Buying silver might sound easy and straight-forward but it isn’t that easy. It’s easy for novice investors to get lost in the variety of options that are available out there. You might have to ask yourself what is bars or coins or ingots. Bullion or numismatic coins – Which silver product makes the best investment?
Good and sensible investors evaluate their options by comparing premiums and prices that various sellers put over the spot price. It is also important to evaluate the kind of dealer you are thinking of buying from. They may try to sell you products with a higher premium like numismatic coins. This is why it is important to understand the market before venturing into the market.
There are some basic questions that you should get answers to before you go further into the precious metal’s industry. The easiest and less complicated way of investing in silver is to buy silver bullion online. Buying physical bullion coins or bars that you can see and physically hold is the most safest and traditional way to invest. It is better to stay away from other methods like putting your money in exchange-traded Funds (ETFs). With ETFs you don’t actually own the silver itself and you may not have no claim on the precious metal itself. This means you cannot take delivery of the metal or sell when you need to.
The biggest advantage with buying silver online with a dealer you trust is simplicity in buying over the internet and having it securely shipped to you. The best thing about owning precious metals is that you own a valuable asset that is kept outside the financial system.
Gold and silver both have features that will affect investors in different ways. These precious metals are not meant for the average investor or an investor who is not willing to do the work in as far as researching the precious metal is concerned. Gold might have had a bigger liquid market because of the jewellery market but silver might be outstripping gold because of the growing use of the metal in industrial applications. However, silver tends to be more volatile than gold and the price movements can be bewildering to novice investors. The key advantage that draws people to silver is the price. Silver is cheaper than gold and therefore more accessible to investors with a lower budget. This is a great advantage especially with the current inflationary economy.
Bullion Bars vs. Bullion Coins—Which is better?
The best decision you can make is to buy silver bullion online and look for government made coins because they are mostly made by reputable government mints and have legal tender. Silver bullion coins like the Australian Silver bullion coins sell well in Australia but so do other government issued bullion coins like the Silver American Gold or the Canadian Maple Leaf. Silver bullion bars have low premiums and ideal for individual buyers.
How easy is it to sell bullion?
The best way to buy precious metals is probably online. There are dealers who have buy-back policies which makes it easy for sellers to cash in their silver when they need to. With all of the economic uncertainty, it is a good idea to have physical silver bullion on hand to raise cash easily when you need to.