Chapter thirty-eight. Robert Kiyosaki on silver

The author of Rich Dad Poor Dad speaks about silver verses gold.

These two videos explain how this man feels about investing in silver. They are both about four minutes long. So, do yourself a favor and take eight minutes out of your life to watch and see if you agree with one of the best known investment experts ever.

You all know how I feel. I have repeatedly said to NOT take my advice for investing. I repeat that right now. DO NOT. But, when all the predictions about fiat currencies come true, you may wish you had listened to people like Robert here. 

The choice is yours alone. If your investment portfolio is all in currencies and the system crashes - what will be in your safe? If you have silver (gold) in that portfolio what will it be worth if the system crashes? How about if the system does not crash? Will silver (gold) become worthless? Nope. It is a win-win situation.  

The only possible way to lose is if you only have cash to fall back on. 

I know I have repeated this theme throughout my blog. But, it is important to me that my readers aren't able to accuse me of not saying anything! 

Chapter thirty-seven. Counterfeits - How to know

Sometimes, you simply can't!

Do not dismay. This statement is also true about the currency in your wallet right now. Counterfeiters are artists. They earn (sic.) a living by making fake money. And, they are really good at what they do. Even other nations make counterfeit US money. It is simply too expensive for an individual to obtain the equipment needed to make a counterfeit; therefore much of the time they are produced by other nations who can afford that initial expense.

However, there are certain safeguards which you can take to avoid getting stuck with fakes. For that paper in your wallet, you need to simply know what a real dollar looks and feels like. Look for the security watermark for example. Look for that tiny security line embedded in it. And  the best is to compare it to a dollar which you know to be real. Don't bother using that pen with iodine in it which makes a color change to dark black if it is "supposed" to be fake. Most banks have discontinued using that now because all it does is make the iodine react with the starch contained in the cheap paper often used in a counterfeit. So, if they bleached out a one dollar bill and printed a twenty on that paper, you accomplish nothing with that pen. Take some spray starch and treat any paper money with it and that pen it will say it is a counterfeit!

Remember this, if you take a counterfeit dollar - or coin, YOU loose. The banks will not reimburse you. The government will confiscate it and leave you with nothing. If you try to pass it on to the next guy, that is a crime. Once you possess a counterfeit you are simply screwed. End of story.

For collector's coins these things are all the same as with paper "money".

Here is a short video regarding counterfeit American Eagle silver dollars By Mike Maloney:

Fake silver and gold.

UPDATED - 2015.

Here is a great page regarding detection of counterfeits:

14-ways-to-spot-counterfeits

Just as the cruds who counterfeit our coins keep getting better - we  must keep pace!

Here is information on counterfeits of all types from the United States Secret Service: 

Detect a counterfeit

Excerpt from the above cited SS page about coins:

"Genuine coins are struck (stamped out) by special machinery. Most counterfeit coins are made by pouring liquid metal into molds or dies. This procedure often leaves die marks, such as cracks or pimples of metal on the counterfeit coin.

Today counterfeit coins are made primarily to simulate rare coins which are of value to collectors. Sometimes this is done by altering genuine coins to increase their numismatic value. The most common changes are the removal, addition or alteration of the coin's date or mint marks.

If you suspect you are in possession of a counterfeit or altered coin, compare it with a genuine one of the same design and value.

If it is above five-cents in face value, it should have corrugated outer edges, referred to as "reeding." Reeding on genuine coins is even and distinct. The counterfeit coin's reeding may be uneven, crooked or missing altogether."

End of excerpt.

