3 Questions You Should Ask Before Investing in Silver

Buying precious metals is more of an investment than a purchase. If you play your cards right, you can get great returns on the silver you purchase, as it continues to grow in value. But, because of how pricey these investments are, you need to consider many things before you buy silver. Since it’s better to be safe than sorry, here are 3 questions you should always ask when investing in silver.

Is the Silver Allocated or Unallocated?

Allocated metals provide you with a high degree of safety as an investor. They provide you with the ownership title for the metal you purchase and keep it separate. This means that they belong only to you and the facility you bought them from cannot rent or lease them to third parties.

Unallocated metals on the other hand, present a risk as you are not the sole honor even after purchase. So, in the event of a bankruptcy, you could turn become an unsecured creditor. This is why you should only invest in silver when it is allocated, and you gain full ownership of it.

Is There a Mark-Up?

There is a normally a mark-up on precious metal spot prices when you purchase from a dealer. The amount of the mark-up usually ranges between 2% to 8% depending on a number of factors, such as the rarity, purity, volume and the dealer’s inventories. If you want to buy from a dealer, there’s no way to avoid the mark-up. What you can do, is compare mark-ups from different dealers before making your purchase. This way, you can make sure you’re being charged a fair price for the amount you’re buying.

Where Will the Silver be Stored?

Most reputable sellers of precious metals will have private vault storage facilities as well, so that they can keep your metals safe. This is extremely necessary because there is a huge risk involved in keeping these at home.

If storage is provided, you need to make sure the storage is insured, so as to further reduce any risks relating to your investment. Apart from vaults being insured, you should also check for other safety factors, such as identification access systems.

If you’re looking to invest in silver and buy silver bullion coins, Orion Metal Exchange is the perfect solution for you. We also provide private vault storage, so you know your metals will be safe with us. Contact us to learn more