A few years ago, I bought silver in form of six 100 oz bars from
Kitco. For 5.72 an ounce, which was not very much above the spot price
then, I think that it was 5.55 or some such. They handled this
purchase professionally and delivered the bars via postal mail, with a
modest shipping charge.
So, I can recommend them for bar purchases. Kitco.com.
(for wannabe robbers, even though I still keep the bars, I do not have
these bars at home, they are in a bank's safe deposit box. The most
valuable commodity that I have at home is ammunition)
You can buy silver at sensible prices (in relation to spot price) on
ebay also, with the attendant risks.
Silver is a metal that is used in numerous industries and is often a
necessary ingredient whose cost is only a fraction of the cost of the
entire product. Examples include silver contacts, silver plated
As a result of this, industrial demand for silver is relatively
inelastic and does not go down a great deal with increases in price of
Silver is a byproduct of mining other metals and supply of silver is
also relatively inelastic (barely goes up with increased price).
There is more silver consumed in these industries every year than is
produced every year.
Therefore, as the existing supply of above ground silver is limited, a
new equilibrium would need to be established at a higher price, and it
could be considerably higher than the prices that previously
Silver has enjoyed a decent increase in price recently, but it does
not appear that the imbalance between its use and production has