View Full Version : Silver Noob Can You Help Me Please

26th January 2010, 07:30
Hi there,

After being informed about the silver market..I've turned into a silver nut and keep reading information about investing in silver. However I need the following questions answered please.

1) Which is the best website where an Australian Can trade Silver Shares? Just the regular official silver market, no silver company shares etc.

2 What is the Official Silver Stock Market Code? Cant find this anywhere

3) Is it better to buy physical silver or buy shares in silver and why?



26th January 2010, 07:45
You don't need an answer to the first two questions because the answer to the third is to buy physical - as much as you can - and take possession of it. Only buy shares if you have an account that cannot buy physical silver. I don't know about Australia, but here in the USA you cannot take physical possession of silver in an IRA so you might consider shares of silver mining companies if you have the equivalent.

EDITED after reading next post: When I refer to shares I was meaning shares in mining companies. As the next poster says, there is no such thing as a share in silver itself.

26th January 2010, 08:27
1) Product Disclosure Statement for an ETF in Silver on the ASX is here (pdf) (http://www.asx.com.au/PDF/09-001ETP.pdf). Apparently it trades on the ASX, so any online trading house will do it for you.

2) The ASX code is ETPMAG (http://www.asx.com.au/asx/markets/priceLookup.do?by=asxCodes&asxCodes=ETPMAG)

3) Firstly, its an ETF, you don't buy shares in "silver" as it isn't a company. And secondly, there is only one way to actually buy silver, an EFT is not silver, just something that represents the price of silver.

Keep on reading, if you're lucky you may come to understand the difference between having physical silver as an investment against inflation and the get rich quick ideas of trading the empty promises of an ETF.

Here's a hint, you actually affect the fundamentals of silver when you buy physical silver because there is a limited quantity of the actual metal, but hollow promises (ETF securities) have an unlimited supply.

Hope that helps you.

26th January 2010, 11:47
"Is it better to buy physical silver or buy shares in silver and why?"

As mentioned up-thread, paper silver can be generated in unlimited quantities, so physical silver is better. I buy it as 10-ounce bars to keep the premium down. The other problem with paper silver is that if the big boys get into trouble, they can bribe, pardon me, ask the exchange to revise the rules. This happened in 1980 when the Hunt brothers tried to corner the silver market, so COMEX changed the rules to break them.

26th January 2010, 14:22

I also buy in Oz bars and have been adding some coins to break it up a bit. You folks have some nice coins with Australian themes on them but there comes with that a higher premium. I in the beginning had shares in SLV but sold them and own some mining stocks now.

What you can hold in your hands is the best and in my opinion gives the best satisfaction.

Go with the name brands like J and M, Engelhard, and Perth. Generics are fine (silver is silver) and may carry a cheaper premium but when the time comes for you to sell, name brands can be less trouble.

Do your research! Know all you can about silver through websites and forums like this one. Know exactly why you are investing in silver. Look for the best prices and if there is a local coin shop near you, get to know them. The one near me has been invaluable.

Check your change. I got 4 rolls of US dimes and out of that found 2 silver ones with one of those in mint condition. Find out when you guys down there went off silver for coins and keep an eye out or search for the odd find. Keep all physical silver options open!

Have Fun!!

26th January 2010, 14:37
Physical only imo.

If you don't HOLD it, you don't OWN it.

Mining stocks I think can also be good, but as far as just the metal, physical, no paper.

26th January 2010, 23:19
Thanks for the help guys!

I just bought my first piece of silver a nice perthmint 10oz bar:)

It seems even on ebay the spot price reflects the price you get as well....because I got a bargain compared to prices a couple weeks ago. im guessing silver buyers are quite educated.

Shares? Pfft what was I thinking...I cant wait for that nice big sucker to arrive:)

27th January 2010, 05:50
It seems even on ebay the spot price reflects the price you get as well....because I got a bargain compared to prices a couple weeks ago. im guessing silver buyers are quite educated.

It is hard to get a great deal on Ebay because there are usually so many people that several usually know the current going price very well. But if you are persistent and prepared to only win one auction out of 20 you can get some good deals. Overnight USA time is the best time to find bargains as there are fewer people on. I have used sniping software, set 10 or 20 bids to be triggered overnight and won a few great deals that way. Of course, you have to have enough resources to back up the bids just in case they all win, but that has never happened to me because I bid low.