How To Buy Silver Like A Pro

People buy silver bullion for a number of different reasons: They may like the design, the history of the coin or simply holding on to it. They may derive pleasure from collecting silver coins, building, or stacking. Some silver buyers might be interested in a particular coin because of its numismatic value. These reasons are all valid. However, if you are looking at silver purely for investment purposes then you should keep the following criteria in mind:

  1. Mark-up and spot price
  2. Recognition
  3. Size

Coins with a smaller mark-up over the spot price tend to originate from unknown or non-governmental mints. Multiple-ounce rounds as well as medallions have lower premiums than one-ounce coins or fractional coins.

When it comes to investing in bullion, it is important to find balance. Avoid numismatic coins altogether and while you do that avoid large coins altogether. To be safe choose to buy silver coins that are popular like American Silver Eagle coins, Silver Kookaburra coins, Canadian Maple leaf coins, etc. These are easier to liquidate than any type of silver bullion. 

Silver numismatic or collectible coins

Why should you stay away from numismatic coins because their market values are usually out of line with the silver content? No one cares that they are made from the purest silver but they are rare and their history. The premiums for numismatic coins can’t keep up with the increase in the gold market price. For instance, if your silver goes up by 177% silver which is valued at $18 will go up to $50. The numismatic coin’s price rises because of the silver it contains, there is no reason to assume that the premium for that coin will also increase. 

The numismatic coin might be affected by inflation, even if silver was to beat inflation, betting on numismatic coins would still be a bad idea. Another reason to avoid numismatic coins is that they usually could go down when the price of silver rises. In the case where the silver goes up because there is growth in the demand, people will be drawn more to silver and buy silver bullion Melbourne. They may divert their attention to Silver Eagles, Silver Maple Leafs, and silver rounds that will have a smaller mark-up over the spot price.

The point is, you should buy numismatic coins because you enjoy them. If you are following an investment strategy, then numismatic coins are not the right choice. If you believe the price of silver is still going to rise make sure the silver you have on hand can be easily sold. When you buy silver make sure it is liquid. 

Large Coins

If for instance, you have a 100oz medallion, you may find that the market for 1oz of silver medallions might be smaller than the one for a 1oz of silver. Silver is available in a number of sizes. You can buy a 1oz, 10oz, 20oz, and even 100oz. Just remember that smaller silver bullion coins are portable and easier to transport smaller silver bullion coins.

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