How to Buy Silver Bullion On eBay

Views 2 Likes Comments Comment
Like if this guide is helpful
How to Buy Silver Bullion On eBay

Bullion may seem old fashioned, but it is considered a traditional investment and a safeguard against the rising and falling value of coin currency. Silver may not be as rare as gold, but it still holds great value. Some new investors may find it difficult to know where to start buying silver bullion.

With the help of this handy guide, now anyone can become an investor or collector of silver bullion by buying it on eBay.

What Is Silver Bullion and What Is Its Value?

Silver bullion, as mentioned above, is pure silver melted down into the shape of a brick or a coin. The thickness of the bullion will depend on its weight, small pieces weighing only an ounce will be quite attractive collectable pieces whereas bullion weighing over 100 oz. will be thicker and heavier. The appearance of the silver will vary depending how well it was cast and polished. It is always stamped with information about the silver. Silver now has a greater value as it is used in many modern technologies such as mobile phones and in medicine.

There are three grades of silver depending on how pure it is:

Grade/Purity

Percent Silver

Fine

999. or 99.9% silver

Britannia

975. or 97.5% silver

Sterling

925. or 92.5% silver

The purer the silver the more it is worth. New silver is taxed at 20% in the United Kingdom which removes some of its investment value, but used silver is exempt from this tax. Using eBay to find used silver is a fantastic option to ensure the silver has an investment value in the future. Some collectors may simply buy smaller pieces of silver to melt down into bullions for their collections.

There are great advantages to owning silver bullion bars/coins:

* A long term investment which can be sold when silver is at a very high price.

* Small and easy to store in a small area.

* Hallmarks ensure they are easy to convert back to cash when needed and are also ready for resale if need be.

Silver is available in a range of sizes, but the most popular and practical to collect are the bullion coins. The 'spot' price of the silver is a term used with bullion to show that the silver is not worth any more than the average price of silver at the time. So a coin of a certain purity or weight won't be worth any more than the current spot price, but a silver bar can be worth more at the time due its mass and purity.

Types of Silver Bullion

Silver comes in different forms and different purities, these are the most common types to be found on eBay:

Types of Bullion

Appearance and use

Coin

Round in shape, old or new legal tender, these tend not to have high value but can be very collectable items.

Bar

Rectangular in shape, these tend to be very pure and start in weights of 1oz. They are stamped with the purity of the silver. The largest size can be up to 100 oz. but these generally are difficult to find.

Round

Similar to a coin but without any official design to show it is legal tender. Rounds are popular to collect but may lose some value over time. The brand and design are unimportant, the weight and purity is what is crucial with silver rounds.

Several countries around the world also have silver coins as legal tender which are highly collectable items:

* American Silver Eagle

* Silver Britannia

* Chinese Silver Panda

* Canadian Maple Leaf

* Mexican Libertad

The above coins vary in their purity of silver; these are easy to track down on eBay and are wonderful collector's items.

Advantages to Buying Silver Bullion On eBay

eBay as a buying and selling platform has really changed how to buy silver bullion, the reasons are outlined below.

* The buyer doesn't have to travel to a precious metal dealer to buy silver bullion.

* Tax can be avoided if the buyer selects used silver bullion.

* The value of silver and precious metals can be researched and checked easily on the internet as the buyer browses eBay.

* High quality silver items can be purchased for good value on eBay.

* Silver can often be cheaper on eBay than buying it in a precious metal dealer.

How to Buy Silver Bullion On eBay

Navigate to the eBay home page and find the Coins portal and select the Bullion/Bars. From there the buyer can browse some of the suggested categories or refine the search more by selecting specific types of Bars/Ingots . The previous options are ideal for general browsing, and for items that may be difficult to find with a general search. If the buyer has a good idea of what they wish to search for, such as a 10 oz. silver bar, then they need simply to search 10 oz. silver bar under Bullion/Coins to find relative listings.

The country of origin is an important element for some buyers to consider, if for example they wish only to buy silver from America or Asia, they would have to select 'United States' or 'China' to narrow down their search. The buyer can also choose to add certification to their search by selecting options such as 'Certified' to ensure the item is legitimate.

Silver bullion will come in varying conditions, from antique coins to pieces that have been minted very recently. The condition of the item can be included in the search term when searching as some buyers may only want new bullion to purchase, such as 'new silver bullion'.

The postage will vary greatly due to the different weights of silver available. Smaller pieces of silver bullion can be postage and will be reasonable, but larger bars of silver will be sent via courier. This type of service will be preferable because of the value of the heavier silver bullion. If a buyer is not happy to have their item posted but still wish to purchase the item, it is advised that they contact the seller to discuss different postage options.

One the buyer has found the type of bullion they want, they have two main options to choose from before purchasing any silver bullion. Buying through eBay is usually done through two means:

* Bidding

* 'Buy it now'

Bidding is eBay's most common way of buying items. It is vital to consider when bidding, the buyer is entering a legally binding agreement between the buyer and seller. 'Buy it now' options are becoming more common and allow the buyer to buy the silver bullion instantly rather than waiting for the auction to finish. Once the desired silver bullion has been bought the payment process can start. PayPal is the most common and secure way of purchasing items through eBay, it is quick and easy for the buyer.

Hints and Tips When Buying Silver Bullion

When looking for silver bullion to buy, bear in mind the current market price of silver per ounce to ensure that the buyer isn't spending more than the actual value of the silver.

* Before making a purchase, compare the item's price to other items on eBay to ensure the buyer is getting the best value silver bullion possible.

* Where possible get a certificate to prove the silver's origin and purity from the seller.

* For long term investment bullion bars and coins are ideal as their value will only increase over time.

* Research sellers and check their range of stock and feedback.

Storing Silver Bullion

* As silver bullion will have high value, it is vital that the buyer has somewhere safe and secure to store their bullion. A display case for small pieces of bullion and coins is ideal but the buyer must be aware there may be an increased chance of theft if it is left on display.

* For small pieces of silver bullion in the size of 1 oz. bars, there are types of presentation boxes which will fit a certain amount of silver bars. These are ideal for the collector who only wishes to have a few small pieces, and such cases can be stored away when not in use.

* For buyers who have several silver bars, a sturdy, good quality safe is suggested. A good safe should be secured to a main wall/floor with heavy duty screws to prevent it from being prised from the wall/floor. Safes can have keys or number codes to open them, but this will depend on the preference of the buyer. Another storage option is to have a deposit box at a bank or secure storage facility.

Conclusion

Collecting precious metals is a satisfying hobby; it is considered a valuable form of investment for times of economic growth and decline. The value of silver is always changing and at the current time the value is only going up.

With records of precious metals at their highest, collecting silver bullion is worthwhile. Finding the right piece of silver bullion on eBay has never been easier thanks to this handy guide.

Have something to share, create your own guide... Write a guide
Explore more guides