When buying something the concept of value is important. This is no different with silver bullion. The way value is determined is different for each individual investor. Ask yourself repeatedly why you want to buy silver bullion to begin with. Anyone buying silver bullion for the first time, should keep this in mind. Remember, if you approach silver bullion dealer strictly from an investment perspective or as a serious silver bullion investor who can assess value your way; don't worry about figuring out what the value of silver bullion means to you and you might get ripped off.
If you have no purpose ten there really is no point.
Let's make a simple example with something we might all be familiar with: Buying a car. You know that when you go car shopping whether it is your first time or not, it must meet some special need. Is it something you are buying because you need a car to get around with? Are you looking for a sedan for your family or a special vintage sports car for personal interest and profit, you will understand the point of knowing the value of what you decide to spend your money on.
When you have to decide on the best silver bullion to buy, the decision is similar to the one you would want to make when you buy a car; When it comes to "value" you should define your terms and identify those factors that will enable you to create that value when you buy silver from a bullion dealer. There are some key factors you should keep in mind when creating your own definition of the value of silver bullion:
- Should I swim in the silver pool?
When you buy silver bullion, you can choose to take delivery or buy into a general pool. What this option is like not physically seeing, touching and seeing your silver bars because you are buying into unallocated silver reserves rather than allocated bar or coin. You still physically own this silver bullion however, nothing specific. A generic buyer might appreciate the idea of doing away with storage limits issues and flexibility not locked into any denominations. The point is, when you opt for this, you have decided on this option because you do not want to take physical delivery of the silver.
- Silver coins vs. Bars
When choosing the form of silver bullion to buy, keep in mind that you can choose either bullion bars and coins. If you think of silver as part of an ongoing investment strategy, silver bullion bars could be the Japanese automobiles of the automotive buying world; as reliable and affordable as Honda and Toyota, these consistent performers have easy and affordable resale and have certain expectations regarding sales value and appreciation; the savvy investor realizes that 1000 ounce bars need to be redeemed in full, so when it comes to a few thousand ounces or less, a combination of the smaller denominations is preferable.
Silver bullion coins on the other hand are more of an adventure, although not as random as nuggets that really require a refined eye, they become as much the joy of owning as a direct investment. When an amazing collection of silver coins is accumulated by the owner and structure and elegance are displayed, value is achieved on two levels, but remember the importance of choosing the right type of coin.
For example, opinions differ on the virtue of coins struck nationally, some people suggest that the special design and recognition increase their demand in the market while others argue that the additional expense is not justified in terms of their higher resale value.
- Generic coins vs recognized coins
When buying rounds, the options are: generic, semi-generic, well known and nationally invented. What is reduced again is the value of sales. When it comes to buying a car, it shouldn't be a problem to sell a quality used generic model to the dealer and likewise, precious metal dealers will undoubtedly buy minted silver bullion. Silver bullion dealers will take generic silver bars from you without asking questions, but everyone recognizes that just like GM, Volvo, Acura, Lexus, and Mercedes Benz cars will be valued differently, silver bars will be valued differently. The value can also depend on the fame and prestigiousness of the coin.
