In this post, I’m going to walk through buying silver, some basic options if you’re just getting started and things to look out for. Also, we will discuss factors that determine silver price and things to know and why people buy silver bullion.
Where should you buy silver?
To begin, I want to discuss where you should be buying your silver. In my opinion, especially if you are just starting out you should be buying from a large online bullion dealer or a local coin shop. I can’t really recommend local coin shops because that’ll depend on where you live, but I can recommend several online bullion dealers that are reputable from my experience. These include SD Bullion, APMEX and JM Bullion. It should be said some of these bullion dealers might have Amazon stores, but I still think it is better to buy directly from the website. So, these are the primary ones I have bought from and had a good experience. Also, it’s important to note you should avoid buying from sites like Amazon or Ebay. This is simply because there are tons of fakes on these sites. This tends to happen more with gold, but it does happen with silver as well.
Always remember that almost never does a dealer accept returns after silver bullion is bought. This is because the price of silver can fluctuate, and they could lose money. Unless the silver is found to be counterfeit, then you will have to sell the silver back to the dealer.
What silver should you buy?
Best- and Worst-Case Scenario for Silver Prices- Read Here
In terms of buying silver there’s generally two paths you can take. One is purchasing bars, and the other is purchasing either coins or rounds. I’m going to give a high-level overview of each of these. Bars are typically going to be cheaper than coins or rounds because they cost less to manufacture. The sizes go from 1 ounce typically all the way to 100 ounces although there are a thousand-ounce silver bars that you can get too, but most regular consumers don’t buy them. Again, bars are going to allow you to maximize the amount of silver you get with each purchase.
The next primary option is buying either coins or rounds. The difference between the two is that coins are manufactured by the government in a country (i.e. US Mint) whereas rounds are minted through a private mint. Coins are typically going to be more expensive than rounds. This is because coins tend to have more recognizability. An example of a silver coin will be the American Silver Eagle or the Canadian Maple Leaf. An example of a round could be The Sunshine Mint cowboy rounds. Typically, the private mints will manufacture different types of rounds from time to time. In my opinion it’s fun to shop around and look for the different types of unique rounds.
Why do people buy silver?
In my opinion, there are several reasons for this. One is that it is real money and has a finite supply. Many individuals like me are concerned with the endless money printing done by the US government. Precious metals, like gold and silver, have a finite supply and will retain their value. The second reason has to do with the metal itself and the properties. It is the most conductive metal and will be needed in the push to green energy and continued electrification around the world. This leads to the third reason, and that is that metal is undervalued in price and the price will rise in the future. A fourth reason people stack silver is many just like the appearance of the metal.
Should you buy Silver Zombucks?
Terminology for Silver Price
I’ve mentioned price several times throughout so let me explain Price briefly. You’ll hear the term spot price and that is the current market Price of silver at that time. Still, that doesn’t mean that’s what you’ll actually buy your coin, round or bar for. There’s an amount over the spot price you’ll pay this is known as the premium. This premium is what the bullion dealer will make on the sale. For example, the spot silver Price of silver might be $30 in you might pay $32 for silver round.
What Things Should you know for buying silver online?
There are several key things to remember if you’re buying from an online dealer. One is how you’re choosing to pay; several check out options when you go to pay, and you’ll notice that there’s discount based on which option select. The cheapest option which I’ve used is known as an e- check. Basically, either a checking or savings account is directly linked to the bullion dealer so when you go to buy, they’re just going to draft it automatically from that account. I’ve done this with several of the dealers and never had any sort of issue. That said the checking account is my personal checking account, and I don’t keep that much money in it. In my opinion, it probably makes the most sense if you’re a beginner to shop at few of the large dealers and decide which one or two that you like the most. And then you could set up the check. It might be a good idea to the shop around and see if you can get a free checking account anywhere.
In terms of shipping, if you buy on one of the big online bullying dealers. It’s important to point out that if you buy over $200 of silver (or any metals) that the shipping will be free typically. That said, the times I’ve made big purchases either 100-ounce silver bar or possibly a gold coin, I always think it’s a good idea to ask for signature guarantee. This ensures your silver won’t be dropped off at the wrong house or put in the wrong mailbox.
What Silver should you buy?
In terms of what should you buy when you’re just starting out. This is going to depend on your goals and what you’re looking to do. When I first started out, I was most concerned with getting as much as quickly as possible. So, I tended to focus on 100-ounce silver bars. Silver wasn’t as expensive then the premiums were obviously very low hundred silver bars. Still, it might be the case you’re looking for something to barter with. In that case it could be a good idea to buy what’s known as constitutional silver. These are quarters and dimes minted by the United States government before the year 1965. They contain 90% silver and are very popular in the silver stacking community, especially those that stack for barter reasons. Personally, for me, even though I own quite a bit of constitutional or junk silver, right now I’ve been buying more silver rounds.
How do you know if you’re getting a good deal on silver?
What happens to silver price in the summer?
The great thing about buying Silver is that it’s pretty easy to know if you’re good in a good deal. I would suggest comparing a product among several online bullying dealers. Often the prices are pretty much, maybe a few cents difference. One important thing that I think is key that I wish I had known when I first started, is that online dealers literally have sales every week. This isn’t just dumping the silver no one wants either, there are lots of good silver coins, rounds and bars for sale. They cut the prices of everything from American silver eagles to massive 100-ounce silver bars. These sales, or discounts, are often quite significant.
What determines silver price?
Like other commodities, and many items, silver price is ultimately determined by supply and demand. More specifically, the demand side for silver comes primarily from industrial orders or industry needing silver for things like solar panels. Other demand includes individual investors and also the price of silver also tends to move with the price of gold, which is determined by fear and central bank buying.
That said, the spot price of silver is determined by the paper market or futures contracts on commodities exchanges like the COMEX. It’s important to point out that a lot more silver is traded in these markets than actually is in the possession of the traders. There’s a lot more that can be said about this, but it’s important to realize some believe that the price of silver has been manipulated for years by the large banks.
A quick point on Silver Premiums…
One important thing to note here is that premiums, or the price paid over spot price, tends to be determined by individual buyers and not the futures markets. This is because if enough people are trying to buy silver, online bullion dealers and local shops won’t have enough silver and those spreads will widen.
Dealers do pocket more money, but also will be buying silver at a higher price. For example, if spot price is $30, and silver demand from consumers is low, a dealer might offer $30 for a silver round. If demand is high though from consumers, a dealer might offer $33 for a silver round.
What About Selling silver?
Always remember when selling silver to shop around. As mentioned, consumer demand will determine premium, and spot price is determined by the futures market. You can ship your silver into a large online bullion dealer like APMEX or take it to a local shop.
What does the future of silver hold?
In my opinion, silver has a bright future. There appears to be a growing supply deficit in silver. This is due to silver supply decreasing and silver demand increasing from both industry and individual investors. This gap is expected to continue as more green energies like electric cars and solar panels are produced in the years to come. In addition, more people are growing concerned with the national debt in the US and are beginning to buy silver and gold bullion. This along with supply deficits should push silver price, along with gold price higher in the future.
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