Do you want to invest in silver online? If YES, here’s a complete guide to buying and selling silver coins & bars for profit with no money and experience.
From time immemorial, people have desired to have and own silver and gold. These two valuable metals have been the cause of envy for a lot of people. There have been wars fought and lives lost in order to just acquire possession and ownership of large amounts of silver and gold. Here, we will teach you on how to trade in these precious metals.
This article will guide you in:
- Knowing which silver products are advisable for resale
- Proper and safe silver storage
- Market sites with affordable prices and high profits
What are the Different Silver Products You Can Invest in?
Like gold, silver can be invested in through various forms. Generally speaking, investors interested in silver have two options to choose from: to buy or purchase a financial security that moves with the price of silver or to invest in the physical metal itself.
- Silver bars/bullion
- coins
- silver stock shares in mining firms
- mutual fund shares in areas that invest in rare metals and silver
- ETFs and other silver financial derivatives
If you are interested in buying the actual silver metal, you can choose to buy either silver bars, coins or rounds (privately minted coins). The silver bars can also be bought from all major banks and bullion dealers.
Most investors prefer the feel of actual silver than buying and being left with a piece of paper, hence they purchase the bars. They do this in expectation that the value of silver will rise despite inflation, the monetary policy of the government, and dollar exchange rate. Investors hope that silver and precious metals like it will retain value and possibly stand in as currency in cases of major financial crisis.
The purchase of silver grants them the upper hand in the market and assures that they will be financially stable. Silver bars and bullion can also be sold and bought as an income source. So therefore, this article will focus strictly on buying and selling silver coins and bars/bullion.
What Are Silver Bars and Bullion?
In purchasing silver bullion, it is essential to look for bars that have the stamped weight, mint name, and fineness on it. The type of silver usually invested in is of 99.9% pure silver and a .999 fine value. The size of silver bars range from little one ounce wafers to big 1000 ounce pieces of silver. Quotes and prices of bars of silver are measured in Troy ounces, other than regular food measurements.
A bar of silver weighs 4.21kg with a measurement of 172mm by 70mm and is .999 fine at 100-ounce. This price of this bar in today’s market is about $4,852.00. The buying and selling of silver bars that are stamped are much easier.
How to Buy and Sell Silver Coins Online for Profit – A Complete Guide
Silver and gold coins are the type of assets whose value appreciates over time. The value of the coins increases as they get older; even more so if they are a rare type and still in mint condition. So this makes collecting, buying and selling silver and gold coins more profitable and enjoyable than any other asset.
Whether you have already gathered a small collection, have a little from inheritance or you are just thinking of, or about to start collecting coins, you have come to the right blog entry. We are going to guide your every step. Collecting silver and gold coins as a hobby can result in an increase in your income. So why wait? Why not clean out that old treasure chest and start earning today.
How Do You Buy Silver Coins?
Investing in silver coins is slightly more complicated. On one side, there are collectible coins whose value often rise and fall depending on some factors that have to do with the demand for that specific collectible; but on the other hand, bullion coins operate more like silver bars i.e. their value is determined solely by the amount of silver in them.
- Know your coins
There are different types of coins. You should know what you want to buy or what you have. The most common type are the bullion coins, for example, American Gold Eagle, South African Krugerrand, which are sold for their approximated base silver/gold worth.
There are also rare collectible or numismatic type of coins which are sold at very high and premium rates (more than their base silver/gold worth). Although it brings more profit, trading in rare coins is not recommended for beginners. This is due to the fact that there is much to be learned about evaluating and grading of rare coins to know their value before trading in them.
One troy ounce (31.1 grams) which is slightly heavier than the standard ounce is the standard weight of a gold coin. Coins that weigh less than one troy ounce exist but they are traded in less frequently; and also you may be required to pay a bigger percentage premium to purchase them from dealers thereby reducing your profit.
2. Shop around
There are many ways to purchase coins to trade with. It is best to always compare prices on any coin you are interested in buying.
- Buy from the government. The U.S government usually sells coins online. You can buy from them as their coins have a trustworthy guarantee of their silver/gold content, purity and weight.
- Buy from online auction sites like eBay or a forum online.
- If you are interested in buying coins like dealers, below market value, then you should learn how to buy coins from the public. That is where Craigslist becomes useful.
3. Minimize loss
One very important thing you should do to avoid or minimize losses for you is to confirm that the coins are made from real silver or gold without causing damage to them. The best way to do this is to have a third party verified coin dealer certify their authenticity.
