Tips for Buying Silver Bullion
by Alexander Hope
I recently sold some silver bullion I had purchased several years ago to a coin dealer and thought I'd pass on some practical advice to CulturalMarxism.com readers so they can benefit from my experience and not have to learn what I did the hard way.
My tips to first-time silver buyers:
- Never pay for junk silver (e.g. silver dollars) what you would for pure (99+ per cent) silver bullion. Even if the actual silver content amounts to the same quantity, the junk silver is an alloy and needs an additional step of refinement to separate the silver from the other metals it is combined with, and this additional step costs money and therefore lowers the value. Some unscrupulous dealers will try to sell you junk silver at pure silver prices.
- For the least amount of hassle when reselling, stick to pure silver.
- Always count your coins when you receive them. I once bought 100 1-ounce silver coins, and they came in 4 plastic tubes that should have each contained 25, but after weighing them I noticed that one tube contained only 24. Whether it was an honest mistake or the dealer was engaging in a practice similar to the one known in medieval times as "coin clipping" is hard to say, but it only takes a minute to check.
- If you buy silver bars, avoid ones that are over 10 ounces. Many dealers won't pay as much for 100-ounce silver ingots because they are in lesser demand and hence harder to sell, so you may end up losing money on them. If you do get a 100-ounce ingot, make sure you're paying less for it per ounce than you would for smaller bars to compensate for its lower resale value.
- Bear in mind that silver takes up a lot more room than gold, and that it can therefore be physically heavy and awkward when you have to transport it (like to a dealer, or in a move). If I were buying precious metals as a hedge against inflation and had thousands of dollars to invest, I would pick 1-ounce gold coins and bars over silver simply because it's so much easier to store and to transport.
Some survivalist types recommend owning silver coins to use as currency for small transactions in the event of an economic collapse. I guess it doesn't hurt to keep some silver coins on hand for such an eventuality, but I wouldn't make them a large part of my portfolio unless I had a hunch that silver prices were going to exceed gold ones and that I would therefore make a greater profit. And for all you aspiring Mad Maxes, don't forget that soap, toilet paper, tobacco, liquor, and bullets could also serve as currency in a post-apocalyptic future.
Posted July 8, 2018.