Tag Archives: silver bullion

An Introduction to Buying Silver 101

This article is a follow-up to our last blog which discussed the merits of owning physical gold. Both novices and long-time investors stand to benefit from a review of the basics of owning physical silver. The following list contains some, but not all, of the reasons to buy tangible silver. Some items on the list hold true for any precious metal, others are unique to silver.

  1. The most obvious reason to own silver is its comparative affordability. As I write this it?s possible to own physical silver for less than $20.00 per troy ounce. As a point of reference, gold is currently 80 times more expensive than silver. We frequently mention to our customers that it?s far more likely for silver to double in value to $37.00 than it would be for gold to double in value to $3000.00 per ounce. Simply put, if your primary motivation for buying precious metals is profit, silver offers you the best opportunity for appreciation.
  2. Silver is more of a commodity than gold. It has numerous practical uses in the fields of technology and medicine amongst others. Whereas virtually all of the gold mined throughout history is above ground and accessible, most of the silver ever mined is gone, much of it inaccessible in landfills, too expensive to recycle. Estimates of the above ground quantities of gold and silver vary wildly but all agree the accessible silver on this planet is far less than the current silver to gold 80:1 price ratio suggests. Based on supply considerations only, gold is either obscenely over valued or silver is grossly undervalued. We tend to believe the latter is true.
  3. If gold, platinum and palladium continue to trend higher many investors will choose to buy silver simply because the other metals are no longer in the average buyer?s budget. This point was touched on in our first pro silver argument. However, in this scenario silver would likely rise due to higher demand. In a precious metals bull market silver could become or already is ?the only affordable game in town? for many precious metal buyers.
  4. Readily available smaller units of silver would be far more useful in an unlikely but possible currency devaluation or financial collapse as well as during, God forbid, a natural disaster or war. Along the same lines, silver?s liquidity during a short-term financial crisis, whether it be unexpected bills or a medical emergency, makes it far more practical than its more expensive counterparts, gold, palladium and platinum.

Jack Hunt Gold and Silver, 2017 1oz US Silver Eagles Coin

There are numerous other reasons to own tangible silver, but many of these reasons apply to all precious metals, not just silver. I?ll review a few of them:

  1. Purchasing and owning tangible silver can be legally anonymous, especially if purchased through Jack Hunt Gold & Silver.
  2. Unlike bank deposits, equities, Treasuries and other paper investments, physical silver cannot default, go broke or file for bankruptcy.
  3. Physical silver is real?it is tangible. Currency, equities, Treasuries, etc., are just paper and promises from the issuer.

In conclusion it should be said that asset diversification is more important than ever in our turbulent and confusing times. We believe that a balanced portfolio should contain some traditional assets such as real estate, equities, bank accounts and cash. However, we strongly believe that a moderate percentage of one?s liquid assets be in precious metals. The non-commissioned professionals at Jack Hunt Gold & Silver would be happy to assist you in any form of precious metal related transactions. 


100 oz. Hunt silver bar, the real story

 

A blast from the past.

Many of our wholesale and retail customers are unaware that Jack Hunt Coin Broker once produced and marketed of 100 oz. silver bars. It’s come to our attention recently that there are some who mistakenly believe that these bars are a rare collectors item, produced by the infamous Hunt brothers (no relation to Jack).

A little history

The brothers, Nelson Bunker Hunt and William Herbert Hunt, were the sons of oil tycoon Haroldson Lafayette “H. L.” Hunt, Jr. In addition, they were also brothers to Lamar Hunt, founder of the American Football League and the Kansas City Chiefs.

Nelson and William used their vast wealth in an attempt to corner the silver market in the late 1970s. They acquired over 195 million ounces (estimated to be 1/3 of the world’s liquid, non-government held, supply of silver). At silver’s peak in early 1980 their ‘stash’ was worth nearly $10 billion (at $48.70/oz). In March of 1980 the silver market collapsed, loosing an astonishing 80% of its value. As a result both the brothers went bankrupt but ultimately regained their wealth years later.

The real story

Now while it would be a far more interesting story if the the Hunt brothers had minted the 100 oz. Hunt silver bars they were actually produced by Jack Hunt Coin Broker. Their were two versions of the Hunt bar.

Hunt-Bar-Stamp-Feature-Image

The stamp for original Hunt bar now serves as a paperweight in Jack Hunt Coin Broker’s offices.

The first was produced at a manufacturing facility Jack Hunt setup in Upstate New York. The second was produced by Leach Garner in Toronto, Ontario, Canada (just a 90 minute drive north of Jack Hunt’s home office in Kenmore, NY).  Peter Sherlock, Jack Hunt’s former VP of Precious Metals Trading, recalled when Jack Hunt first started production of Hunt bars.

“The fact that the bar said ‘Hunt’ on them didn’t mean anything. There was a shortage of generic silver bars at the time and the Hunt bars were produced in response to the shortage. Eventually the silver market caught up and it was no longer profitable for Jack Hunt to produce its own bars.”

100-oz-Hunt-Silver-Bar

The original 100 oz Hunt bar. Rare but not a collector’s item.

The Original Hunt Bar

Weight: 100 Troy oz.
Fineness: .999+
Dimensions: 155 x 78 x 28 mm
Number Manufactured: Approximately 5000
Manufacturer: Jack Hunt Coin Broker 1981-1982

Hunt-100-oz-Silver-Bar

Hunt Bar Version 2. Also rare and not a collectors item.

