With the precarious state of the world today, many people have been giving more thought to the current banking system. If something major were to happen, would you be able to easily withdraw all your funds from the bank? What would you do with a bunch of cash if you could withdraw it? What if the power grid went down? Will you even be able to use the ATM or slide your debit card at the checkout? How will you feed your family if you can't?
If you don't know the answers to these questions, you're not alone. The potential for this scenario to happen is very real, especially when you consider that only a fraction of money is actually in circulation. This is precisely why you should consider buying silver. With silver coins and bars, you have the ability to provide yourself a back-up plan.There's a lot to learn about buying physical bullion, but here's the basics to get you started.
Should You Go With Coins Or Bars?
A silver coin is legal tender. It is produced by the official mint of a sovereign government. Just like American coins, a silver coin from any country will have an intricate design on both the front and the back, and it is almost always marked with the year as well as the weight and purity. Coins are more collectible than bars, but this also means their premium is higher than the spot price. The spot price is the market price that constantly fluctuates, just like stocks on the ticker. The premium is the additional cost of doing business, similar to a commission. In a crisis situation, coins are easily traded for goods and services.
Bars are thin and rectangular. They can be purchase in 1-ounce, 5-ounces, 10-ounces, and more denominations, even 1000-ounce bars that weigh nearly seventy pounds! They are easily stacked, making them easy to store. They also typically have the lowest premium, making them ideal for investors who want to stockpile silver. Coins are usually of more interest to the collector, hence the higher premium. Smaller bars are better than larger for bartering during a crisis.
Where Should You Purchase Your Silver?
The beginning silver investor should thoroughly research the different options available. Pawn shops often deal in silver bars and coins. Jewelers and banks in major cities are also an option. If you have a coin shop near you, this is also an ideal place to purchase, particularly if you are interested in the coin aspect. Of course, you can buy from several reputable companies online, but then you also must contend with shipping costs. Many companies offer free shipping after a certain price point, so ordering in bulk may be more cost-effective.
While coins and bars can be found on auction sites, such as eBay, a beginner should avoid doing so as these platforms have a higher risk of counterfeit goods. There's a lot to know when it comes to buying and investing in silver. Do your research, ask friends for recommendations, and gradually build your knowledge base as you slowly build your collection.
For more information, contact local professionals like American Precious Metals Inc.