Steps you may take to invest in REAL coins (bullion):

1. Buy only from reputable dealers. Once you can better tell real from fake, you may want to go with individuals, but always be careful! They themselves may not know what they are selling you. Then, once you find out it is a fake - what will you do?
2. Buy certified coins. This is not 100% foolproof, but close. Closer than anything else you can do. This doesn't apply to bullion of course.
3. Befriend an expert. This was my original method. My friend was even employed as a "counterfeit detection" expert at a major dealer at the time. I was safe - for the time being. If you are lucky enough to know someone who can help, let them.
4. Study. Then when you know everything - let me know! Trust me - you will never know it all. I am an amateur and I have been involved since the early 1960s. Today there is a wealth of information online. Search around, read and look. Preserve your wealth by increasing your knowledge. You need to become knowledgeable in this field or you will suffer financially! You need to know enough to buy now - and to sell later.

Always be on the lookout for a good deal. And, always beware if that "good deal" seems too good to be true, it will bite you in the arse!

Blog about fake silver.

Real.

Real for sure - plus you know the condition.

OK, if you are at all serious about investing - buy a scale. One ounce of silver will be 31.1 grams - never more - never less.

FINAL WORDS: Be careful. Be informed. No investment is 100% safe. Silver and gold aren't. It's your investment in your future. Know what you are buying.

I do not sell anything. I am not a dealer. I am not a shill for any dealer. Make your own choices. Don't come complaining to me if you get stuck.

Chapter thirty-six. Overview

In a nut shell I am saying the following:

Our nation, and in fact the world, is faced with an epic financial FAIL! Very soon the usual way of doing business will disappear. That cash in your wallet or bank account will turn out to be worth its weight in paper! Actually very little of what we call "money" even exists today. The vast majority (over ninety percent!) is contained in little bits in computers and simply doesn't exist in real life. Just a bunch of zeros and ones. Nothing more. A flip of a switch and it all goes away!

As of now, there is not much we can do about this looming situation. Most people are unaware and distracted by things like Real Housewives and sitcoms. Or worse - sports! There are many online videos of interviews of people showing how utterly ignorant they are about the world around them. Voting hasn't seemed to help much since the elected people are pretty much the same regardless of party.

There are a few who do see what is happening. A very few. Some have come to understand things due to a religion and others through political studies. Plus a few have discovered through both! I am one of these latter people. I therefore believe what I do based on a religious belief plus a serious study in the secular world.

As a result of my training, I do not believe that storing up silver and silver coins and gold will result in a salvation in any religious way. I know those verses which tell us all not to hold our faith in the material things of this world. But I am not speaking about spiritual salvation in this blog! Salvation - that is to say, being "saved from the second death" spoken of in scripture is not what this is all about. I am trying to write about having a future in this physical world for now, and lasting longer and being better off physically than we might be if we became destitute in the coming months or years. I'm writing about having the wisdom to plan ahead for the foreseeable future. That future where our currencies will undoubtedly become worthless. 

Providing for ourselves and for our families into the physical future must be a "physical" matter.  We are, after all, physical beings. Our physical survival is of the utmost importance. We must eat. We must have shelter. We must continue moving ahead - for now. Yes, have your religion. Yes, provide for yourself and family in those "spiritual matters". But, provide for yourself into the future physically as well!

I am always reminded of the story where this family was trapped in a flood. They had to ascend to their house top to avoid being drowned. After a time along came a boat to rescue them. The father said, "Go away. We are relying on God for help." The boat left. Later a helicopter came over with the same results. The father told them to leave because they were waiting on God to rescue them. Eventually they all were drowned by the rising water.

Upon getting to heaven they asked why God let them down? God responded with: "I sent you a boat! I sent you a helicopter....!"

With that said here are a few photographs to fill the page up:

 

Chapter thirty-five. I will NOT buy certain coins advertised on ebay etc.

False advertising!

I have already mentioned a few things which the sellers get wrong. Lately, I have seen this creep in more and more.

Here are examples of advertisement claims which repel me and keep me from even considering biding on a coin regardless of any other interest I may have in that coin.

The following applies to ONLY PCGS slabbed coins:

1. The claim that it is in an old green holder (OGH). This claim means it should be in the old holder - right? Well the coin pictured by them is often in the newer holder, with an old green label inside that holder. This is NOT an OGH! It is an old green label (OGL) maybe, but the holder is the newer style and is actually a different size. In fact, there are boxes which hold the real OGH slabs and the newer ones will not fit into those boxes.