Second Version of Hunt Bar

Weight: 100 Troy ozs.
Fineness: .999
Dimensions: 160 x 80 x 25 mm
Number Manufactured: Approximately 5000
Manufacturer: Leach Garner 1982-1983

Hunt to Hunt

On a side note, Jack Hunt was once in contact with Nelson Bunker Hunt. In 1981 they corresponded regarding the sale of US90%. Nothing resulted from their communication but it was a great source of pride the Nelson personally responded to Jack’s inquiry.

Nelson-Bunker-Hunt-Letter

Hunt to Hunt letter dated August 5th, 1981.

Where are they now?

On rare occasion a retail customer returns to sell Hunt bars they originally purchased over 30 years ago. To those customers who still hold their original purchase receipt, we continue to honor the 97% of spot buy back guarantee they were offered at time of purchase. Yet we believe have overwhelming majority of the Hunt bars have since been melted or are buried treasure for future generations to find.

 

Now Available 2016 U.S. Silver Eagles


Silver In The Long Term…Is It Time To Buy?

 

5e1609a1-fa23-48c0-9f86-bb028583fbbfThe most frequent question asked of us here at JHCB by the public goes something like this? ?What?s a better buy, silver or gold?? Our simplistic answer is a polite ?We don?t really know?, or a similar non-committal response usually followed up with our question for you? ?Why are you buying precious metals?? We?ve found over the years that our precious metals customers can be separated into two categories. The first group are those looking to make a long term profit buying low and hopefully selling high several years down the road. Our second category of buyers want tangible metals to act as an ?insurance policy? against weakening paper based assets.

This article will focus on why many believe silver is the most attractive precious metal to our clients from the first group I mentioned, those whose focus is solely on profit.

There are several reasons why many believe silver has more profit potential than gold:

1. Silver has dropped in value by nearly 300% since its recent high in 2011, gold has dropped ?only? 35% in the same time frame.

2. The US and most global stock markets appear to be entering into a bear market. In this scenario some paper wealth always moves into tangible wealth with silver being far more affordable to the masses.

3. Numerous charts show silver to be in a technical position similar to 2008. Silver at $9.00 per ounce in 2008 became $40.00 silver in less than three years.

JHGS.US-silver-eagle-20124. Recent history shows that physical silver isn?t always readily available during noteworthy price dips. Physical silver shortages show up in higher premiums above the ?paper? COMEX prices. It is important for the buying public to note: There is no shortage of paper contracts for silver. They can be created in an instant with digital currencies backed by nothing except a compliant central bank. Physical silver cannot be so easily created and consequently can experience shortages. Buy the tangible metal!

5. Most western governments including our own are hopelessly insolvent. Since it would take a rational approach by politicians, and a lifestyle change for those ?entitled? to resolve our debt, it?s safe to assume our financial system won?t be corrected anytime soon. Debt based fiat currencies simply do not stand the test of time.

To those who want to own precious metals, regardless if the motivation is profit or peace of mind, silver offers an affordable option in the realm of liquid precious metals.

 

2016 Canadian Silver Maple Leafs Available Now


The Gold-to-Silver Ratio: Definition and History

Gold-Silver-Ratio-Chart-1915-2015-web

Chart courtesy of www.macrotrends.net

For many investors, the gold-to-silver ratio is one of many indicators used to determine the right (or wrong) time to buy or sell their precious metals. Other factors? including economic uncertainty, inflation concerns, fiat currencies and government debt have encouraged millions to invest in gold and silver. Yet to many the gold-to-silver ratio is a vague elusive mystery.

The basic definition of the gold-to-silver ratio is the amount of fine silver (in troy ounces) it takes to purchase one troy ounce of pure gold. Simply take the price of gold, divide it by the price of silver, and the result is the gold-to-silver ratio. As I write this the gold-to-silver ratio stands at approximately 74 to 1. That means it would take 74 ounces of pure silver to buy an ounce of pure gold.

Investors who trade gold and silver bullion and other precious metals closely monitor the gold-to-silver ratio as a signal to either buy or sell a particular metal. When the ratio is high the general consensus is that silver is favored because relative to the ratio silver is inexpensive. The current ratio of 74:1 is higher than its historical average suggesting silver may offer greater profit potential than gold at this point in time. Conversely, a low ratio obviously favors gold and may be a signal to buy the yellow metal. Many experienced investors may trade gold for silver or vice versa based on the gold-to-silver ratio.

The history of the gold-to-silver ratio is an interesting one. Since 1687, as far back as records reach, the ratio vacillated in a range of approximately 14:1 to 100:1. For much of the 19th and early 20th centuries, the ratio hovered around 16:1 as many countries were using gold or silver backed paper currencies. The United States and France were among several countries backing their currency with gold and both countries assigned statutory limits as to what the ratio could be. Also, the U.S. Geological Survey estimates there is 17.5 times more silver in the Earth?s crust than gold, which may substantiate the long held 16:1 ratio to some degree. Throughout much of the late 20th century and so far this century the ratio has averaged about 50:1 but has fluctuated wildly at times. Those experts who predict a return to the historical 16:1 gold-to-silver ratio would currently be looking at either a rise to $75.00 an ounce silver or a drop to $260.00 an ounce gold. Which price seems more probable to you?

gold-silver-coins-bars-webIn summation, the gold-to-silver price ratio can be one of the several valuable tools used to determine the optimum time to buy gold and silver. With patience, research and a long-term perspective, you may choose to buy silver when the ratio is high as it is now?buying larger quantities with fewer dollars.