Yesterday I posted about the benefits of investing in silver. Today, I will expand a little about the different silver products one can get involved in as well as provide a decent list of alternative places where one can procure themselves whatever silver product they may be interested in. I personally don’t chose banks for such transactions but I understand to some, banks may provide this added comfort level for such a purpose.
Anyhow – coins and bullion are not the only way one can invest in silver products. Here is a comprehensive list as well as a brief explanation (and where applicable) a picture:
These are silver bars at least 99.9% pure
Silver coins which are issued by a government mint
Resembles a coin, but is not considered legal tender. They may be issued by government or private mint. If you go to the Royal Canadian Mint, you will see that they require a minimum order of 10,000 units (whoa!)
Certificates or Storage Accounts
Piece of paper which can be redeemed for the amount of silver it is purchased for – in the past these used to be legal tenders – not anymore. On top of that, here is a link to a forum describing the tribulations of owning a TD Bank silver certificate (as much as I like TD – my favorite bank actually, I am not going to provide them with any kind of precious metal business)
Futures and / or Forward Contracts
An agreement made on an exchange to take or make delivery of silver at a set date in the future. Personally I’m not a big fan of these as this is essentially speculation – I don’t mind the speculation on junior mining companies, but on precious metals – it’s a bit … anti-climactic in my opinion
The right, but not an obligation to buy or sell silver or a financial security linked to silver on a specified date in the future. Not a big fan of this option here as well since this is something that may or may not materialize – and you’re betting on what the price may / may not be in the future.
ETF (Exchange Traded Fund)
This is usually a mixed bag of silver goodies made up of silver-dependent stock market equities such as the physical metal itself, producers, refiners, a bunch of relatively safe speculative junior miners for good measure which you can purchase on the stock market for a set “stock” price. Not a big fan of this unless you wanna park your money here for safe-guarding.
Fund which holds a basket of silver-related equities that are priced once daily. Not a big fan of these either since in my opinion they are good to park your money for safe-keeping.
Basically an investment strategy which allows to keep acquiring silver on an average basis with the difference that the investor does not actually own the physical silver.
Finally, here is a list of companies, contact information and what they offer to their clients for you to chose from – should you decide to get yourself some silver:
American Precious Metals Exchange: bullion, official coins, medallions
The Bank of Nova Scotia: bullion, official coins, medallions, certificates, futures
CMI Gold & Silver Inc.: bullion
Commerzbank, NY: official coins, futures, options
Dillon Gage: bullion, official coins, medallions, certificates
Fidelitrade: bullion, official coins, medallions, certificates, accumulation plans, futures, options
Johnson Matthey: bullion
Kitco: bullion, official coins
Mitsui & Co (USA): futures, options
Monex Deposit Company: bullion, official coins, certificates, accumulation plans
MTB Bank: bullion, official coins, medallions, certificates
Royal Canadian Mint: bullion, official coins, medallions
SilverSaver: bullion, official coins, medallions, certificates, accumulation plans
United States Mint: bullion, official coins