   

   Some PCGS boxes are green some are blue. These are both the same size and hold only the newer, larger sized, slabs.

   

   NGC boxes are a different size from PCGS. Otherwise, I know very little about NGC.

   

   This is both an OGH as well as a "rattler".

   

   New style and newer larger size holder - older green label.
   

    
   Notice the actual holder is completely different at the edges. It is also a slightly smaller size holder, and will not fit into the newer PCGS boxes.

   
   

   I know the one on the top is a "rattler" because the coin is up-side-down in the holder.  Known as the “rattler” holder, the early PCGS holders were used from 1986-1989 and are still seen sometimes today. The coin rattles around inside the old holder and sometimes moves around like the one pictured. This cannot harm the coin in any way. PCGS cured this problem after 1989, and the revised holders looked exactly the same but held the coin tightly. This "problem" of the coin being spun around can be fixed by the buyer, making the coin right-side-up. I'll keep my method of "fixing" it to myself though,  thank you!
   
   Bottom line is this. There are two style and sized holders. The old size is usually called an old green holder (OGH). Some of these are also a "rattler". The newer sized holders from 1989 forward used to have a green label in them. PCGS switched to a blue label then a gradient blue label more recently. There are other variations as well.

   
   

   I also know that some sellers would disagree with me about what to call a newer holder with a green label. That's fine - but, I AM THE BUYER.  Or . . . NOT!

2. The claim the coin is "proof like" when, in fact it is not. The certified coin pictured in their offering will not have the letters PL or DMPL on it, but the seller somehow knows better - right? His/her claim is that it is PL, in spite of the expert opinion of the grading service's label on the slab which says otherwise! I have even seen coins which have a little gummed sticker on the outside with the letters PL hand written on it by the seller, as if that made it official! Nope - I wont buy from that guy.

   

   What I think is a particularly nice looking MS64+ coin. Notice it is NOT graded PL or DMPL.

   
   

   This one is indeed graded DMPL by the grading service. They know FAR more than I do.
   

   
   
3. The claim of "Semi-proof like". That isn't even a grade. It is simply a made up claim by the seller. If he wishes to tell you how nice the coin is, fine. But the official claims (PL) should be avoided. He could say it is PQ (premium quality) or shiny, or has great eye appeal or blast white. But, reputable sellers will (should) avoid confusing a buyer with "almost" or "semi" this or that grade.



Side by side. Left is OGH. Notice the actual size of the slab is smaller. These require a different storage box. One which is no longer made. They are available on eBay sometimes at a premium. Right is new style holder, blue label in the photo, but some also have other colors including green.

4. And of course, the obvious reasons. The start bid price is already above the value of the coin. I'm sure some people will not do all the research and buy these or bid as the case may be. As for me - nope.

For other than PCGS slabbed coins you are on your own. I have only ever owned a few coins slabbed by other grading services and simply don't know enough to tell you anything about their slabs.

Chapter thirty-four. Coins can be a good value in this market

When silver dropped from around thirty-four dollars an ounce to around fifteen recently I noticed that the certified coins stayed about the same in value. Yes, there was a small drop in prices across the board, however, not even close to going to half price.

The numismatics market held its ground. Coins that were selling for around a hundred dollars each dropped to around ninety-five. A few went down more, but just a few. The coin auctions seemed to have fewer bidders as well. I guessed because the money was going into bullion purchases instead of certified coins.

Even the raw coins didn't take a hit nearly as much as the bullion. An un-certified or raw Morgan dollar which sold for about thirty dollars went down to the mid twenties. A small drop and certainly not 50% less.

Circulated, un-certified raw coin.

So, I have reached a point where I believe the best bang for the buck in silver now is in certified coins. The only risk would be if the dollar crashes and those certified coins loose their numismatic value. I have to bet that never happens. It hasn't happened in this downturn and I need to bet it wont then either.

