Investing in silver
The silver market has been volatile over the past 20 years, with a huge bull market that ran throughout most of the s and early s giving way to a big pullback in recent years. Now, however, some see silver as an investment that could take advantage of industrial demand, especially if new supply gets constrained by lower prices. Yet many don't know how to buy silver or why investing in silver can be lucrative. By understanding how you can invest in silver, you'll be in the best position possible to decide whether it's the right move for you.
Investing in Silver
What are the pros and cons of investing in silver bullion? Read on to learn why now may be the time for investors to enter the market. Silver just came off a more prosperous year than it has seen in awhile, and as prices rise, many investors interested in the precious metals market are wondering if now is the right time for buying silver bullion. With tensions running high, they could be a good choice for those looking to preserve their wealth in these difficult times.
When political and economic uncertainty are rife, legal tender generally takes a backseat to assets like gold and silver. While both gold and silver bullion can be appealing to investors, the white metal tends to get overlooked in favor of individuals investing in gold, even though it plays the same role. For that reason, they are all vulnerable to depreciation due to actions like printing money. Silver bullion, on the other hand, is a tangible asset that is finite. Market participants can buy bullion through coins or jewelry, or when they buy silver bullion bars.
Chris Duane, an investor and YouTube figure, has said he puts his metal where his mouth is by liquidating his assets and putting the money into silver bullion when prices get low. He believes that our money system, and indeed our entire way of life, is built on unsustainable debt, and the purpose of investing in silver bullion is to take yourself out of the mathematically inevitable collapse of that system.
As a result, silver bullion is more practical and versatile than physical gold. In fact, in the past, silver has outperformed gold in bull markets, according to GoldSilver. GoldSilver claims that, from to , silver gained percent, while gold gained just percent in that same period.
When individuals invest in physical silver, whether that be through silver bars, fine silver, coins or other means, there is a reassurance that its value has and will continue to persist. Silver offers anonymity — Whether you value your privacy or not, silver has the same benefit as cash in that it gives users a degree of anonymity with regards to spending. That is another benefit of the white metal.
In order to make common purchases such as groceries, you are not able to use bars of silver, so you will need to convert that to currency first, and the ability to sell in a hurry can be an issue.
In a jam, pawn shops and jewelers are an option, but not necessarily the best-paying one. Danger of theft — Unlike most other investments, such as stocks, holding silver bullion can leave investors vulnerable to theft. Securing your assets from looting by using a safety deposit box in a bank or a safe box in your home will incur additional costs. Additionally, the more physical assets that reside within your home, the more at risk you are for burglary. Weak return on investment — Although silver bullion may be a good safe haven asset, it may not perform as well as other investments — for example, real estate, or even other metals.
Stocks may also be a better option than silver bullion for some investors. Tiggre believes that silver is the better buy than its sister metal gold, and said he was looking to purchase more of the bullion for his own portfolio. With all of these factors in mind, silver investors may want to reflect on the pros and cons from their own personal lens before deciding whether to build up their stockpile of silver bullion.
Timing is also an important factor for those who want to reap the benefits of the white metal. This is an updated version of an article originally published by the Investing News Network in Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.
Please remember that by requesting an investor kit, you are giving permission for those companies to contact you using whatever contact information you provide. If you want more than 20 investor kits, you need to make multiple requests. Select 20, complete the request and then select again. By selecting company or companies above, you are giving consent to receive communication from those companies using the contact information you provide.
And remember you can unsubscribe at any time. Just look at the last 10 years of the value of bars and coins and you see that if there is any rise in value it is the rise of the sellers price and not that you could sell your silver for a profit.
A safe deposit box at the bank? Countless people have made articles on this. The answer is absolutely not with a bank! Oh wow, you are so far off in left field. People like me buy silver for when the dollar collapses. We want the price to keep going down to lower the dollar cost average. I stack gold and silver an insurance policy for my grandchildren.
I love them!! I am certain that our monetary system will collapse when?? The global financial system is based on ever increasing amounts of debt.
The endgame outcome is certain, the path is uncertain. Stocks and real estate looks very expensive relative to PMs. I am super leveraged on real estate where I earn a good rental yield but have also been accumulating silver and gold in lieu of keeping cash in the bank. You cannot compare investing in PMs with investing in stocks or real estate, its apples and pears.
I would rather invest in silver than keep excess money in the bank. Im happy to keep my silver with my broker for the next few years until I have a better handle on the global outlook. Long term plan is to take delivery to avoid paying longterm storage costs and have my children inherit the bulk of my PMs. In fact, I dont have any savings accounts for them. I allocate a portion of my PMs to them each month as if I would be saving fiat ccy for them. I suspect the value of my PMs during the next economic downturn will be enough to cover most or all of my housing loans.
Then I will increase my cashflow and look forward to retirement. But Bill Holter and Jim Sinclair hit the nail on the head for me. There is no way that the world can pay the debt, something has to give.
