Silver is known for jewelry and second-place medals, but it is also a good way of preserving your wealth. It is like gold in that regard. Both are precious metals that hold valuable spots in the market. However, silver is used more often in industrial factories for electronic parts. It is this wider range of use that renders silver’s price more vulnerable to fluctuation. Thus, in buying and selling silver bars for profit, you should know what you’re getting into. Below are some tips for buying and selling silver bars and bullions:
1. Know Your Silver
Before you start buying and selling silver, it’s important to know exactly how much silver is in the silver coins or bullions that you plan on buying or selling. In buying and selling silver coins, you should know when your silver coins were minted. Different minting years may merit more money than others when sold. When you buy silver bars, make sure to see the weight, fineness, and name of the mint stamped on the bars. Silver used for investment is usually .999 fine or 99.9% pure silver. It’s much easier to sell silver bars with these characteristics.
2. Know When You Buy/Sell Your Silver
Before settling on that shiny .999 fine silver bar, check the current price of silver for that day and compare that to price quotes from other days to gauge if now is the best time to buy or sell silver. Most investment websites/reference materials provide historic prices for silver.
3. Choose a Local and Reliable Silver Dealer
Of course, buying online is a very convenient option, but prices are more expensive online due to increased premiums and the shipping and insurance fees. Buying silver using that channel may not be profitable for you in the future. With a local dealer, you can avoid shipping costs and you can easily check if the dealer is affiliated with any government-certified mint retailers. For a list of retailers approved by the United States Mint, you can check out the US Mint website.
4. Consult Different Dealers
Like in any other buy-and-sell transaction, always look at different places to see where you can get the best deal. If you’re buying silver, choose the dealer with the lowest price. When selling silver, choose the dealer that gives the highest one.
5. Store Your Silver Properly
Once you’ve bought your silver, and while you haven’t sold your silver yet, store it properly. Carelessly stashing your silver away may damage it and thus depreciate its value. Not storing it properly also invites thieves, who can easily resell the silver if they don’t get caught. Invest in a fireproof personal safe as it is a less risky option than letting a retailer store your silver for you.
Now that you know the basics of buying and selling silver, you can dive into the numerous silver investment references that can be easily found online. The more you know about the silver trade, the easier it is for you to spot any tricks and choose the best deal for yourself. The silver buying and selling business is a risky one, but so is any other business. If you play your cards right, you’ll be on your way to financial security.