Buying physical silver as an investment is not as easy as it may sound. If you are new to this, it may be easy to get lost in the process. Should I buy silver bars or bullion coins. That limited edition silver coin sounds like a good idea. It is sensible to weigh the options based on the premium and the spot price of the precious metal. Before you buy any silver bullion, you should ask yourself a few questions. If you are already contemplating buying some silver bullion products, you should already understand want each option offers.
Why buy silver bullion?
The two most favoured investment metals in the world are gold and silver. Silver is most attractive because it is more accessible price wise compared to gold. However, the liquidity of the silver market is smaller than that of gold. The silver market is mostly driven by industrial processes not so much by the jewellery like the gold market. Silver has a stronger relationship with the economy. It reacts fairly quickly to what is happening in the economy than gold. Its price tends to be more reactive and hence more volatile than other precious metals. This is a factor you may want to consider if you want to buy silver bullion. The price of silver makes it accessible to investors who are just getting into the market.
Once you have made a decision to get into the silver market, you need to decide on the kind of silver product you want to put your money in. When it comes to bullion you can either buy silver bullion coins or silver bullion bars. Bullion coins like Silver American Eagle coins, Canadian Maple leaf coins or Australian Kangaroo silver coins are easy to recognise and to trade. Silver bullion coins are produced by government mints and because of this they have legal tender. It’s easier to buy and sell silver coins than it is to sell silver bullion bars because they are smaller, compact and easier to trade. Silver bullion coins might carry higher premiums and have higher transaction costs than silver bullion bars but they are handy to have around, especially when you need to sell a few to take care of smaller cash needs.
Most people who buy silver bullion bars for high investment values consider bars above silver coins. Which bullion coins are popular might depend on where they are being bought from. In the U.S there are two specific silver bullion coins, the American Eagle Silver bullion coins and the Canadian Maple Leaf silver coins. For European investors Austrian Philharmonics are very popular. In Australia, the Australian Kangaroo silver coins are accessible. Do not buy silver bullion coins from lesser-known places. You should also stay away from numismatic and commemorative silver coins. The coins are usually more expensive and don’t resell as well as bullion coins.
The best place to buy silver bullion is from a reputable dealer that deals with precious metals. It is important to make sure that your bullion can be stored safely and securely. Treat your silver the way it is supposed to be treated because at some point, it will be the thing you turn to in difficult times.