I titled this article the way that I did because the only time you’re going to hear that sentence is before the price of silver takes off. When you are standing in that long line at the coin shop in the future to make your buy, only sellers will be allowed to come forward. They’ll probably run out of stock before you get to the front anyway. The solution is to buy your silver now!
By the way, this article focuses on how and where to buy silver. If you’re looking for someone or somewhere to sell your silver, go here. On with the article…
So you’ve read some articles and you’ve done some research and you’ve checked your horoscope and you’ve watched the news and you realize that it’s time to BUY SILVER! You’ll be happy to know that making the decision to actual make a buy was the hardest part. You’ll soon find out that the ways to make your silver purchase are becoming easier and more convenient by the day. At this point you’ve got some questions to answer regarding your imminent silver buy. Do I buy silver coins? Do I buy silver bars? Do I buy silver bullion? What the hell is silver bullion? – ha
How to buy silver
Since mining it is pretty much out of the question for most of us, (By the way, here’s an interesting link to a site on how silver is mined.) we’re going to get our silver the not-so-old fashioned way. Silver to purchase comes in several forms: coins, bars, rounds, or ingots. Silver coins are obviously coins that have monetary value and are minted by some nation’s government. American Silver Eagles are the most popular coins here in the US and though they are literally “silver dollars” their worth comes from their weight and purity (“fine” = .999 silver) so their silver value is determined by the current spot price of silver rather than what’s printed on the coin. Canadian Silver Maples and Chinese Pandas are also popular 1 oz silver coins. Bars come in a variety of sizes; the smallest being the 1 oz and the largest being a 1000 oz silver bar. We’ll talk more about silver bars in the next article. Silver rounds are basically coins that can be minted by anyone and have no monetary value. The term silver ingot can apply to any form of silver, but more commonly means a smaller bar form. [During your research, you’re going to run across a couple of terms, troy ounces and sterling silver. These are explained in the Sterling Silver Price article.]
When you go to make your purchase, you will notice a variance in prices. Typically bars and rounds will cost less, or will have a lower premium, than minted silver coins. Silver coins usually have a higher demand, so sellers consequently can get a higher price for them. The good news is that you can also get a higher price when you sell them. You will also see two prices when you go to purchase, the bid and the ask. The BID is the price you would receive if you sold that particular piece of silver. The ASK is how much you will pay. It’s easy to remember the between the bid and the ask, you’re always going to have to pay the higher one. The SPOT price is the one that you’ll see on silver charts and is
manipulated by determined by the Comex.
Where can I buy silver
Alright, silver buyers, now that you’re getting an idea of what’s out there and what you call it, you now need to find some place where you can exchange your paper for real money. You’ve got two options here: If you live in an urban area, odds are that you’ve got an LCS nearby. LCS = Little Coin Shop. Depending on the size of the shop and their suppliers they may or may not have a large stock to choose from. The supply varies constantly at LCS’s so you may have to check back often – sometimes daily. Your other option is an online supplier, and there many to choose from; more and more everyday it seems. This is much more convenient obviously, and you can see exactly what they have in stock and how much they are charging for it. I know some folks are a little hesitant about sending their cash in to some stranger and then receiving a heavy, heavy box in return that often raises the eyebrows of the deliveryman. I can offer some suggestions for reliable dealers with whom I’ve worked in the past. Just drop me a line. That comment about the “raised eyebrows” is pertinent for the fact that you probably don’t want anyone knowing that you’ve just had a certain amount of precious metal delivered to your home. We’ll talk more about security and storage later.