Buying Silver Coins: Three Things To Know

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If you are looking for unique ways to invest your money, purchasing silver coins can be a fun and profitable venture. However, you'll want to make sure you know what is involved in the process so you can get the most for your money. Here are a few tips you can use when buying silver coins before you begin your investing adventure:

Understand Market Prices

Commodities, such as gold and silver, may have different values each day. In some cases, the value can fluctuate throughout the day. You'll want to look for times when the cost is low for investing, and wait until the value is high before selling these items back. You can refer to the commodities portion of your newspaper's business section to provide guidance, or you can download apps on your smartphone that provide real-time information about market prices. Be sure that any seller you deal with follows market pricing when determining cost.

Have A Storage Plan In Place

Unlike depositing money in an FDIC-insured banking institution, your investment in silver is only as secure as the place you keep it. Before you purchase silver coins, take the time to figure out a storage strategy. You may want to invest in a fireproof wall safe to keep your silver at home with you, or you may want to consider getting one or several safe deposit boxes at a local bank. A safe deposit box comes with integrated security features, such as dual-key locks, and they also provide the added advantage of the bank's other security system features.

Buy In Bulk

Some silver coin shops may offer the option of buying in bulk. This may mean that you'll get many coins that have little value, but it can be worth it if you get a large discount along with one or two valuable pieces. Some dealers simply want to get rid of the less valuable items, and you can sell those pieces for scrap to recover some of your purchase price. Take time to negotiate the final price of bulk purchases so you get the best deal possible. You can even purchase regular currency coins, such as dimes and quarters, that have significant silver content to add to your collection.

Do your research on silver coin shops in your area, and read online reviews to see what other people are saying about these local businesses. Once you find one that is reputable, pay a visit first without buying. Get a feel for what the shop has to offer, and do some research on a few of the items you see on display. When you return, you can use this knowledge to help start a conversation and work your way into a deal for your first silver coin purchase.

Click here for info on dealing with silver coin shops near you.