Certified Morgan dollar. 1921 is one of the most common dates and a "bargain coin".

There is certainly nothing wrong with having a supply of bullion too. It's just that from what I can tell, these coins will fare better for now.

Have a bunch of these too if you can.

This is not to say one should go buy up expensive certified rare coins. As I have said before, the real investment coins are in the common date high production MS64 and MS64+ area. MS65 jumps way up in price. And below MS64 they are just a little less than what the 64s are in current dollar prices.

So my thinking is that when silver goes to a hundred dollars an ounce, about six times what it is today  (and it will) these coins in MS64 and 64+ should go to about six times what they are today or more for a whopping 4 to 6 hundred dollars each. At least I can hope!

As always - just my opinions in here.

Chapter thirty-three. Precious metals are on sale!

Yes! If you are investing in silver it is time

Today silver is still lower than it has been for some time. At this moment it is under $20 an ounce. Many of us paid over $35 an ounce not long ago. So you may get half-off in this current market.

Look at it as a sale price!

But, how can I be this happy about losing half what I spent (I bought at $34 an ounce)? Simply because I am not selling. I'm buying! Nobody loses when the price drops except those who sell. It could go even lower. But I doubt it. But then again, not long ago I doubted it would ever go below $26 an ounce - so what do I know?

A fellow employee stated he read the price would never go below $26.00 an ounce. I listened and actually thought he was right and knew what he was talking about. Obviously, he didn't!

So, please everyone - read my disclaimer. NEVER invest based just upon my ideas!

I do know this: We can only lose by selling. I am in this for the long haul. What about you?

There are two ways to invest in silver. 

1. For short term profit. Buy now, and sell when it goes back up - and IT WILL. 

2. For the long haul. Buy regardless of price and hold until way down the line. 

The first way is actually more risky. You can work yourself to death trying to figure out when to buy and when to sell. You can come out ahead every time doing this. In the end, you have more paper than you started with. Unless you are a dealer, you will need to share with one of them while doing this every time you buy or sell. Plus, if I am right and the dollar crashes, you may have nearly nothing.

Don't get me wrong, this can be a good strategy - dealers do this constantly. It just isn't my strategy. I believe it is inevitable that the dollar will crash in the future and that paper will return to its intrinsic value. When it does I believe the more you have in silver holdings the better off you will be. I'm talking about when we stop trying to figure out what an ounce of silver is worth in dollars and start seeing how many gallons of gasoline it will buy.

So, if silver tanks, many will sell off. If you do that you may well regret it later.

No longer available from the mint!

"U.S. Mint officials confirmed Nov. 5th the Mint's inventory of 2014 American Eagle 1-ounce silver bullion coins has been depleted."

Mint spokesman Michael White said plans were being developed to replenish the inventory to meet the insatiable investment demand for the bullion coins. A similar situation occurred a few weeks ago, pushing the Mint to increase production to restock the bullion cupboards."

Hang in there!

Chapter thirty-two. What will be in your safe?

Good question isn't it?

If our system crashes all of your savings will vanish. Stocks and bonds become just paper. Paper money reverts to its intrinsic value, that of sheets of fancy paper. Your retirement checks stop. Your Social Security checks stop. Your car will run out of gasoline and there wont be anyone to sell you fuel for that paper money you may have stashed. Food will vanish and truckers wont be bringing more.

It won't be practical to carry a chicken to the gas station to trade for gas! Those who believe they will be bartering may be right - slightly. But not for long. We are simply not a society like in the days of old where bartering could work. Yes, if you are Amish you will do well. The rest of us are simply not geared to bartering. What do you have to trade anyhow? Food? You are going to "sell" your food supply? I think not! Anyhow, think about it.

Sounds like a movie or two you have watched doesn't it?

Assuming you were smart enough to store up food and water, you can still eat long enough to wait for the system to recover in some ways and to once again offer supplies. 

