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.
Who knows what will happen next?
It is worth noting that silver mining is seen as less important then gold mining because:
Nearly all silver mines are in un-forgiving areas of the World so they are more difficult to work and this means that the US do not mine Silver enough.
B) Most countries (like the US and UK) keep a other precious metals reserves but do not keep silver bullion.
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?
In my opinion, investing in some silver is a great idea.
Decided to go for it? Remember, you will get better prices for coins like the US Eagle or the Canadian Maple Leaf. You will probably only get the spot prices for silver rounds and bars.
My feelings on why the price of silver is still on the low side.
Because of Manipulation.
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 assuming silver is a good investment, what next?
What would be your choice of physical silver?
1.) New to silver investment? Want to know where you should start? It is my opinion that coin could be a first choice as it is much easier to sell a Silver Maple leaf compared to a 100 oz silver bar.
In additional to that, if you just want a term of reference, having a few coins is good enough. The Canadian Maple Leaf and the American Silver Eagle looks the exactly same except for 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 of a naughty ploy by the mint because they can get more sales from the customer and they can up the price. Since the price is so high, it is not wise to buy so many coins for investment but rather more to add to a collection. I will expect people not to want to pay extra for numismatic value, I believe, as money is short, they will be more interested in the silver content of the coin.
3.) Silver rounds are another choice, but personally, I don't buy common silver rounds unless from a reputable dealer as they are very easy to make and fake.
4.) You have silver bar with names like Johnson Mathey Bar, PAN-AM, NWT bar etc. These silver bars come in sizes from 1 oz, 2oz etc. up to as much as a kilobar or 100oz and 1000 oz. It is important to make sure the bar has a vendor hall-mark. If the silver bar does not have a popular hall-mark then authenticity may come under scrutiny. You could end up having to melt it down to be absolutely sure of the silver content.
5.) Kilobar and 100 oz bar. This large silver bar I would hold for about 10 years and then sell it on. Be careful as the buyer will pay the exact price for the exact weight and some of the bars especially the big ones do not have the exact weight 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?
In early 2013 the demand for both gold and silver coins was record-breaking. This lead to the US Mint running out of silver eagles and they had to suspend sales. I believe that that would have been a good time to sell, when there is a shortage. But generally, unless there is a massive World event then I see silver going up little by little year on year.
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.
Who knows what will happen next?
It is worth noting that silver mining is seen as less important then gold mining because:
Nearly all silver mines are in un-forgiving areas of the World so they are more difficult to work and this means that the US do not mine Silver enough.
B) Most countries (like the US and UK) keep a other precious metals reserves but do not keep silver bullion.
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?
In my opinion, investing in some silver is a great idea.
Decided to go for it? Remember, you will get better prices for coins like the US Eagle or the Canadian Maple Leaf. You will probably only get the spot prices for silver rounds and bars.
My feelings on why the price of silver is still on the low side.
Because of Manipulation.
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 assuming silver is a good investment, what next?
What would be your choice of physical silver?
1.) New to silver investment? Want to know where you should start? It is my opinion that coin could be a first choice as it is much easier to sell a Silver Maple leaf compared to a 100 oz silver bar.
In additional to that, if you just want a term of reference, having a few coins is good enough. The Canadian Maple Leaf and the American Silver Eagle looks the exactly same except for 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 of a naughty ploy by the mint because they can get more sales from the customer and they can up the price. Since the price is so high, it is not wise to buy so many coins for investment but rather more to add to a collection. I will expect people not to want to pay extra for numismatic value, I believe, as money is short, they will be more interested in the silver content of the coin.
3.) Silver rounds are another choice, but personally, I don't buy common silver rounds unless from a reputable dealer as they are very easy to make and fake.
4.) You have silver bar with names like Johnson Mathey Bar, PAN-AM, NWT bar etc. These silver bars come in sizes from 1 oz, 2oz etc. up to as much as a kilobar or 100oz and 1000 oz. It is important to make sure the bar has a vendor hall-mark. If the silver bar does not have a popular hall-mark then authenticity may come under scrutiny. You could end up having to melt it down to be absolutely sure of the silver content.
5.) Kilobar and 100 oz bar. This large silver bar I would hold for about 10 years and then sell it on. Be careful as the buyer will pay the exact price for the exact weight and some of the bars especially the big ones do not have the exact weight 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?
In early 2013 the demand for both gold and silver coins was record-breaking. This lead to the US Mint running out of silver eagles and they had to suspend sales. I believe that that would have been a good time to sell, when there is a shortage. But generally, unless there is a massive World event then I see silver going up little by little year on year.
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