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How to buy Silver at Spot Price?

Most investors of precious metals often begin by wondering how they might be able to buy silver as close as possible to the spot price in order to maximize their returns once they decide to liquidate their assets.

BUT BE CAUTIOUS

You will find online many offers for silver at spot price or perhaps even solicitors who give you the 'opportunity' to buy silver under the spot price; this is often the realm of conmen, counterfeits, and dishonesty.

In this article, you'll find out how to buy silver at spot price in a safe and secure way.

Silver bullion can be usually defined as silver that is officially recognized as being at least 99.5% pure and is in the form of silver coins, bars, or silver rounds. It has always been considered an attractive investment for both experienced and new investors.

We'll show you how to buy silver at the spot safely here. As well as how to find reputable counterparts to avoid any potential fraud or malfeasance.

Silver Price Changes Over Time

After almost ten years of consistently higher silver prices to begin this millennium, silver prices have fallen and moved sideways for nearly another ten years. In late April 2011, silver prices, as in January 1980, silver repeatedly reached record fiat US dollar silver price high points.

According to the London Bullion Market Association, in January 1980, it reached $39.28, and in April 2011, it went to $41.97. During the decade that followed, silver prices fluctuated slightly around the $15 margin.

That all changed in late February 2020. Due to the pandemic lockdowns, the US stock market fell faster and harder than since July 1933 in the Great Depression. Virtually all asset classes melted down in fiat price denominations, with the exception, of course, of hard assets, such as precious metals.

On September 1st, the price of silver reached $28.89.

Silver Spot Price

Since the ending of most covid-driven restrictions, the silver spot price is currently sitting at around $23, as of October 2023.

Silver Performance History

Silver Performance History: a quick overview of fluctuation in silver prices over 15 years.

Notice how the price of silver began gyrating widely yet overall to the upside after the 1971 Nixon Shock when the final ties of the US dollar to gold bullion reserves were lost.

Now, all currency values are faith-based, unhinged from hard money, and volatile. Every fiat currency will lose value to silver bullion over the long term, based on their inherent designs.

At What Silver Spot Price Might One Sell Some Silver Bullion?

As with many investments or monetary instruments saved for the long term, it helps to have both entry and potential exit strategies. There will likely come a day when swapping one asset for another may make good bullion allocation sense.

This thinking about a possible timeframe when you may want to sell some silver bullion is partly why we recently did a video presentation on the question, "When to Sell Silver Bullion?"

Can I Buy Silver at Spot Price?

5 oz Tombstone Silver Bar

Silver Bars - 5 oz Scottsdale Mint Tombstone Silver Bar

2023 American Silver Eagle

Silver Coins - 2023 1 oz American Silver Eagle

Due to lower price premiums currently in the silver bullion industry, various high-volume silver bullion dealers (who work on razor-thin profit margins) have offered one-time buy silver at spot price opportunities for new customers to encourage them to become customers.

Physical silver bullion dealers make little to no money in these offers, in fact, often, it is a loss in terms of overall costs, yet they do so in an effort to gain new customers and business.

We strongly suggest that on any silver bullion at spot price deal you may come across, you perform proper due diligence on the silver selling counterparty, as well as comparing prices before purchase.

You will want to find established high-volume silver bullion businesses that are both organically and highly ranked on hard-to-rig silver dealer review websites.

Pay attention to rankings and review volumes. Any silver dealer with poor or mediocre reviews is likely not worth risking your hard-earned capital or precious time.

Can I Buy Silver Below Spot Price? - Perhaps, But Be Very Careful

The lone individuals who can and often buy physical silver bullion below the spot price are silver scrap refineries, gold stores, and silver bullion dealers who may bid or offer a price slightly lower than the fluctuating silver spot price.

Often, the bid price given is below the silver spot price for silver bullion bars. Conversely, popular modern silver bullion coins typically yield bid prices at or even slightly above the silver spot price.

Currently, for new .999 fine silver bullion products, one should never accept a bid or offer price below 98% of the fluctuating silver spot price.

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If an individual tries to buy the precious metal below the spot price, at an incredibly low premium, chances are you will run into a counterfeit silver bar or coin salespeople on websites like Craigslist or unproven silver bullion sellers on eBay.

Be very careful, as Chinese counterfeit silver products are a real issue in our industry and are used daily to take advantage of unknowing or lowest-price-at-all-costs silver bullion buyers.

Below a Canadian detective spoke on the matter in the year 2013. The problem of more silver bullion being counterfeited has only grown in size and scope since.

More often than not, these counterfeit silver frauds go undetected for years or even go unreported due to embarrassment or other reasons.

