search in the Coins category, look in the collectibles and antiques. Expand beyond coins, and you can find some deals!
  • Don't forget to calculate shipping to New Zealand! USA sellers will have the best prices to New Zealand, followed by UK and Germany. Aussies and Canadians have extortionary shipping even though the currency is valued less than US or UK. I still haven't found any deals with Aussie and Canadian ebay dealers.
  • Bid your highest price first. Why? Sometimes people will tend to move off bidding the closest it gets to the silver spot price. For instance I bidding for a roll of coins worth 40 usd, I am leading the bid at $38.00, my highest price. I am not interested in winning the auction, I am interested in getting a deal! Like minded people will realise that there is little room for a deal and move on to the next cheapest auction. I've won several auctions where it seemed like bidders have 'moved on'
  • Don't get into bidding wars, unlike trademe.co.nz - there are plenty of coins to go around on Ebay.com - On trademe.co.nz you will notice that many coin sellers greatly inflate values even after shipping and exchange conversions. Ebay is the place.
  • If you have items shipped from the USA - it can take 2 weeks to a month and half to receive them. Just be aware of this - the USA postal service, which is the cheapest option, is very inconsisent with delivery times.
  • New Zealand Customs - try to keep your total purchase under $199NZD (now $130ish USD), I've need been confronted by customs taxes at this price. I've found American shippers to be very accomondating and often write the face value of the coins instead of the silver value. Remember to ask!
  • Advanced searches are your best friend - Use it to find who ships to New Zealand and find coins within your budget!
  • Be familar with the Coins. Eg, know that 1971 Eisenhower dollar only has silver if its minted in San Francisco! Do your homework and it will save you from stupid mistakes.

Saturday, June 6, 2009

Canadian Junk Silver

I am not too familar with Canadian Junk Silver, but here is a general guide of Canadian Junk silver mintage:

Coin Silver Ounces
1920-1967 Dime 0.0599
1920-1967 Quarter 0.1499
1920-1967 Half Dollar 0.2999
1935-1967 Dollar 0.5997

Multiply the oz of silver with the current spot price of silver for the value.
For a more indepth look, read about Canadian Junk Silver Coins Here

I haven't bought any Canadian coins yet, but i'll keep you posted if I do.

How much silver is left in the earth?

Here are a few charts i've uploaded to show how much of Silver is left on the earth. We have less than 30 years left of silver left in the earth at todays silver consumption rates. This image was take from http://cache.gawker.com/assets/images/gizmodo/2009/04/26051202.jpg Click to enlarge image.


original image which show more resources, click to enlarge.

Friday, June 5, 2009

US War Nickels - 35% silver coins

During the Second World War, the USA need to use its Nickel and other alloys for the war cause. So during the war, the Nickel, or the five cent piece, was made of 35% silver, 56% copper and 9% Manganese. Production for the war Nickel began in 1942 and ended in 1945.

These are some of the cheapest investments in Junk Silver. Here are some unique facts about the War Nickel:
  • War nickels have the largest Mint Mark of any coin featured on the back of the coin
  • The coins tend to be darker and 'tarnish' easier than regular nickels
  • Francis LeRoy Henning, a counterfeiter, tried to copy the 1944 War Nickel, but in doing so he forget the Mint Mark, therefore the fakes are easy to distinguish (and ironically of high value to collectors!)
  • An error in minting the 1943/2 War Nickel - is a sought after war nickel
  • There is an estimate that says 50-60% of all war nickels were lost to the smelters for their silver and copper contents. Read more about the great smelting of coins during the early 1980's here.
  • Due to the small size and silver, its considered an excellent 'survivalist' coin.

Below is the list of years and Mintage of war Nickels:
Year Mintage
1942 P 57,873,000
1942 S 32,900,000
1943 P 271,165,000
1943 D 15,294,000
1943 S 104,060,000
1943/2 P unknown
1944 P 119,150,000
1944 D 32,309,000
1944 S 21,640,000
1945 P 119,408,100
1945 D 37,158,000
1945 S 58,939,000

For New Zealanders, this coin is an excellent entry into the Silver market. You can still pick up rolls of War Nickels very cheaply - check Ebay for the best deals (be sure to check postage as well, you should be able to have shipped to New Zealand for about 4 usd ($6.35 NZD).

Personally, I like this humble little coin. Most of the ones I've collected are well circulated, but despite of the wear, I think these little coin are deals. If the price of silver really spikes, these little coins would be the one least expensive investments to buy!


Coinflation.com - the first place to stop before buying Junk Silver

This site is the first place I stop fore investing in coin.

Coinflation.com shows the 'melt value' of junk silver coins from the USA. If you want to get the pure metal value of junk silver from the USA, this should be your primary stop. It doesn't have all the junk silver coins, but you'll find the most commonly sold ones.

