You can start with as little as $30-40 for a single 1-ounce generic silver round. Popular starting points include: 5-10 ounce starter pack ($180-360), roll of 90% silver dimes ($150+), or a single American Silver Eagle ($40-45). Many investors begin with $500-1,000 to diversify across different product types while minimizing shipping costs per ounce.

Both serve different purposes in a balanced portfolio. Silver coins offer better liquidity, easier authentication, and potential numismatic value but carry higher premiums (10-20%). Silver bars provide the lowest cost per ounce (3-8% premiums) but may be harder to sell quickly. Most investors use a mix: 40% government coins for liquidity, 40% bars for efficiency, and 20% junk silver for small transactions.

Most states now exempt precious metals from sales tax, recognizing them as investment assets. States still charging tax include California, Minnesota, Wisconsin, and a few others. Some states have minimum purchase exemptions (like $1,000+). You can legally avoid tax by: buying in tax-free states, meeting minimum thresholds, purchasing through dealers in tax-free states who ship to you, or buying for IRA accounts.

Beginners should start with widely recognized, liquid products: American Silver Eagles for ultimate liquidity despite higher premiums, Canadian Silver Maple Leafs for better value with security features, or 10 oz silver bars for the best balance of low premiums and manageable size. Avoid numismatic coins, proof coins, or obscure private mints until you understand the market better.

Reasonable premiums vary by product type: Generic rounds (5-10% over spot), Government coins like Eagles (15-20% over spot), 10 oz bars (3-8% over spot), 100 oz bars (2-5% over spot), and Junk silver (10-15% over melt value). During high demand, premiums can spike significantly. Always compare multiple dealers and be suspicious of premiums over 25% for common bullion products.

Online dealers typically offer lower premiums due to volume and lower overhead, plus better selection and 24/7 ordering. Local coin shops provide immediate possession, no shipping risks, cash transaction privacy, and the ability to inspect before buying. Many investors use both: online for bulk purchases and competitive pricing, local for small immediate needs or selling back. Always verify dealer reputation regardless of channel.

Yes, but specific rules apply. IRA-eligible silver must be .999 fine (American Eagles exempted), stored at approved depositories (not at home), purchased through IRA-approved dealers, and held by qualified custodians. Popular IRA silver includes American Eagles, Canadian Maple Leafs, and approved bars. Costs include custodian fees ($100-300/year) and storage fees ($100-300/year), making IRAs practical for positions over $10,000.

Basic tests anyone can perform: Magnet test (silver isn't magnetic), weight check (1 oz = 31.1 grams exactly), dimension verification with calipers, ice test (silver melts ice rapidly), and sound test (distinctive ring). For valuable purchases, consider electronic testers ($200-500) or professional verification. Buy from reputable dealers to minimize counterfeit risk—they test everything and guarantee authenticity.

While timing markets perfectly is impossible, historical patterns show summer months (May-August) often see lower prices due to reduced investment demand. The gold/silver ratio above 80:1 historically signals silver undervaluation. Rather than trying to time perfectly, most successful investors dollar-cost average with regular monthly purchases. With silver's volatility, patient accumulation beats speculation for long-term wealth building.

No reporting is required when buying silver in any amount. When selling, dealers must report only specific large transactions: 1,000 oz silver bars, $10,000+ cash payments, or 90% silver coins totaling $1,000+ face value sold at once. American Silver Eagles are exempt from reporting regardless of quantity. Keep good records for tax purposes, as capital gains apply when selling at a profit.

Silver coins are government-minted with face values and legal tender status (American Eagles, Canadian Maple Leafs), commanding higher premiums but offering superior liquidity. Silver rounds are privately minted medallions with no face value, offering lower premiums but slightly less liquidity. Both contain the same silver content—the choice depends on whether you prioritize cost (rounds) or recognition (coins).

Financial advisors typically recommend 5-20% of investment portfolios in precious metals, with silver comprising 60-70% of the metals allocation. For beginners, targeting 100 ounces provides meaningful exposure (~$3,600 current value). Some investors follow the "1% rule"—silver equal to 1% of net worth. Crisis-focused preppers often target 500-1,000 ounces. Start small and build based on your comfort level and financial situation.