Is price everything to a silver investor or is it the hunt for quality silver bullion that makes it so exciting? There are bargain hunters in the silver market. For these people the skill of finding the best and most cheapest silver bullion is exciting. Hunters will not be caught dead paying market prices for an ounce of silver. They will wait patiently for dealers to announce special sales and pounce when the price is at its lowest.
Buying most of your silver at the lowest price in itself is a good strategy. If you are looking to buy silver bullion do not focus on “pretty” silver bullion but chose well-priced silver. Pretty silver is mostly what hobbyists look for. These are people who are interested in the merits of investing in precious metals like silver and appreciate the techniques of minting silver bullion.
There are a few considerations that should go into purchasing silver bullion:
1. Buy-back policy
When you are thinking of silver bullion to buy, consider whether the seller has a buy-back policy. This should in fact be the most important consideration for silver investors.
Remember that even though silver is considered to be money, you cannot use silver bullion coins to make purchases at your local grocer. You can release the economic value of silver by selling the bullion coins for currency (i.e. AUD). This is where the dealer with a buy-back policy becomes important. A dealer with a good buy-back policy can remove the stress of liquidating your silver when you need cash. You don’t have to do much to sell Silver. You won’t have to take too much time navigating your way through the various ways of selling things like advertising on sites like gumtree, verifying the buyer and then finding a courier that will deliver your coins to the buyer quickly and safely.
2. Buy-Back price
The other important consideration when investing in silver is the buy-back price that a seller will offer. A buy-back policy is important but so is the buy-back price a bullion dealer will offer when you wish to liquidate your silver bullion. Silver is a volatile metal so there are no guarantees on the price being favorable. Avoid selling your bullion when you are desperate but it will be advantageous for you to ask the dealer what they would pay if you decided to return the silver bullion you bought the very next day or sometime in the future. Whatever their response is they should consider the time they enter into a business transaction with you, not so much on the selling price.
Bargain hunters always count cheap silver as a victory. However, it cannot be an absolute victory on its own.
Buying cheap silver is not victory. At least it is not a complete victory. Forget what you’ve seen on those auction sites, and antique road shows. For the more mature investor, it is important to build a relationship with a dealer who will not only sell silver at great prices but is there for you when the time comes to liquidate your investment.