10 Tips For Purchasing Silver

The silver market is often a very stressful place, and its prices can dramatically fluctuate every day.  Then there is the added confusion of certain charges like VAT fees.  For those who are new to the market, it is critical to read as much as they possibly can about how to be successful with the market and to ensure they have the right knowledge before jumping into this very fast-paced environment.  However, although it is essential to be diligent, it isn’t necessary to hesitate.  The keys to succeeding in the market are knowing when you should act and liquidity.

Expect There To Be Fluctuations

Given that the silver bullion market is well-known for being extremely volatile, expect that there will be wild fluctuations in prices both before you buy and after.  It will be necessary for you to keep a close watch on the market at all times and to check the prices on a daily basis so that you are fully informed and know when you should purchase and when you should sell.  To get the maximum benefit from the silver market, it is important for investors to act in a confident manner, and not hesitate when they see a favorable price.

Consider the Trends

If the silver bullion market is new to you, learn about the trends through studying historical prices and the way they change over time.  That will illustrate to you just how fast silver prices and increase and decrease, and help you be prepared for the volatility and expect it after you have entered the marketplace.  In addition, experienced investors can study the trends, and should do so even if they know a lot about the market already.  It is important to do that to ensure you have as much knowledge as you possibly can so that you can make informed and smart investment decisions.  

Get Your Ratio Right  

It is recommended that your silver is held within a bullion portfolio.  Your ratio of gold to silver should be 2:1. Silver makes an excellent addition to a current gold bullion collection and enables you to benefit from gold and silver contrasting properties.  With gold’s relative stability compared to the price of silver, you can balance your low-risk investments with ventures that are slightly more risky from the silver market.  However, before you start to buy and sell silver, you should purchase some gold first to build up a balanced and full portfolio.   

Store It Securely

Although silver is not worth as much as gold is, it still is very important that it is stored securely, particularly if you are planning to store it at your home.  You might be tempted to neglect this part of the overall bullion process.  However, it is critical that your silver is stored in a safe place after you purchase it.  Otherwise, you could end up losing your investment.  If you don’t have a secure way to store your silver, you should look into different storage options, which include using a safety deposit box at a bank or buying a safe.

Remember To Add On VAT

Unfortunately, silver in the UK isn’t exempt from the VAT tax.  So you will need to always consider it when you are buying silver if you are in the UK.  Most websites, such as London Gold Bullion, will include VAT as part of the silver prices they advertise.  That way, you won’t have a nasty surprise at checkout.  However, that is not always true, so if see you happen to see a price that is much cheaper than all of the others, make sure to see if it includes VAT.  That will help you when a price appears too good to be true since usually, it is.  

Check the Silver Purity

When purchasing silver bullions, the product’s purity grade might be lower than for gold bullions.  That isn’t necessarily a problem, since in the silver market that is expected.  However, when you are purchasing bullion, you still should consider it. If you are purchasing silver with a lower fineness, then you will be unable to sell it for as much money and might lose out on profits. Make sure to calculate the amount of pure silver you are receiving for your money.  That will help to ensure you get the best possible deal.

Capitalize on Liquidity

Given silver’s continuously fluctuating price and lower value, it makes it a lot easier to sell compared to gold.  Silver is sold more frequently than gold is, and it is less likely for investors to hold onto silver for long time periods.  You can capitalize on this through getting used to selling silver whenever it is at a favorable price, and purchase again when the prices go down.  The key to being successful with silver bullion is to be decisive, and not hesitate.  Otherwise, you could lose out.

Compare Prices

In addition to watching silver prices change, investors also need to watch prices that various bullion suppliers are offering.  Some might offer prices that are slightly better than others, and that can make a big difference when you are selling your bullion – particularly if you are intending on buying and selling multiple times. Make sure to not purchase bullion impulsively.  It is critical that you first research the market and determine where you can get the best price possible.  That is how to maximize your returns consistently. If you don’t wish to hold silver then try out these top silver mining stocks.

Beware of the Shipping Charges

Numerous bullion suppliers will add on high shipping charges to their order.  This reduces the investment value and your return on investment.  Make sure that you do some comparison shopping to find a supplier who doesn’t have high shipping charges, like London Gold Bullion.  That way you can be sure you are getting the best overall deal.  Additional costs such as this can really eat into your profits, so be sure to consider them before buying and do your research ahead of time.  

Know How to Sell

The silver market, unlike the gold one, moves quickly and there is a lot more selling involved compared to gold.  To take advantage of good prices when they happen, you need to be familiar with the selling process and know how it works and be confident that you know what to do. The selling part of the process is as critical as the buying phase is.  That is why it is critical that you get as much information as you can and always shop around to get the best price possible.

FG Editorial Team
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