Investing In Silver

Investing In Silver

Silver like many other precious metals on the market today can be used for investment purposes, for those thinking of investing in silver please read on. For more than four thousand years the commodity silver has been regarded as money and a good store of value and wealth. However since the end of the silver standard in 1968 silver lost its role as being legal tender in many of the first world nations including the United States and Europe. Just like gold, investing in silver is a great hedge against the ravages of inflation and financial turmoil in the world at large. It is why demand for silver is increasing at an astonishing rate these days. Particularly in the last few years the spot price of silverhas risen quite sharply just like the gold spot price, because of this investing in silver has become very popular and easy to do.

Is Silver A Good Investment

Silver often tracks very closely the gold price this is due to the store of value it demands, although the ratio can vary a lot over time. The gold/silver price ratio is often analyzed by traders, investors and buyers. Like most commodities, the price of silver is driven by speculation and by the supply and demand. Gold and silver could very easily skyrocket in price once again if the market conditions are right, but who is to say whether or not this will happen, and even when? So is silver a good investment, with concerns stemming from the financial crisis of 2008 and the continuing European debt situation, this has lead more and more people to invest in silver.

How To Invest In Silver

Just as with gold, investing in silver can take many forms, but broadly speaking silver investors have really only two options right from the outset, invest in the physical metal or purchase a financial security that moves up and down with the price of silver.

So how to invest in silver then, if you intend to invest via a financial security then you can use an exchange-traded fund (ETF). ETFs offer investors an efficient way to invest in the precious metal market without the problems of having direct ownership of the silver. The first silver ETF arrived on the scene in 2006 and was managed by Barclays Global Investors. ETFs offer investors greater liquidity, and increased flexibility with the chance to cash in on the commodity upturn at a lower price.

Most investors would be better off purchasing silver bullion coinsor bars if your intent is to ride the silver bull market.

Investing In Silver Coins

Buying silver bullion coins is quite challenging because there are so many different types and ways to purchase them, whether you buy them from a online dealer or from your local coin dealer. There are also so many different types of silver coins on the market to choose from, there are silver eagles, silver maples, silver libertad's and at least half a dozen other silver products to choose. You have to remember that most silver coins and bars have a premium on top of the spot silver price, some coins more than others. Silver bars have the lowest premiums above the spot price, particularly the larger sized silver bars. Some of the more popular silver bullion coins on the market to invest in are the Silver Eagle, Silver Maple Leaf and the Austrian Philharmonic.As mentioned before many coins have a premium but buying in larger amounts can lower the premium by quite a bit, there are many different bullion coins on the market many with unique designs and strikes.

Is Silver A Good InvestmentInvesting In Silver CoinsHow To Invest In Silver
A selection of silver bullion coins

 

Further Coin Information

More information on Silver Eagles can be found at the US Mint.

More information on the Perth Mint coins can be found Here.

Information on the Silver Maple Leaf can be found Here.