By nature most folks willing to trade dollars for physical silver or gold do so secretively. No fan fair, no cocktail party announcements either. The monetarily prudent simply trade fiat for the hardest asset – all while discretely living the day to day routine of life. The choice to buy large silver bars, or not, is one worth considering especially as we near an imminent point of silver rationing and pending internet trade taxation. Both rationing and the inevitable taxation on all e-commerce will change the what, where, and why of physical silver.
Today’s physical silver world remains a great maze of mystic confusion for those new to precious metal. By far, most newbies entrust what they buy, silver speaking, to a complete stranger who just happens to be a person selling PM (precious metal) and next in line. The conversations vary but the result is always the same. The precious metal illiterate (no disrespect intended) buy whatever the PM sales representative recommends.
TPS doesn’t “tell” folks what to buy, nor do I offer pinpoint financial advice either. My goal is one of monetary education because someone educated rarely fall victim to manipulation or bias opinion. Honestly, I can tell this annoys some of my readers by proof of emails asking for more specific advice on what to buy and how much. My opinion is that no one person walking the earth today can accurately predict the how much and when of precious metal, especially considering the monetary intervention that clouds all assets.
For this reason alone I recommend we stick to the facts. The fact is silver’s value will rise (sorry, I don’t know when) as more individuals realize printing dollars only benefits the super wealthy and political psychopaths of the world. This inevitable awakening is one we often discuss here at TPS. Combine such an awakening to a truly limited supply of precious metal and it’s easy to see why metal values can do nothing but rise beyond the expectations of most who understand some, or nothing, about monetary truths.
A larger than typical hunk of silver is an interesting storage of wealth. It is much more than a bar of silver. Some view bars of silver as bulky and heavy when actually such a formation of money is nothing more than a huge stack of $100 bills repellant against the ills of a fiat age. Those willing to buy large bars of silver enjoy the fulfillment of buying physical silver within 5% of spot. For comparison’s sake, a legal tender one ounce bullion coin will cost its owner a premium 20 to 35% beyond silver’s spot value.
This savings is undeniable, but not reason enough to exclusively own large silver bars. Such a large hunk of silver has its benefits but still might not be the right silver for you.
It’s a natural tendency for humans to picture the future in now terms. By example, my son graduates from high school today and merely weeks away from leaving home for the first time. But in my mind I can’t grasp a future with him living anywhere but where he’s always lived. Some of us view silver similarly not realizing someday silver’s value could rise hundreds of dollars beyond today’s dollar assessment. The divisibility issue in such an age will complicate trading such a large hunk of real currency.
For this reason alone I offer this PM advice. Consider storing some silver in smaller denominations; like one ounce bars, rounds, or bullion, exactly as you would a $20, $50, or $100 bill. Then, view a larger bar of silver (like a 100 oz. bar) as you would a savings account or long-term storage of wealth. Silver is a true source of liquidity but not necessary a divisible source simultaneously.
Please consider bar size just another thing to keep in mind as folks consider adding physical silver as part of self-reliant lifestyle.
QUESTION: An acquaintance used your consulting service and something you recommended for them to consider I find confusing. You recommended they purchase one ounce silver bullion even though they will pay far more than a larger bar premium. Why would you recommend something that will land them less silver by paying more money?
TPS Reply: Great question so thanks for asking. There are many folks who receive the same recommendation, from me, to buy silver ounce offerings over larger bars. This recommendation is 100% based on an individual’s financial situation and long-term monetary plan far more than my personal preference.
I don’t like the idea of acquiring large silver or gold bars until after securing one-ounce legal tender coins or rounds. We live in an age of great monetary volatility and uncertainty…… even though few are willing to admit it. If September of 2008 proved anything it was just how quickly a life dependent on a fragile banking/Wall Street world can turn upside down. Your ability to store real wealth within arm’s reach is not only prudent but necessary. Small silver, in physical form, will always be a universal source of money.
The truth is the majority of folks new to silver will never afford anything but single ounce form of precious metal. As silver rises, some will find themselves limited to 1/2 silver offerings as they struggle just to make ends meet. There will always be a market for large silver bars but nothing close to the secondary demand for one ounce silver. With that said, the option to melt larger bars into smaller ones will always exist as a way to divide such a large store of wealth.
I have no crystal ball but if I had to guess here it is. My bet is large bars will be the last to go as demand erases silver inventory. The first to vanish will be recognizable single ounce bullion or rounds even though the additional premium when compared to larger bars. Why not buy one ounce form while the option still sits on the table? Thanks for the question.
COMMENT: Silver prices are taking a beating lately all while the stock market roars to new highs. This only proves most Americans will trust the US dollar over silver when times are tough.
TPS Reply: Thanks for sharing your comment. The DOW is on fire, this is undeniable even to those religiously respectful of silver and gold’s future as real money. Short-term speaking, a rising DOW along with declining silver puts PM writers in the far corner of credibility. This writer loses not one minute’s sleep since the long-term outlook for PM is stronger than ever before. The crowd is not an indicator of prudent monetary action.
You’re also correct with your analysis of Americans running toward the USD when time are tough, but. Long investor lines are not reason alone to join the dollar bandwagon. Do you recall the long lines during the Dot.com bubble burst? What about the long line of suckers waiting to buy overpriced housing just before the bubble burst, too?
The one word in your comment that jumps out most to me is trust. Folks continue to trust the US dollar because it is the world’s most overproduced currency. The FED camouflages the dollar’s weakness by printing record levels of supporting currency. This illusion tricks those trusting the dollar to spend, borrow, and fail to recognize such a way of life has a temporary shelf life. I hate to imagine the chaos when dollar investors around the world realize its very existence is in the hands of a government trillions of dollars in debt.
I think I’ll keep stacking silver regardless how low it drops or how high it soars, thanks.
DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestsellers Why Silver and Gold Will Go Higher and Storing Silver & Gold. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources.