Investing in Silver Bullion?
Suppose I wanted to invest in silver bullion, partially as a serious investment, partially for the novelty of having some “portable property”.
Suppose I went to a coin dealer and bought several silver 1oz pieces, or a large bar, would I be able to sell them later without excess testing and fees? Assuming that I took and kept possession of the bar(s) to avoid storage fees.
What I mean is when I go to sell the bars (back to a dealer) will the process be: “Your bars have the right mass, here is your money”. Or will it be more convoluted?
I’ve heard stories about a person who took his bars in, and had to pay for the dealer to drill holes in bars to ensure that the bar hadn’t been hollowed out and filled with a cheaper metal.
What is a typical pathway from purchase to sale of a bar of silver?
If I took one of my bars in to a coin shop to sell, and they wanted to drill in hole in my J/M serialized bar – I would give them a piece of my mind (loudly) and leave!
You should have NO problem selling them as long as they are a known refiner / assayer.
As far as the fees – thats a different matter. I have only bought from a coin store, never sold to them. Always sell to individuals – as they should atleast pay spot price (if price is in down trend) or more then spot if price is in uptrend. I doubt a coin shop will pay over spot price, as they can get it AT spot price or just a tiny bit over, and thats thier worst case scenario.
And along the same lines. SHOP AROUND – can’t stress that enough. I found that coin shops in my area had very noticable price differences for the same thing – call each coin shop one morning, and ask for the price of a 10oz .999 silver bar. Go visit the lowest 3 or 4 prices you get – (visit with empty pockets) just a get the feel of the place and see if you like who you’ll be giving your money too.
I should also say (since you asked), take it with you! DO NOT pay for storage – its no good if you can’t get to it when/if you need it. Also, any fees over time will eat up some profit you will make if the price goes up, and it will add to the lose if the price goes down.
If its just an investment, buy in on a physical ‘pool’, like at kitco.com. Its about 1/3 the way down on this page:
I only mention this as an option. Personally, I would suggest getting physical if your interested in it.
Last but not least – If you do decide to purchase some silver from a local coin shop – PAY IN CASH!! No credit cards, no debit cards, no checks, no names, no nothing – just pay, say thanks and leave.
“Nobody buys the actual metal as an investment anymore.”
Nobody??? Really??? Check E-bay – find a .999 silver “anything” that sells for less then spot price. 1000′s of oz.’s per week are sold on E-bay at what I consider high prices, especially when you take shipping into consideration.