First Person: Benefits of Buying Physical Silver

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I recently bought some silver. No, I'm not talking about silver mining stocks or an ETF of some sort; and I'm not trading on the commodities market. When I say "I bought some silver", I'm talking about cold, hard, shiny silver.

Now I'm not going crazy and cashing out our retirement funds to buy 100 ounce silver bars or anything like that, just a few rolls of pre-1965 (90 percent silver) dimes and quarters, but I like this move right now more than putting money into a stock fund or savings account, and I'll tell you why.

Convenience

I love the fact that I don't have to call a financial professional, wait for him or her to make the transaction, and then send me a form to sign approving the transaction. I can stop by the area coin shop on the way to the bank or pop in when not much is going on and pick up a roll of dimes or quarter. It takes but a few minutes, I don't have to create an account or wonder what the price of my investment is doing while I wait days for my transaction to occur, and I can walk out the door in possession of and feeling confident in the investment product I've received.

Buy-in Cost

I really like the buy-in cost for silver. At current prices (around $30 an ounce), it's not outside the average person's financial range. With a roll of dimes coming in at around $110 and quarters at about $220 at current prices -- plus the seller's markup -- it's not a horribly high initial investment to make.

A Physical Asset

Another benefit of buying silver that I enjoy is that it's an actual, physical asset. I'm not just getting a piece of paper confirming my investment order or some numbers on a computer screen. I have physical items that confirm my possession of an actual hard asset. Should a financial crisis occur or some sort of electronic glitch wipe out financial records, silver in its physical form will still be silver.

It's Kind of Cool

Whether for kids or grown ups, owning actual silver can be kind of cool. Whether it's in ounce or bar form, or as old coins, it's kind of like having silver doubloons stolen from a pirate's chest. Plus, if the silver is in coin form as much of mine is, it's kind of like owning a piece of history. I love being able to sit down -- either alone or with my five-year-old son -- and sorting through the coins we get. Finding ones from the depression era, the roaring 20s, WWII, or whenever, it's fun to imagine where those coins have been, who has held them, and what they were used to buy throughout their lifetime.

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Disclaimer:

The author is not a licensed financial or parenting professional. This article is for informational purposes only and does not constitute legal or financial advice. Any action taken by the reader due to the information provided in this article is solely at the reader's discretion.

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