Buying Silver Coins – Common Mistakes To Avoid!

Buying Silver Coins

Buying silver coins can be confusing! Especially for a new investor. Especially when precious metals market is booming and hot. Learning about common mistakes helps to get a better grip on silver coin buy and sell process nuances and teaches novice investor what to expect when entering unfamiliar ground. Below we provide here a list of most common mistakes to avoid when you consider buying silver coins.

Not dealing with reputable silver coin dealers is a huge mistake to avoid. Dishonest coin dealers have plenty of tricks up their sleeves that will ultimately make you overpay. They may also try to sell you coins that might not be right to meet your investment or numismatic goals. Worse yet, you might never receive your order if you buy from unknown coin dealers online. You are better off dealing with a coin seller who also acts as one of silver coin buyers in case you decide to sell your investment or collection.

Paying too high of a premium is another common mistake to watch out for when you are buying silver coins. Before heading to your local coin shop or buying silver coins online, check the spot price of silver on that day and shop around so you can get the idea of what to look forward to.

Don’t get caught in a silver scam or buying silver coins that are fake. That seems like an obvious mistake to avoid, however, due to so many novice precious metals investors entering the market, they might not have necessary knowledge to spot a fake.

Do not put more than 5% of your investment funds into silver investing. It’s just not worth it! Silver just like any commodity might be on the rise right now but it can literally plummet in price virtually any time. Putting all your money into one asset is not making you any good in the long run.

Not knowing the difference between numismatic coins with silver bullion coins might cost you money in the end. Buying silver coins for investment is one thing, but buying them for your numismatic collection is a whole another game plan. The value of numismatic coins is derived from rarity, scarcity demand and other factors that have nothing to do with the price of silver, while silver bullion coins ultimately track the daily spot price of silver. Avoid paying too high of coin prices if you are interested purely in investment.

Listening to friends and co-workers about buying silver coins based on their personal experience. Silver investment and coin collecting requires a non biased approach and thorough knowledge of options. Nobody except professional investors or numismatic experts can give you any recommendations on which silver coins to buy.

Being driven by emotions when buying silver coins or any other coins. Silver or gold buying needs to be approached with a clear head and not being driven by precious metals buying craze. When everybody else is buying coins, it does not mean you have to. Analyze the market situation and if the price of silver is too high, you are better off selling coins and not buying.

Not considering buying scrap silver coins is a definite mistake to avoid. For investment purposes when your goal is to hedge against inflation and put your money into silver value, junk silver coins could be a great cost savvy decision. Some junk silver coins could be acquired for almost no premium cost and that’s a good thing for an investor.

Some silver bullion coins experts warn against not storing your own physical silver and using one of popular companies who can store it for you so you do not have to deal with security concerns. However, in case of emergencies you need immediate access to your silver coins that will not be possible if they are stored at a distant vault location.

Not learning the facts about collectibles capital gains tax that applies to all gains as a result of selling gold or silver coins. Some novice investors are surprised to learn they have to pay 28% to the Government.