Spot price is the current value of a particular commodity—which, in this case, would be silver in solid form. There are many benefits associated with silver investments at current market value. However, you may wish to snag some silver below spot price, and this is certainly possible. The experts from First National Bullion and Coin, Scottsdale precious metals dealers with years of experience collectors rely on, explain what you need to know about this process.

Take a Look at “Junk” Coins

Not too many dealers want to part with silver below current market value. For this reason, junk coins are a more common option for under-spot buys. The term “junk” coin simply refers to any government-issued coin with no discernible value beyond its actual value. For instance, silver coins that aren’t typically sought by collectors or ones that aren’t more valuable because of rarity or other factors would be classified as junk coins.

Explore Different Silver Junk Coin Options

Various governments around the world mint silver coins that generally fall into the junk coin category. However, the more popular ones are minted and circulated in the United States, according to Globalbullionsuppliers.com. Junk coins minted prior to 1965 tend to be especially sought after, since they have purities ranging between 35 and 90 percent.

Buy in Bulk

You can easily purchase junk silver coins for about 1–3 percent over spot price. But since the goal here is to purchase below spot price, consider buying in bulk. You’ll be more likely to find deals below the current market value if you’re willing to purchase several junk coins at the same time from the same source.

Make Your Purchases Wisely

Junk coins are typically valued according to how much silver they contain. Therefore, if you find a good deal below spot, ask for documentation that confirms silver purity. For added peace of mind, you can always have your junk silver coins appraised as well.

Be Mindful of the Competition among Silver Buyers

Many investors are already gobbling up junk coins at prices below market value on a fairly consistent basis. If you’re having a difficult time finding below-spot deals on higher-purity bullion, consider lower silver purities that aren’t as high in demand or easy to liquidate. This can be a good way to get started as you hunt for deals on junk silver coins with high purities.

Look for Deals on Other Types of Silver Purchases

If you really have your heart set on silver investments other than junk coins, be diligent about searching for deals. You may be able to find dealers or online sellers offering limited-time discounts for initial purchases below spot price. Certain conditions may apply, though (e.g., a below-spot discount if you make another purchase at spot price plus a reasonable markup).

Reasons to Buy Silver below Spot Price

Silver’s going market value is fairly reasonable as of early 2021, so you could mix things up with spot and below-spot prices without really stretching your budget. As for why you may want to look at below-spot purchases, some investors do this to gain some added protection for times when silver prices rise or when other factors affect the precious metals market. 

When they’re looking for expert advice on the smartest ways to buy silver bullion, Scottsdale residents should work with trustworthy precious metal dealers who offer high-quality service and have years of experience. Call on the industry-leading professionals at First National Bullion when you’re ready to invest in precious metals, including silver, gold, platinum, and palladium. Give us a call today at 480-546-8928.

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.