It doesn’t really matter who you buy your bullion from….it matters from where you buy. If you want to buy the cheapest silver bullion – up to 70% cheaper than mainstream dealers – then you need to read this…….
I will outline the details of how you can find and buy the cheapest silver bullion, but also what type of silver bullion you should buy.
Table of contents for this post:
- Why it matters where you buy your bullion from
- Price comparison of cheapest silver bullion distributors
- Top 12 reasons for buying silver today
- What silver bullion you should buy
- Where to find the cheapest silver bullion
1. Why it matters where you buy your bullion from
Any buyer of silver bullion is naturally interested in finding the cheapest silver bullion prices, and prices will vary depending on which provider you choose. The biggest impact on price won’t be decided by which bullion distributor you choose from though, it will be decided by where you buy your bullion from, because in some countries you can buy silver bullion without paying tax or VAT.
Buying silver bullion from a location such as Estonia or Singapore will save you A LOT of money. Locations which aren’t free of VAT/tax on silver, such as the United Kingdom or any other European country, can put you under water by as much as 70% if you are interested in buying your bullion and selling it back. Sound unreasonable? It’s not.
Recently Liberty Silver Estonia offered Canadian Silver Maple Leafs for £12 whereas the biggest UK distributor offered them at £23 (and the buyback price was £9.90…..). The same situation would apply when you buy silver bullion from BullionStar.com in Singapore where silver also is offered free of VAT/tax.
- Naturally, the numbers mentioned above is a snapshot from 2015 but the % difference will still apply today
2. Price comparison of cheapest silver bullion distributors
As described the choice of bullion distributor doesn’t matter nearly as much as the choice of location for your purchase when finding the cheapest silver bullion prices. It can still be interesting to compare some of the main UK bullion distributors to get a sense of how much cheaper BullionStar.com Singapore and Liberty Silver Estonia really are. The price in the table below are from September 2015. CLICK the table for a sharper image (and “back” to revert to this page).
If you don’t have the patience to read this I can tell you right now that BullionStar.com and Liberty Silver Estonia both are between 55-70%+ cheaper than any of the UK bullion distributors….
3. Top 12 reasons for buying silver bullion today
Here are 12 very strong reasons for allocating funds to silver bullion today.
1. Silver is real money and a store of wealth
Throughout history both gold and silver have been used as money and medium of exchange. The reasons for this are many. Silver is for example the only financial asset that at the same time isn’t someone elses corresponding liability and it has held its value over time very well.
2. Silver works as a crisis hedge and an insurance policy for unknown events
One of the reasons silver is so attractive as “insurance” is that during times of crisis it typically performs better than many other financial assets – holding its value and protecting wealth. It’s important to distinguish between “paper silver”, such as ETFs and futures, and physical silver bullion when making this comparison as physical silver seems to have become increasingly detached from the paper market. Often when the paper prices of silver is falling there is increased buying of physical silver.
3. Debt and deficits are increasing for many nations driving up political & economic risks
Global debt levels are increasing, and in some countries at alarming rates. Since the 1970s we’ve experinced a tremendous growth but this has to a large extent been fueled by debt. Today, countries such as USA, Japan and the UK have higher debt levels that ever has been repaid in history. Typically, a 90% debt to GDP level is viewed as a threshold from which repaying debt rarely have been possible without resorting to currency debasement and other inflationary measures. Ultimateluy, these initiatives have proven very destructive to savers.
4. Money printing and fiscal stimulus increases the risk for hyperinflation and busts
Closely tied to the previous point about debt levels the last few years since the financial crisis of 2008 have seen an unprecedented increase in the supply of money. Although much of stimulus currently is held by banks and not circulating in the economy it has translated into inflated asset prices. It is only a quesiton of time before the effects will move in the real economy affecting goods ans services in a way we’ve yet to see. Offical inflation numbers does not properly capture the effects of the stimulus actions as how we measure inflation has been changed on multiple occassions. For example, the current inflation rate in the US is 0.2% but if we were to use the calculation method from the 1980s it would be around 7% which is a significant difference. You can read more about this here: http://www.shadowstats.com/alternate_data/inflation-charts.
