Many investors are now turning to silver as a sound investment to hedge their portfolios. Dealers in silver coins and other forms of bullion have taken full advantage of this increased investor interest. In recent years, several reliable dealers have opened virtual shops to enable the purchase and sale of silver in various forms through online transactions. If you have decided to add precious metals to your collection of assets, then you can buy silver right from the comfort of your home within minutes using your computer. Learning how to buy silver online also lets you enter the precious metals market quickly and take a position almost as soon as you notice price changes happening.
The First Steps
The very first step in buying silver online is to decide on the form in which you want your precious metal in. Silver is available in many forms for investment, coins and bars being the most popular among investors. These are portable, easy to store, compact enough to fit easily within your safety deposit box and also available in a range of weights. If you would like your silver investment to have some aesthetic appeal then choosing coins rather than bars maybe a good idea. Look at a few coins and bars online to determine which one you would prefer as you learn more about how to buy silver online.
Identifying a Reliable Dealer
The next, and perhaps the most critical, step is to identify the dealer for your purchase. It is very important that you buy from a reliable, ethical dealer because as a layperson there is no way for you to actually evaluate the quality of the metal you buy. There are a few highly reputable dealers who have been in the silver- gold business for a reasonable length of time and have made a name for themselves in this market. Look at a few customer reviews of each dealer you shortlist to get a feel of their service levels. We recommend JM Bullion for purchasing silver online.
An important aspect to check in this regard is whether the dealer is offering the proper certificates of authentication with the coins or bars sold by him. These serve as proof of the precious metal’s purity, grade and weight. Also ensure that the silver is delivered in sealed form, in boxes or tubes or in airtight package. You can glean more about the manner in which the products are packaged and delivered from reading the shipping information on the dealer’s site.
The next step in learning how to buy silver online is to understand the importance of comparison shopping. Not all dealers sell and buy silver at the same price. In fact, unless you carry out a proper comparison of prices offered by various dealers there is no way for you to know what the best prices are for any silver product of your choice. Once you have identified the coin or bar that you wish to buy visit the sites of every reliable dealer you have shortlisted and check the price quoted. This will help you find the product you seek at the lowest purchase prices.
Terms of Delivery
Before you actually finalize the transaction, ensure that your dealer will deliver the silver to your home in a safe manner. Choose a dealer who arranges for delivery through insured post so that your investment is protected right until the silver reaches the safety of your home. Most dealers ship the products via insured U.S. Mail which is a safe option.
Locking in your Price
Prices of precious metals keep fluctuating and this is a good reason for you to ensure that your purchase price is locked the instant you decide to make the purchase. Usually, reliable dealers allot a conformation number that locks your purchase price when you place your order over phone or online. The silver price is locked for a limited period, say, 5 days although this period may be extended slightly for larger orders. You have to make your payment within this period to buy the silver at the locked in price.
Once you have identified products you want from your dealer’s inventory, it is time to make the actual purchase. Many dealers allow you to pay through bank wires, debit cards or credit cards and money orders. Ensure that your dealer has adequate encryption onsite to make your online transaction complete private and secure before you initiate the payment. This will keep your bank details or credit card details from falling into the wrong hands.
Although bank wire transactions are the quickest way to carry out your silver purchase transaction, you can pay by check if you prefer this payment method. Typically, the dealer will put off the actual shipping until your check is cleared and the funds received by his bank. This may take anywhere between 5 to 10 banking days. Once the dealer has received your funds in his account he ships the silver to you by means of insured post.
By learning how to buy silver online you can instantly add this precious metal to your portfolio as and when the price dips or you accumulate some funds. Adequately hedging your portfolio with silver bars and coins in this way equips you to deal with inflationary pressures or dipping stock values with aplomb.