If you were smart enough to have guns and ammo you can maintain your safety until things somehow normalize, perhaps under a different system of some kind. Plus you may be able to retain what you have stored up.

Buying and selling things, anything, will become a problem. What will things be worth when the dollar disappears? How can we decide this? What will be of any value?

Will silver and gold be used for exchange? MAYBE. Will there be a new world currency? Maybe. Maybe not. We cannot know for sure. No world-wide collapse has ever taken place before. This scenario is off the charts. A study of history can give us clues as to what to expect, but it won't be a certainty.

Long ago people traded services and products for "precious metal". Anciently the Egyptians used gold with which to buy. Back then it was iffy at best. The gold used was not always the same. Its purity was sometimes questionable and every trade needed to be weighed out with scales. "I'll sell you this cow for a half ounce of gold." You weigh it out on known scales and deliver it to the seller who hands you the rope with a cow attached to it. Done deal.

Even as imprecise as that deal was it was far better than carrying around loads of oil or seeds to try to exchange. Eventually, the metals became measured and molded and people could tell precisely what they were getting. The amount of metal in existence was finite and it retained a store of value and eventually would become the known medium of exchange.

IF the dollar crashes today we may be able to use precious metals. 

MAYBE! 

If so, you need to know some of the following:

Today we have gold and silver in known purity and known sizes. Precious metal, gems, and drugs are measured in troy ounces with twelve ounces making a pound. Many people don’t realize that an ounce of gold (and other precious metals) is weighed in a different weighing system called "troy weights". A troy ounce is heavier than the typical ounce found at the grocery store and elsewhere for many things. The "grocery" ounce is called the avoirdupois ounce. Here is where it can be confusing now.

One avoirdupois ounce is 28.35 grams
One troy ounce is about 31.1 grams.

An avoirdupois pound contains 16 ounces. A troy pound contains 12 troy ounces. So you see one troy ounce weighs more than one Avoirdupois ounce, but since there are more ounces (16) in a pound than in a troy pound (12) the Avoirdupois "pound" weighs more than a troy pound.

While I hope you never need to know all this - it is here to help you become more knowledgeable. There is a lot more with grams and such. But, basically you need to know how to weigh precious metals if it comes to that, and you need to know that regular scales wont do. You need to weigh in grams, and use the 31.1 figure for each ounce. If you start buying or using 28.35 grams for an ounce of silver you will be losing a lot of value in a hurry. If nothing else memorize the 31.1 grams figure.

It is important to know when determining the validity of silver as well. If an ounce bullion bar is off even a little from 31.1 grams BEWARE! Something is wrong!

31.1 grams

For US silver coins just remember the year 1964. That was the last year our coins contained 90% silver. Starting with 1965 and after, forget it! Just too confusing. Leave those to the experts to determine for now.

Older than 1965 US coins.

Chapter thirty-one. It's for your future

I really shouldn't need to add anything to this - but, by now you know me, and I will.

Why does anyone save anything?

For the future. Future living expenses. Future security. The future of our children and their children as well.

THE FUTURE.

So, looking ahead a few years then....

What will the dollar be worth in ten years? If history is any clue, it wont be worth much - IF it even exists. The dollar in 2003 was worth about $1.27 today. There are, of course, different ways to figure this. But basically that is true. Here is a chart showing ways to figure this:

Measure wealth

So a dollar today will be worth about 73 cents ten years from now IF things continue as they have for the past ten years. I think they will be far worse, but even with that in mind how much will a savings account be worth with a hundred dollars in it ten years from today? $73.00 is all. If you calculate interest on that savings you still lose a lot and certainly do not come out ahead. 

Silver is way down today. Seventeen dollars an ounce. Do you think it will go down 27% over the next ten years to $12.41 an ounce? To parallel the dollar loss it would need to do exactly that. On the other hand... IF silver goes up to the often predicted one-hundred dollars an ounce, where would you be then?

SAVE FOR THE FUTURE

I simply cannot fathom silver shrinking to twelve dollars an ounce. But, I guess anything is possible.

