Silver is a popular precious metal for investors and collectors, but many people have questions about its properties, pricing, and best practices for buying and storing it. Here are answers to some of the most common silver questions:
The price of silver is determined by futures contracts traded on the COMEX commodities exchange. The quoted silver spot price reflects the nearest expiring futures contract. Dealers then charge a premium above the spot price for physical silver products to account for fabrication and distribution costs.[1]
The best type of silver to buy depends on your goals. For the lowest cost per ounce, larger bars like 10 oz or 100 oz are a good choice. For more divisibility and liquidity, sovereign coins from government mints offer wide recognition.[1] Silver coins, rounds and bars are the most common forms of physical silver bullion.[5]
To keep your silver safe, the biggest considerations are preventing theft and avoiding tarnish. Select a secure storage location like a safe or well-hidden spot. Silver should be kept in a cool, dry place to minimize tarnish which can impact resale value.[1] When selling, you can approach local coin shops and pawn brokers for a quick turnaround, or work with a reputable online dealer for a better price.[1][5]
Silver jewelry is usually marked with a “925” stamp or the word “sterling” to indicate 92.5% purity, with the remainder often being copper. A simple magnet test can also help identify silver, as silver itself is not magnetic.[1]
Before investing in silver, be sure to account for ongoing costs like a safe or safe deposit box, insurance, and shipping fees for any purchases.[5] Understanding these common questions can help you make more informed decisions when buying, storing and selling silver bullion.
