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.
large quantities of physical metal and also the small investor with a smaller budget. It is important to price silver per ounce. It is difficult to predict where the silver prices will be six months from now but it does seem that it is hovering around $20 per ounce at the moment, (as of Autumn 2013), and it has had a year on year improvement.
Who knows what will happen next?
So why is silver mining seen as less important then gold mining?
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.
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, what should the average investor do?
In my opinion, investing in some silver is a great idea.
It is worth remembering that the better price will come from a silver coin like the Canadian Maple Leaf or the US Eagle than a bar or round. The bar or round will only get spot prices.
Why is the price of silver still quite low? My opinion.
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.
Knowing this, I believe it is sensible to add some some silver to your portfolio for investment purposes or as a future insurance policy. Please do your own homework first before you buy.
So assuming silver is a good investment, what next?
There are many types of physical silver, which would 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.
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.) It would be good to get some premium bullion coin with limited yearly mintage such as China Silver Panda, Australia Perth Mint Silver Koala, Silver Kookaburra, Silver Lunar and Silver Kangaroo. These coins have a lower yearly mintage and one side of the coin changes every year.
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 such as A-mark, Pan AM Round and Buffalo Round are good from a reputable dealer. I personally don't like silver 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.) 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.
The price of silver and how long should you hold silver?
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.
large quantities of physical metal and also the small investor with a smaller budget. It is important to price silver per ounce. It is difficult to predict where the silver prices will be six months from now but it does seem that it is hovering around $20 per ounce at the moment, (as of Autumn 2013), and it has had a year on year improvement.
Who knows what will happen next?
So why is silver mining seen as less important then gold mining?
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.
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, what should the average investor do?
In my opinion, investing in some silver is a great idea.
It is worth remembering that the better price will come from a silver coin like the Canadian Maple Leaf or the US Eagle than a bar or round. The bar or round will only get spot prices.
Why is the price of silver still quite low? My opinion.
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.
Knowing this, I believe it is sensible to add some some silver to your portfolio for investment purposes or as a future insurance policy. Please do your own homework first before you buy.
So assuming silver is a good investment, what next?
There are many types of physical silver, which would 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.
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.) It would be good to get some premium bullion coin with limited yearly mintage such as China Silver Panda, Australia Perth Mint Silver Koala, Silver Kookaburra, Silver Lunar and Silver Kangaroo. These coins have a lower yearly mintage and one side of the coin changes every year.
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 such as A-mark, Pan AM Round and Buffalo Round are good from a reputable dealer. I personally don't like silver 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.) 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.
The price of silver and how long should you hold silver?
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.
About the Author:
Want to find out more about Buying Silver, then visit Pat Sutton's site on how to choose the best Silver Investing for your needs.. Unique version for reprint here: Important Facts You Need To Know About Investing In Silver.
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