New York - If you're looking for advice on buying silver then you've probably already noticed that silver has suddenly become something that you're seeing mentioned online, on your TV and even at stands on your high street. There is an increasing demand for your silver from companies that used to focus mainly on buying second hand gold. Do you know why this is? Have you actually wondered why they suddenly seem to want your gold more than ever before and that they seem to want your silver almost as much as gold?
Common-sense should tell you that if they want to buy your gold and silver then they probably have a way to make money with it themselves. This is the case and not only that but they stand to make a lot of money by using the fact that they know something that most normal people don't - how much it's actually worth.
If you've ever bought anything gold or silver you'll have probably been sold it based on it's esthetically pleasing jewellery value or told about how unique and collectible it is and the fact that it's a precious metal and will always be valuable. You probably understood right away that it was valuable just because it was made of gold or silver but known that you're going to have to pay extra because of all the work that went into turning that metal into a nice piece of jewellery.
Let's just look at that statement again - You paid extra because you had to pay for the fact that time and money were spent turning it into an attractive piece of jewellery and that is part of the reason you wanted that specific item in the first place. That seems perfectly reasonable right?
You probably knew that the gold or silver that came out of the ground had a much lower value than you were paying and that to get a nice piece of jewellery you pay much more than the price of just a lump of gold or silver, but did you stop to think why you can't get that same value when you come to sell it?
When you see these advertisements on TV saying they'll give you top dollar for you old gold and silver you may think that because they're advertising publicly that they must indeed be giving good rates for your precious metal. If you check around you'll actually find that what they're offering varies hugely. Not only that but if you refuse their first offer they'll often increase it by up to 50%.
So - do you think that even with that increased offer you're going to get anything like what you paid? No chance. It doesn't work like that.
What these companies will do is weigh the metal, check what purity level it is and then make you an offer. What most people don't realise is at this point - They know exactly what it is worth. That value is called the 'spot price' - the value per ounce which that particular precious metal is quoted on the stock markets at.
In 2010 I wrote a book about silver and it's true value and how many economic and financial factors affect its price at any particular time. I even showed that only a few years earlier the price of silver was around $4 per ounce. At the time I wrote that book the spot price of silver was around $20. It's now around $30.
Read that again. The price of silver has gone from $4 to $30 in a few years. That is a huge change.
The price has gone up almost 30% in the 6 months since I wrote about it being $20 and how I believed it would rise dramatically.
The irony is - it's still not anywhere near its true value.
So the best piece of advice you can get about buying silver is to buy it as soon as you can.
Try to get the purist quality you can and get it as quickly as you can to lock in your profits as it continues to go up. We're using it faster than ever in many ways and the earth isn't producing any new stocks to replace what we consume. The true value right now is way more than its price and that is likely only to increase.
Find some nice 0.999 silver coins or bars that you can get for as close to the current spot price as possible and pay as little shipping as possible and you'll have started a wise investment for your financial future.
This article just scratches the surface of advice on buying silver and you can find a lot more information and free videos from Andy Henry over at Advice on buying silver
by Andy Henry