Hey all. I'm writing this guide for anyone who has contemplated adding silver to their nest egg. I hate to use the term portfolio because, to me, it implies pieces of paper. That is not what this guide is about. There has never been a easier/better time to get started accumulating silver bullion.
The first thing to keep in mind is there are many different types of silver products. Each has advantages/disadvantages. And, of course, price plays a key role. I encourage everyone interested to buy items you like. It makes stacking that much more enjoyable. The biggest mistake made by new silver stackers is over paying for their bullion. I was guilty of this when I made my first purchase. I have learned a lot in the years since.
As far as price is concerned, "Premium" is the word of the day. The premium is the price you pay over the current spot price of your preferred item.
Bars/Rounds: These are generally produced by private mints and have the lowest premiums. (Some silver bars are produced by government mints).
Junk Silver: Don't let the name fool you. "Junk" is just a term to describe circulated coins with silver content. For the purposes of this guide, we will stick to pre 1965 US dimes, quarters, and halves. The premiums on junk silver fluctuate based on overall silver demand.
Coins: These are produced by governments throughout the world and normally carry a much higher premium.
Collectibles: These items demand the highest of premiums. In my opinion, coin collecting is fun, but also very dangerous as an investment.
I consider coins, bars, rounds, and sometimes junk as solid silver stacking items. Unless you absolutely know what you are doing, stay away from collectible items period!
When doing your due diligence on your initial silver purchase make sure you research all avenues for the absolute, best price of the item you are considering. This would include your local coin dealer, online dealers, and even ebay (with discretion).
Premium price points that I personally recommend and constantly look for:
Bars/Rounds: I have seen some sales where the premiums are close to $0.50US over spot. I typically have no reservations buying at $0.89US or less.
Coins: I only buy US, UK, Mexico, Canada, and Australia minted coins. I personally feel confident that I am getting what I pay for from these country's mints (at least at this moment in time). I will pull the trigger when I can get these coins for less than $2.50US over spot. But, I have also paid over $3.00US, but I really hate to.
*And I never make a purchase unless I can get free shipping.
I cannot stress this enough: Only buy from a reputable dealer!!!! I really hate to recommend any online dealers. I've had great experiences with all the ones I have dealt with. If you have a question about a certain dealer, just ask me and I'll tell you if I have ever dealt with them and how my experience was.
Ebay: This is a double edged sword in my opinion. Many reputable precious metal dealers now use Ebay and they do run good specials sometimes. Just be very weary. Always research the seller!!!
One last personal tip: Dollar Cost Averaging
Most people new to the silver market feel the need to jump in with both feet. I know I did. I suggest that you start out slow. In my opinion, silver is a long term investment. Most people new in the silver market go "all in" when they feel the silver price has bottomed. The silver market is extremely volatile! I always say, "If you want silver prices to drop, just let me make a purchase." Because this happens to me every time. The best way to remedy this is to dollar cost average. This basically means to buy a little silver, consistently over time.
Using this technique, I never worry about the spot price. Sometimes I pay a higher price and sometimes I luck out and get a lower price, but I'm never left unexpectedly "holding the bag". Slow and steady wins the day, right? Just remember.....
FREE SHIPPING
For me, stacking silver is both fun and rewarding. I get to exchange worthless paper (and mostly computer generated digits) for something beautiful, useful, and tangible. Hopefully this guide will be easy to understand and answer some questions. Please feel free to ask any other questions in the comments. I will do my best to answer them.
*This post is NOT investment advice, just a guide. This is the only thing I know. Please use at your discretion. Although, I personally think I know what I'm talking about, hehe.
Nice post. A lot of people on this site aren't stackers. They are cryptos. I imagine at some point they will diversify into bullion. Glad to see more of us making our way on here to create a niche community.
@coinhawk Personally I do not have that much, but would like to get into it more. I would rather have cold hard silver in my hands any day over Crypto or fiat paper money....IMO Fiat and Crypto could fall by the way side if any kind of major nationwide or worldwide calamity happened....If that was the case I feel people would go back to trading in silver or bartering items...
You are correct! Cold, hard assets are the ONLY way to go going forward in this mess. Cheers
I truly do like cryptos, but there is nothing like shiny, solid, hard metals. Surely these steemites see that, no?
More and more online PM dealers are accepting bitcoin now for payment. Usually at a discount to paying with a credit card. Conversion from BTC to bullion can't get much easier!
This post received a 2.8% upvote from @randowhale thanks to @agcrypt! For more information, click here!
Great Post mate! I love my silverbullion :)
Great to hear! Upwards and onwards.... hehe
Great introduction! A straightforward, clear piece of writing that was accurate about all facts and stems from a pretty good stacking strategy. Thanks for the great silver prose.
UpV'd & F
Cheers! thedamus
Hey, thanks a lot! I did my best to make it simple and tried not to add too much information. On the topic of silver, there is so much out there. It can be easy to go off on tangents. I just hope it is helpful to someone!
Thanks for your post. I really want to take some of my "digitized stacks" and convert them to physical beauties. I've always been fascinated with money and your post has been a good stepping off point into silver. I see silver coins from Armenia for a lower entry price the Noah Ark's and have thought about purchasing a few just to get my toe wet, but after reading your post maybe I should stick with bigger named countries/mints. Hmmm.
The Noah's Arks are some nice coins. As long as you are not paying too high a premium, then go for it. I also stack a few different coins because I like them. Sometimes I pay a little more for them. But, if I'm looking to make a decent sized purchase I always stick to lower premium priced coins/rounds/bars. Less premium equals more silver in your stack.
Great Article !! Following you ..
Hey, thank you so very much! I have you as well!