Investors tend to look at investing in precious metals in a volatile market. Our oil prices are rising and our dollar is weak so the precious metals market is becoming of interest to investors. There is a renewed interest in buying silver.
It is hard to predict the future silver prices but if you go by the current price, (autumn 2013) around $20 - $22 an ounce it has improved year on year. Investing in silver is popular with both types of investor, the cash poor and the cash rich as it is possible to get on the investing ladder quite cheaply.
What's to come?
Interestingly, silver mining is secondary to other mining because:
The US is not mining enough silver because most silver mines are in areas of the World that are less accessible and in volatile climates.
The UK and US do not have silver bullion reserves even though they do have other precious metals.
It is a surprise because there is an increase in the amount of silver needed for industry.
So if you are thinking of investing, what should you do?
My opinion is that now is the time to invest in silver.
If you do decide to invest in silver, it's worth remembering that silver bullion coins, such as the U.S. Eagle or the Canadian Maple Leaf, will always get you a few dollars above the spot prices. Silver rounds and silver bars usually sell for around the spot prices.
Why is the price of silver still quite low? My opinion.
The price is being manipulated.
The volume of purchases determine the silver price. London is trading at more than 130 million oz per day. In the year 2008, the physical silver market was about 850 million oz per year. In 6 trading days trades in silver are equivalent to 1 year of the supply from World mining. The existing stocks of silver are still able to fulfill demand. My opinion is that once these stocks dry up, the silver price will shoot up.
Investing in silver is a great way to secure the future and I know that I am going for it. If you decide it is for you please do your homework first.
So you are thinking about buying silver, what next?
What type of physical silver should you buy?
1.) Those who are new to silver investment, I would suggest that you could start with common bullion coin, as it is much easier to sell a Silver Canadian Maple leaf compared to a silver bar or silver ingot.
Also, if you want a form of reference, then buying a few coins is a good idea. Surprisingly, the Canadian Maple Leaf and the American Silver Eagle look almost the same apart from the printed year of the coin.
If you have the patience then it would be good to collect all the years.
2.) Why not get some premium bullion coin the rarer the better. Some have limited yearly mintage such as China Silver Panda, Silver Kookaburra, Silver Lunar and Silver Kangaroo. These coins have a side of the coin that changes every year and have a lower yearly mintage.
This is a bit naughty as the mint will likely get more sales from the customer if the coins are changing all the time and they can up the price. It is not wise to buy so many coins for investment as they can be quite pricey unless you are buying to add them to a collection. I expect people to be more interested in the content or weight of your silver if you are looking to sell.
3.) Common silver rounds such as A-mark, Pan AM Round and Buffalo Round. I don't buy common rounds unless from a reputable dealer as they are very easy to fake.
4.) Then there's Silver BAR. These come in sizes from 1 oz up to as much as 20oz you can even get a kilobar or 100oz and 1000 oz. You need to be sure the silver bar has a vendor hall-mark on it such as Perth Mint. If the silver bar doesn't then people may doubt the silver content of the bar. Sadly, the only way to be really sure of the silver content is to melt the silver down.
5.) The 100 oz bar. This large silver bar is nice to keep, I would keep it for as much as 10 years and then I would sell it on. The buyer will pay the exact price for the exact weight so be careful as some of the bars, especially the big ones, do not have the weight info on them.
It is still too soon to know the best silver investment. My opinion is that it is wise to diversify and buy a little bit of everything to put you at less risk.
What should you pay for silver and how long should you keep it?
January 2013 saw a massive demand for gold and silver coins. The US Mint actually ran out of silver eagles and they suspended sales. I believe that that would have been a great time to sell. Generally though, unless something happens in the World then I see silver going up continually. Just my opinion.
It is hard to predict the future silver prices but if you go by the current price, (autumn 2013) around $20 - $22 an ounce it has improved year on year. Investing in silver is popular with both types of investor, the cash poor and the cash rich as it is possible to get on the investing ladder quite cheaply.
What's to come?
Interestingly, silver mining is secondary to other mining because:
The US is not mining enough silver because most silver mines are in areas of the World that are less accessible and in volatile climates.
The UK and US do not have silver bullion reserves even though they do have other precious metals.
It is a surprise because there is an increase in the amount of silver needed for industry.
So if you are thinking of investing, what should you do?
My opinion is that now is the time to invest in silver.
If you do decide to invest in silver, it's worth remembering that silver bullion coins, such as the U.S. Eagle or the Canadian Maple Leaf, will always get you a few dollars above the spot prices. Silver rounds and silver bars usually sell for around the spot prices.
Why is the price of silver still quite low? My opinion.
The price is being manipulated.
The volume of purchases determine the silver price. London is trading at more than 130 million oz per day. In the year 2008, the physical silver market was about 850 million oz per year. In 6 trading days trades in silver are equivalent to 1 year of the supply from World mining. The existing stocks of silver are still able to fulfill demand. My opinion is that once these stocks dry up, the silver price will shoot up.
Investing in silver is a great way to secure the future and I know that I am going for it. If you decide it is for you please do your homework first.
So you are thinking about buying silver, what next?
What type of physical silver should you buy?
1.) Those who are new to silver investment, I would suggest that you could start with common bullion coin, as it is much easier to sell a Silver Canadian Maple leaf compared to a silver bar or silver ingot.
Also, if you want a form of reference, then buying a few coins is a good idea. Surprisingly, the Canadian Maple Leaf and the American Silver Eagle look almost the same apart from the printed year of the coin.
If you have the patience then it would be good to collect all the years.
2.) Why not get some premium bullion coin the rarer the better. Some have limited yearly mintage such as China Silver Panda, Silver Kookaburra, Silver Lunar and Silver Kangaroo. These coins have a side of the coin that changes every year and have a lower yearly mintage.
This is a bit naughty as the mint will likely get more sales from the customer if the coins are changing all the time and they can up the price. It is not wise to buy so many coins for investment as they can be quite pricey unless you are buying to add them to a collection. I expect people to be more interested in the content or weight of your silver if you are looking to sell.
3.) Common silver rounds such as A-mark, Pan AM Round and Buffalo Round. I don't buy common rounds unless from a reputable dealer as they are very easy to fake.
4.) Then there's Silver BAR. These come in sizes from 1 oz up to as much as 20oz you can even get a kilobar or 100oz and 1000 oz. You need to be sure the silver bar has a vendor hall-mark on it such as Perth Mint. If the silver bar doesn't then people may doubt the silver content of the bar. Sadly, the only way to be really sure of the silver content is to melt the silver down.
5.) The 100 oz bar. This large silver bar is nice to keep, I would keep it for as much as 10 years and then I would sell it on. The buyer will pay the exact price for the exact weight so be careful as some of the bars, especially the big ones, do not have the weight info on them.
It is still too soon to know the best silver investment. My opinion is that it is wise to diversify and buy a little bit of everything to put you at less risk.
What should you pay for silver and how long should you keep it?
January 2013 saw a massive demand for gold and silver coins. The US Mint actually ran out of silver eagles and they suspended sales. I believe that that would have been a great time to sell. Generally though, unless something happens in the World then I see silver going up continually. Just my opinion.
About the Author:
Learn more about Silver Investing. Stop by Pat Sutton's site where you can find out all about Invest Silver and what it can do for you.. Unique version for reprint here: Silver Investing - How To Spread Your Risk When Buying Silver.
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