4. Store the coins
Any reliable and safe method of storage is usually not cheap. Investors should always have a secure storage for their coins. For example, a home safe, bank safety deposit box or a safekeeping program usually offered by a few silver/gold dealers. But if you plan on reselling your coins for a quick profit, then they should be at hand always.
5. Keep track of Gold & Silver Value
You can get immediate updates on the value of gold daily from numerous online sites and platforms. The price of gold is also published in daily newspapers. There is usually an inverse relationship between the value of gold and the value of the dollar, so be sure to look out for when there is any change in the value of dollar whether it falls or rises.
Selling your Silver Coins
Everybody wants to sell their coins at the highest rate possible. This is where both instinct and research come in. You would want to make a profit or gain from the sale of your coins. This can be gotten when you sell your coins just before the value of silver/gold coins start to decline. But since the market is not always stable and trying to time the market does not always work, you should sell when the value of silver/gold is at its peak, and also when the demand is very high.
There are six best places to sell your silver coins:
- The local coin dealers-: if you live near one, then local coin dealers are where to go. They are a quick and easy way to sell your silver coins. They usually offer decent prices for your coins depending on how honest the dealer is.
- Pawn shops-: there are approximately 12,000 pawn shops operating in the U.S. alone. All pawn shops deal not only in buying and selling precious coins, but also in buying, selling and ‘pawning’ all types of other items too.
- Coin shows-: these are great places to browse for collectible coins and bullion products. There are usually a large number of coin dealers ranging from 30 to over 100 depending on the size of the show.
- Online dealers-: generally regarded as the most popular way to buy and sell coins, online dealers are always ready to trade. There are usually more than enough precious metal dealers that operate online and have good silver buying packages.
- eBay-: this site is becoming more and more popular each day. There are over 33,000 listings on eBay for the buying and selling of coins, silver bullion and products daily. The only issue with eBay is the seller fees. These fees often reduce your expected profit.
- Forums-: other than online dealers, there are also community forums and platforms to sell your coins online. But if you are not familiar with any of them, it is better to not bother with them.
Buying and Selling Silver Bars/Bullion
For gain, you can choose to sell and buy bars/bullion of silver. The investment gives you returns when the price of silver in the market increases. Profit is gained by the investor when bars are bought for lower prices and sold when the price is high.
How to Find a Reliable Dealer of Bullion Silver Bars
Take time and have adequate research done when choosing a retailer/dealer to buy or sell silver to. Buying from a store nearby cuts shipping costs. The US mint gives information on retailers who are a part of the American Eagle and Buffalo Gold coin program.
This is for those who want to work with reputable retailers in their area. This should be the initial point of focus for those interested in trusted national and local retailers. The silver bars can also be bought from all major banks and bullion dealers. Further information can be gotten from a phone book under the tags “Coins” or “Silver”.
Note-: It is best to purchase stamped silver bars of recognized refiners. Why? The reason is because stamped silver bars make for easy resale. Resale of bars with the refiner’s name that can be found on a Good Delivery list is easy.
Purchase Silver Bullion Bars at Cheaper rates
In purchasing silver bullion bars at cheaper rates, the first step is comparing the complete rate of each dealer. These costs cover commission of the dealer, storage, insurance and shipping. The commission of the dealer is sometimes an important cost to take account of when purchasing silver.
Dealers essentially give two rates , which are the bid and the ask. The amount they are willing to sell the silver for is the ask while the amount you will likely pay is the bid. Compare the rates of different dealers before selecting who to purchase your silver bars from.
Storing your Silver Bullion Bars
When dealing with silver bullion bars, it is best to choose a secure storage site and keep its location to yourself. Silver bars are attractive to thieves due to their transport ease and resale rates. The safe deposit in a bank is not regularly accessible and in the event that the owner dies, the deposit box is inaccessible.
Having a personal fireproof safe is another means that silver can be safely stored. A good amount of retailers will give protective storage for your silver bars and also give you a receipt for your silver deposit. Keep in mind that there is a disadvantageous side to having retailers store your silver bars for you.
5 Things to Avoid When Purchasing Silver Bars
a. Do not dwell on purchasing only Brand new silver bars
To practically everyone, the shine and glisten of new silver bars are highly enticing. The new bars come straight from wholesale companies or the mint and are always sealed in their original protective covers. Getting the best value for your cash in the silver market is usually from secondhand bars.
b.Pay attention to Non-Physical Silver Investments
Apart from the purchase and storage of silver bars, investments of silver can also be made in other ways. Investments can be made with silver accounts, Silver ETFs (exchange-traded funds), silver certificates, and silver mining stocks. These are all means by which investors can take part of the market without actually purchasing silver bars. This is seen by most consumers as a more realistic means to invest in silver.
c. Try as much as possible to buy silver bars from recognized brands
The purity of most silver bars are essentially the same, hence they should be worth the same rate per ounce right? Wrong. The purity might be the same but some silver brands are more expensive than others. The reason behind the price increase is the reputation of the brand, the demand for the product and other factors. Listings of different silver bars can be found on eBay by various companies.
d. The shipping trap; it’s a trap!