Chapter thirty. Toning - Like it? Or not?

Toning:

Since I began to focus more and more on coins I figured I'd offer up some more wisdom (ha) regarding what to look for when considering buying a coin.

Coins often become toned after years of being stored away. Vapors from drawer liners, coin roll paper, shelving paper etc. can cause all sorts of toning. Coin toning can intrinsically increase or decrease the value of coins. Natural coin toning can be quite beautiful. It can also be outrageously ugly.

Overall toned.

And because beauty is often times in the eye of the beholder, placing a value on a coin due to its toning can present problems.

Edge toned - usually from the roll paper.

Rainbow toned.

Should you pay extra or less for toned coins? After all, a coin that’s toned is going through a form of corrosion, right?

A coin that’s toned is in a normal "stage" of its life. It won’t disintegrate away before your eyes. Even in worst cases, the tone color will normally take centuries to reach its very darkest and usually its least attractive appearance.

There are several factors in determining the value of a coin, but at the very top for most people is its eye appeal. If a coin is ugly, unless extremely rare, people aren’t going to buy it and the value will be lower. If a coin is attractive AND toned, it’ll likely be worth more to some people.

With all things considered, a coin’s value is always going to be higher when it’s NATURALLY attractive. Historically, beautifully toned coins that are older garner a premium. It’s not just beauty that sets them apart but their "uniqueness".

Above information copied with slight changes from: Coin News Net

However, as I have tried to point out before, I am interested in "value" for my dollars in the future when the Dollar crashes. I doubt if a coin with toning is going to be worth more at that time. People should be able to use them as barter, and who will care then what it looks like? A certain amount of value is attached to looking in good condition. But, toning? I seriously doubt it will matter when buying food with it.

Personally, I prefer "blast white" as opposed to those which are toned.

Blast white! My favorite.

Cleaned coins:

NEVER clean a coin. That can only reduce its value. By this I don't mean you shouldn't remove mud or dirt loosely on the surface if that ever happens. What I mean is do not dip a coin in Tarnex or use silver polish or rub it with a scratch pad!

I will dip a coin in rubbing alcohol then dip in distilled water after that for a rinse. Other than that - I do not clean the coins!

Of course, if you buy a certified coin it will not have been cleaned - or the slab description will state that clearly. The experts can always tell and it will be labeled by them as "Cleaned", and the value goes into the crapper!

Damaged coins:

Unless the coin is extremely rare and holds some numismatic value despite someone drilling a hole in it - avoid these. Think melt value ONLY!

There are people repairing some of these coins - making them look almost as good as ones not damaged. Some people collect type sets and need a particular coin to complete a set of "every one" of something. The one missing could cost an arm and leg so, to complete their set they will purchase these repaired coins. Unless that describes you, avoid like ebola!

Chapter twenty-nine. My "hedge" against dropping prices.

If nothing else - silver has been volatile lately.

Going back just a little bit to April 2012 the spot price for silver was around $34 an ounce. Today it is at $17.60 an ounce. Nearly a 50% drop in dollar price. We know it will never fail and always have a store of value. But, is there any way to offset this (on paper) loss in our investments?

Yes, I think so.

Morgan dollar selling prices.

In this chart if you look at early 2012 and compare it with the current selling price you will immediately notice certified silver dollars (I used a 1921 MS64+ Morgan dollar as a typical example) dropped nowhere near the same as spot silver for the same period. This Morgan silver dollar went from $102.00 in April 2012 down to $94.00 in September 2014.

So, while silver spot prices dropped $16.40 for a 45.3% loss, the value of a 1921 Morgan dollar dropped just $8.00 for an 8% loss. A huge difference.

The reverse of this is also true. As silver spot prices rise, so do the coin prices. Coins rise and fall just like spot silver BUT FAR SLOWER, particularly on the downside. The upside rises more dramatically as silver spot prices rise. If silver were to jump to a hundred an ounce, trust me, no silver dollar could be bought for much less than that. The obvious reason for this is that with numismatics there is a completely separate market from the "silver bug" market. These coins have value for two reasons. First because they are made of silver or gold (precious metal). Secondly because they are sought after for their historic value and collect-ability.

