Silver bullion buyers often begin by wondering how they might be able to buy silver at spot price and investigating where can you buy silver bullion at the spot price.
Here you can learn how to buy silver at spot safely. Also, find out where can you buy silver bullion at the spot price.
CAUTION: Be careful, please.
Many offers for silver at spot price or perhaps even solicitors who give you the 'opportunity' to buy silver under spot price, this is often the realm of conmen, counterfeits, and dishonesty.
We'll show you how to buy silver at spot safely here. As well, how to find reputable counter-parties to avoid any potential frauds or malfeasance.
Where can you buy silver at spot price?
After almost ten years straight of consistent 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 touching around $ 50 oz USD at respective three-decade apart timeframes.
Since that time the price has consolidated to a spot price low of just below $14 oz USD in late 2015 for silver but quickly rebounded to a valuation of over $21 oz USD within only eight months following for silver in 2016.
The spot price of silver has since been consolidating from $15.50 to $18.50 oz USD from the past few years.
Below is a longer-term time horizon on silver prices in US dollars.
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 longterm, 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? - Yes, for Now
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 the effort to gain new customers and business.
We strongly suggest that on any silver bullion at spot price deal you may come across that you perform proper due diligence on the silver selling counterparty.
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 do buy physical silver bullion below spot price are silver scrap refineries, we buy 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 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. If an individual tries to buy silver below spot price 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 speak on the matter in the year 2013. The problem of counterfeit silver bullion 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 due to 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.
Buying Silver at Spot or Buying Silver below Spot is not Normal
The reason for this is rather simple.
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 ever to procure physical silver bullion below spot price.
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 business with, within the silver industry. Not all are competent nor offering perhaps what they claim to. Not all dealers are willing to repurchase silver bullion from you (sell silver bullion) at fair and reasonable prices.
Below is a description of how physical silver gets created and finally put into silver bullion products often sold slightly above the fluctuating silver spot price.
Silver Bullion's Supply Chain from Origin to Sales Above Spot
Star explosions produce precious metal elements
Silver laced asteroids crossed the universe, formed and collided with Earth
Silver Refiners purify physical silver (often selling .999 silver at spot prices to large mints/dealers)
Silver Bullion Mints create bullion products ( bars and coins then are sold above spot )
Silver Bullion Dealers like us at SD Bullion, trade silver bullion products
( bought or sold online then nondescriptly mailed fully insured, or locally)
Customers buy, own, sell, trade their physical silver (above, at, or slightly below spot)
Paramount to any silver bullion purchasing 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 timeframe.
There are many decades of allegations and frauds which prove that many bad actors operate within the silver bullion space. Know who you are buying from and their track record.
If you are attempting to buy silver at spot price, make very well sure the counterparty is trustworthy, solvent, and reliable.
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