You must be logged in to post a comment. Give me my free report! The price of silver is continuing to rise with gold. Should you invest in ? Read our FREE outlook report on silver investing! Get My Free Report. Is gold a good hedge investment in ? Read our FREE outlook report on gold investing!
Get the latest Silver Investing stock information. Get the latest information about companies associated with Silver Investing Delivered directly to your inbox. Pancontinental Resources. Canada Cobalt Works. Fireweed Zinc. Sixty North Gold. Rio Silver. Puma Exploration. Golden Ridge Resources. Prime Meridian. Rokmaster Resources. Silver Viper Minerals Corp. Laurion Minerals. We have limited the number of investor kits you can request to Log in to Reply. Pingback: Will Silver Outperform Gold?
Part 1: Silver vs. Gold to Date INN. Oh and buying a safe was no problem at all. I have held Silver for a few years, as a hedge against the system, not investment.
Investing News Network. Is it Time to Buy? Leave a Reply Cancel reply You must be logged in to post a comment.
i was so excited on friday seeing Mcx silver finishing days trade after breaking a support but at the same time i noticed the SI did not break its support and silver. 10 Reasons to Invest in Silver Now (w/ Charts). Jeff Clark, Senior Analyst, GoldSilver. Is silver a good investment? Why should someone buy it? It's natural and.
What are the pros and cons of investing in silver bullion? Read on to learn why now may be the time for investors to enter the market. Silver just came off a more prosperous year than it has seen in awhile, and as prices rise, many investors interested in the precious metals market are wondering if now is the right time for buying silver bullion. With tensions running high, they could be a good choice for those looking to preserve their wealth in these difficult times. When political and economic uncertainty are rife, legal tender generally takes a backseat to assets like gold and silver.
Gold and silver have been recognized as valuable metals, and have been coveted for a long time.
People who invest in precious metals tend to appreciate the sense of permanence, stability, and tangibility that comes with owning an item like silver, whether it is sitting in your home safe or a huge vault somewhere. There are many options when it comes to investing in silver, and, like all investments, varying levels of risk and reward.
Is Silver a Good Investment?
Physical silver is a tangible asset with no counter-party risk or default risk. Silver has an intrinsic value due to its metallic characteristics making it suitable for industrial, medical and ornamental use and due to its finite supply. There are also compelling fundamental reasons to buy silver. Chart: years history of the silver price. Silver is also the best conductor of electricity. The silver price is therefore often more volatile than the gold price.
Investing in Silver: Four Ways to Invest and Why
The best way to invest in silver is to gain exposure to the price of this precious metal through mutual funds, exchange-traded funds ETFs or exchange-traded notes ETNs. But before investing in silver funds, investors should learn the benefits and strategies of buying precious metals. Silver as an investment has similar purposes as gold. There are industrial uses for silver, such as jewelry, but the price is driven primarily by supply and demand and investor speculation. Typically, precious metals, such as gold and silver, are in higher demand when there is widespread uncertainty about currencies, especially with that of the U. Silver is often used as a hedge against currency fluctuation or as a store for cash during times of economic uncertainty and unrest. The silver market is much smaller than the gold market, which makes for higher volatility fluctuations in price. Some investors prefer to buy precious metals, such as gold, silver, platinum, and copper, in the physical form of bullion coins.
Folks who invest in silver often say that doing so lets them hedge against the risk that their other investments might depreciate — and against the risk of catastrophic events.
In uncertain financial times, people have historically turned to gold and silver as a hedge against inflation and investment losses. But silver attracts heavy investor demand for a number of other reasons. Silver has the same attributes as other precious metals but possesses unique strengths and weaknesses.
Why Invest in Silver?
Gold isn't the only game in town, even though you'd never know it by watching late night TV. Investing in silver means putting your money into the production, trading or outright ownership of silver metal. For most investors this means buying quantities of bullion in coin or bar form and holding onto it. While silver is technically a commodity like any other, precious metals are somewhat different as an asset class. Unlike crude oil, corn or lumber, the value of silver isn't limited to its consumption uses. In fact, while silver does have non-trivial industrial applications, most of its value comes from its status as an investment vehicle. Like gold, the price of silver is chiefly driven by market demand. Instead its value is chiefly driven by either long term investors or those seeking to ride out a down market. Often this means that silver again, like gold tends to perform counter-cyclically to the stock market. It is, however, at this point that we should note the enormous volume of bad reporting on the subject of precious metals investment.
Silver as an investment
Silver may be used as an investment like other precious metals. It has been regarded as a form of money and store of value for more than 4, years, although it lost its role as legal tender in developed countries when the use of the silver standard came to a final end in Some countries mint bullion and collector coins, however, such as the American Silver Eagle with nominal face values. Collectors of silver and other precious metals who collect for the purpose of investment either as their sole motivation or as one of several are commonly nicknamed stackers , with their collections dubbed as stacks. However, while these bullion coins are considered legal tender, they are rarely accepted by shops [7] and not typically found in circulation, as opposed to pre-debasement ' junk ' or 'constitutional' silver coins, which still occur in circulation on occasion. The price of silver is driven by speculation and supply and demand , like most commodities.
