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The Do’s and Don’ts of Buying Silver

Do’s and Donts of Buying Silver

With silver predicted to go up to $30 per ounce, many investors are now keen to buy silver. Like any other precious metal, one needs to be abreast of market trends and have some knowledge on buying silver before going about it. There are many forms of silver available in the marketplace, and its important for investors to know how to assess purity, find the best dealer, be aware of the different sizes available and lastly, know the right price to pay.

Do understand the forms of silver

The most commonly available form is called the bullion bar. These are available in round, triangular and rectangular forms. The rectangular form is often the most popular as it facilitates ease of storage. When buying an investment-grade bar from a reputed dealer, its important to note the purity number. This is usually imprinted on the bar and written as .995 or .999. Basically, a bar with a number that says .999 is 99.9% pure silver.

Buying silver and art combined…

Art bars also available, and these are different from bullion bars as they usually have some kind of artwork with imagery or commemorative signage. Sometimes, these bars are released by mints to commemorate certain historical events. As these are collectables, they are often worth more than their spot price in silver. However, its important not to get hung up on buying these collectable bars and invest the premium instead on buying bullion bars.

Dos and Donts of Buying Silver
One kilo silver bars are a great investment

Do familiarise yourself with sizes of silver bars

Silver bars come in a variety of different weights and dimensions. Bars are weighed in troy ounces with increments of 1 ounce, 5 ounces, 10 ounces, a kilo, as well as 100 ounces and 1000 ounce bars. Its important to note that while smaller bars give you higher liquidity, they cost more per ounce due to their manufacturing costs. If you are buying silver to grow your wealth, it is better to buy larger bars and keep them in storage. Bars often come packed in their own shell case you should never remove the bar from its casing. The casing not only protects your bar but also serves as proof that the bar has not been tampered with.

Read our Insiders Guide to tax free silver investment here

Do try to get the best price when buying your bar

Bars manufactured by reputed companies come with their brand imprinted on the bar. These bars are usually more expensive to buy, due to brand value and limited editions. If youre thinking of investing only in silver bars manufactured by reputed global mints or well-known brands, its important that you research the brand thoroughly. However, the best deals are often found in generic silver bars available from local manufacturers. As long as you assess their purity and buy them through a reputed dealer, you can get a much better deal on these.

Dos and Donts of Buying Silver
Numismatic rare silver coins often cost much more than their silver value

Do research your coins well before buying them

So far we have discussed silver bars, but an equally attractive investment opportunity lies in silver coins. However, its important to know enough about coins before buying them. Coins are also available as bullion and circulated coins. Once again, bullion coins are worth their weight in silver, but circulated coins can often command a higher price depending on its rarity and its numismatic value. For example, a rare silver coin from the American Civil War is usually worth 100 times more than its value in silver weight.PHYS01_Animated_Gif_2_MPU

Dont get fixated on buying new silver bars and coins

The shiny lustre of a brand-new bar or coin can be difficult to resist, but there are better deals to be had on resold silver. At the end of the day, you want to buy your silver as close as possible to the spot price and its pointless to spend extra money on a new branded bar or coin. Of course, its important to verify the purity of the silver you buying, and as long as you trade with a reputed dealer, they would check the authenticity and the purity of the item before selling it to you.

Dont get fooled into paying more for shipping

Insider's Guide to gold and silverMany dealers advertise their silver coins and bars online at prices that seem like a steal and its very tempting to purchase the product immediately. However, many of these dealers often charge you a very high amount for shipping. Basically, they tempt you into buying something that seems like a lower price but then make up their money through the excessive charge that they make for shipping. Always research shipping prices well before cementing a deal.

Dont purchase your silver on online marketplaces

Online marketplaces like eBay often have great deals on silver but do remember youre buying something that you cant touch and feel, often from an un-reputed dealer or an individual who is selling them online. The best way to buy silver online is to identify a reputed online dealer and call them first and speak with them before getting the deals. A list of reputed online dealers is available on the BNTA website.

Call or silver experts to know more about buying silver

At Physical gold, we pride ourselves in being a reputed online dealer, registered with the BNTA. All of our products come with a certificate of authenticity and we also offer a guaranteed buyback on every product that we sell online. We also advise customers free of cost on the best ways to buy silver and practical, cost-effective ways to store them.
Call our hotline now on 020 7060 9992, or contact us online to have a member of the team call you back. We have a proven track record as an online precious metals dealer and its probably the best call you will ever make.
Image credits: Wikimedia Commons and Pixabay

One reply on “The Do’s and Don’ts of Buying Silver”

I live in a small Central Valley town in California. How do I locate certified Gold & Silver dealers near me. I am looking at purchasing 10 oz to 100 oz bars.

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