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[T989]To Buy Silver Coins

by Christina Goldman.., Chr

I'm going to tell you about a certain type of coins that you can purchase under the spot price of silver.

Yep. Below cost. The type of silver bullion that I'm referring to are 90% silver coin bags.

You'll often hear 90% silver coin bags referred to as 'junk silver' bags. They aren't really 'junk,' though. This term is simply used to describe a bag of circulated silver coins in average condition. These coins are really only valued for their silver content, not their collectible value.

'Junk silver' bags contain coins that were struck in 1964 or earlier, such as the silver Kennedy half dollars, Roosevelt dimes, and Washington quarters. They are comprised of 90% silver. After 1964, the amount of silver contained in coins was reduced to 40%.

Here's the neat part - the 90% silver bags containing dimes or quarters can be purchased through some dealers for as much as 1% under spot! It's like getting silver on sale! How cool is that?

Yes, the coins will look worn, have nicks, scratches, and show their 40-plus year-old- age. However, keep in mind, it's what inside that counts. And these 'junk silver' coins will usually still contain over 99 percent of their silver content.

So which would you rather have? A newly-minted, pristine American Silver Eagle that costs 9% (at current prices) over spot? Or a bag of 90% silver coins that you can buy for 1% under spot? If you buy the bags, you can get 10% more silver! Amazing, huh?

You can purchase 'junk silver' bags very easily online from any of the larger, reputable dealers or from your local coin shop in various sizes and denominations. Or, you can try one of the popular online auctions sites for even greater savings.

With the price of silver exploding in recent years, there seems to be no lack of silver bullion dealers advertising their services online. Trying to find a reputable dealer can be a bit confusing for the novice silver coins investor. After all, there are crooks in every business - the precious metal sector being no exception. However, the following tips will help you to select a quality, online silver bullion dealer.

Older Is Better

Reputable silver bullion dealers are well-established and have been in business for a long period of time. Many reputable dealers such as Kitco and Monex have been in business for thirty years or longer.

Think Physical

A reputable silver bullion dealer will have a physical office, in addition to an online presence. Check the dealer's website for a traceable address and phone number.

Track Records Count

Reputable dealers have a long-list of satisfied customers. Be sure to check out a potential silver dealer's customer service track record Find out if they provide personal service Try to get a recommendation from other silver investors, when searching for a respectable silver bullion dealer.

Buy Locally

A reputable silver bullion dealer doesn't have to be a huge conglomerate. Your local coin shop can be a great place to buy silver coins. Just make sure you apply the same rules of analyzing the business as you would an online dealer.

If you buy locally, you take delivery of the silver when you purchase it. Therefore, there's no risk of getting swindled by a non-delivery. Another advantage to purchasing locally is that no reporting requirements are required. You can walk into the store, pay with cash and remain anonymous if you wish to do so. With the larger online silver bullion dealers, such as those listed above, you are linked to the purchase with a paper check.

Diversification Is Important

With any investment, you want to diversify to lower your risk. The same principle applies to selecting a silver bullion dealer. You don't have to deal exclusively with one business. Even if you've done your homework and investigated the dealer to the best of your ability, there's still a possibility that you could end up buying fake silver bullion coins. If you purchase your silver from various places, you will significantly lower the risk of losing money from a bad deal.

Don't Overlook eBay

You can also bypass the silver bullion dealers altogether and safely purchase your silver bullion coins on eBay. eBay can be a great source to find terrific deals on silver coins. But, for those not familiar with the online auction format, purchasing on eBay does carry some risks. Just be sure to:

1. Carefully read the item's description
2. Check the seller's feedback
3. Always email the seller your concerns or questions.

Whether you buy silver coins from a huge conglomerate, a local coin shop, or an online auction site, if you follow these simple tips I've outlined for choosing reputable silver bullion dealers, you'll be a safe and happy silver bullion owner!

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Both Christina Goldman.. & Christina Goldman are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

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