There are many ways on how to invest in silver, when you decide to make the wise decision of investing in silver, don’t be quick to opt for the first company that catches your eye. Some homework on your part is required to make sure you choose the best companies as your investment partners. Whether you’re buying silver bullion/coins or investing in the stocks market, due diligence is called for.
Here are a few tips to get you going on the right path.
How To Invest In Silver Coins or Bullions
Buying physical silver
If you choose to buy silver bullion or coins, first you need to see the silver samples that the company sells. This will let you know that they do indeed sell physical silver. Check to see that the silver in stock is stamped as .999 to ascertain that is has the purity standards of 99.9%.
Next, you need to find out the spot price of silver and compare that with the prices being quoted by the company. If the quoted price is below the spot price then you need to be very wary. Most prices will be quoted just above the spot price. Don’t agree to buy anything way past 10% of the spot price.
Another thing to check is the reputation of the company. Check to see if it has any accreditation such as from the Better Business Bureau (BBB). Also check for reviews online to see if there have been complaints from former clients.
How To Invest In Silver EFT’s
With exchange traded funds (ETFs), you want to verify that the trust you’re buying from has the actual silver storage. Most silver EFTs make it public knowledge where their bullion depositories are. Be wary of companies that are suspected of issuing more shares than the actual quantity of gold or silver they claim to hold !!
Also find out if it’s possible to transfer your ownership shareholding to actual silver.
How To Invest In Silver Mining Companies
Silver mining companies
Selecting silver mining companies requires some deeper knowledge of the business. You can find junior companies that have just began prospecting or are still prospecting. Such shares are usually cheaper with a high promise of a big payday. However, they are risky because the company could hit a wall.
Companies that have been in existence are called senior stocks. With these, the risk is lower but the share prices are high too. Production companies can also be counted on for dividend payments thereby offering a good passive income
How To Invest In Silver IRA Companies
If you choose to invest in silver IRA, find out what package the company offers. Also find out crucial information such as where they store the silver bullion. You don’t want to save silver for years only to lose it. Find out how long the company has been in existence. If it has been around for a while then that’s a good sign. Check online reviews and see what other people have to say. Lastly, look for accreditation badges, the more the better.