A piece of American history in my hand!

What I consider a fine specimen. Why it isn't a PL is beyond me.

But, let me make this perfectly clear:

Unless you are knowledgeable regarding certified silver/gold coins, you can lose. And lose BIG! If that's the case, stick with bullion. Much of my blog deals with collectable coins (certified) and that is a start towards the knowledge you need to avoid big losses. But that alone isn't enough. You need to spend some online time yourself, learning what to buy. I get stuck sometimes myself paying too much or even buying a coin which isn't what I thought it was, and I have been at this since the mid 60s (and even before in some ways). Just be careful is all.

Chapter twenty-eight. Just what should you get?

Here in no particular order are my personal TOP picks :

1.   1/10  and 1/4 ounce American Gold Eagles.

2.   1/10 ounce Gold Krugerrands. 

3.   Junk US silver - any/all denominations.

4.  1/2 and one-ounce silver rounds by any reputable dealer.

5.   One ounce Canadian Silver Maple Leaf.

6.   One ounce USA American Eagle silver dollars, any date. Some demand a premium - I avoid those.

7.  One ounce silver bullion bars by any reputable dealer.

8. Certified US Morgan dollars - common date high production with the least added numismatic value.

9.  5 and 10 ounce silver bullion bars by any reputable dealer.

Brief explanations of some of my picks above:

#1 These smaller gold coins are still like a hundred dollar bill today! Easy to stash. Easy to carry around.
#3  Heavy on the Morgan dollars. Plus a roll or two of dimes and/or quarters.
#4  I currently prefer Sunshine Minting (see information about them below).
#5  Canadian Maples are one of the most recognizable silver coins on earth. Newer ones even have anti-counterfeiting engraving on them. Beautiful coin.
#6  Probably the most recognized new silver coins on earth.
#8  I avoid coins with a collector's premium due to mint errors or scarcity.

Silvertowne, JM Bullion and Sunshine Minting are people with whom I have had experience. They are reputable and a trusted source for my purchases. You can buy direct from Silvertowne (their own brand) while JM sells only other people's products. Sunshine products must be purchased in the secondary market. My experiences with AYDIN Coins and Jewelry as well as JM Bullion for Sunshine Mint products have been quite excellent. Again - bear in mind that I have absolutely no connection with these people whom I mention.

Many other suppliers, including most eBay dealers, are fine as well. I have no axe to grind here. Just my personal experiences is all.

Just buying silver or gold is one thing, but what is the reason to buy one type of silver vs. another? Here are examples of a few ways you can buy silver, some included in the lists above. Which is best? The choices are yours, but I'll add my opinion to each one.

First off, "junk" silver:

This is what? Anyone?

Yes. EVERYONE here knows what the above coin is. You all know it is a US quarter, plus you should know that, since it is older than 1965, it is 90% silver. Today's cost for this coin is minimal, albeit somewhat higher (per ounce of silver) than a silver bar for example would be.

King of coins!

This one is called a Morgan Dollar. The coin designer was named Morgan. One of the most recognizable silver dollars ever made. As a child I saw these in change all the time. If you put a few hundred of these back for tough times you will probably be pretty well off. Nobody counterfeits junk silver that I have ever heard of, and in bad times just about everyone will know what this coin is worth. 

Advantages: Very recognizable and certainly acceptable as silver coins, should the dollar crash. Easy to calculate value in purchases. Condition matters very little or not at all.

Disadvantages: Higher initial costs per ounce than many other sources of silver. Not practical for larger purchases. They are 90% silver and not pure silver (99.9%).