In the event of purchasing bars from retailers outside your locality, pay attention before shipping fees become a problem. Consumers should pay close attention to a dealers silver bar rates and also their shipping costs. In most cases, when a dealer charges cheap prices for the bars, they make up for it by charging exuberant shipping fees.
Selling your Silver Bars/Bullion
- Know its value
Before you can set a realistic resale price for your silver bars or bullion, you need to know its value. Factors such as weight, purity and condition of the bars determine its value. Keep in mind that the value of some bars or coins can possibly not be affected by condition but in the event that your coin is dirty, refrain from cleaning them as that will affect its value.
Proper research of the bars in your care will give a close estimate. If you are interested in selling your silver coins, ensure to view if there is additional gain to be made if they are melted. Research the history of the coin. A good amount of coins that are rare or have a history behind them is worth more than their bullion value.
If you are unsure of how to research the silver in your care and you are unable to make an estimate, fret not. Visit a silver dealer or a specialist in precious metals and have them give you an estimate of your bars or coins. Do not visit pawn or cash-for-gold stores. This at least gives you an idea on the price to start bidding with.
- View different dealers
Compare and contrast the prices local and online dealers have for their bars or coins. Better rates are usually gotten from online stores since they don’t have as much business costs to handle as do local stores. There is also the added benefit of selling your products from your own home. With all the benefits of selling online, there are bound to be disadvantages thus necessary precautions should be taken. Research the customer relationship with the website through reviews and use the Better Business Bureau. Reliability is an essential part of a working relationship thus if you have bad feelings about the trustworthiness of a company, leave it.
- Avoid Cash-for-Gold Scams
Avoid selling to stores, television ads and the likes that promise quick and easy cash for your precious metals. These services are most time unreliable and they would use all means available to get you to sell your bars or coins for less than what they are worth. Most of these dealers will use the appeal of instant cash and convince you to sell your bars for less their value and would most times give inaccurate prices. There are other dealers and you do not have to sell to these dealers.
- Ensure you read the Fine Print
Irrespective of who you finally sell your coins or bars to, always study the terms and conditions prudently. It is highly advisable to read the fine print carefully even if you are selling to a well-known online dealer.
- Ask for Credentials
Reputable dealers would usually be licensed by the state. Ask for the dealer’s credentials, it shows that they are serious about their work. By ruling of the law, the buyer is required to ask for your government ID card like a driver’s license or national ID card. The government does this to stop the sale of stolen property and money launderers from working in the market. Sell to other buyers if the one you are with does not ask for proper identification.
7 Money Making Tips for Investing in Silver
1. Study the market closely before delving into investments.The silver investment market is much different from that of bonds. The value of silver rises and falls regularly thus designing a market plan which usually works in favor of the investor.
2. Garner knowledge. If you have questions on how the silver market works, it is best to seek the assistance of a professional who will guide you on how to buy and sell.
3. Have a comprehensive online research base. Double check the information you get online. Too many sites hold stories on how to invest in the silver market but most of the information is wrong. When learning, it is best to learn from those that have been in the silver market for a time and invest daily.
4. Know the different means by which silver can be invested. Investments can be made in silver mining companies, silver coins, silver bullion and the likes. The best way to invest in the silver market is through bullion or coins. This way, as a beginning investor, you avoid risks and don’t have to pay mining companies for the energy spent.
5. This knowledge is essential for those looking to invest in silver bars and coins — seek out sellers with prices close to the spot price as much as possible. An accepted rule is that you should pay a lesser percentage when you buy a large amount of silver. In the case of purchasing coins to invest, ensure that you are not paying the price that a collector of rare coins would pay (numismatic value).
6. Before investing in silver, calculate all your assets and tax returns to see just how much can be invested. Ensure to have an emergency cash fund that is easily accessible for sudden expenses. It is best to invest what you can afford to lose.
7. Stay glued to the market.There are seasons to purchase as there are also set out times to sell. Of course, there will be instances where it may seem beneficial to sell some if not all of your silver bars or coins for money, based on your investment objectives and market proceedings. But even with all this, the best time to know when to sell or buy silver will be determined easily if you hold all market information within reach.