My Trip to the Local Bullion Shop

Silver has experienced a strong recovery over the last week and is now trading near $86.70 per ounce.

Let’s take a look at the 1-year chart.

This chart shows a classic parabolic rise approaching $120, followed by a pullback dropping to around $72.

I’m convinced the lowest point has been reached. Silver might trade between $75 and $90 for some time. Such a consolidation phase would be beneficial.

Alternatively, it could surge again and seek higher levels soon.

The outlook for silver looks strong. While it’s uncertain whether this will unfold over a month or a year—or even longer—the trend points toward fresh all-time highs over time.

Today, I want to share a few pointers on the best ways to invest in physical silver.

Adventures at Local Shops

A couple of weeks ago, a friend invited me to visit a nearby bullion and coin store.

Yes. The answer is always yes.

I’m eager to chat with owners and managers about their operations. The precious metals market has been vibrant lately. Due to rising prices over the past year, lots of people have been selling old jewelry, coins, and assorted silver items.

It’s gotten so intense that refiners have stopped accepting most scrap silver. Many now only process metals that are 99.9% pure.

Because refiners are backlogged, several shops are hesitant to buy scrap silver. So, for those who persist, bargains are out there.

Our visit was to American Bullion Center in Timonium, Maryland—an experience that didn’t disappoint.

Inside, the store carried the scent of vintage hardwood floors, coffee, and books.

My friend was looking to buy physical silver bars, and Rick, the store’s owner, had a respectable inventory.

When we arrived, Rick was discussing local school issues with a friend at the counter. He nodded at us warmly.

At that moment, silver was about $85 per ounce. Rick sold my friend the silver bars shown below at $85 per ounce—the spot price, which is quite competitive.

Usually, shops add a premium over spot. Currently, online premiums range from $5 per ounce on larger bars to about $12 per ounce for American Eagle coins.

A beautiful 1oz American Eagle silver coin

Sometimes, if a local shop has excess stock, you can negotiate a better price.

My suggestion is to call multiple locally owned bullion and coin dealers. You might discover significant savings. Just be ready to pay cash in many cases.

If you’re fortunate, you could come across a place like the one we visited. The owner was quite the character. I spotted a copy of The Communist Manifesto on his shelf, clearly part of his “study the enemy” collection. Not my favorite read.

Those involved in the precious metals trade often have colorful personalities. Many entered the business motivated by mistrust of government and dissatisfaction with fiat currency.

Rick mentioned that after silver surpassed $100, sales slowed. Now, people bring him industrial silver contaminated with metals like cadmium, which he refuses to buy.

Nevertheless, demand for silver bullion has been picking up over recent weeks.

One last tip about local shopping: pawn shops usually offer the worst deals—best avoided.

Finding Online Bullion Deals

If you can’t find good offers locally, buying online is always an alternative.

SD Bullion provides some of the most competitive prices online, plus free shipping on most orders (note – we have no relationship with SD Bullion and are not being compensated for this mention!).

Several friends have purchased from SD Bullion, all reporting positive experiences (despite some delays during peak demand recently). Another reliable option is Apmex.

Always compare prices carefully to ensure the best deal.

To secure the lowest prices with online dealers, you’ll typically need to pay via wire transfer or check. Credit card payments usually incur higher fees.

If you’re a Costco member, that’s another possible source, though their selection is limited and purchase quantities restricted.

Choices, Choices

Regardless of where you buy, 1 oz 99.9% silver coins minted by governments are the priciest option, but undeniably attractive. My personal favorites are American Eagles and Canadian Maple Leafs.

Silver bars deliver more metal for your money, available in sizes like 1 oz, 5 oz, 100 oz, 1,000 oz, and 1 kilogram. Larger bars generally offer better value.

One of the cheapest ways to accumulate silver is through older U.S. coins. Between 1892 and 1965, American quarters and dimes contained 90% silver and 10% copper.

Most of these coins have been pulled from circulation by collectors, but many can still be purchased in bulk, either online or at coin shops.

These coins are known as “junk silver,” though they hold significant worth due to their silver content and historical interest.

A single pre-1965 U.S. quarter has a silver value of roughly $15 today.

As mentioned, this “junk” silver offers the best value currently. Shop around, offer prices, and explore what deals you can uncover. Just be sure all coins are pre-1965.

Also, verify you’re dealing with trustworthy sources. Some counterfeit silver is circulating. A magnet test can help—if the coin attracts a magnet, it contains iron and isn’t genuine. Acid testing kits are an affordable method to check if metal is real gold or silver.

Many coin and bullion shops possess devices that analyze metals to confirm their authenticity.

Again, emphasize buying from reputable sellers. Check online reviews for shops or choose trusted online dealers like the ones mentioned above.