We have been asked this question very frequently, “My Silver tarnished. Would it affect the buyback value?” Today we will discuss about this topic and try and answer this question.
Why does Silver tarnish?
Tarnishing, also called toning is a natural reaction between Silver and hydrogen sulfide that is naturally present in the air and this causes the metal to become discoloured. Besides, touching Silver with our bare hands may cause tarnishing too, due to the oils, sweat or moisture from our skin. Thus, if you are storing your Silver in a place with high humidity, tarnishing is to be expected.
In Singapore, chances of Silver getting tarnished is way higher. This is due to Singapore being situated near the equator and has a tropical climate that has frequent rainfall, high temperatures and humidity all year round.
Does Silver tarnish affect its value?
No. Tarnishing does not affect the value or cause devaluation of the Silver bullion. Silver bullion like bars and coins are usually valued by the weight, hallmark and purity. That being said, many dealers do take a discount off the Silver price for tarnished Silver bullion as it cannot be resold and have to be sent for melt. This would incur additional costs that the dealer will have to bear, this explains the discount quoted.
How to better store your Silver?
To avoid quick tarnishing on Silver, they best approach is to store it in a cool dry place. For example coins, you can keep them in a tube or capsule and as for bars in zip lock bags. If you do not have tubes or capsules, fret not as you can also store them in a plastic food container and keep them in a cool dry place. Any protection against moisture in the air would help slow the tarnishing process, remember not to keep them next to a humidifier or in a warm area such as in a kitchen.
Besides, you can also place some dehumidifying crystals packet in the storage location to absorb the excess moisture and this too helps to slow down the effect of tarnishing.
As mentioned earlier, handling Silver with bare hands will cause tarnishing. Hence, we advise clients to wear cotton hand gloves when touching Silver to make sure your Silver will not expose to the sweat, oil or moisture.
Here is a simple explanation about Silver and tarnishing. Hope it helps to ease your concerns. If you still have any doubt and questions in purchasing Silver, feel free to contact us at +65 62229703 or enquiry@goldsilvercentral.com.sg.
Fun fact: We do have a client who actually bought a large Silver bar (1000oz) and placed it at the garden as a seat!
Evonne
If you are reading this, you are likely interested in Precious Metals. At GoldSilver Central, we take care of your needs. This means we actively find ways to value add to your portfolio. And we’ve discovered that Precious metals investors can be categorized into 2 categories:
- Profit & Loss
- Asset on your Balance Sheet
Let’s analyze this further.
- Profit & Loss Category
To you, gold is like any other investment, you want to achieve capital gains from it in the shortest time frame possible. Of course physical gold has additional physical premiums on top of the market spot price, but if you foresee the demand will exceed supply in the near term and given the increasing rate of uncertainty in the economic market, having exposure to gold, the world’s oldest asset and it being a safe haven, is a no brainer for you. And you will make a quick profit once prices have risen to your desired levels.
So what then?
As we said, we’re here to take care of you! Here are a few ways we can do so.
- GSC Live! (Download here for Free!)
A mobile friendly application that is a powerful tool for investors. You now have the capability to view and transact based on live streaming market prices. Yes, that is right, you are able to buy / sell anytime and anywhere that you find convenient. And the best part? It’s 100% physically deliverable. Yes, let me repeat, 100% physically deliverable. You can exchange the pool allocated gold in your GSC Live! Account for physical bars & coins at our retail shop.
- Retail Services
Surprise! Its not just a place for you to collect your online purchases or see what gold bling lights up your eyes. Here, we are specially trained to pinpoint weaknesses in your precious metals portfolio and identify ways to bolster up your holdings. To maximize your purchases, speak to us to see what is the best way to go about it. There’s various ways, for example from reviewing your portfolio balance, aligning your risk profile, etc.
- Collateral Loan
Trust us, we mean serious business when we say you should consider utilizing Collateral Loan services. Its not just about braving occasional social stigma and “pawning” your jewellery for urgent funds, it’s all about obtaining credit lines while retaining ownership of your assets for the capital gains via price appreciations. Serious investors know what we’re talking about. If you’re not sure yet am interested to find out more, just reach out to us and we’ll help you become one.
- Asset on your Balance Sheet
You belong to a very select group of customers where it’s not always just about making money. Sometimes, you are planning for your future, or maybe even your children’s future. And you want to give them the best in their lives. Maybe even a good head start in their financial journey. Some Singaporeans buy flats under their children’s name, you buy precious metals for them. After all, its internationally recognized and much more liquid.
We also have ways to value add to you!
- Storage
When it comes to your physical assets, we believe security concerns shouldn’t even be a pain factor. And yet, precious metals investors face issues such as insurance headaches, safety deposit boxes gross weights and size constraints. Just thinking about it gives me a headache already, how about you? That’s why our storage program is an all-in-one solution and provides the full suite of services you will need. From the day of your first purchase, till the day your grandson/granddaughter wishes to sell it off, we maintain your account and offer you a direct line to us. Especially if you are located overseas.
- Perth Mint Certificate Program (PMCP)
Investing your funds in the world’s only Government Guaranteed program for Gold is a no brainer for a serious investor. Perth Mint holds itself to the highest of standards when it comes to vault security and transparency. When you choose PMCP to be part of your portfolio, you needn’t worry about not leaving behind the best legacy. It’s not just a paper certificate, it’s a mobile and internationally recognized asset you can put in your pocket wherever you travel to.
- GoldSilver Central Savings Accumulation Program (GSAP)
When I purchase an investment, I face this issue. How do I know the price I purchase at is a “low price”. The truth is nobody knows. And that’s why it’s so important for you to leverage upon financial wisdom. Dollar Cost Averaging Strategy is the crux here, and when you onboard the GSAP, accumulating daily is stress-free. Think of it as automated disciplined savings for your purse strings. More discipline in your life isn’t such a bad thing.
Earlier, I mentioned that investors fall into the 2 above categories. Truth be told, you feel that both categories do apply to you right? And that’s so true! It all depends on your life stage and goals. So I implore you, get in touch with us to find out how we can maximize each category in your portfolio.
Jason