Though I primarily check it fore silver value you can find the value of all a coins metal content.

Find the USA junk silver coin values here. This is probably the single most useful reference for American Junk Silver there is!

Common American Junk Silver Coins

The USA, by far, seems to have the most 'Junk Silver Around'. Here are some popular coins to look out for and their silver content:
  • 1942-45 'War Nickel' - These are some of the best values you can pick up for 'Junk Silver' They contain 35% silver, so the content is lower than any other American junk silver coin, however you can buy rolls of this quite cheaply, below the melt value. I like this coin because its the cheapest entry into Junk Silver for New Zealand. Buy in Bulk!
  • 1964-1970 - Kennedy Half Dollar. These are 40% silver - but because of their larger size, they contain more silver and more expensive than above war nickels. Hard to buy in bulk, and shipping charges to New Zealand are often the price of the coins themselves.
  • 1971 - 1976 Eisenhower Dollar - San Francisco mint. The San Francisco mint produced 40% silver 1 dollar coins. Make sure the coin is stamped 'S' as other mints in the US produced the same coin during these years without silver content. These are Big Ol' American Sized coin, bulky and can be expensive to ship.
  • 1916-1964 Dimes - These dimes (from 1916 - 1945 they are known as Barber dimes, 1946-64 they are Roosevelt dimes) have 90% silver. They are small coins, like above, buy in bulk!
  • 1932-64 - Washington Quarters. We are getting into the mid-range junk. These coins are also 90% Silver. Rolls can be a bit pricy, but their still good deals to be had on the internet.
  • 1916 - 1964 Half Dollars. During this time span their where 3 different designs (Standing Liberty: 1916-47, Franklin:1948-63, and Kennedy:1964) . Expensive to buy in rolls, however you can often find sets of 3 to 5 coins that are more within range.
  • 1871 - 1935 Morgan Dollars and Peace Dollars. These are one of my favourite coins. Beware, there are alot of copies of this one around (I'll provide sites later so you can help identify 'fakes'. 90% silver. These are often sold by themself, lots are available. Often you can find good deals on these - sometimes below the silver content value. Morgans where produced 1878 - 1921; Peace Dollars (my favourite) where produced from 1922 - 1935.
This is not an exhaustive list of American Junk Silver but these are coins that are found commonly in the market place and are easily recognised.

A special note, if you are travelling to the USA - check your pocket change. Silver quarters, dimes and War nickels look identical to current currency. I've found several dimes, a few nickels and the odd silver quarter in my change.

Junk Silver in New Zealand

Hi everyone, this is my first post here - and as you can guess by the name of this blog its about Junk Silver.

First of all what is 'Junk Silver'? Junk silver are coins, usually circulated, that contain a high content of silver. These coins are commonly found and are more valued by hoarders for silver content than coin value.

In reality, 'Junk Silver', is not junk at all. It currently can still be bought below the 'melt value' of the metals it contains. Often coins can be purchased with expensive premiums that is associated with Bullion Silver (usually .9999 pure).

This blog is particularly aimed at New Zealanders - its the country where I live. I believe there is window of opportunity for Kiwis to purchase metals at good value now (as I am speaking the value of silver is hovering around 25NZD per ounce). This is of course on speculation that silver will skyrocket in the near future.

Silver, I believe, is more accessible to the average New Zealand investor than gold is. High premiums (there is 26% percent markup/premium on the local NZMints 1/4 coin) and customs charges of importing gold do not make gold a viable investment for most New Zealanders. Even for those looking for gold on popular sites such as trademe.co.nz will find that gold items (bullion or coins) often have extortionary values when compared to the market.

I don't fault sellers, much of the pricing has to do with New Zealand's isolation and small population. However, I hope to present ideas that are more within budget to small investors (which lets face it, most of us in the country are!). I aim to open, honest and fair in this blog. The fact is, I am using this blog as much as I can learn about Junk Silver and metal investment myself. So if you have insights and corrections - and by all means, differing viewpoints, please comment away!

Here are 4 reasons that make 'junk silver' a viable investment for New Zealanders:

Portability and Divisibility
Junk silver coins can be easily spent or traded in small amounts; this makes them popular for investors. These coins are still valuable even though they are fractional sizes of most bullion coins.
Low premiums/No Premiums:
Junk silver can often be bought for little or no premium over the spot price of silver
Legal tender
U.S. and Canadian junk silver remain legal tender, and maintain their face value regardless of the price of silver.
Recognition
Despite a mass smelting of junk silver in the 1980s, junk silver coins are still somewhat well-known, and may be less likely to have their value disputed than silver bars or rounds. Though rare, some silver coins can still be found in general circulation


Thanks so much!

(To Google Blogger Team - This is not a spam blog!)