How to Buy (Buying) Silver A Comprehensive Guide

I remember when I was 5 or 6 years old. My grandparents would take care of my brother and me for the Summer up in Northern Vermont. During one of our stays my grandparents decided to pack everything up (all of their material posessions) that they didn’t want and try to sell them at a local flea market that was nestled on a nearby mountain. One morning we packed up all their old antique furniture, old electronics, and other collectors items and set off to try to sell everything. We got there early (around 6am), unpacked everything, and the day began. Being young and cute, many of our products quickly sold with me manning the tables and pushing our wares. Around noon, the traffic slowed down and I decided to venture out to the other tables to see what was available. I had some cash – the cash my grandparents promised me for helping them with the sale – and so decided to make some strategic purchases. The first thing I noticed was a great big glass display case of coins at a nearby table. There was a large round silver coin, essentially a giant penny made of silver that I absolutely had my heart set on.

Being a coin collector I immediately asked the vendor “how much for that silver coin?”

“That coin there is $15,” he replied.

“Shit!” I thought in my head I don’t have $15… I only have $5! How am I going to do this. I asked the man if the price was negotiable, if he was willing to take $10. “Sure, for you little man, I’ll sell it for $10.” Okay, I was half-way there. I told him I would be back with the money.

I scoured surrounding tables and eventually found, and bartered down, a nice set of antique dishware for my available $5. I then took the goods back to my table and was able to promptly sell it for $10. I had doubled my money from $5 to $10 in the course of 30 minutes, and I then took my new found riches to vendor next door and purchased the giant silver penny for $15. To this day I still have my silver!

And that is how you buy silver!

Okay, so you aren’t 6 years old. And you don’t have the opportunity to purchase Silver in the mountains of Vermont at a hooky flea market. What are you to do? Thankfully there are a number of resources to quell your desire for silver. Many currently in the market believe that Gold, although it will still rise, possibly even exponentially, does not have the meteoric capacity that silver has. At roughly $13.50 an ounce spot price for silver, it is a much more easily assesible metal and it’s lower denominations may come in handy should the world’s fiat currencies completely lose their value .

Where to Buy Silver

I’m a bit biased, working (and purchasing) on the web for so long I understand the power of the digital market place. In a local community a vendor may deal with dozens of competitors, online there are hundreds if not thousands of retailers competing for a slice of the pie (albeit a larger pie)  and so prices online tend to be a lot less expensive when it comes to certain items. Additionally, the efficiency that computers lend themselves to mean orders can be easily processed, shipped, and distributed with little or no over head. So where do you buy silver?

Online!

For example, we offer the ability to purchase three types of silver:

Silver Rounds – Silver Rounds resemble most other coins, but they are not issued by the mint of any country and are therefore not recognized as legal tender. They are privately minted and may have any number of designs. These, like the giant penny I purchased, are solely valued based on their weight and value of the underlying silver. For this reason these are usually the least expensive of the 3 options. You are not paying any kind of premium for the location of the mint, and their ability to be used as legal tender.

American Silver Eagle – Minted from 1988 to the present the design on the obverse of these coins was taken from the classic “Walking Liberty” design by which had originally been used on the half-dollar coin of the United States from 1916 to 1947, while the reverse portrays a heraldic eagle. This is the official silver bullion coin of the United States and has several highly collectible mintings. This is probably one of the most recognizable coins (be it silver of gold) in the world.

Canadian Maple Leaf – Resembling both it’s silver and gold counterparts, the Canadian Silver Maple Leaf program began in 1988. It features the same obverse and reverse as the other Maple Leaf designs, but certain versions have slight variations. These include: proof (1989 only), privy marks, colored maple leaf (has a different design than regular maple leaf) and the holographic enhancement 5 coin set.

Things to Look Out For When Buying Silver

Shipping & Storage – What kind of shipping and/or storage options are offered. Regardless of where you purchase these are key questions. Additionally shipping prices, much like the brokerage and trading transactions for stocks affect your bottomline. The more you pay for shipping, the less your potential gain in value should the silver move up. Keep a keen eye on these factors as well as shipping insurance.

Quality & Age – If you are buying newly minted silver coins (less than 25 years old) or silver bullion you don’t have a lot to worry about, but get reassurance from the company you go with on the quality of the silver being provided. Finally, if the coins are investment/collectors coins, make sure to verify grading before finalizing the purchase.