Collectors and manufacturers alike prize silver as one of the world’s most valuable precious metals. However, if you’re not careful, you could become a victim of con artists and dishonest vendors that prey on naive shoppers. In the precious metals business, underweight, plated, or downright fraudulent coins are unfortunately frequent.
The good news is that you can take actions to safeguard yourself. We’ve given our best silver-buying advice in this article. You may invest with confidence knowing you’re receiving the best bargain possible this way.
Silver Investments: Why Invest in Silver Coins?
Silver and gold have been used as stable stores of value and mediums of trade since antiquity. Silver naturally holds value as a manufacturing resource due to its vast industrial applications and rarity, and its price cannot be intentionally changed by decree. Some of silver’s chemical properties, for example, are as follows:
- Light-sensitive halide salts, such as silver nitrate, are present and are employed in photography.
- Highly resistant to oxidation in the atmosphere
- Among all metals, it has the highest known thermal and electrical conductivity.
- Properties of catalysis ethylene to ethylene oxide conversion
- Among the world’s least reactive transition elements
Silver’s unique qualities combine to make it nearly irreplaceable in the production of electronics, automobiles, and circuit boards. Its bright white sheen also makes it visually pleasant to the eye, which is why it is commonly used in jewelry and silverware.
In short, silver offers a wide range of beauty and industrial uses. Silver is unlikely to go out of style or be out of demand in the future. As a result, any investment in silver coins is likely to be safe, as silver metals have intrinsic worth that has endured for millennia.
Top Tips for Buying Silver Coins as a First-Time Buyer
Are you looking to buy in silver coins for the first time but don’t want to be taken advantage of? We’ve listed some of our buying suggestions for silver coins below so you may save money and get a good bargain.
1. Buy in 1-Ounce Denominations
Stick to single-ounce coins to prevent potential con artists. Although one-ounce fakes have been discovered online, the chances of being tricked by a fraudster are far reduced when buying in smaller numbers. This is because many scammers’ profit margins on one-ounce purchases are too modest to make the risk of fraud viable.
If you’re looking for one-ounce silver coins, go with government-minted coins like Canadian Maple Leafs, Australian Kangaroos, and American Eagles. These coins contain distinguishing features and markings that can be easily identified by skilled eyes.
2. Buy in Bulk
It’s cheaper to buy silver coins in bulk, just like it’s cheaper to buy goods in bulk. Large quantities of coins are frequently bundled and sold at a discount by coin dealers. For example, a one-ounce American Eagle silver coin can cost $31 per coin if purchased individually, but just $29 if purchased in bulk, resulting in cost savings that grow as your buy quantity grows.
3. Diversify With Bullion
Silver coins are a good investment, but they’re not the only game in town when it comes to silver. Investing in silver bullion is another possibility. Unlike minted coins, which are backed by the issuing government’s full trust and confidence, bullion is made up of pure metal that is valued only for its content.
Bullion, like coins, has a long history of holding its value. These things, on the other hand, do not have collector’s value and thus do not require as much care. When opposed to coins, some investors believe that bullion bars are the “low maintenance” investment alternative. If you want to get a better handle on the silver market, you can’t go wrong with a mix of coins and bullion.
4. Use a Custodian Service
Those interested in getting started with silver investing may consider entrusting their valuables to a professional precious metals custodian. We’ll go through some of the reasons why someone might wish to use a precious metals custodian further down.
To begin, they make certain that your valuables are adequately vaulted and insured against theft or damage. Second, they assist keep your silver coin in mint condition, which increases its resale value significantly. Finally, if you want to invest in silver through an IRA or any other tax-advantaged retirement account, you’ll need a custodian—silver held at home is not eligible for IRA inclusion.
Because it’s not always clear which forms of silver can be contributed to an IRA or 401(k), you might find our guide to all IRA-approved silver metals helpful.
5. Buy Through a Self-Directed IRA
Those interested in getting started with silver investing may consider entrusting their valuables to a professional precious metals custodian. We’ll go through some of the reasons why someone might wish to use a precious metals custodian further down.
To begin, they make certain that your valuables are adequately vaulted and insured against theft or damage. Second, they assist keep your silver coin in mint condition, which increases its resale value significantly. Finally, if you wish to invest in silver through an IRA or any other tax-advantaged retirement plan, you’ll need a custodian—silver stored at home is ineligible for IRA inclusion.
How to Spot a Fake Silver Coin
In the world of precious metals, counterfeits are an unwelcome reality. It’s critical to keep watchful against false coins sold by substandard or dishonest merchants, whether you’re investing in gold, silver, or platinum-group metals. Here are some of the finest ways to verify the authenticity of your silver coinage to protect yourself against fakes:
- Hold it up to a strong magnet (such as neodymium N52); silver is not magnetic.
- Using a magnetic slide gadget is recommended since silver moves slowly down magnetic slides.
- When ice cubes are placed on silver, they should melt almost instantly since silver is the best heat conductor on the planet.
- Authentic silver coins have hallmarks that indicate the percentages of silver and copper on them (i.e., .999)
- Weigh your coins on a digital electronics scale; real coins weighing one troy ounce will weigh exactly 31.1 grams.
In general, one-ounce coins do not offer a significant risk of counterfeiting. Only when you get into the bigger, multi-ounce collector’s coins and numismatics do you run into counterfeits.’
You can be confident you’re buying a genuine item if you stick to well-known, reliable merchants. In most circumstances, buying silver through a third-party trustee with full FDIC insurance coverage for all deposits is the best option. Silver purchased through a precious metals IRA business is held in trust by insured trustees, ensuring that every transaction is secure.
Because it’s not always clear which forms of silver can be contributed to an IRA or 401(k), you might find our guide to all IRA-approved silver metals helpful.
Preserve Your Wealth, Buy Silver Today
For many people, silver is a form of strategic wealth preservation as well as an investment. Silver and other precious metals do not generate income or value, unlike standard investments. Rather, they have value—and hold it exceedingly well, to be sure.
In reality, during the last 100 years of verifiable market data, the spot price of gold has constantly trended upward. Due to the rapid development of silver-intensive renewable energy, silver has recently seen even more astonishing growth. Since August 2002, the price of silver has risen approximately 400 percent in inflation-adjusted terms.
Smart investors should diversify their portfolios with silver coins and bullion to protect their money during the next economic downturn and to increase their retirement savings. Check out our assessments of the best precious metals IRA firms on the market today to get started investing in silver in a tax-advantaged account.
