The past month, gold and silver have been on the rise. Silver, hit just shy of $18 per troy ounce last week, a 12 month high. So does this mean you should actually buy silver and gold? One big issue when are holding pounds of silver is when you want to liquidate your collection, what do you do with it?
Unfortunately, you cannot go buy groceries with American Eagle coins, and you definitely cannot get full spot price when you sell it back to whatever business you purchased it from. From my experience, this is what I recommend.
How to Buy and Sell Silver Bullion
If you are like me, you own stocks and real estate. Pretty much all of your net worth is tied up in those two classes. If this scares you, you may need to further diversify your portfolio buy investing in other assets, such as precious metals. It is always comforting when the market volatility sets in, but you see that your precious metals have increased in value.
What is the Easiest/Safest way to Purchase Silver?
There are two ways to invest in gold and silver; etfs/stocks and the physical metals.
Buying Silver/Gold Stocks and ETFs
- You are able to buy shares just like any other stock on the market
- Your shares are pretty liquid
- You still just own shares and nothing more
Purchasing the Physical Metals
- Good, potentially profitable hobby
- Silver must be shipped to your door
- Pay a premium over spot price
If you want to Buy Physical Silver I would highly suggest using APMEX.com. This site has never let me down. Their prices can be beat, but it is safe and you know the quality you are buying.
If you prefer to purchase shares of silver, you have many more options. As stated above, it is much cheaper to buy silver shares than the physical metal. You have many choices of silver etfs/stocks, such as COMEX. These shares mimic the sport price of silver.
How to Sell Silver Bullion
If you decided to buy the physical metal rather that electronic shares, you are going to have to research in order to get the top dollar for your investments. You can:
Sell to a Local Bullion Dealer – This is a very easy option, but these stores more than often only pay spot price, or possibly slightly less. They normally pay you in cash, but you will lose approximately 10% of your investment.
Sell on eBay – Like any business, they always have to get their share, and eBay is no different. eBay get a hefty cut of the winning bid. You also have to factor in the price of shipping. However, if bidders get into a bidding war, you may receive a nice price for your silver.
Sell to the Local Pawn Shop – Please, save this option for last. Pawn shops are known for under paying for items customers bring in. They have to earn a profit, but are notorious for under paying. Expect to only receive around 80% of spot price for your investment at pawn shops.
Before investing in physical gold and silver, please do your research. Investing in metals is definitely a hedge against inflation and market turmoil, but don’t expect your investment to be very liquid.