How To Get Free Silver - A Guide To Free Junk Silver

Silver prices are going up and with this rise in prices its becoming more expensive than ever to buy silver bullion. Unless you have a large bankroll its going become much harder to purchase silver in bulk as silver isn't 5$ an ounce like it use to be. You might not know about this but its still possible right now to still get free silver without having to pay for it. I have for months been grabbing thousands of dollars in free silver for the face value of the coin from many banks around my area. This is a simple guide I am writing up that has made me thousands of dollars in one month finding free silver that I am giving out for you to be able to use yourself.

Junk silver is the term given to coins such as dimes, nickles, quarters, half dollars, and dollar coins that have silver inside them. The US Mint used to mint all of these coins with some silver before discontinuing this after the cost to produce these coins far exceeded the coins face value. These coins are still circulating around in change, tills, and banks all across the United States. The method I use to find change is by going to banks and asking for rolls of half dollars, and dollar coins as they are the largest and carry the most silver inside them. Any of these coins that are pre 1965 have 90% silver made up inside them, while before 1971 they have 40% silver inside them. Search through the rolls of coins and keep the ones that have the silver while putting the rest of the clad coins into a pile. After you have separated the silver, from the clad you need to go back to the bank an return the coins that don't have any silver inside them. Most banks have Coinstar machines you can use for free without having any charges taken out of the coins you put in. Just remember to rinse and repeat this method again and again from many different banks so that the bank doesn't ask to many questions. Month by month you should be collecting thousands of dollars in silver for the face value of the coins you kept. You can then choose to sell the coins to buyers, or keep the silver to be sold at a later date. Just remember to sell on a peak when the prices is high, and not a dip when the price is down.

Why Samsung Is Not Buying Silver

Cluff Gold, a gold mining concern focused on West African assets, recently signed a Memorandum of Understanding with Samsung. Under the unusual agreement, the huge Seoul, South Korea based industrial company will be offering substantial funding to the mining concern to help develop its mining portfolio in the initial form of a $20 million unhedged loan facility.

This is the very first financing deal of its kind, where a non-mining concern has shown an interest in a mining company to help provide it with a reliable supply of bullion over the longer term.

For whatever reason, capital from outside the mining industry is now starting to become available to it.Interestingly, the well-known shorts in the mining shares could well be in trouble, although the fact that Samsung is buying into a gold miner highlights the fact that it is probably too late to do the same for silver.

Silver Miners are Spread Thin and at the Mercy of the Banks

Although a desperate need for consolidation exists in the silver mining sector, the capital to do so seems quite hard to come by since miners are typically viewed as risky borrowers by funding banks. This situation creates significant problems for the supply of silver going forward.

If a tech company announced a similar joint venture with a silver miner, it would very likely create an industrial panic and see the price of silver push sharply higher. This move could be large enough to break the global financial system, especially if the famously short bullion banks are not as hedged by offsetting transactions in the OTC sector as they claim to be.

Basically, the worldwide surge in investment demand for silver is competing with constant industrial demand for a metal that is universally believed to be vastly more ubiquitous than it is due to years of extreme price distortion.

Furthermore, silver's monetary history ties it to gold, even though they have different intrinsic values. Nevertheless, no central banks own silver in comparable quantities to their gold holdings.

Impact of the Samsung/Cluff Gold Deal

Overall, as noted by many, including the legendary gold mining CEO, Jim Sinclair,the story is a major game changer that demonstrates substantial international corporate investment in a monetary metal.

It also highlights the persistent under valuation in the sector, and the desire by industrial concerns to secure their long term supply of a precious metal.

Furthermore, the creative financing deal demonstrates the recognition of the facts that:

(1) Gold mines mine money, (2) The supply of gold is dwindling and (3) Gold plays an important role in the high tech industry, which is actually quite minimal compared with silver's broader industrial importance.

The deal also indicates that the precious metals bear market inflicted by widespread hedging of gold shares is now coming to a close. Just think about it, if Samsung or another large tech company tried to source silver in this way, it could very well trigger a spreading crisis.

