Silver finally hit an all-time nominal high last week of $49.51 on soaring global investment demand. The white metal has become so popular that investors are willing to pay higher premiums than ever for physical exposure.
In spite of market prices, investors in the Sprott Silver Trust, for example, have been paying over 20% more per ounce. The Chicago Mercantile Exchange/MF Global increased the margin on one 5000 oz. silver futures contract to 11 percent of its value. Premiums for the most popular silver bullion coins, American Eagles seem to average 5-10% or more.
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Notwithstanding, it's still possible to acquire physical silver at market prices through very unpopular circulated, common-date Walking Liberty Half Dollars, which are 90% bullion coins minted from 1916-1947 that contain .36169 oz. pure silver. As of Friday's market rate (approximately $48 per oz.), the metallic content of each coin was worth $17 each and they were available for exactly that price via many coin dealers and private sellers (especially on ebay)..
It is certainly worth considering this option because it has recently been one of the only ways for bullion investors to avoid soaring premiums (bear in mind that there are several scarce dates that carry added value).
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