How to Buy Silver Bars the Right Way
Buying silver bars is a simple way to invest in precious metals while diversifying your assets. As with any other investment, you’ll want to make sure that you’re buying the best from trusted sources. You have to do all the necessary research and look into all the information.
If this is your first-time purchasing silver, then fret not. We’ll make sure you avoid any of the common mistakes to make the most out of your silver. This includes practical steps such as how to choose the right weight and brand of your silver.
So keep on reading to find out more about how to buy silver bars. So, are silver bars worth buying? We’ll give you the information you’ll need to convince you.
Silver Bars vs. Silver Coins
When looking to invest in silver, it better to buy silver bars rather than silver coins. The first main reason for doing this is because silver bars are cheaper than coins. Because of their intricate designs, they need more labor and machine work, making them more expensive.
Silver bars are much closer to silver’s actual price on the market, having around a 6% markup. In comparison, silver coins have a markup of around 17%. The silver premiums are changing, but you can see that silver bars are cheaper.
The second reason to buy silver bars over coins is that silver bars are easier to store. Once you start to collect more silver, the problem of storage soon arises. Silver bars take less space than silver coins, seeing as they have to get packaged.
Silver bars are portable and easy to store. Plus, they don’t compromise any advantages of owning physical silver.
Choosing the Right Weight
Once you’ve decided to buy silver bars, the first main thing you need to think of is the weight that you buy them in. Silver bars come in a lot of different sizes, ranging from 1-ounce to 1000-ounces.
Typically, bigger silver bars amount to fewer premiums because the cost of making big and small bars stays the same.
There are some drawbacks to getting one large amount of silver. The first is that smaller bars are more practical to sell by piece. If you ever decide to sell some of your silver, you’d have to sell the whole thing if you had one big bar.
Secondly, just because you could afford a 1000-ounce bar, doesn’t mean that other investors will too. Potential buyers might not even be able to afford your giant silver bar. Meanwhile smaller sized bars have a larger pool to sell to, making it easier to sell.
If you aren’t getting your silver from a very trusted source, more oversized bars have a higher risk of being counterfeit. Bars over 100-ounces also require an assay to sell them.
An assay is a test to determine the silver quality. Which most investors might ask for, adding to your total expense.
So when determining which size to buy, it’s important to remember your options. Silver bars that weigh less than an ounce will have a much higher premium. But at the same time, you don’t want to get the biggest bar you can afford.
Choosing the Right Brand
The next step when buying silver is choosing the right brand to get it from. The most important thing to remember is to steer clear from buying online. Additional shipping costs and many disreputable online stores will only run you the risk of losing money.
You can ask your bank about reputable silver dealers near you or do the research yourself at home. You’ll soon come to realize that there are a lot of different refiners on the market.
The first thing you need to look out for is if the refiner has the proper stamping. The stamping is where you’ll find all the information about the silver bar. Things like its weight, purity, refinery, and serial number should all be present.
Silver bars that don’t have stamping might mean that they are low quality or not pure silver. It’ll also be harder to sell them in the future since buyers avoiding unstamped silver bars. Some reputable mints are Royal Mint (UK) or Johnson Matthey (US, UK, China).
Where You Can Buy Silver Bars
If you’re looking to buy from online dealers, make sure you’re buying from a trusted source. If it’s your first time, you can look for online dealers with a silver starter pack. Or go to auction sites like eBay where you can look into the dealer’s reputation.
To ensure that you’re buying from a reputable dealer, you can try to find their business on the Better Business Bureau site. You can also check their rating and see if they’ve had a lot of repeat customers.
It’s also essential to trust your instinct when choosing where to buy from. If you think that the dealer is trying to steer you away from silver bars and towards higher markup items. Don’t be afraid to say no to them and leave.
It’s also better to look for larger dealers as they’ll have the most flexibility. Some smaller dealers might have limitations about what they have for product selection. You can also ask about delivery times, staying away from dealers that take more than 48 hours to ship.
Reputable dealers will also offer different forms of payment that you can do. From paying cash, checks, credit, or bank transfers. Once you have a list of reputable dealers to choose from, make sure to compare their details to get the best deals.
Now You Know How to Buy Silver Bars the Right Way
The most important thing when buying silver bars is to do plenty of research. Make sure that you know what you’re looking for and that you review all your choices. Take special care if this is your first time buying silver bars.
It all comes down to choosing the right dealer, especially when you buy silver bars online. It’s where you can get the most value for your money and avoid getting scammed. We hope that after reading this article, you were able to get a better understanding of how to buy silver bars.
Of course, purchasing silver bars is only the beginning. There are other precious metals, like gold, to invest in! To discover all the crucial tips you need in purchasing, feel free to continue reading our guides today!