How to Buy Silver
Consider what kind of silver you’d like to buy., Find a reputable dealer., Assess the market value per ounce., Negotiate terms of the silver trading., Get cost-basis information for tax filing.
Step-by-Step Guide
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Step 1: Consider what kind of silver you’d like to buy.
You can either buy physical silver, including scrap silver and bullion, paper silver, which buys you the rights to physical silver that you won’t actually store yourself, and silver futures, which are a way of investing on what you think silver will be worth in the future.
If you want to get your hands on actual, tangible silver, beware of bait and switch techniques where a seller offers papers that claim to secure physical silver held elsewhere. -
Step 2: Find a reputable dealer.
To avoid scams and other unfavorable buying situations, find a reputable dealer.
Probably the most surefire way of connecting with a reputable dealer is finding the list of recommended dealers from the US Mint's website.
Type in "coin dealer database US Mint" into your favorite search engine and that should connect you to a page on the US Mint's website where you can search for national and local dealers that have been vetted by the Mint., In financial markets, there's something called a troy ounce that shows the price of a precious metal per raw ounce.
Look up the current value to make sure the seller is not charging you much more than market price for silver. , In any sale of silver, there are often specific terms that need to be negotiated between the seller and the buyer.
Without considering these issues, you may be selling yourself short when purchasing physical silver from these sorts of vendors.
If you are agreeing to a paper silver scenario, figure out how the seller holds physical silver to satisfy your paper-backed precious metals.
For example, buyers have reported that commercial banks offer paper that staffers claim to be backed up by physical silver only to encounter frustrating delays and obstacles when they demand to receive the physical silver.
Discuss numismatic and raw values for silver.
Some sellers offer silver coins as physical silver.
In these sorts of transactions, it's key for the buyer to understand how numismatic or coin value may affect their purchases.
Without going over this critical detail, you could end up paying entirely too much for your silver holdings.
Ask about premium fees.
Some sellers, such as banks, charge extra fees for the sale of silver.
This results in a silver buyer being underwater on their purchase from the moment they sign on the line.
Demand that your seller honor a fair transaction value for silver so that you can recognize gain if the price of silver increases.
Ask about buybacks.
Some sellers will buy back physical silver that they sell to you and others won't.
Keep in mind that without a buyback agreement, you may suffer losses when you try to sell your silver if you cannot find a buyer who will honor fair market values based on the original sale price as well as current market realities. , Another important step in buying silver or any other precious metal is to get documentation of your sale and the cost of the silver.
This is so that you can declare your cost basis when you sell the silver in the future for gain.
Without this information, the federal IRS could cause problems with your gold sale when you pass on the precious metal to another buyer. -
Step 3: Assess the market value per ounce.
-
Step 4: Negotiate terms of the silver trading.
-
Step 5: Get cost-basis information for tax filing.
Detailed Guide
You can either buy physical silver, including scrap silver and bullion, paper silver, which buys you the rights to physical silver that you won’t actually store yourself, and silver futures, which are a way of investing on what you think silver will be worth in the future.
If you want to get your hands on actual, tangible silver, beware of bait and switch techniques where a seller offers papers that claim to secure physical silver held elsewhere.
To avoid scams and other unfavorable buying situations, find a reputable dealer.
Probably the most surefire way of connecting with a reputable dealer is finding the list of recommended dealers from the US Mint's website.
Type in "coin dealer database US Mint" into your favorite search engine and that should connect you to a page on the US Mint's website where you can search for national and local dealers that have been vetted by the Mint., In financial markets, there's something called a troy ounce that shows the price of a precious metal per raw ounce.
Look up the current value to make sure the seller is not charging you much more than market price for silver. , In any sale of silver, there are often specific terms that need to be negotiated between the seller and the buyer.
Without considering these issues, you may be selling yourself short when purchasing physical silver from these sorts of vendors.
If you are agreeing to a paper silver scenario, figure out how the seller holds physical silver to satisfy your paper-backed precious metals.
For example, buyers have reported that commercial banks offer paper that staffers claim to be backed up by physical silver only to encounter frustrating delays and obstacles when they demand to receive the physical silver.
Discuss numismatic and raw values for silver.
Some sellers offer silver coins as physical silver.
In these sorts of transactions, it's key for the buyer to understand how numismatic or coin value may affect their purchases.
Without going over this critical detail, you could end up paying entirely too much for your silver holdings.
Ask about premium fees.
Some sellers, such as banks, charge extra fees for the sale of silver.
This results in a silver buyer being underwater on their purchase from the moment they sign on the line.
Demand that your seller honor a fair transaction value for silver so that you can recognize gain if the price of silver increases.
Ask about buybacks.
Some sellers will buy back physical silver that they sell to you and others won't.
Keep in mind that without a buyback agreement, you may suffer losses when you try to sell your silver if you cannot find a buyer who will honor fair market values based on the original sale price as well as current market realities. , Another important step in buying silver or any other precious metal is to get documentation of your sale and the cost of the silver.
This is so that you can declare your cost basis when you sell the silver in the future for gain.
Without this information, the federal IRS could cause problems with your gold sale when you pass on the precious metal to another buyer.
About the Author
Andrea Williams
Committed to making lifestyle accessible and understandable for everyone.
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