CNN Money’s HelpDesk blog today published a Q&A responding to an inquiry regarding the question How do I purchase silver in physical form?

CNN Money’s response? ETF’s such as  SLV or SIVR (notice Sprott’s PSLV is not included), silver certificates- essentially own paper silver in any way or form as long as investors avoid actual physical silver bullion like the plague.

From CNN Money:

First CNN recommends silver ETF’s:

The easiest way to buy silver is to invest in certain exchange-traded funds such as iShares Silver Trust (SLV) and ETFS Silver Trust (SIVR). These funds track the price of silver on the open market, with each share typically backed by a specific amount of physical silver held in trust by the fund manager. Because they can be instantaneously bought and sold on the market, ETFs lend themselves to trading.

Then CNN points out that physical silver trades at a premium to spot, whereas SLV can trade at a discount-

But Rich Checkan, chief operating officer of Asset Strategies International, a Rockville, Md.-based company that deals in precious metals, explains that the coins’ extra liquidity comes at a cost. He notes that silver bars are typically marked up 5% over the spot price of silver, but the more tradable bullion coins are often marked up 16% or more because they are more expensive to fabricate. (Shares in silver ETFs can trade at a premium to, or discount from, the value of the metal backing them up; SLV, for example, recently traded at a premium of 0.13%. The ETF has an annual expense ratio of 0.5% of assets.)

CNN finishes with a grand finale summarizing the ‘drawbacks’ of owning physical silver bullion.

Checkan notes that there are drawbacks of owning physical silver. Many investors don’t want to deal with the added costs and inconvenience of arranging secure storage for the bars or coins and insuring them. To help investors avoid those logistics, some financial institutions offer silver certificates of ownership which entitle the holder to a certain quantity of actual silver stored in a vault. One program worth considering: the Perth Mint Certificate Program (PCMP), the world’s only government-guaranteed bullion storage program.

Strangely, no mention anywhere of rehypothecation or counter party risk with all forms of paper silver.

  1. According to the mainstream media (purveyors of ‘conventional wisdom’):
    * Paper silver = yes.
    * Physical silver = no.
    Therefore, just do the opposite.  Avoid SLV and SIVR, certificates, etc, like the plague.  There is a reason they’re cheaper to own.

  2. Well, they *are* using words such as “investing” and “trading”. That’s not stacking which means saving. Obviously the real propaganda is by omission. They fail to make a distinction between these two very different objectives, hoodwinking the ppl who want safety rather than the casino. It implies – as usual – that there is only the casino, so you might as well leave your chips there. And there’s the second omission of course. The very real fact that the casino might just take “your” chips and lend them out to other folks. Over and over. But hey, you don’t *need* to take your chips home. Don’t be silly. They weigh too much… 🙂

  3. The only thing this tells us is that there is enough increased traffic in silver and gold that msm has decided to send some policemen out to direct the traffic to their preferred venues …. silver doctors and many other sites send out there tour guides too … and we direct them to keeping physical … there is enough groundswell of ill feeling towards the large institutions that physical silver is being explored by more and more people … the visitor numbers at sites like silver doctors continue to grow … the noise is getting out there

  4. Look! We are obviously getting to them, why else would they throw out such blatent propaganda? This is serious though, part of me wants to go down to CNN headquarters and start an occupy movement of my own. How about occupy the mainstream media? Then the other part of me lols all day thinking about these people squirming at the thought of millions of americans waking up simultaneously.

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