Those who buy silver coins know that coins own an allure unmatched by the precious metal’s other manifestations. The value remains the same per ounce but who does not love a beautiful coin? A minted piece of silver will always hold more appeal than silver bars or mining stocks, especially to people who are both avid coin collectors and wealth investors. Learning more about this topic, will put you ahead of others starting out on this investing journey. Get the free course on Gold and Silver here.
But what if you are new to investing in silver?
Hesitate. Newcomers to the silver game make one huge mistake. When they invest in precious metals, they flow with the excitement of an impulse buy. Sure, it feels incredible to dip your toe in the silver pool for the first time but a smart novice knows not to dive in.
There are many companies, websites and private individuals who will encourage a person to buy silver coins. Especially when they realize that they are dealing with somebody who has never purchased precious metal before. Not all of them are out to deliver the best service and unfortunately, many are out to scam the novice buyer.
Get a Clear Picture of Their Reputation
It does not matter what comforting words and images appear on a seller’s site. What matters is their reputation. One cannot always trust the comment section on such a sales page. It is easy for a scammer to rig comments. Plenty of positive praise make it appear as if people regularly buy silver coins there at a bargain. If a seller is really worth their silver salt, then the precious metals community would be humming about them on forums and financial groups.
A particular coin dealer can appear sound but receive no obvious online attention. In this case, visit a forum where experienced members can help. However, never let anyone push you in to a purchase. Not a dealer, nor any expert on a forum you have only just met. To buy silver coins – and where you buy them from – is ultimately your own choice.
Pick Your Coins Carefully
Reputation, check. Thorough research has identified a company or a private person with good standing in the investment world. The next step can appear overwhelming. Which coins will benefit you the most? To the beginner, the wide choice of silver coins available can be daunting. Not all silver coins receive equal merit. At every turn, different types pop up, some rare and popular coins among them. Confusingly, rare is not always popular and vice versa. Some have strange names and even stranger pictures. Last but not least, why on earth do people even want to buy coins referred to as junk silver?
How to make sense of it all?
As mentioned before, research is a silver buyer’s best insurance against future disappointment. First, have a look at the most well-known to see if they appeal to your portfolio or coin collection.
They are a trustworthy place to start. These coins also have a steady popularity that will help if you want to sell in the future.
- Silver American Eagles.
- Silver Canadian Maple Leafs.
- Morgan Silver Dollars.
- Austrian Silver Philharmonics.
- Mexican Silver Libertads.
There are more, of course, but only research and personal preference can help a buyer make the right choice. Silver stocks or bars are good investments. They are not entirely suitable in one regard – they do not look as good as coins. Physical ownership is not always possible either. Those who buy silver coins belong to a different breed – they want value and an aesthetic item that matches their personality. Learn more here.
From historic figures to Mickey Mouse, the images on silver coins are vast. But who is complaining? People who want them have different tastes and spoiled for choice, you are sure to meet your perfect match.
Know beforehand that there are risks.
Silver that is in your physical possession is a fantastic financial asset because it is so liquid. You can sell silver or use it as a barter piece. A hacker or computer virus cannot wipe out physical silver. But this does not mean that to buy silver coins is a risk-free avenue to wealth creation. Hardcore collectors aside, most people want to sell their coins at a profit one day. If you buy an overpriced piece, the silver market must strengthen considerably to yield any profit. To add to the gloom; sometimes the market dips.
The answer is to buy when the price is right. Buy the coin that is likely to remain popular, otherwise it might not sell again. Finally, enter the market when the price of silver is good.
How To Safely Buy Silver Coins
You have chosen your coin or coins. Excitement is in the air and things look good. But you are only halfway there. After reputation and picking the assets, one must make sure that the exchange suits both the seller and the buyer. Usually, payment occurs beforehand. Otherwise a lot of thieves will make off with silver coins.
Payment options will vary from seller to seller. The most user-friendly provide several payment options and mail merchandise via registered post. This is essential to enable you to track the package. Registered mail protects the package from theft and also both the seller and buyer.
If a seller refuses to use the more expensive option of sending goods via registered channels, then go somewhere else. Such sellers can easily claim they mailed the silver coins a long time ago when they never did. Certain coins also come with certificates.
Notify the seller immediately if the coin arrives without its certificate.
Here are some extra tips before buying:
- Make sure that there are no hidden costs.
- Do not be afraid to shop around and compare if you are not entirely happy with a particular seller, even if they are the real deal.
- Listen to your gut feeling. Is the site too good to be true? The seller pushy? Offering free storage? The latter is a big red flag because it is an old trick to pretend to store coins that never existed in the first place.
- Most serious buyers also avoid sellers who do not have a return policy. This is entirely up to you but many investors want the reassurance that they can return the coin if they are not happy with it and get their money back.
Wonderful. You have purchased and received your silver coins and everything is in order. Needless to say, it is not safe to keep them in a display case next to the family fish tank. One burglary or cousin with sticky fingers and everything is gone.
There are basically two options. Keep the coins at home in a secure location such as a safe or with an institution that specializes in the storage of valuable goods. The latter could be a bank or private company but the downside is that there will be extra fees now being added to your silver investment.
Before you buy silver coins, decide on the best storage option for you.
This will prevent the worry of feeling your silver stash is not safe. If you decide to keep it at home, be sensible and do not broadcast the fact. If criminals know which house on the street is packing precious metals, they are likely to view it as a target.
Coins, whether they are in a bank or a bedroom safe, are best kept in mint casings. Luckily, most will arrive in their own casing, especially if it is a collector’s item. However, if you buy from a private person or local shop, they may not offer these clam-shell boxes.
Instead of a safe and an alarm system, some people prefer to hide their coins around the house and even bury them. This is not the safest option for obvious reasons but many do prefer to do it this way.
After the 2008 financial meltdown, not many people have faith that whatever they put into a bank will be returned to them with its full worth, silver coins included.
Also, they feel in the event of a crime, several caches around the property will prevent a total loss. Thieves need to know every hiding place (not likely). On the other hand, they crack the safe and swipe the only pile of silver.
Enjoy Stacking Silver
Things may appear crazy, with too many rules to learn and curve balls to dodge but collecting silver gets easier the longer you are in the game. For coin collectors, this is a special journey and even an adventure who take their time to peruse the coins on sale, talk shop with fellow buyers and investors and appreciating the beauty of each purchased item that adds to the total worth of their silver investment. We have a quick and free Gold and Silver course that you can get right here.
Do not let the learning curve spoil the experience. Take things slowly, learn and grow as an investor and collector. When you buy silver coins, you enter a very special world. Enjoy it.