5. Growing demand for silver from an investment perspective
Investment in physical silver has become an increasingly important driver for the general demand for silver over the last few years, reaching 185 million ounces in 2010, 132 million ounces in 2011 and 160 million ounces in 2012 – rising by 18% since 2008. Its interesting to note how physical bullion demand is soaring at times when the spot price for silver is falling, as displayed by the sales figures for U.S Mint Silver Eagles above.
6. Limited current supply and uncertain future supply
Total mine supply is up for the tenth consecutive year but the total silver supply has decreased since the top in 2010. There is furthermore a possibility of supply constraints given the magnitude of the drop in the silver price.
7. Industrial metal with an increasing range of applications
Silver is a very useful metal with a growing range of areas of application.
8. Silver is cheaper than gold – the “common man’s” gold
Silver is considerably cheaper than its cousin gold. This does add to the attractiveness of silver from an investment perspective as few people can invest in large, or even small, amounts of gold coins. Despite the fact that the price of gold has fallen since the top in 2011 one 1 ounce gold coin will still cost over USD 1000 today. Silver is thus much more affordable, and by offering the possibility of purchasing bars instead of coins the spread will also be less.
9. Silver is still not well known as an investment
Institutional ownership as a percentage of global financial assets is low. Many pension funds have only a very limited exposure to precious metals. For individuals the situation is similar. In most of Europe and the U.S. you are swamped with advertising for “cash for gold”. People are encouraged to sell their gold and silver at low prices. There is very little information about actually owning precious metals. Tell your friends that you think about buying a silver bar and they will look at you strangely.
10. Silver has more price potential than gold
Silver offers more price pontetial that gold. Due to its volatility it has often been described as “the devils metal”. Be careful with taking on too much risk when investing in silver securities, especially leveraged silver securities. Physical ownership of silver, which predominantly acts as a crisis hedge and value preservation, not speculation, is by definition not as sensitive.
11. Silver is undervalued compared to gold
The so-called “gold silver ratio” is defined as the price of gold divided by the price of silver. The avergae ratio between 1687-2012 was 27.28. Since the beginning of the 1990s silver has been on a rise versus gold, thereby decreasing the ratio, so the overall trend is that silver is appreciating versus gold. If silver was to return to it’s historical average, with a ratio of between 17:1 to 27.28:1, the silver price would be between $39-$65 (given a gold price per ounce of $1064). That leaves room for a significant price increase from the current level.
12. Significant risk in silver paper market so interest for bullion will increase
As displayed by the graph above the price volatility of paper silver has clearly increased since the 1980s. Today there are questionmarks on whether many of the silver ETFs really hold the physical amount of silver they claim to. The amount of futures contracts that trade based on siver also dwarf the actual physical amount available. At some point there is a risk of a real detachement between paper silver and physical silver.
4. What silver bullion you should buy
There is a wide range of options when you are looking to buy the cheapest silver bullion. For most buyers, purchasing the most recognized coins and bars is the way to start. This will make it easy to value and sell holdings in the future as you will own the most well-known and liquid types of silver.
Try buying real coins and bars to start off with if you can afford it instead of buying so called vault grams. You will want to make sure that you own your own holdings and can take them with you or arrange for delivery to you at any time. You can do this with silver bullion coins and silver bullion bars – but not with 35% of a silver bar.
Below is a short list of suggestions for your purchase.
