The Best Way to Buy Silver

Many consumers wonder, “What is the best way to invest in silver?” “How can I buy silver at the cheapest price?” Both of these questions are common questions when you first start considering buying silver.

Here are a few rules you should follow to make the most of your investment.

Rule # 1

Think. Determine the Goal of Your Silver Purchase

Investors create precious metals portfolios for a variety of purposes:

  • Appreciation Over Time
  • Barter and Trade Potential
  • Speculation (Including Trading the Gold/Silver Ratio, etc.)
  • Diversifying Their Cash Holdings in an IRA

When you are determining your purchase for silver there are plenty of different coins to choose from. The first step is understanding the motive for your purchase. Ask yourself why you want to make the purchase. Do you intend to use it as an investment? A form of barter or trade potential? A collector’s item? All of these different goals may affect the type of silver you purchase.

Rule #2

Don’t be fooled.

When you start investing in silver, you’ll quickly realize there are thousands of coins to choose from. This may confuse you and trick you into paying more money than needed. If you want to find the best way to invest in silver, focus on silver bars and silver coins that do not charge a high premium.

For example, you will pay a little more to buy certain coins, such as Silver Eagles (from U.S. Mint) versus other forms of silver bullion. You may get a little more money for them when it is time to sell back as well, but the premiums on these coins are unlikely to rise as much as the metal itself, compared to a similar coin or round of the same quality.

When it comes to determining the best form of investing in silver, keeping it simple is always best.

Rule #3

Keep Costs Low. Know Where to Sell.

When it comes to selecting the best bullion medium for trading, investors should prioritize keeping transaction costs as low as possible. There are two components to keeping the cost of purchasing silver low.

The first is the bid-ask spread (also known as the buy-sell spread) which is the difference between the price you pay to buy your metal and the premium or discount you receive to sell your metal). This is one part of the transaction cost in physical bullion.

The second cost to consider is the cost of delivery. As you accumulate silver and develop your portfolio, Silver Stonks’ educational content can assist you in determining what is the best way to ship your silver to you or arrange a safe vault storage if you want to minimize shipping and insurance cost. Silver Stonks sells silver products, but depending on where you live, shipping will be more expensive. If you are looking to purchase silver in large quantities over the coming years, it is a good idea to also locate a bullion dealer in your area, to save money on shipping. As we grow, we will work to cover more territory to expand shipping points in different parts of the world.

Finally, sales tax is a third part of the purchase costs that must be recognized in many jurisdictions. While some states and regions levy sales taxes on precious metals, many more do not tax the sale of precious metals. It is important to know this if you want to sell your silver one day. Knowing where to sell depends on where you live.

Rule #4

Keep It Simple with .999 Fine Silver

Put simply, for the purpose of investment, you do not need specific coins. If it is purely for investment purposes, to ensure you are investing in the highest quality silver, look to invest in .999 fine silver. This type of silver is worth more because it contains 99.9% silver, with trace quantities of impurities making up the rest. This silver grade is used to make bullion bars for global commodities, trading, and silver investments.

When you invest in .999 fine silver, it doesn’t matter whether you invest in a specific coin or not. What matters is that the silver, in whatever form, is .999 in purity. It is better to pay for .999 fine silver over .925 silver because .999 fine silver is a purer play and thus, While both .999 and .925 are projected to rise in value in the coming years, .999 will be worth more in any investment.

Rule # 5

Don’t Trade In and Out of Silver. Buy Silver, Then Wait for the Price to Rise Relative to Gold Instead

When it comes to short-term trading, we suggest people to stay away from trading in and out of their physical metal reserves. We are in the middle of a metals bull market, and we are living in uncertain times. Markets can be influenced by global events without warning, so you can’t afford to lose your core investment position in this environment.

We believe current conditions favor investing in silver rather than gold. Ultimately, If silver prices rise sharply in comparison to gold, it might be worthwhile to trade silver for gold. Metals investors who have mastered this strategy have gained much higher returns without ever risking their place in this bull market for precious metals.

Smart investors who know they can store their wealth in precious metals, specifically silver, have a great opportunity in front of them. Silver Stonks was created to assist new investors in getting their questions answered and getting started. We hope this article answered some of your questions, but feel free to email us if you have any other questions. Also be sure to check out our videos that explain much more on Youtube.

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