Precious Metals in the Rehypothecation Era

The Samsung/Cluff Gold deal also comes in the era of rehypothecation, which involves a broker pledging as collateral for a bank loan the securities in customer margin accounts.

Basically, the rehypothecation of assets, which infinitely dilutes claims on real assets, can and will ultimately lead to total losses even for investors who thought that they had strong collateral backing.

Furthermore, the inventory of the world's credible assets is literally evaporating in absence of Cap Ex spending, which is also one of the reasons behind the ECB's seemingly endless lowering of its collateral requirements.

Why Buy Silver?

Within this investing and supply environment for silver, a substantial buying interest could well have a remarkable upwards impact on the price of silver for the following reasons:

(1) Not much silver left. This is the same reason that central banks are not buying silver. Basically, silver has been dis-hoarded and any major buyer would immediately induce a short covering panic that would end all panics.

(2) Silver miners are spread thin. The supply of silver is largely a byproduct of the mining of other metals because the primary silver producers are still viewed as risky. They also often have trouble finding funding for their mining operations and exploration activities.

(3) Strategic threat. No one wants to be the one that blows the silver market sky high with large purchases, so gradual accumulation often seems a more prudent investment strategy in the relatively thin silver market.

Although Samsung may not be buying silver - yet - this innovative deal with Cluff Gold indicates that conditions are favorable for more "finance for supply" transactions of this type over the years to come.

For more articles like this, and to stay updated on the most important economic, financial, political and market events related to silver and precious metals, visit http://www.silver-coin-investor.com

How Gold and Silver Provide a Safe Haven in Today's Troubled World

The reasons for holding precious metals as a relatively safe haven for one's personal wealth are numerous.

One common investing thesis for buying precious metals is that these intrinsically valuable commodities can hold their value in times of rising price levels. This characteristic can help American savers keep pace with credit expansion and paper currency debasement.

Diversify Out of the Dollar

For example, precious metals can provide a safe haven in terms of the diversification they offer relative to holding U.S. Dollars in cash or Dollar-denominated assets.

Physical gold and silver investments can take up a core position in an investment portfolio since they offer an easy way to have some wealth stashed out of Dollar-denominated assets. These hard assets also provide a viable alternative to holding foreign currencies or foreign equities.

Basically, precious metals allow investors to engage in a new way of thinking, where investment priorities are anchored to real value and permit advance planning for troubled times.

When the Dollar Bubble Bursts

In much the same way that market bubbles have been blown in various asset classes over the last 40 years, largely via Fed sanctioned interest rate manipulation, the overvalued U.S. Dollar seems like yet another bubble waiting to burst.

Basically, the value of silver has been artificially deflated in U.S. Dollar terms via price control implemented using contracts traded at global futures exchanges.The symbolic investigation of this so-called conspiracy by the CFTC just passed its fourth year.

Under priced assets like silver will eventually lead the way back to what will very likely be the largest bubble the world has ever seen. The U.S. Dollar and the U.S. bond market appear destined for a long overdue crash.

Various factors point to this outcome. They include such things as: intrinsically worthless paper wealth, high frequency trading, a world where MF Globals can exist, the threat of taxation, and rampant money printing - otherwise known as Quantitative Easing.

Competing With the Banks for Credit

Major international banks have benefited disproportionately compared to the individual investor from credit expansion in recent years. Banks enjoy better profits from cheap money and can buy future cash flows very inexpensively.

Meanwhile, consumer credit has contracted leaving consumers holding the bag in many cases. People are also unable to consume as much because of a rise in general price levels and the failure of the troubled financial system to purge itself of bad debt.

If at any point the American consumer and banks are equalized with additional credit infusions, the tide will then begin to turn. Consumers can then free up more discretionary income as America goes back to work.

Nevertheless, until the two groups are made equal, credit will neither expand nor contract. Instead, credit supplies will stay constant, although prices will continue to rise relative to consumer incomes.

Precious metals provide a safe haven investment that can often help compensate an investor for such price rises. Furthermore, if at any point the system balances and allows for credit expansion to extend to Main Street, then precious metals investors will typically benefit.

For more articles like this, and to stay updated on the most important economic, financial, political and market events related to silver and precious metals, visit http://www.silver-coin-investor.com