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Silver is one of the most affordable and easily accessible forms of investment. Since it’s a great way to diversify your portfolio and retain asset value, many different organizations sell silver to everyday customers. You’ve probably heard of buying gold, silver, and other precious metals online, but you may wonder if you can buy them from a bank.
Do Banks Sell Silver, Gold, and Precious Metals?
To put it simply, yes—banks do sell precious metals. However, there’s a little more to it than that. Precious metals investors can’t just buy silver bars or silver coins from a bank as they would from an online supplier or physical store.
Banks throughout the world buy large quantities of gold and silver to back up their assets and maintain financial security. They rarely sell their precious metals to customers, though. With so many other reputable bullion shops, it’s highly unusual for investors to purchase items from a bank.
What Forms of Silver Can You Buy From a Bank?
When it comes to purchasing silver, you have several excellent options. Some central banks might sell only one form, while others might sell multiple. Here are the three primary forms of silver bullion you could perhaps buy from a bank:
- Silver coin: People have used silver and gold coins as legal tender since time immemorial. Coins have a higher premium because of their intrinsic value.
- Silver round: Private mints can produce silver rounds (or coins that contain silver without the monetary value). Silver rounds typically don’t have as much appeal as silver coins, lowering their average premiums.
- Silver bar: Don’t take silver or gold bars at face value. They have little artistic design and low aesthetic appeal, but that means they offer lower premiums.
What Is the Best Type of Silver to Purchase From Banks?
With all the bullion options in mind (silver bars, rounds, and coins), silver bars are the best form to purchase from banks. Most people enter the world of trading precious metals to make money—not to have something cool to put on display. Silver bars offer the best premiums compared to every other type of bullion.
Many investors choose silver bars for their manageability. You may have difficulty storing coins and rounds, but it’s easier to store smaller bars. It’s also easier to calculate how much silver you own.
How To Choose the Right Type of Silver for You
Silver bars might be best for investors, but that doesn’t mean they’re the best for you. You don’t need to follow the crowd when purchasing precious metals. The right form of silver depends on your preferences and needs.
Let’s say you’re looking for a rare coin to show off and keep in a glass case on your office desk. Or maybe you want something like American Silver Eagle coins that you can actually spend like cash. If so, silver coins might be the right type of silver for you.
Silver rounds could also be your number one form of silver bullion. You may prefer something cheaper than a coin but more artistic than a bar. Rounds can give you the best of both worlds.
Of course, you may be thinking about a long-term investment strategy if you’re looking to buy silver. In that case, silver bars are probably your go-to choice. You can buy them close to the spot price, store them for a while, and then easily sell them when silver prices increase.
How To Buy Gold and Silver Coins or Bullion
Can you buy silver from a local bank? Most banks in the United States don’t make their gold and silver bullion bars or rare coins available to the public. If you do purchase physical precious metals from a bank, you won’t have as wide a selection and may end up paying a less-than-fair price.
You’re practically on your own when you buy silver from a bank. The bank won’t offer expert guidance on effectively purchasing, storing, and reselling precious metals. It’s better to locate trustworthy silver dealers and do business with them.
We recommend purchasing silver bars or bullion coins from an online precious metals dealer. Just be wary of illegitimate companies that might ask for more money and not give you a single coin in return. A well-established, reputable brand offers competitive rates and will include proper stamping on each silver bar indicating the following:
- Purity level
- Silver content
- Serial number
- Refinery name
Pros and Cons of Buying Precious Metals From a Bank vs. Local Dealer
Banks have their limitations when it comes time to purchase silver. As mentioned earlier, they don’t offer the best market price and might not have the specific coin you’re looking for. It’s also more challenging to locate a bank that will sell you silver and coordinate a deal with them.
First-time silver buyers and veteran silver investors alike typically purchase precious metals online from reliable, local dealers. You should consider buying silver from online bullion dealers for several reasons, including:
- Shipping options: Online companies can ship your products directly to your home. They can also make a physical delivery to an offsite vault if you want to keep your investment more secure.
