People who invest in precious metals usually do so for one of three reasons, a hedge against inflation, or an investment or as a replacement for currency. There are plenty of investors who will tell you that there is no value buying silver, since it doesn’t pay compound interest. However investing in precious metals will give you some diversification in your portfolio.
Best Ways to Buy Silver
No matter your reason for deciding to invest in silver, you buy silver based on the weight. This means that price of silver coins or bars is based on weight, 1 ounce coins carry the same amount of raw silver as a 1 ounce bar. When buying silver you want to look for .999 fine silver. While there are plenty of dealers online that will sell you silver you want to deal with someone that is reputable. That means avoid eBay and Craigslist, instead there are reputable dealers like American Precious Metals Exchange, Provident Metals or some others that have a proven reputation. Here are some other ways you can acquire silver.
Coins that have been minted by the government give you a guaranteed amount and quality of silver purity. There are several countries, including the US that offer federally minted silver coins. Here are some of the more popular coins you can pick up.
- United States – American Silver Eagle
- Canada – Canadian Maple Leaf, Canadian Silver Cougar
- Austria – Silver Philharmonic
If you want to buy large amounts of silver bullion then bars are probably your best bet. You can get silver bars in three different sizes, the 1 oz, 10 oz and the 100 oz sizes. When you buy large quantities of silver bars you can negotiate a better price. Bear in mind that bars will not be backed by the government, but if your goal is to buy silver at a decent price that you can store and easily trade later then bars will meet your needs.
Junk silver isn’t junk per se but it is silver coins that aren’t a collectible their value is strictly in the content of the silver. American coins that were minted prior to 1964 carried 90% silver content. These are important because they not only have decent silver content, they also have the lowest price of any silver you can physically hold onto. Another way to make gains is to swap out scrap silver for bullion. Most smaller bullion dealers do gold and silver recycling and will swap out what you turn in for bullion.
The banking industry has demonstrated time and again that they can print money that is backed by nothing more than a promise. It demonstrates that investing in precious metals is not only prudent but necessary. Silver offers you an affordable option to even the smallest of investor.