How to Buy Silver Bars
How to Buy
So you are thinking of buying silver bars?
Perhaps you have previously purchased silver bullion or gold bullion.
Maybe you are embarking on a new financial plan to preserve your wealth in the face of growing inflation and economic instability.
Regardless of your motive, silver bars can be a great addition to an investor's portfolio so long as you have the information you need to make the best possible decision for you or your family.
Before you jump in with both feet, it is important to understand a few basic factors regarding silver bars:
1) The different sizes of silver bars
2) Where to buy silver bars and determining the best dealer for you
3) The ease of liquidity
4) Privacy factors
I. Different Sizes of Silver Bars
Silver bars come in different sizes and weights. They are sold primarily in troy ounces and in increments of 1 oz., 5 oz., 10 oz., 100 oz., and 1000 oz. bars. Some mints even sell them in small fractional or gram sizes.
There is no right or wrong way to own or purchase silver bars. Due to fabrication costs, the smaller the silver bar, the larger premium per ounce a buyer will have to pay. The opposite is true for larger bars; the bigger the silver bar the lower the premium per ounce one will have to pay. This is due to the fact that it is more cost effective to produce a 100 oz. silver bar than it is to produce a smaller, for example, 10 oz. silver bar.
The best size silver bar to buy depends on your motives for buying in the first place. As an investor, only you know why you are buying silver bars and what your goal is. Large silver buyers are interested in preserving their wealth while getting the most ounces for their fiat currency. Small silver bar buyers are also interested in preserving their wealth, though they find the ease of liquidity and flexibility provided by smaller silver bars to be worthy of their typically higher per ounce price.
II. Where to Buy Silver Bars
Silver bars can be bought in numerous ways, including but not limited to buying online at websites such as eBay or our website, GoldSilver.com. Some investors buy silver bars locally at coin or bullion shops, while in some countries investors can buy silver bars directly from banks.
Almost every silver retail outlet has more than one payment option: bank wire transfer, credit card, cash, postal money orders, checks, and PayPal are all but a few payment methods being used within the precious metals industry.
Always consider any differentiators that some silver dealers may have over others. The silver dealer with the lowest price doesn’t necessarily mean it is the best choice.
Mike Maloney, author of the # 1 best selling precious metals book Guide To Investing In Gold And Silver, says that fellow investors must take into account the value, not merely the price, of any investment decision. For example, GoldSilver.com’s value differentiators are the Education, Vault Storage Options, and Exit Strategy that we provide our bullion customers.
III. The Ease of Liquidity
Definition of 'Liquidity' according to Investopedia*
1. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity. Assets that can be easily bought or sold are known as liquid assets.
2. The ability to convert an asset to cash quickly. Also known as "marketability".
If you buy established industry hallmarks and silver bar brands such as those offered through GoldSilver.com, you will be able to easily sell your bars for a fair price when the time is right for you to sell. Conversely, if you make the mistake of buying silver bars from suppliers that are not well known or established, the value of the bars might be in question when it comes time to sell.
Buying silver bars with weak hallmark recognition introduces the risk of your being stuck with unknown silver bars nobody wants to buy or place a bid upon, or of being forced to sell your silver bars for less than what they are worth.
For the best liquidity and largest sellback options, stick with highly recognized, globally respected silver bar hallmarks and brands.
IV. Privacy Factors
When discussing privacy in silver bullion investing, we need to examine privacy first in terms of buying bullion from a dealer, and secondly, in terms of selling bullion to a dealer.
Regarding buying, customers can buy any amount of silver bullion coins and or bars from our website here at GoldSilver.com and the transaction is private. In other words, our payment system is set up so customer's bullion purchases do not have to be reported to the powers that be, all purchases can thus remain private.
Regarding selling, any combination of a customer selling 1000 oz or more of silver bullion bars / rounds triggers a 1099B reporting requirement from a bullion dealer. In other words, if you sell 1000 oz or more of silver bullion bars and or rounds at one time to a bullion dealer, you will be required to give them your Social Security Tax ID number and or Passport number if you are an international customer.
For more information on private forms of silver bullion and privacy on silver bullion transactions click here.
Due Diligence is a Must
Buying silver bars is an excellent strategy for preserving or building wealth long term.
Being a prudent silver investor, you should certainly take the time to determine the right size silver bar and hallmark for your investing objectives.
Finally, always perform the proper due diligence when choosing a reputable silver dealer, who offers high-quality silver products and the services you require. By properly doing so, you will be ready to make the right silver bar purchases and decisions.
Get Weekly Expert Analysis
The information, opinions, and financial data presented are for educational purposes only and are not intended as investment advice. No guarantees are made as to the accuracy of the information provided herein. Situations can change from day to day. Every investor should do their own due-diligence to determine which investments are best for them.
You must assume the responsibility and liability for all decisions that you make on the basis of the information herein contained. GoldSilver.com, makes no warranties, expressed or implied, as to the fitness and accuracy of the information provided or for the results obtained by using the information. Those making investment decisions based on any of the information presented should do so in the knowledge that they could experience significant losses. In no event shall GoldSilver.com be liable for direct, indirect, or incidental damages resulting from the use of the information.