Next, silver bars or bullion bars:

This is a typical one ounce bar. They come in a variety of designs and are made by numerous companies. Many of these were made by companies which no longer are in business. A few demand a premium because of that. But, unless you intend to sell before the dollar crashes and turn a small profit - if they go up more - then I wouldn't worry much about who made the bar. The one pictured above has my name on it . . .  almost!

One ounce bars from Silvertowne.

Advantages: Available in almost any size your heart desires. The least initial cost for silver, especially in larger bars. Very liquid and somewhat recognizable for what they are. Easy to care for and condition is not crucial but keep them looking good if you can. 

Disadvantages:  Larger bars, while costing less per ounce, are not as liquid as junk silver or smaller bars. There are counterfeits out there and it requires a constant vigilance - especially buying in the secondary market or from an individual. When selling these it will require enough knowledge to show others they are real. Sunshine Minting solves this problem with a validation hologram type emblem minted directly into the bar. Canadian Maples use micro printing now as well to discourage the crooks.

Next, silver rounds - also a bullion:

Canadian issue five dollar coin (round).

United States silver eagle one dollar coin (round). This and the Canadian Maple Leaf are the two of the most recognizable coins in the world today.

Called "rounds" these are similar to the bars other than shape. The rounds are mostly one ounce or a half-ounce. Some are five ounce and ten ounce. I haven't seen any larger than that, but they probably exist somewhere.

Next, some words about Sunshine Minting:

 

Sunshine Minting holds a special place in my heart! As far as I know, they are the only ones that have placed the validation emblem on each bar and round produced. Older ones will not have that on them as this is relatively new for the company. Canada puts some micro printing on their newer coins (rounds). Geiger mints bars with a reeded edge to deter counterfeiting. Otherwise pretty much nothing I know of along those lines.

Quote from the SMI web page:

To help differentiate authentic SMI bullion from counterfeits, all SMI brand bullion products now have the new and innovative Mint Mark SI™ security feature. Mint Mark SI™ is an exclusive Scrambled Indicia security feature for all SMI brand bullion products. This is micro-engraving that is only visible by placing the Mint Mark SI™ decoding lens over the security pad.

Plastic decoder applied to bar yields the word "VALID".

Sunshine Minting supplies the US Government with blank silver rounds to use in producing the US Silver Eagle dollar coin (round). The company which imprints these with the hologram like mark and supplies the decoder also makes the US Passport anti-counterfeiting pages and is quite good at what they do.

Next, slabbed and certified coins:

A slabbed certified coin.

Slabbed and certified coin is a term meaning placed in a plastic protective slab. Certified means a group of experts has determined exactly what the coin is, its condition, it is genuine and usually guarantees to buy it from you for what you paid if they are wrong. Pretty good I'd say!

Advantages: Can hold their value better than pure silver in a downturn of the silver spot prices. Leaves no doubt as to exactly what you are buying. Generally are sell-able for what you paid based on what the silver spot price does. Just plain beautiful and a piece of Americana in your hand!

Disadvantages: Prices much higher than spot silver. Always consider the fact that a slabbed coin cost someone about twenty-dollars to get it certified. These coins cost a great deal more if you decide to buy other than common date, high production, coins. There is the risk that when the dollar crashes these will become worth no more than raw coins. Personally I doubt that will happen.

Foreign coins (Foreign to us here in the USA). There are a few worth obtaining here. The gold Krugerrand comes to mind. It is the original one-ounce gold bullion coin. Almost universally recognized. But, not made in silver.

Others are few and far between. Canadian silver coins are on a par with the US produced products. Even less susceptible to counterfeiting now with the micro printing. Some Mexican coins are made from silver.  I know of no Mexican coins (rounds) which are nearly as recognizable as either the Canadian or US coins. But, silver is silver. Others like Great Brittan, Australia, Germany (Geiger) and such exist. But, personally I would focus on what will be recognized most easily where you live. Your perspective could differ if you are reading this in London or Switzerland for example. Invest wisely for where you are.

Remember - being easily recognized by you and a prospective buyer is VERY IMPORTANT both today and after the the dollar crashes.