There’s more to buying silver than waiting for prices to rise before you cash out. Strategic investors find a lot to like about the precious metal and include it as part of their portfolios for any number of reasons.
During commodities bull markets and stock crashes, the metal certainly can see huge gains. But in recent decades, investors have found that it can help them achieve certain strategic goals, such as:
- Finding a hard asset with little to no third-party risk
- Buying a value investment with little downside in the contemporary market
- Investing in a highly liquid asset that’s also inflation-resistant
- Reducing third-party risk
These are factors that should appeal to any level of investor. Before you start buying, though, you should be aware of what kind of silver is out there.
The bread-and-butter of most investors. These are pure silver coins produced by government mints. They are easily traded in thanks to the security of having them made by sources like the U.S. Mint or Royal Canadian Mint.
They also enjoy greater price transparency than alternatives, since they are based on spot prices.
Collecting coins is a great hobby, but price transparency becomes murkier for the uninitiated. Numismatic coins derive their value from factors like rarity, demand, and condition. It takes some research and risk-taking to make money from numismatic coins.
U.S. coins made before 1964 (nickels, dimes, quarters) as well as older half-dollars, etc., have real silver content of 40 to 90%. They remain common enough to have little to no numismatic value, but their silver content remains valuable.
Now that you know what you’re buying, you need to learn where to buy silver that’s convenient and cost-effective.
1) Coin Shops
A coin shop is a good place to start. If there are local stores in your area, you can see just how wide the variety of coins can be. Most retail stores have an emphasis on collectibles. They’re the kind of product buyers want to see with their own eyes before they commit to it, so there remains a strong market for walk-in retail. They may also have recent bullion coins for investors.
2) Online Classifieds
You can find silver coins listed on online classifieds, but be warned. Though there are people who legitimately sell collectible coins on these venues, they are especially susceptible to fraud and counterfeit coins.
There are a few rules for using online classifieds:
- If the price is too good to be true, it’s probably not.
- Have a way to verify the authenticity of coins before you hand over the money.
- Be skeptical about meeting in parking lots.
3) Reputable Online Silver Sellers
If you’re looking for bullion coins, there is no better way to save than finding a reputable online silver seller. It’s one of the easiest and most affordable ways to buy your bullion and either have it shipped to your home, a P.O. Box, or straight to an allocated storage solution.
When you buy through the right seller, you can also incorporate gold and silver as part of IRA or RRSP – a great way to save on your returns when you sell. Only investment-grade coins can be included, not collectibles.