- Product options: Even if you can purchase silver from a bank, they might not have the type of silver you want. Online dealers offer on-brand silver bars, rounds, and coins of all shapes, sizes, and worldwide mints (not just the United States mint).
- Investment advice: Banks won’t offer advice on how to manage your precious metals. However, a reputable dealer will. They have experienced specialists who can help you start a good investment without having to pay extra.
- Convenience: You might not live near a bank that will sell gold or silver. The bank might also not be open when you have time to visit and browse their selection. With online dealers, you can sift through their catalog on your own schedule and purchase items at your leisure.
Online vendors can help you get what you want at the lowest prices. You can learn more about the industry, browse products at your leisure, and ship the silver to your preferred destination. It’s simply the best way to purchase silver.
Why Should You Buy Gold Coins or Silver Bars?
Investing in silver might sound like something only world leaders and billionaires can do. However, that’s not the case. Anyone can buy gold or silver to invest in a brighter financial future.
The question is: why should you buy silver coins? Besides the fact that it looks pretty, why do investors gravitate toward this precious metal and constantly trade it? There are many excellent reasons to start buying silver bars and coin currencies today.
Paper Currency Inflation
One of the primary reasons investors buy silver bars involves inflation. As inflation in the U.S. rises, so does the silver exchange rate. In other words, silver becomes more valuable as paper currency devalues.
Your one-dollar bill doesn’t go as far today as it did 20 years ago. That’s because the U.S. dollar has grown less and less valuable over the years. However, the silver market is much more stable and can protect you against an economic crisis due to inflation.
Stock Market Volatility
Another popular reason to invest in silver is stock market volatility. Buying and selling stocks is a great way to earn money, but past performance shows that the market can fluctuate rapidly. When the stock market gets too unstable, it’s time to diversify assets.
Unlike the stock market, the silver market is much less volatile. Price fluctuations occasionally occur, but they remain relatively predictable. If you invest in stocks, you should also consider investing in physical silver with a high quality content to protect yourself during uncertain times.
Wars and international strife can significantly impact a country’s economy and devalue its paper currency. For example, many countries go into extreme debt to support war efforts. This hikes up inflation rates and makes their money less valuable.
Silver is a type of currency that uses an international standard of valuation. That means it stays constant despite geopolitical conflicts and national unrest. Consider owning silver bullion if you’re concerned about tangible asset security due to current world events.
You can often trace silver prices all the way back to silver miners and their past performance. For any business, costs go up when the supply can’t meet the demand. In other words, prices increase when suppliers don’t produce.
During the COVID-19 pandemic, many mines closed temporarily which devastated silver mining stocks. This led to a spike in the value of precious metals. If these mining supply problems persist, your small investment today could result in a massive profit tomorrow.
The recent high demand for green energy has also led to an increased demand for silver. You may not know this, but renewable energy initiatives that help fight against climate change and protect our ecosystem rely heavily on precious metals. These three technologies have especially caused a boom in the silver industry:
- Photovoltaic Solar Panels: Solar panels use silver because it conducts heat and electricity better than any other metal. The more photovoltaic solar panels the United States manufactures, the more valuable silver will become.
- Electronic devices: Electronic devices like laptops, smartphones, and TVs use silver for their components. Increasing electronic production will also increase the demand for this precious metal.
- 5G technology: Silver is a critical component of 5G technology, making it a highly sought-after commodity these days. As technology continues to advance, so will the price of silver. If you buy silver bars now, you could make an enormous profit in the future.
Buying Gold and Silver From the Oxford Gold Group
If you’re wondering, “Can I buy silver from banks?” the best answer is yes and no. Yes, you can technically purchase silver from a bank. No, you have many other dealers to get you started owning physical silver.
Are you looking to buy gold, silver, platinum, or other precious metals? At The Oxford Gold Group, our team can walk you through the process and help you make the most of your investment. Contact us to learn more and start investing today!