How to Buy Silver as an Investment

 My girlfriend Gary is always telling me how he buys silver coins with every paycheck. Now, as I have decided to become a hoarder, I am thinking that silver might be a great thing to hoard. So I wanted to know a little bit more about buying silver as an investment and for hoarding purposes. I will take any excuse to not clean my house.

Here is what I found: 

Since time immemorial, silver has been sidelined by gold. Over the last few years, gold has certainly been hogging the limelight, but switched-on buyers will take a closer look at silver. Although silver will never have quite the same swashbuckling glamour as gold, this precious metal also has a longstanding relationship with human beings.

China was the first country to use silver as currency almost 2,500 years ago. The United States kept silver in their currency until 1971, but now it isn’t considered as monetary metal. Instead, 40% of all silver is used for technological applications. When silver is used in an industrial manner, it’s usually irretrievable. This has led to some scientists speculating that silver will be the first element to face extinction on the periodic table.

Although prices are currently affordable for most people, as silver becomes scarce, this precious metal will become more valuable.

How You Can Buy Silver

There are several ways you can invest in silver. Physical silver does what it says on the tin: give you real silver to play with. The amount of money you spend will depend on the purity of the metal. Ideally, you should be purchasing 99.9% pure silver. Always do your research before you buy, as fakes are prolific in the market. Make sure that your seller is highly reputable before you open your wallet.

Other alternatives to physical silver are ETFs and ‘paper silver.’ ETFs effectively garners you silver shares, which you can cash in, based on the market price of this precious metal. On the other hand, paper silver is vault-protected and insured under your name. The minimum amount of money you can lay down for paper silver is around $10,000. In both cases, you don’t actually have to handle the physical silver yourself, which makes many people feel more confident about investment.

Confiscation Worries

As early as 1933, Roosevelt signed an order during the Great Depression that all US citizens must hand over their gold to the government. Although it seems unlikely that this would happen in financially difficult times, it has many investors’ backs up. Notably, there is no mention of silver, so silver may indeed be the safe bet, just in case another national confiscation order comes into effect. You may even want to store your precious metals in a different country – just in case.

Buying Online

Whether you’re purchasing silver jewellery or investment pieces, buying online is risky, but sometimes it can really pay off. There are scammers left, right, and centre, so watch your back. Look out for markings that confirm purity – this is a way of identifying silver, but it can also be easily replicated by counterfeit businesses.

Only buy from reputable sellers. If you’re trawling eBay, search through the distributor’s history and feedback comments. Sometimes a seller won’t put a reserve on an item, and you can get cheap silver, but tread with caution.

When your silver comes through, check that it isn’t fake, and if it is send it back. Make sure to purchase your silver on a credit card, as it insures your purchase. Paypal will also give you buyer’s protection.