The mighty gold often overshadows its cousin silver, but did you know that its price jumped 70% the last year? From $15.5 per ounce, silver is now traded at $27 an ounce worldwide. What’s even more exciting is that the demand for silver keeps on growing as the global economy starts to reopen.
If you’re looking for a counter investment from gold, silver bars are a good option. Keep reading to find out some tips on starting your silver bar collection!
1. Establish What Type of Silver You Want
Are you sure you want silver bars? How about collecting silver coins while you’re at it?
Silver comes in various forms, but the most common types of silver are coins and silver bars. Silver coins derive their value from the metal it contains and also from the government. The government stamps on coins symbolize the monetary value of the coin.
There are also silver coins that enjoy numismatic value because of their collectability. When we say collectability, these often pertain to the unique feature or conditions of the coin that makes them more valuable than its monetary value.
Meanwhile, silver bars are mainly valued based on the weight of the silver metal it contains. Yet there are rare vintage silver bars that some collectors seek. Moreover, silver bars are more affordable to collect than coins because of the absence of numismatic value.
You must know which type of silver you want your collection to be widely compromised of. This will further help you identify which area of silver collecting you should pay attention to the most.
Silver bars, for instance, require you to research silver refinery, purity, and the like. Such information will help you identify the quality and authenticity of silver bars.
2. Choose a Silver Bar Brand
After deciding that you want to collect silver bars, choose a brand. There are various silver refiners in the market, which can confuse first-timers. Hence, the key is finding a reputable refiner you can trust.
What makes a reputable silver bar brand? For starters, established silver bar brands have official stamps.
Another is that information on a silver bar’s content, purity, refinery, and serial number should be available. Most private refiners who don’t include these often mean that there could be an anomaly in their product. For instance, the silver bar might not be as pure as advertised, or it’s low quality.
Further, when buying silver bars, look for one that is IRA approved. Approval from IRA signifies that the silver bars or coins meet quality standards. Moreover, it also means that the silver product was strictly produced by the government’s mint or an accredited refiner.
3. Get to Know Your Buying and Selling Options
You need to decide from the get-go what your method of collecting is. One of the most common ways is to buy from the physical shop of local dealers directly. You can also buy or sell silver bars from auctions.
Authenticated online shops are also an option if you don’t want the trouble of commuting. The key to finding a reputable online seller is to look for one with strong independent reviews. Refrain from reading reviews from sites that don’t meet Google’s policies of not being a pay-to-play site.
Another way is to contact a silver broker who can get you in touch with collectors who are selling. This is the best option if you’re looking for silver collectibles. In addition, brokers have connections that you can take advantage of if you’re looking for a specific silver bar.
4. Be Informed of The Silver Spot Price
A spot price is the current buying or selling price of a certain commodity in the market. If you don’t want to overspend, keeping yourself updated on the spot price of silver is always handy. This way, you can have a more accurate baseline of what to expect when you’re planning to buy silver bars.
It’s common for silver dealers to sell silver bars at a rate above the spot price as their means of income. Therefore, 5% higher for silver bars and 12% for silver coins is reasonable. However, buying silver bars will be far costlier in reality than the projected spot price.
Aside from the interest rates, there’s also the high cost of silver mining and refining. Plus the added value of manufacturing, minting, marketing, hedging, and warehousing silver bars. These contribute to silver bars’ high selling prices.
5. There’s No Harm in Talking to Advisers
Silver bars also come in different sizes, varying from 1 to 5000 ounces. Many suggest buying large sizes of silver bars because they have greater value. However, small silver bars sell faster.
Silver bar collecting is a constant fight between value and liquidity. Hence, it’s common for a new silver collector to become confused about which to buy. Under such circumstances, asking for help from silver specialists is not a crime.
Consulting with silver investment advisors allows you access to their accumulated knowledge and skills in the silver trade. You’ll have someone who can help you choose a suitable silver bar and also when and where to sell it when the time comes.
6. Don’t Forget About Your Silver Bars Storage
Where will you keep your collection of silver bars? This is an important consideration not only because it’s valuable but also because they eat a lot of space. In addition, silver bars are a lot harder to transport and store than gold.
Small silver collections can be safely stored at home via a large safe. However, once your collection grows, consider hiring a professional storage company.
7. Get an Insurance Plan
Accidents that can tarnish your silver bars are waiting to happen. Especially when you’re storing them at home. Thus, get an insurance plan if you want to protect your silver investment.
Make sure to go over the policies of the insurance so that it covers necessary accidents and mishaps. It’s also best to review the claiming process so that you’ll know what to do and expect when the need arises.
Start Collecting Silver Bars Today!
Silver, whether silver bars or coins, outgrew assets such as stocks in terms of return on investment. It also has high liquidity and can hold its value over time.
As it’s less correlated with other market assets, silver makes a good way to diversify your investment portfolio. These and more proof that there’s a bountiful market awaiting you. Don’t hesitate and use these seven tips above as a guide to starting your silver bars collection!