Los Angeles, CA (PRWEB) November 30, 2012
Precious Metals Brokerage Group, International (PMBG) presents where to buy silver in their new simplified overview of the process to assist American investors who want to buy silver but don’t know where to start or how to go about it. This overview is geared for the first-time and/or newer Silver investor.
Step 1: Understand The Current Market Environment: The fundamental case for growing silver prices remains as strong as ever. In late December 2011, silver dipped to a 12-month low near $26 an ounce. Traders who responded to the barrage of ‘buy’ recommendations were quickly rewarded as the metal soared to a high of $37.18 just two months later. Since then silver has oscillated in price based upon several macro-economic factors (such as the Eurozone Crisis, an election year and a third round of Quantitative Easing). It pulled back to just over $26 an ounce again in early July and most recently has come back above $34 an ounce dipping down to $31 in early November. This oscillating pattern over the last year, breaking from consistent gains in the decade prior to it, gives first time silver investors a chance to establish a position before the metal makes its next move higher, as many leading experts are predicting. As the U.S. dollar continues to weaken and with the Royal Canadian Mint launching its own silver ETF despite a number of existing ones (which has suddenly removed 3 million ounces from the physical market) and with increasing concerns of inflation, silver prices are poised for moving beyond its 725% gains since 2001.
Step 2: Know What Type of Silver Product to Focus Upon and What Prices to Expect: A prime first choice buy savvy investors is always to look at “physical acquisition” of silver itself, especially since most individual investors are looking to build and store long-term asset value. In today’s climate, physical possession of silver as a hedge against inflation and global turmoil is bringing many new investors to the table. For the smaller investor, buying silver typically means bars, minted silver coins, or minted proof coins. A very popular choice for both first-time investors and experienced investors are the American Silver Eagle, the Canadian Silver Maple and the South African Krugerrand. The actual mark-up varies from coin to coin depending on the purity of the silver used and the ease of liquidating based upon market demand/popularity, with the American Silver Eagle being the most popular with U.S. investors. It’s important for new investors to know that nothing trades right at the spot price of the metal. The spot price is a baseline from which various silver investment products will include in the total price, which includes an individual product-specific premium of up to 16% for coins, which covers the cost of minting and fabrication and 8%-10% for bullion bars. By purchasing 100-oz bars offered by some mints, larger investments can reduce the premiums to as little as 4%- 5%. While it's easy to both buy and sell bars and coins many investors don’t know where to start.
Step 3: Find A Trustworthy Brokerage Firm/Dealer: There are important rules-of-thumb when investors choose to buy physical silver, gold or other precious metals. The following three critical criteria for buying Silver will save first-time investors a lot of time and potential frustration. 1) Deal only with reputable dealers who have proven experience in the business. This can be determined by checking their reputation of online feedback from actual customers as well as looking for any red flags such as past (or current) lawsuits or customer complaints by web-searching the name of a company an investor is considering purchasing from. 2) Seek out knowledgeable “customer-focused” Account Executives and/or Brokers that can offer a “customer-driven” buying process versus a “dealer-driven” buying process. A Precious Metals broker shouldn’t push a particular investment product at the expense of an investor’s goals. Find a company that has brokers that will take the time to walk through the various products and the pros/cons of each one in a no-pressure fashion. 3) Ask questions about their product guarantees and shipping insurance policies and make sure you don’t feel rushed. A “customer-focused” dealer should want to earn your repeat business versus push for a quick transaction at the expense of your buying experience.
About Precious Metals Brokerage Groups International, LLC ("PMBG"):
PMBG is a leading, U.S. based precious metals trading firm and a proud member of the Better Business Bureau with an ‘A’ Rating. The company offers a full range of internationally recognized precious metals investment products including bars and coins of gold, silver, palladium and platinum. The precious metals are delivered via direct, insured shipment to your home or to a secure depository storage for 401k, 403b, and self-directed IRA accounts (including Traditional and Roth IRAs). Prospective investors can call PMBG directly at 1-800-516-PMBG (1-800-516-7624) or visit http://www.pmbg.net for a free investment kit or to learn more details on setting up Gold and/or Silver IRAs and other precious metals investment and retirement accounts. To review actual customer feedback visit: http://www.trustlink.org/Reviews/PMBG-International-LLC-206398832