How to Buy and Sell Silver Bars & Bullion
Buy Cheap and Sell High
You can buy and sell silver bars and bullion for profit. When you invest, you make money as the price of silver increases in a booming market. The investor's objective is to buy silver bars cheap and sell high. Here you'll find out
- Which silver bars & bullion products you should you buy for resale
- How you can store your silver safely
- Where you find the best prices and profits in an exciting market
As a silver investor, there are a number of silver products you can buy:
- silver bars also called silver bullion
- shares of a mutual fund that invests in silver and other precious metals
- shares of stock in silver mining companies
- silver financial derivatives like ETFs, options and futures
Many investors buy physical silver like coins and bars, because they prefer to hold the actual silver, rather than a piece of paper. They expect silver to be valuable in the face of inflation, devaluation of the dollar, government monetary policy, and increasing world demand for silver in manufacturing and jewelry. In the unlikely event of a financial meltdown, investors expect silver bullion and other precious metals to hold their value and even to function as currency. By buying silver, they take advantage of the booming market and build financial stability. You also can buy and sell silver bullion bars to make money.
What Are Silver Bars and Bullion
When you buy silver bullion, look for quality silver bars, stamped with the weight, the name of the mint and the fineness. Investment quality silver is usually 99.9% pure silver and is referred to as .999 Fine. Silver bars come in sizes from small 1 ounce wafers to 1000 ounce silver pricks. All silver quotes and prices for bars of silver are in Troy ounces, rather than the usual avoidoipois ounces used for food and such. For example, a 100-ounce silver bar, that is .999 fine, weights 3.11kg and might measure 165 mm by 64 mm. One such bar is offered for sale at $3,645.00 today. It is easier to buy and sell stamped silver bullion bars.
What Is the Cost of the Silver Bullion Bar You Buy
The cost of the silver bullion you buy, and the price to sell it, is always based on the current price of silver that day. To buy and sell silver, check the price quotes and the historic price trends to determine the best time to buy.
Here is a link to today's price for silver on a chart updated in real time. www.kitco.com/charts/livesilver.html#ny
And here is a chart of the historical price of silver in $USD since 2000 to 2011 www.kitco.com/scripts/hist_charts/yearly_graphs.plx
How to Find a Reliable Dealer of Bullion Silver Bars
Choose your silver retailer or dealer carefully when you are buying or selling silver. If you deal with a local store, you can avoid shipping costs. To find recognized and reliable retailer in your area. The US Mint provides a list of retailers who participate in the American Eagle and American Buffalo Gold Coin Program. Consider this a starting place to locate reputable local silver retailers in your state, as well as national retailers. Additional companies may be found in your local telephone book under "Coins" or "Silver" or "Gold".
Here is a link to the US Mint list of retailers http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=lookup
Buy Silver Bullion Bars Cheaper
To buy silver silver bullion bars cheaper, compare the overhead costs of each dealer. These costs are the dealer commission (spread), and the costs of shipping, storage, and insurance. The dealer spread can be an important cost when you buy silver. Dealers will quote you two prices, the bid and the ask. The price they will pay for your silver is the bid, and the price they will sell their silver to you is the ask. Check the price quotes of several dealers before you buy silver bars.
Buy silver bullion bars carefully, and check the retailer's quotes to buy or sell the product. At one online dealer today, the asking price for 100 ounce Silver Bar was $ 3,645.00 USD. At the same time, the bid price for the same silver bar was $3,447.00. The dealer's spread was about $200 or $2.00 per ounce.
Buy Stamped Silver Bars for Easy Resale
Buy silver bars that are stamped with the name of a recognized refiner. If the name of the mint or refiner appears on the Good Delivery list, you can resell your silver easily. The Good Delivery list of about 60 worldwide refiners and mints is published by the New York Mercantile Exchange, NYMEX and by the London Bullion Market Association, LBMA. Some of the USA refiners and mints on these lists are Asarco Inc., Engelhard Corp., Handy & Harman, Johnson Matthey Refining, Inc., Kennecott Corporation, The Anaconda Company, The Bunker Hill Company, U.S. Smelting, Refining & Mining, United States Assay Office, United States Metals Refining Co., Sabin Metal Corporation, Metalor Technologies, PGP Industries, Inc., and U.S. Smelting, Refining & Mining.
How to Store Silver Bullion Bars
When you buy silver bullion bars, choose a safe storage place, and don't disclose it. Thieves like silver bars for their easy portability and resale value. A bank safe deposit box might not be accessible at all times, and after the owner's death the deposit box is sealed. A personal safe that is fireproof could be another alternative for silver storage. Many retailers will offer to provide custodial storage service for you, and issue a receipt for your silver on deposit. But consider the downsides to giving a retailer custody of your silver bullion bars.
Buy Silver Bars for Your IRA
If you are investing in silver bullion bars, you can hold your silver in an IRA account as a tax shelter, where trading profits and losses will not affect your income tax liability. Your IRA can invest in one-ounce silver coins minted by the Treasury. It can also invest in silver bullion, as well as other precious metals. And, of course, your IRA can invest in silver equity stocks and other silver instruments. IRS Publication 500 covers this topic.