Monday, May 30, 2011

How to Buy Silver Cheaply

There are a number of ways to buy silver cheaply but they all come down to price. How much do you have to pay for the price of silver?

Of course the minimum you will pay is the spot price of silver. That is whatever the price of silver is on any given day. Then you will have to pay a premium or mark up over that. Then, if you are taking delivery yourself, there is the shipping and insurance charges.

All this adds up to the real price you pay when you buy silver.

The spot price is the listed current rate for silver on the various exchanges and is called the comex price (Commodity Exchange, New York - the spot price you see daily). However the price you see on the media is the Silver Futures price. It should be kept in mind that the actual price of silver in the market place can be higher than this. The demand for silver industrially as well as in jewellery, coins and bullion tends to keep the actual price of silver higher. This should be born in mind when you buy silver or even sell silver.
So, how do you buy cheap silver?

The first thought that comes to mind is to buy when the price is low. This is relative of course as there are weekly and even daily fluctuations in the price of silver and it is said that silver is cheapest now than it will ever be.
The first step then is to decide the type of silver you want. Silver coins, Rounds (the best way and usually the cheapest), silver bullion bars etc.
Practically the first thing to do is find a good bona fide dealer.

One that is:

1. Close to you
2. Is easily contactable
3. Has a history that can be checked
4. Has a reasonable price with not too big a mark up or premium
5. Can supply the type of silver you want, coins, rounds, bullion bars etc
6. Is reliable and has a good return policy

Few people can afford to buy silver in large quantities. But this is no reason not to buy silver. Ione can buy silver on a gradual basis, Say a small quantity that one can afford each month or week. It is surprising how quickly your silver asset grows. Some weeks the price of silver will be high, others low. It does not matter as the value will average out over time and, with silver on a gradual increase, you will retain the value of your asset even while the value of the dollar is continuing to deteriorate.

Silver is one of the best buys in precious metals and to buy silver cheaply really means to buy silver consistently over a period of time and enjoy the benefit of the rising value of silver.

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