Various silver bars
Silver bars come in many different sizes and brands. Some well known ones are Heraeus, PAMP, Umicore and Metalor. Some typical weights are 100 gram, 5oz, 250 gram, 10oz, 500 gram, 1 kg and 5 kg. You can read more about silver bars on Wikipedia: https://en.wikipedia.org/wiki/Silver_as_an_investment#Bars
Various silver coins
Below is a list of the most common silver coins. If you are interested in getting an overview then Wikipedia provides a good one here: https://en.wikipedia.org/wiki/Silver_coin
Silver American Eagle (1 oz) Coin
Silver Eagles are the most minted and most popular silver bullion coin in the world. Silver Eagles have been minted since 1986. Silver Eagles have the classic design reproduced from the Walking Liberty half-dollar introduced in 1917. The symbolism of the eagle and the shield depicts American strength and freedom.
The content and weight of the Silver Eagles are officially guaranteed by the US government. Being the most recognized silver bullion coin around the world, the Silver Eagle is suitable for anyone that wish to invest or diversify in real money i.e. precious metals.
Read more on Wikipedia: https://en.wikipedia.org/wiki/American_Silver_Eagle
Silver Canadian Maple Leaf (1 oz) Coin
Silver Maples have been produced since 1988 and are the most recognised silver bullion coin after Silver Eagles. The design features the maple leaf on the reverse with the queen on the obverse. Read more on Wikipedia: https://en.wikipedia.org/wiki/Canadian_Silver_Maple_Leaf
Silver Austrian Philharmonic (1 oz) Coin
The Silver Philharmonic is the first bullion coin denominated in Euros and Europe’s only pure bullion coin being minted based on investment demand. Silver Philharmonics have been minted since 2008 and depicts the classic Austrian theme of the famed Philharmonics orchestra.Read more on Wikipedia: https://en.wikipedia.org/wiki/Austrian_Silver_Vienna_Philharmonic
5. Where to find the cheapest silver bullion
I have two preferred bullion distributors. Both of which have long track records in serving an international client base.
Singapore – buy the cheapest silver bullion
Bullionstar is Singapores premier bullion distributor. Highly attractive prices, a wide range of silver bullion coins and bars as well as the benefit of operating from one of the safest jurisdictions in the world. With Bullionstar you can get access to free local storage. Read more here about the benefits of Singapore when buying and storing silver bullion: http://bullionprice.co.uk/buy-bullion-online-in-singapore/. Choosing BullionStar is perfect if you are looking for safe international diversification.
To place an order click here: https://www.bullionstar.com/
Estonia – buy the cheapest silver bullion
Liberty Silver Estonia is owned by people with long experience from bullion distribution. Part of the team and ownership stems form Swedens best bullion distributor – Liberty Silver Sweden. The same people also runs BullionStar.com (see above for further information). You can order the cheapest silver bullion straight from your own home and have it shipped to you.
To place an order click here: https://www.libertysilver.ee/en/
If you are looking for further reading about cheap silver bullion I’ve added an introduction below.
How to find and buy cheap silver bullion
Silver is a highly appreciated metal, both for its value and affordable price. It remains in demand constantly because not only is it used for jewelry, but in many other fields such as industry and consumer electronics.
The investment demand for silver bullion is continuously growing and there are several options when making a purchase – either silver coins or silver bars.
When one intends to establish a collection, make a long term investment or simply make a one-off purchase, it means having to spend money. To make sure that the money is allocated optimally finding the cheapest silver bullion on the market for each respective product is key.
Before completing a purchase there are some aspects one needs to think about. Firstly, one should know that silver coins come in several types. They are not comprised of one single group, so it’s important to know how to differentiate them. Secondly, according to their type, the silver coins will serve a purpose, like an investment or perhaps being more of a collectors item. Knowing ones purpose for making the investment makes it easier to choose the correct coin. Most investors buy silver bullion coins as an insurance for unknown events. Some do it for speculation on a rising silver price. After having started buying many become more interested in diversifying their holdings to many kind sof silver coins – both bullion and numismatics. Finally, knowing know how to purchase silver coins safely, without exposing yourself to the risk of losing money, will be a key part of buying silver bullion. Since there are many people looking to collect and invest in silver bullion coins and bars there will always be people who try to prey on this.
