Investing in Silver: Silver Saver Review

This is Part 3 of my Investing in Silver Series. I’ve already mentioned why one would invest in silver and some of the ways how one could invest in silver. This last part is a review about my most current method of silver investment: Silver Saver.

Silver Saver is essentially a method of investing in silver, using a traditional bank account model. You open an account with them, then you can buy silver through the account by adding money to it. The best method of using Silver Saver is to schedule a set amount to come out of your checking account on a regular basis, say every week or every month. The money drawn from your checking account then goes to purchase real silver which is physically located in Wilmington, Delaware and stored under your name.

Now before I get to the benefits of using this method, let me just relay some of the negatives some people have mentioned about Silver Saver:

1. One of the biggest cons that many survivalists will mention is that you are purchasing silver which you do not have physical possession of. Some people would consider that worthless because in a catastrophic situation, you would have a hard time getting to that silver and it might be as good as gone.

2. Silver Saver has an odd method of counting your silver. You can schedule any amount of money to come out of your account to buy silver and usually that amount of money will not purchase an equal amount of silver at spot. So the amount you buy ends up being fractioned. If you buy $200 worth of silver at a spot of $35 you might end up with 5.7124xxx troy ounces of silver. Kind of a weird number and just to clarify they do also charge a premium so you do still pay a little over spot as with other silver dealers. Some people don’t trust those odd numbers because in reality, you can’t even buy that quantity of silver in the physical world but I feel that it’s just a side-effect of this method and allowing you to buy any amount of sliver you want instead of restricting you to whole troy ounces.

3. There is a storage fee for the silver you hold in your account. This is something I overlooked when I initially signed up. Silver Saver charges a storage fee of 0.05% of your assessed silver value.

4. The premium can be a little high if you are buying small amounts of silver but they become more competitive as your investment amount increases. A table of their current premiums (december 2012) is pasted below.

Range Premium
$25 – $149 7.49%
$150 – $299 6.49%
$300 – $999 5.99%
$1,000 – $9,999 4.69%
$10,000 – $24,999 3.99%
$25,000 – $99,999 3.49%
$100,000 + 2.99%

Now the benefits of Silver Saver and why it is my current preferred method to build up my silver investment.

1. For as little as $25 per week or $50 per month, one can slowly start building their investment. This works for me because I just don’t have hundreds of dollars to be able to spend on silver at once in order to take immediate physical position and there aren’t any other places that I know of that allow you to by silver in this cumulative fashion.

2. Every time my account reaches 21 troy ounces of silver, I can then take delivery of the silver so that it is in my possession. So while your silver is not in your possession when you first start, you can begin taking regular delivery of your silver once you read the 21 ounce threshold. To clarify, you need a minimum of 20 troy ounces to take delivery but there is a delivery fee of 1 troy ounce if your are taking Buffalo Rounds for delivery. The delivery fee is higher for other types of silver bullion. Delivery fees or shipping fees are common with all types of silver dealers. This is just one of the few that has you pay your delivery fee in silver.

3. Silver Saver has referral program that anyone can take part in and, full disclosure, I am taking part in it. Any time someone you refer to Silver Saver, opens an account there, you also get a portion of the premium of their investment. So an investment of <1000 yields the referrer 50% of the purchaser’s premium. An investment of over $1000 yields the referrer 25% of the purchaser’s premium. This is the only silver program I know of that benefits its investors in this way.

So as you can see Silver Saver has it’s pros and it’s cons. The best place to get your silver is probably your local coin shop but if you only have a little but of money to put towards your silver each month and it’s just not feasible to visit the coin shop every week or month, then Silver Saver may be the right choice for you. Check out their website for more info.

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