Many investors decide to purchase silver bullion to diversify their portfolios. Silver maintains its value over time as it is used for coins, jewelry, silverware and industrial applications. While it is typically a solid investment, consider four tips when investing before making a choice to purchase silver.
Tip #1. Set Solid Investment Goals
Work with a reputable dealer. Never depend solely on the advice of a friend or co-worker. Any good portfolio is diverse so it has a balance of risk and strong investments. Decide how much money will be invested in silver before shopping around. Investment goals should be defined to avoid disappointment. The bottom line is each investor makes his or her own decision about whether to purchase silver bullion and how much to buy.
Tip #2. Know What Silver Bullion Is
Some people buy silver as collectors while others purchase it as investors. Certain collectors look for special coins based on the type and year. Valued as collectibles, this type of silver is referred to as numismatic coins and usually sells for a large premium above melt value. Purchasing these coins often costs more, is highly speculative, and may not be in accordance with an investor's goals. Buying pure bullion coins as close to melt value as possible is an investment to build and protect wealth rather than become a collector. Get to know the value of common silver bullion before making a major purchase.
The video below provides advice for buying silver:
Tip #3. Invest In Authentic Coins
Purchase silver bullion that is recognized and known. For silver to have actual value, it must be an authentic coin. There are pretenders, counterfeiters and scam artists ready to dupe novice buyers. It is essential to do research before buying from any dealer. Only buy from reputable sources. A legitimate seller has verifiable contact information. Go online to search for reviews and ratings to ensure most of them are positive. When in doubt, run the name of the dealer at the Better Business Bureau website. It is always better to be safe than sorry.
Tip #4. Silver Bullion Prices Versus Numismatic Coins
Rarely are prices to purchase silver bullion negotiable. If someone discusses negotiations, it is likely they are marketing collectible coins and not silver bullion. There is a big difference between coin collectors and silver bullion investors. Always compare the selling price of any coin in ounces with the current spot price in ounces.
Article Source here: 4 Tips to Being Wise When Buying Silver
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