Regarding the types of silver coins, there are the silver bullion coins, which have the highest silver purity, of .999 or even higher. These can be found with bullion dealers and distributors, both online and with physical locations. Both buying and selling of these coins are transparent – based on the spot market and spreads. Then, there are the numismatic silver coins, which are the ones typically bought by coin collectors. The value of such coin is given by the silver content, numismatic premium and the profit the dealer is trying to make. Of course, rare coins will always be more expensive, as they are not guided by the silver spot price. The semi-numismatic coins are another coin, which are bought more for their silver content, and less for their numismatic value. And finally, there are the pre-1964 junk silver coins, like dimes, old quarters, Franklin half-dollars, Morgan dollars and others. As the name suggests, these coins contain the smallest amount of silver. They range from 35% to 90% silver.
The cheapest silver coin will be the ones that have the best quality – for each individual investors specific needs – at the best price. Finding a dealer that has the cheapest silver bullion prices is not always the best option. One needs to look into the future and see what one wishes to do with the silver. Does one intend to sell it for a better price as quickly as possible? Collect and hold until its value rises over time? Or is it intended for a private collection with the purpose of holiding it over the foreseable future? The cheapest silver bullion coin is the one that fits the most of the individual investors requirements and comes at the most reasonable price.
Silver bars are another way to buy silver, especially in larger quantities. As silver, compared to gold, is relativeley cheap one can get a lot more of it when making a purchase. Thus, it may make sense for storage reasons to also hold silver bars. The majority of the available silver bars weight about 100 oz, although they can be found in a range from 1 to 1000 oz. Except for rare cases silver bars always have a high silver purity – typically of .999. Silver bullion bars, just as silver coins, serves as protection against inflation and a way to preserve wealth, especially in unstable economomic conditions and rising inflation. Before making a purchase of silver bullion bars one must think about factors such as size, checking different distributors, how easy it is to resell them and be aware of some privacy factors.
Size does matter when it comes to silver bars. Of course, one will not fail by buying any size, but there are a few pieces of information that can be valuable to know before making a purchase. For instance, contrary to what one may expect, smaller silver bars are more expensive than large silver bars. Why? Because the costs are lower when producing a larger block. Investors that wish to acquire large quantities of silver will therefore typically go for the larger silver bars.
Also, when it comes to the choice of bullion dealer one needs to be aware of that the cheapest silver bullion not always means the best silver bullion to buy. Unbranded silver bars can often be very cheap but these may be harder to sell, and can sometimes only be sold back to the party it was bought from. A wider choice of counterparties puts a seller in a much better position than being forced to accept the price of just one single buyer. There’s also a timing question as silver bullion bars that come from reputable and well-known dealers always will sell faster, and at a good price. So the cheapest way is not always the best way to go. The best price is thus the one that gets an investor an item that will serve his/her purposes the best.
Click on the links below to go straight to recommended silver bullion dealers.
Estonia – cheapest silver bullion
Liberty Silver Estonia offers a wide range of silver and gold bullion products. The main advantage with being based in Estonia is that there is no VAT levied on silver bullion coins. The people behinf Liberty Silver Estonia also run BullionStar Singapore and Liberty Silver Sweden. Their service is very reliable. The products you order can be shipped straight to your home.
Buy the cheapest silver bullion here: https://www.libertysilver.ee/en/
Want to know what silver bullion to buy from Liberty Silver Estonia? Click here for more information: what silver bullion to buy
Singapore – cheapest silver bullion
Bullionstar is the premier bullion dealer in Singapore. The company was founded by the individuals who launched Liberty Silver Sweden as well as Liberty Silver Estonia – the main distributors in Sweden and Estonia. BullionStar.com offers local storage in Singapore as well as the possibility of delivery to your home.
Right now you can get free local, high-secure, storage in Singapore with BullionStar.com.
Click: https://www.bullionstar.com/ for buying the cheapest silver bullion
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