As 2020 came to a close, gold prices were at historically high levels. This was good news for silver investors as well, since both silver and gold tend to follow similar price patterns. If you have plans to invest in precious metals in the new year, here are answers to some frequently asked questions about silver bullion. San Diego collectors should take this information into account when they’re deciding whether to invest in silver.
1. What Exactly Is Bullion?
Bullion is a form of precious metal with a known weight and level of purity. Silver bullion can come in many solid forms with discernible value. The most common forms are:
• Silver bars
• Government-issued and specialized silver coins
• Minted silver ingots
• Rounds
2. What Is Spot Price?
Spot price is the current market price of silver. It’s usually listed as US dollars per troy ounce. Because silver trading typically goes on 24 hours a day, the spot price will constantly change to some extent based on trading activity and other factors that can influence the market.
3. What Form of Silver Bullion Is Best to Buy?
Bars or coins are often preferred with silver bullion for the sake of convenience. As for which option is best if you’re planning to buy with the possibility of selling later, it’s really a matter of preference. Top-quality silver bullion in either bar or coin form can be a smart buy if the value and purity are clearly marked or documented.
4. What’s a Fair Markup when Buying Silver Bullion?
When you purchase silver bullion, even from a reputable dealer, there will be a markup added to the final price beyond the spot price. This is done to allow the seller to also make a profit. According to the US Mint, the markup shouldn’t be more than 5–8 percent over the current market value.
5. Where Can Silver Bullion Be Purchased?
One way to purchase silver bullion is to buy it online. Reputable sellers offer secure and discreet shipping. However, it’s a good idea to do your own research before you make a purchase online so you know the current fair market value of silver. This will give you a better idea of what kind of markup is being added to the price.
Local coin shops also sell silver bullion, although the markup tends to be higher, since local shops typically have smaller markets and less available inventory. With coin shows, there’s usually price haggling involved, but you may be able to negotiate a good deal.
Another option is to purchase your silver bullion from a reputable precious metals firm. The markup is usually fair, and you’ll get reliable documentation to go along with your purchase. Plus, there’s less risk of ending up with counterfeit or overpriced silver.
6. Where Can Silver Bullion Be Stored?
The easiest way to store silver bullion is in a secret location in your own home. You can do this by finding a hiding place or investing in a secure safe with a reliable lock. However, if you have concerns about having silver bullion in your home, there’s always third-party storage. Possibilities include banks and precious metals depositories.
Whether they’re looking to invest in silver or buy gold, San Diego residents should work with trustworthy, experienced precious metals dealers who offer high-quality service. Call on the industry-leading professionals at First National Bullion when you’re ready to buy or sell silver, gold, platinum, or palladium. Give us a call today at 858-666-6570.
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.