When you are looking to buy silver your mind will naturally turn to an online search. That is just how it is these days. However, it is possible to source bricks and mortar establishments to buy your silver coins too. There are advantages and disadvantages of offline shops, and your choice really depends on your priorities.
Skeptical About Buying Online?
Many first time silver investors are skeptical about buying silver from online retailers. Many of us look to eBay and then shy away due to fear of products not being authentic. We look at the online retailers like APMEX and Bullion Direct and we see a couple of bad reviews online and it puts us off.
The first thing to recognize is that there are good online retailers. Companies like JM Bullion provide fantastic services and great prices. There really is no concern when working with a reputable online retailer, and when you have a trusted source online for your silver the investment is made quite simple.
Higher Prices in Shops
The first thing to realize with coin shops is that the costs tend to be higher. Competition online is fierce and thus forces prices down. Coin shops may have more of a monopoly on their local market, so they have less pressure to price things aggressively. The shop will also have higher monthly overheads per transaction than online retailers, such as the building, the rates and staff wages. These costs will be factored into the price you receive, as the shop has to make profit.
Limited Selection
The selection of coins available in coin shops is nearly always more limited than available online. On the Internet you can find just abut any coin you desire. The big online retailers have vast ranges to choose from. There are also services like the Bullion Direct NucleoTM Exchange system that acts as a hub for thousands of industry stakeholders to exchange silver coins and products.
Local coin shops typically have limited access to capital and thus can only afford to stock the bare basics such as Silver Eagles and a few 1 oz bars.
The Advantage of Coin Shops
The benefit of going to a coin shop is of course that you can walk away with your coins there and then. There is no waiting for delivery and no angst in the process. You can view and feel the product and check quality and authenticity for yourself. You also have a physical location to go back to if there is a problem.
Buying in a shop means you can pay cash and the transaction can be anonymous. If you are building a “private” silver portfolio this can of course be an additional benefit.
Some Visit Shops and Buy Online
Silver shops certainly appeal to some investors, especially beginners. Being able to eyeball the silver and check if you like the products is great. Investing in something we like, and not just for investment sake, is very rewarding.
It is important to understand the positives and negatives of a shop purchase and understand that you will likely not get the most silver for your bucks. Many beginner investors visit silver coin shops to check out different silver coins and then go and buy online from a reputable silver website.