Although silver bullion products derive their value almost exclusively from the weight of their silver content, some investors avoid purchasing bullion products that are damaged. By damaged, I don’t mean scratches and dents but rather chemical marks and fingerprints. Therefore, to void losing money when selling silver back into the market, it is important to consider a few points concerning the handling and storing of bullion coins for optimum sell-back value.
Handle with gloves
Unless the silver coin, round or bar comes in a protective capsule or sleeve, always handle it with 100% cotton gloves. Fingerprints on coins can become rather unsightly as a result of the natural oils from one’s skin, often turning yellow over time. These marks are virtually impossible to remove without damaging the silver and will affect the product’s resale value, even if only minimally. Since gold does not tarnish, this does not apply to gold.
Handle over a soft surface
If you decide to handle your silver, it should be done above a table with a towel or cloth underneath the coin. This is done to avoid damage if you should drop the coin. Coins that have dings on the rim as a result of being dropped lose much of their value above the spot price.
Investors who purchase coins individually (fewer than the number in an original mint tube) often buy them in capsules. Capsules are ideal because if the coin is dropped, the capsule will take the punishment, not the coin.
Avoid moisture
Store your coins in a dry place. Although you may consider a kitchen or bathroom a clever hiding place, it isn’t. This is especially pertinent if your silver is not housed in its original tubes, capsules or packaging, as kitchens and bathrooms tend to be damp, which leads to silver tarnishing and discolouring over time.
Do not clean
Do not attempt to clean your coins with any chemical cleaners. This is particularly relevant when considering tarnished coins. If silver comes in contact with oxygen, it tarnishes – full stop. If you do find that some of your silver coins or bars have begun to show tarnish marks, do not attempt to clean them; light tarnish on fully exposed silver will affect the resale price.
Article courtesy of Going for Gold: A guide for the South African precious metal investor by Zoltan Erdey
