Best Places To Buy Silver – A Quick Overview
With so many precious metal dealers in the market place, how does an investor find the Best Places to Buy Silver? With gold being the traditional go to for precious metals why should an investor look at silver? Besides being a safe haven like gold, its industrial use in everything from dental equipment, electronics, solar panels, and electric batteries. The growth demand for silver could outpace that of gold in the long term, which will bode well for the price of silver. Before making any purchase or investment it is always recommended to do thorough research. Below we will review the Best Places to Buy Silver.
When first deciding where the best place to buy silver will be we need to understand what our goal is behind holding silver:
- Are you looking for appreciation?
- Short term hold?
- Is it so you can bury a little in the back yard so if all hell breaks loose?
- Is this for a retail taxable account or a retirement tax deferred account?
All these factors will play into where the best place to buy silver is.
Your local dealer or the local coin shop down the road could be a great place to start depending on experience and what you are looking for. They give you a face to face relationship and can provide insight into the coins they broker. This is valuable because you know the quality and value of what you are getting, while these prices may vary from a retail broker or online web site, the personal relationship from a local shop could be worth the cost difference.
Most investors when buying precious metals will choose an online broker because their prices and services tend to be more cost effective. The best places to buy silver, will have high volume and low transaction cots to the retail client. They will make minimal profit of the spread and provide quality and certified silver coins or bullion bars.
Shipping costs & Storage fees
If you are looking for silver in a taxable account then you can you will want to find a silver broker where shipping costs are not exorbitant and that are insured. Because storage fees add up, for taxable accounts it can sometimes be wiser to take position of the precious metal, depending on the size and quantity purchased this may not be feasible, so low storage costs are important. If you are purchasing silver in a tax deferred account like an IRA then you are required to store the precious metal and if you buying bullion bars this could be more costly than if you were to purchase the silver coins.
When deciding where the best place to buy silver is you will want to take a look at how long the broker or shop has been in business. What are the reviews or complaints from the better business bureau? It’s best to find a trust worthy dealer with a lot of reviews both positive and negative, because this gives the investor a sense of where the firm may struggle, and if every review was positive, that may be cause for hesitation in itself, with all the fake and paid reviews in market places today. Also, the best places to buy silver will guarantee insured delivery or provide proof of purchase and storage in the case on retirement accounts.
Physical silver alternatives
While online brokers and local shops could be the best place to buy silver there are alternatives to holding the physical version of precious metals. There are many alternative securities that benchmark or target the precious metal sector. You could get the same exposure to precious metals by investing in an ETF or mutual fund, then you may get from the physical metal itself. The upfront cost for an ETF or mutual fund are much lower than that of the physical metal, and there is no storage or shipping costs because they trade like a normal security.
Best places to buy silver checklist
- What are the shipping costs?
- Is insurance included in the shipping fees?
- What are the premium over spot prices?
- What is the reputation of the dealer?
- What are the buy-back rates of the dealer?
With the current market volatility more investors are looking to precious metals as a way to diversify away from equities and bonds. Precious metals have always been a safe haven for assets and will retain its value in a market sell off. Gold, silver, platinum and palladium all have their pros and cons when it comes investing in a particular metal. We hope this article helps you Identify the Best Place to Buy Silver.