How to buy silver

A guide to buying silver the best way

When purchasing silver, you should be aware of some concerns. You don’t want to over pay when buying silver. There are a number of choices with bullion such as coin or bar? Coin silver(junk silver)or fine .999? 1 oz., 10 oz. or 100 ounce troy bars? I will answer some questions and give useful pointers below.


What kind of silver is right for you?

Before buying any silver you need to decide what is right for you and your investment objectives. To start with going out and buying a large 100 or 1000 oz. bar may give you the best price per troy ounce but, can be harder to sell once you decide you want to realize a gain. You can also get “coin silver” which is basically older silver coins (mainly 60’s and before) the advantage here is liquidity. Dimes, quarters and dollars are easily bought and, sold in small amounts.

The silver bars talked about earlier also come in much more manageable 1,5 and 10 troy ounce sizes. Yet another option are 999 fine silver rounds and 1 ounce coins produced by many national mints.

Buying silver online from EBay

 I have bought many coins and bars off of eBay. For the most part I set my price on silver bullion I want to buy and leave it at that. There are always more auctions to bid on. Just like with the stock market DO NOT go chasing price, set a maximum price and stick with it! Before you bid do your research on the seller to make sure they are reputable and, offer timely customer service. If any issue should arise you want to know that they are proactive in solving problems.

In addition to researching the seller know the silver product they are selling. It is important to know the current spot price of silver (spot being the bid/ask of physical silver at any given time for immediate delivery) . Obviously you will pay a premium above this depending on whether you choose bars or say American eagles.

Always make sure you have read and understand the shipping terms. Many sellers offer a deal on shipping if you win multiple items and combine shipping. That being said there are sellers that will inflate the shipping price to increase profits. Another consideration is insurance. Note: if you are only getting a few troy ounces of silver don’t bother with insurance. For larger items such as 10 troy oz. silver bars I always choose to have it insured.

Purchasing your silver direct from mints or dealers

There are a number of larger silver bullion dealers that offer sales over the internet. As with purchasing from auction sites, etc. do your own due diligence. Check their reputation and carefully read all the terms. With these sources of silver you get brand new silver bars and coins (probably more valuable to the collector)

How to buy silver at the right time

The silver market as with all commodities can be very volatile. Things such as the global economic outlook, the stock market and currencies can all influence its price.  There are occasions when silver does go on sale. From time to time any healthy bull market will have corrections. These pull backs in price are the perfect entry point for anyone wanting to buy silver.

The one thing you don’t want to ever do is chase the Market. It is very hard to not buy when the price is going up ( I have been there). One gets the feeling that they have missed the boat. Try to figure out what you think is a good entry point and stick with your choice.