Did you know that in some cases, investing in silver makes more sense than investing in gold? Thanks to option speculations in gold, many big traders are able to temporarily depress the price of gold. In the same way as commodities like wheat, coffee, sugar and others are often depressed through option trading; there are a lot of option speculations with gold that tends to dampen the real market price of gold. Thankfully, such speculative activity has reached the same level with silver this is why when it comes to quick appreciation and market valuation, investing in silver bullion and other silver investments make a lot of sense. If you have decided to pull the trigger on investing in silver bullion, keep in mind that there are many different types of dealers in the market. Some make a lot of cents in certain situations. Regardless, you should pay attention to the following features when looking for dealers to do business with.
The right dealer in precious metals has to have a lot of liquidity. This business must be able to quickly buy and sell. This is crucial because the reason you invested in silver bullion and precious metals in the first place is the liquidity this investment. Gold, silver and platinum are very different from other inflation busting-investments like real estate. Unlike real estate, it is very easy to get in and out of gold, silver and platinum investments. It can take weeks or months and even years to unload a particular piece of a real estate property. Many precious metal investors get into it because they’re looking to position themselves to capture investment opportunities when the market crashes. You don’t get this ability if you deal with a silver bullion dealer that is not very liquid. It is either they have procedures to hold your silver; they cannot pay out or buy. It is very important to make a shortlist of highly- liquid silver bullion dealers. This way you can enter and leave the market as quickly as possible.
Let’s face it, silver bullion dealers have to make money. If they were just buying based on pure market prices, their profit margins would be very slim indeed. This is why many of them charge miscellaneous fees like assay fees and other related costs. The good news is that these additional fees tend to be quite small. These make money based on volume. When they buy and sell at a huge volume, they make money in price fluctuations. With that said, you need to pick dealers that are proven to buy close to market prices. You wouldn’t want to deal with a business that offers and buy and sell prices that have a huge discrepancy with the actual market price. Keep in mind that all dealers have some markets discrepancy but pick the one with the least difference with the market prices. This may seem like you’re trying to shave off a few dollars here and there but guess what, those dollars can add up to a huge amount of money especially if you are dealing with are a large volume or frequency of silver bullion trades.
Many silver bullion dealers have different levels of inventory. This is crucial because if you’re dealing with a business that has a solid inventory, chances are their liquidity issues are taken care of. To fix any credit crunch, they can easily liquidate their precious metal holdings. That is why it’s very important that you deal with a proven and reputable bullion dealer that is sitting on a large pile of silver. This is also important because in certain periods of your precious metal investment experience, you will be buying a large amount of silver bullion. If you are dealing with dealers around which have uncertain inventory, you are taking a risk. By bouncing from one dealer to another, you might miss out on certain opportunities in the market. Avoid this possibility by dealing only with dealers who has solid inventories.
Since the equities market can crash or spike without notice, it is very important to deal with silver bullion dealers who provide different ways of reaching them as possible. A simple phone number or email is not enough. Insist on finding dealers who enable you to get a hold of them at any time of the day in a wide variety of methods. You need to reach dealer them easily to either buy or unload because markets change all the time. Therefore, large amount flexibility is needed to get necessary liquidity to be able to take advantage of whichever way the market is currently going.
There are certain silver bullion dealers the deal only with multi-million-dollar operations. If you’re just a small investor who is looking to diversify into silver bullion, these dealers are obviously not for you. Therefore, you need to look for dealers who will grow with you. In other words, they will service your account while you are small. Then once your investments start scaling up, they can still accommodate you. Fortunately, there are many businesses out there that think long-term. They realize that today’s small investor might be tomorrow’s big-time investor. So look for dealers that can accommodate a wide range of customers.
Make no mistake about it. Silver is a great investment vehicle. Precious metals, in general, are great investments especially during times of economic uncertainty. We are currently living in a time where stock market keep surging while the general economy other parts of the world remain fairly flat. Something has to give. Speculation can only drive the market so high until it crashes down to earth. By parking your hard-earned capital into silver bullion and other precious metal assets, you increase the likelihood of not just preserving the value of your investments when there is a market crash but also positioning yourself in such a way that you can make money during our stock market crashes and uncertainties.