Investing in silver bars is one of the best options to diversify your portfolio as it comes among the most precious metals. However, with the market competition and the numerous silver bar dealers in the market, you are prone to making mistakes. It is crucial to thoroughly research the silver market and exercise caution making a purchase.
We have prepared a list of top tips to buy silver bars to make an informed decision.
Silver Bars Identification
1. Seek an expert’s advice to buy silver bars
You will need to establish how much silver you need to buy for your investment portfolio. Silver bars have great value, but they can get difficult to sell in the market sometimes. Seeking advice from a professional financial or investment advisor will help you get the best advice on how much to purchase.
2. Art bars and bullion silver bars
Bullion silver bars are generally plain silver, whereas art bars are inscribed with the artwork. Although both arts bars and bullion bars are 99.9% silver, buying bullion bars may cost you less than art bars. Since art bars are attractive in design, you will have to pay a premium for them.
3. Size of the silver bars matters
There are different sizes of silver bars, from 1 ounce to 5000 ounces. The most common sizes are the 10 and 100-ounce sizes. If you want to get the value, it would be wise to purchase larger sizes as they are devoid of markup charges.
Also, if you plan to liquidate your bars with ease, you may want to opt for smaller sizes. Small-size bars tend to sell more quickly.
Purchasing Silver Bars
1. Find the right silver bars dealer
You will need to find the right dealer to get the best available silver bar prices. Find out if your bank sells silver. If they do, you can opt for your bank as banks usually sell bars at a lesser markup charge than other dealers.
If your bank does not deal in silver bars, ask for trusted dealers in your locality. You can also search on the internet. With the available client reviews and testimonials on the internet, you should find a trusted and reliable silver bar seller.
2. Know the spot price of silver bars beforehand
The spot price is the current price of silver bars in the market. It is worth noting that bars are sold a little over the current price. Knowing the current market price of these bars will ensure you get the best deal for your money. Always be cautious of sellers who offer you anything above the spot price.
3. Watch out for false claims of silver bars
It is common to see dealers making false claims about the quality and purity of their silver bars. These deals are often unreliable as they make false claims about the value of their bars. Before buying these bars, thoroughly research the market and avoid doing business with deals whose information does not match your research findings.
4. Avoid buying silver bars online.
The downside of shopping silver bars online is that there are numerous scams and disreputable dealers. On the other hand, the online prices are a little higher as it involves shipping costs. The cost of shipping your bars to you will add to the cost of purchasing, which is generally more.
Silver bars storage and how to sell them
1. Store silver bars in a safe at home or bank
You can easily store your silver bars in a safe at your home. These bars come in uniform sizes and shapes. Purchase a safe that is large for your bars to store and stack them inside it. Keep in mind to keep your safe in a cool and dark area to protect your bars from heat and humidity.
You can also store your bars in a bank if you are concerned about their safety and security. The bank will keep your bars in a safe deposit box in which you can store your precious metal. However, you will have to incur a low annual fee.
2. Find a trusted buyer to sell your silver bars
You will need to be equally cautious when selling your bars as you were when buying them. Thoroughly research and find the most trusted dealer in your community to ensure that you will get the best price for your silver bars.
Dealers usually buy digital gold slightly below the spot price, so you will have to explore and compare options to get the best deal for your silver. Be extremely cautious if you are not selling them to an unauthorized dealer.