Common Mistakes to Avoid When Buying Silver

​Even though it is relatively easy to buy silver and other precious metals, some people who don’t have a lot of experience make mistakes which can lead to making bad choices.  While precious metals are low risk investments, in order to make sure you are getting the best value for your money, you should be familiar with the different types you can buy, along with the cost (and potential value) of each different type.

Doing a little bit of homework before you begin, or enlisting help from experts can save you a lot of money in the long run.

If you are new to the precious metals market, the best way to start, is to buy silver. It’s difficult to make any mistakes that will result in serious loss when you buy silver.  Therefore you won’t have to worry about risking all of your initial investment if you end up making a mistake.

The video below offers tips on buying precious metals for beginners:



​Silver has been experiencing record highs in value over the last few years, so buying it is a smart way to break into precious metal investing. When you are ready to buy, avoid these common mistakes that new investors often make:

1. Pouring money into collectibles – Collectible coins like American Eagles or Canadian Maple Leafs aren't a mistake because those coins are almost entirely pure silver and are highly collectible. But coins like that have very high premiums that will not add to the value of the silver that you are buying. You may make the cost of your premium back as the coins go up in value; but you also may not. Premiums for highly collectible coins can be as high as 16 percent over the cost of the actual silver! If you invest all of your money in collectibles you will be spending a large chunk of that money on premiums and not on actual silver. If you want invest in collectibles a better way to do it is to buy a few collectibles and to buy silver rounds, coins and junk silver also. Diversifying the type of silver that you buy will make it possible for you to protect most of your initial investment.

2.  Not buying from reputable dealers – This is a huge mistake that a lot of investors make. When you buy silver for the first time it is very important to buy from an established dealer who has a good reputation. That way you can be sure that you are getting a good deal and that the silver you are buying is from a verified and reputable source. A good dealer can be a valuable resource for you as you learn more about investing in precious metals.

3.  Not storing precious metals properly – You might think that you can just pop your precious metals in a box in the closet but that’s not a good idea. When you buy silver, you are investing in a resource that will give you financial security and you need to keep it safe and secure. A simple fireproof safe is a good choice if you want to keep them at home. Install a safe somewhere out of the way and use that to secure your precious metals.  That way you can be confident that your investment will always be there when you need it. If you’re making a large investment and don’t want to keep it all at home,  you can buy from a dealer who offers storage service to keep your precious metals safe. You can also rent a safe deposit box and store your investment there if you don’t want to keep that much valuable silver at home.



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