Asking How Much Is Silver Worth

By Jessica Drury


In these days of economic uncertainty, there is a lot of talk about owning or investing in precious metals. The question, 'How much is silver worth?' has several answers. The key to which answer will best fit your interests is the objective you have for investing money in this way.

Gold and other valuable metals rise and fall in value according to various economic and social conditions that exist worldwide. It's important to understand these forces and their effects, just as you would want to understand how the stock market operates and why stock prices move up and down. Metals are traded - bought and sold - on the commodities market; they are tangible assets rather than shares of ownership in corporate entities.

Bars, or ingots, are one way of buying metals. Investors also trade in coins. Coins vary in value according to the weight of precious metal they contain. They also may have added value if they're rare, in very good condition, or have some historic background. For instance, a Roman coin or a Spanish doubloon recovered from an important shipwreck will be worth more than the intrinsic value by weight.

For centuries, silver has been counted in 'troy ounces' and 'troy pounds'. This was a system of measurement used in France in the Middle Ages and ever since. The system differs from the one we are familiar with for weighing things like sugar or flour. There are twelve troy ounces in a troy pound, and each ounce is slightly heavier than the one used for foodstuffs. Ingots are fashioned in differing weights, from 100 troy ounces to 5,000.

The value of commodities is very volatile. However, prices have been high in recent years, as the dollar weakens on the world market. In addition, silver is used in industry as well as in coinage, jewelry, tableware, and decorative items. This means that there is a steady demand for the metal, which is one thing that pushes prices higher.

Many people today are not looking at only investment potential, however. They feel that a hoard of ingots, coins, or other items might offer protection in times of emergency. For this reason, some prefer to buy coinage, which is a recognizable form of exchange and mote likely to be accepted by those selling necessities, rather than ingots or gold rings. For emergencies, some survival experts recommend 'junk-silver'.

Junk-silver is simply American dollars, half-dollars, quarters, and dimes made before 1965. These coins are 90% pure. The coins have no other value, being neither in mint condition or rare. However, a 1964 dollar is worth more than $10 now and might be worth even more if paper money becomes devalued. Having a supply of junk-silver can mean added security for you and your family in hard times.

Investing in precious metal might be a good idea, depending on your objective. As an investment to be bought and sold, metals are more volatile and risky than stocks might be. However, economic conditions can make metals more attractive and less likely to drop in value. As an emergency asset, they might be even more valuable in hard times.




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