Not everyone has enough money to make a worthwhile investment in silver bars, rounds, or bullion. Nor do they have the space to store the huge amounts of silver that the investment yields. COMEX silver receipts are the foundation of the worldwide silver trade, yet they are relatively unknown. Some financial experts claim that these are the best way to invest in silver.
COMEX silver receipts are one of the most inexpensive, flexible, and liquid ways to own silver. In addition, they are also a safe investment and yield tax advantages to the investor. In total, one of these bonded certificates covers 5,000 troy ounces of .9999 grade silver bars. Each certificate represents five 1,000-ounce bars of silver and the serial numbers of each bar are separately recorded.
These silver receipts can be purchased on the Commodity Exchange (COMEX), which is a subsidiary of the Mercantile Exchange in New York. COMEX stores physical silver bullion and offers it to investors at no markup. The price of the silver receipts is the same as the commodity value. This means that the value of each certificate is the current price of silver.
When a shortage of silver occurs, many believe that these receipts will be in the shortest supply and therefore, greatest demand. Additional certificates may only be created by adding more of the precious metal. The total value of the silver at the COMEX is roughly half a billion dollars and it is estimated that there are only 25 million dollars’ worth remaining for investment at current prices.
Investors who purchase COMEX silver receipts will not be faced with a large premium when they buy or discount when they sell, as is characteristic of many other silver investments. The price of these silver receipts does not have a markup and investors will be able to own silver without having to worry about where to store it. The supply of COMEX silver receipts is dwindling so the time to invest is now.