How does one go about buying silver or gold?
I mean how do you know what dealer to go to, if you are paying a reasonable price, and if what you get is ACTUALLY gold or silver.
haha. good question. Coins minted by governments like American Silver Eagles are carrying very large premiums right now. Silver has a larger premium than gold, but it's easier to buy and sell in smaller quantities. You pay too much with fractional gold.
Check the buy and sell price regularly at sites like apmex, tulving, golden eagle coins, northwest territorial mint, and call up local dealers to compare their prices. You can use craigslist.
Old US silver "junk" coins are okay - very recognizable, and dimes are small denominations. Silver dollars command a large premium.
Be sure to check out forums. Right now is a dangerous time to buy in the short term - you might buy and feel you lost a lot if there's a steep decline. For example, those who bought silver at the highest point in 08 felt pretty bad for a couple years. But now they have a reasonable return.
Another question is physical versus etf or pool.
Whether you have actual possession of the metal, or are trusting some other organization to hold it for you.
You pay extra in premium to possess physical metal. But then again there are brokerage fees, taxes, the awkwardness of selling small quantities on an exchange, and the possibility of the shorts on the exchange running out of silver and settling your account for hyperinflating cash.
If you're in Europe you have to pay the value added tax for silver. (not gold)