For every “I tried to buy silver below spot price and fell victim to fraud" story covered on the news or in the media, we could probably multiply that figure by 10Xs or more in the amounts of instances where it goes unreported.

You simply do not want to be one of these victims, and we certainly want to make sure that remains so.

ETF Future Contracts for Precious Metals

An interesting way of investing that is quite popular, ETF futures Contracts offer a diversification benefit as well as a hedge against market volatility. These items monitor the silver spot price performance without necessitating physical delivery or storage.

The ETF Futures allows investors to buy or sell exchange-traded funds (ETFs) at a predetermined price on a future date. Futures prices are for future delivery, not immediate delivery. These financial contracts allow traders to speculate on the future price of an ETF (exchange-traded fund) without actually owning the underlying asset.

Generally speaking, ETF Futures, like any type of investment, come with risks. You should keep in mind that there is the potential for magnification of gains and losses, market speculation, and others.

Read about the Top 10 Silver Price Market Moves.

Buying Silver at Spot or Buying Silver Below Spot is not Normal

The reason for this is rather simple.

Most of the time, it is not possible to buy silver at the current spot price or below in the precious metals market since there are extra costs and manufacturing expenses involved. But it is possible to buy precious metals close to the spot price indeed.

Physical silver bullion's supply chain calls for physical silver bullion products to be sold above the silver spot price for various parts of the industry to stay in business and out of bankruptcy.

Unless you own a business within this silver supply chain, it will be risky and difficult to procure physical silver bullion below the spot price. As a simple example, silver coins tend to have a numismatic premium attached to them, which are the production additional costs and play an important role in the final price.

Generally, silver bullion, like bars and rounds, carries a lower premium, while bullion coins carry slightly higher premiums. Numismatic coins, on the other hand, are typically sold at a much higher premium due to the rigorous mintage process they go through. The premium will also vary based on the purity, rarity, and condition of the product.

Final Thoughts

When buying silver, considering the premiums associated with each item is crucial to align with your investment goals.

Successful high-volume silver bullion businesses typically operate on super slim profit margins ranging between basis points (100ths of 1%) to low percentage points on various silver bullion trades or sales. These following business people are not in the business to go bankrupt, yet many have done so over the years due to sheer incompetence or worse.

You should always be careful with whom you choose to do business within the silver industry. Not all are competent nor offer perhaps what they claim to. Not all dealers are willing to repurchase silver bullion from you at fair and reasonable prices.

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Paramount to any silver bullion purchase is that you indeed get the genuine silver bullion product you purchased at a fair price and that you indeed receive what you are paying for in full and within a quick time frame.

There are many decades of allegations and frauds that prove that many bad actors operate within the silver bullion space. Know who you are buying from and their track record.

Occasionally, a dealer may reduce the price due to cost-cutting measures on the back end. Extra production costs are expected. Lower premiums could result in shipping delays or compromised security.

If you are attempting to purchase silver at spot price, make sure the counterparty is trustworthy, solvent, and reliable.

If you found this content informative, be sure to pick up our 100% free 21st Century Silver Rush guide before you go.

FAQs About Buying Silver At Spot Price

How Much Above Spot Should I Pay for Silver?

A reasonable markup for silver bars is usually 5% to 8%, whereas silver coins typically command premiums of 12% to 20% above the spot price. Silver rounds fall within these premium ranges.

Why is Silver Selling so High Above Spot?

The process of manufacturing silver bullion tends to be more difficult to mine and refine, especially if compared to gold. These extra costs explain the high premium over silver if compared to other precious metals, like platinum.

How Often Does the Spot Price of Silver Change?

The spot price represents the current market value for immediate delivery. As a result, the spot price of silver can change multiple times within a minute during active trading hours. The spot price of silver fluctuates continuously due to supply and demand dynamics, economic data, geopolitical events, currency exchange rates, market conditions, and the U.S. dollar's value.

What's the Spot Price of Silver?

The spot price of silver is the current market price of one ounce of pure silver. It works as a reference point since the spot price of silver changes frequently throughout the day due to various market factors. checking a reputable financial news website, a commodities market app, or contacting a trusted financial institution. SD bullion provides real-time silver spot prices.

What is the best form of silver to buy?

The ideal silver investment can vary depending on your goals, preferences, and budget. Consider liquidity, storage, premiums, and other factors like potential appreciation. Diversifying investments is wise for risk management. Prioritize research and consult a financial advisor before deciding.

What will silver be worth in 10 years?

Predicting future silver values is highly speculative, influenced by various unpredictable factors such as the global economy, geopolitics, economic events, limited supply, inflation, interest rates, and currency fluctuations. It's prudent to approach forecasts with caution and consult financial experts.

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James Anderson
James Anderson
Senior Market Analyst & Content

A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.

Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades...

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