How Silver Dealers Help You Buy and Sell Silver With Confidence

There are a variety of ways to invest in silver. Investors can choose to purchase physical coins or bullion, or a more convenient alternative of investing directly into exchange-traded funds (ETFs). Buying physical bullion is often preferable as you are not reliant on a third party or the internet and can physically touch and hold your investment. However, there are some risks associated with purchasing physical silver that may not be a concern for ETFs or other types of investment vehicles.

For example, investors that own physical bullion face the risk of counterparty risk, which can occur when a dealer fails to pay for an order of silver. This can be especially dangerous for precious metals investors who have warehouse receipts or other similar storage forms of bullion. This was the case when MF Global collapsed in 2011 and investors who held warehouse receipts for silver bars found themselves being paid only 72 cents on the dollar by the liquidating trustee.2

The good news is, many dealers and retailers offer a secure and trustworthy way to invest in silver. They can utilize X-Ray Fluorescent scanning technology to verify that the silver bullion or coin they sell is what it claims to be. Using this advanced technology, the dealer can identify the different layers of the product and determine its exact composition. This helps to eliminate the risk of a counterfeit product and ensures that the buyer is getting exactly what they paid for. However, this type of testing is expensive and only a few bullion dealers have this technology in place.

Other ways to buy and sell silver in Philadelphia include through futures contracts or other derivatives. Futures contracts are a type of contract that does not lead to the ownership of a tangible asset, but instead the right to trade a commodity at a certain price in the future. This allows investors to speculate on the direction of the market without owning any actual silver.

Another option is to invest in a precious metals IRA or custodial account with a reputable firm like Midland Metals. This will allow you to benefit from the rising silver prices while avoiding the risks associated with owning physical silver. However, these types of investments typically have high upfront costs and storage fees, as well as the added risk of a potential loss due to the volatility of the market or other factors beyond your control.

For these reasons, we recommend that you stick with a reputable Philadelphia silver dealer that offers the services of a full-service broker or financial adviser. They can help you to navigate the complex world of precious metal buying and selling and find the investment strategy that works best for your needs. A reputable Philadelphia silver dealer will also offer free appraisals of your existing collection and cash offers for your coins, bullion, and currency. This helps you avoid paying inflated prices for unauthentic coins and minimizes the time and money you spend on your collection.

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