Silver stacking is a very easy way to invest, but there are still some things that you need to know. It’s always best to be well informed, and in this article we’ll focus on answering some questions asked by many inexperienced and first-time investors.
My country charges a high VAT on silver, what should I do?
This is an issue facing many silver stackers, particular those in Europe where VAT on silver can be as high as 20%. This means that even those who find silver at spot price are paying 20% more. One thing to remember if you live in such a country is that there are no such fees on silver you buy but don’t actually own. This is why many silver stackers choose to buy overseas silver and then store it in overseas vaults. Singapore is one of the most popular destinations for such purchases, with thousands of overseas customers bypassing VAT prices by taking advantage of storage options here in Singapore.
Coins or bars?
This is a preference, and the decision you make doesn’t usually matter. What does matter is that you get pure silver as close to spot price as you can, whether that comes in the form of a coin or bar is irrelevant. Some coins come with a premium and are worth every bit of that premium. Many such coins will increase in value over time as well, but you need to know what you’re doing to find bargains on premium coins that you suspect will increase in value.
How can I check my silver is legit?
There are many ways to do this. Firstly, silver is a great heat conductor. Stick an ice cube on top of a bar or coin of silver that has been in your hand, and put another alongside it (without touching). It will retain the heat of your hand and of the room long enough to melt the ice cub at a much faster rate than the one alongside it. An even easier method is to use Neodymium magnets, which are cheap and easy to find.
Where should I store my silver?
The best way to store your silver is to acquire the services of an official storage vault. These will ensure that it is safe and secure and all times. You don’t need to worry about it getting stolen and all of your investments going up in smoke. If this is not an option, make sure you buy a secure and hidden home safe, and that you don’t tell anyone that you have a supply of precious metals.
Where can I sell my silver?
There are many options when it comes to selling silver. Many bullion dealers will take it off your hands for spot or just less than spot. If you have something with a premium on it then this is not the best option, and a marketplace like eBay might be better suited. There are also forums and marketplaces set up for people to buy and sell precious metals, but these are not always secure and guaranteed, so make sure you exhaust all other options first.
Is silver likely to go up or down?
This is not an easy question to answer, but many are of the belief that silver is underpriced and will increase in value in the years to come. You should do your own research on this and make up your own mind, only then can you decide what the best options for you are.