How to Invest in Silver

Daniel Penzing
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Precious metals like silver are just one of many alternative investment options.

Discover the ins and outs of investing in silver and compare it to other metals like gold and platinum.

Why Invest in Silver?

In the early 1990s, silver’s price per ounce was even lower than that of copper at about 6 cents. Speak to your gold and silver broker for the current silver market prices.

Gold prices are normally higher than those for silver, and so it may be a good option to speculate in gold over silver when thinking about investing in metal.

Owning silver is a great way to diversify your portfolio and protect yourself against market crashes, and might also make a good gift when you just can’t think of what to give.

Where to Buy silver?

Silver, like gold, is traded by a small number of identifiable market makers, who place offers and bids in the futures market.

Investing in silver is different from that of other solid investments. You should always separate your silver into at least two separate containers. When you’re ready to trade or sell your silver, you’re going to need to take some time and research using the Internet.

Trading in silver comes with the same price risks as trading in any commodity. You may also want to consider whether to trade in silver bullion, silver coins, silver rounds, silver certificates, silver ETFs, or silver futures contracts.

How to Invest in Silver

First, we should explain to you what investment is and how it works. Your investment works in the following manner: you decide to buy a certain quantity of a certain commodity, which is used for a certain period of time, with a given price.

This means that if you want to invest in silver, you need to buy a certain amount of silver, in dollars, and you need to buy it for a certain period of time (or for unlimited time). Then you need to carry this silver for a certain number of years, until you decide you want to sell it.

Silver investment is the opposite of price investment. Price investment is when you decide to buy an asset now, and the amount of that asset will be fixed at a later fixed time. You do it if you think that the value or the price of the asset will increase in the period of time between your purchase and the moment you need to sell.

The silver investment is the opposite. You buy a certain amount of silver at a certain price (or rate), and you must sell it at a certain price (or rate). The quantity of the silver is not important, if you have to sell your assets at the price you bought them, not when the price will be the same or higher.

There are various reasons why people choose to invest in silver.

Buy Silver Mutual Funds, ETFs and ETNs

There are only three ways to buy silver as an individual investor. The most popular way: buy bullion coins. The second way to buy silver is to buy silver mutual funds, ETFs, and ETNs. Buy silver coins to make a profit by selling them. These coins come in many sizes and condition. You can find bullion coins in any condition, from nearly new to tarnished.

Buying coins comes with a few drawbacks. They are not the easiest form of silver to liquidate and collect a premium.

They also more expensive to buy than other forms of silver. The most popular coins are issued by the government mint.

Buying silver coins involves guessing if you will be able to sell them later for a profit or not. If you can? All the better. If not, you have to go through the hassle of selling the coins at a loss because you must have cash on hand to purchase other types of silver.

Buy Silver Bullion

As with any other commodity, silver bullion can be bought through an exchange or directly from a dealer.

Buyers and sellers trade their metal on the world silver market. Prices are determined by what the current market price is for the metal as indicated by firms that follow this market speculatively. The different types of bullion available are listed below.

Silver rounds are now available which contain a bar of 999 fine silver. These can be a good option for those who want to add silver to their investment portfolio but do not want to deal with having to store and insure large amounts of physical silver. These are available in various sizes and designs. 1 oz silver rounds are the most popular.

Puck coins are official government minted coins which are minted in 1 gram, 25 gram and 1 kilogram sizes. These are good options for those who want to deal with a recognized reputable dealer.

If you are buying for investment purposes, you will generally want to buy only in increments of 1,000 of a troy ounce, also know as an ounce weight, or 1 kilogram (32.15 troy ounces).

To buy silver bullion, you need to exchange the commodity for actual metal. This is done through an exchange or a direct dealer. All bullion dealers either have an exchange arrangement to allow transactions in futures and options, or will act as your agent to take your future or option order to the exchange.

Buy Silver Mining Stocks

If you are looking for quick gains in silver, silver mining stocks and ETFs are probably the easiest way to play the silver market. These companies are actively engaged in mining and making a profit from silver. Additionally, silver mining stocks generally pay pretty good dividends to dividend investors who are looking for some stability in their investments.

Buy Silver Streaming Companies

Your Quick Guide

In the last decade there have been a huge amount of changes to the way in which we consume media. What used to be a purchase of a physical product or video on a DVD is now a digital download.

In the last decade alone we have seen the way in which we consume media change from DVD to stream. With the level of convenience this free content streaming provides, little wonder it is growing in popularity.

Even with the availability of free content streaming there are still subscriptions which can be bought. The biggest provider of streaming content on the planet is Netflix, but is there a better option?

Below are three of the most popular and proven ways with which you can make money from the streaming media revolution.

Buy Silver Streaming Companies: Direct Investment

Firstly, let’s look at the traditional way in which we can make money from streaming media. Basically this is when you buy a streaming company like Netflix.

This can be an expensive option and is not recommended for most people.

Buy Streaming Media on the Share Market

If you don’t wish to invest in a streaming company, there are other options.

These include buying shares which give you a percentage of the company.

With companies like Apple and Amazon doing well from the sale of their streaming services, purchasing shares in their companies is highly recommended.

The Basics of Silver Investing

If you want to get ahead with investing, you have to keep an eye on the changing trends and invest in something that’s going to increase in value. With so many possible investments, making the right choice can be tricky. If you don’t know much about investing but want to start with something that has great potential, silver might be the way to go. The reason is that silver, as a precious metal, has increased in value over the past decade because of increasing demand.

Silver is used to make jewellery, which makes it popular throughout the world. Most of these items contain a small percentage of silver. This means that the price of silver must constantly be revalued because of the fluctuating value of gold. With silver, you have the potential to make huge returns. Because silver is so popular and is used in several industries, it is seen as a safe investment to make.

Is Silver a Good Investment?

The price of silver fluctuates quite a lot, sometimes reaching sudden peaks and then plunging again. You might be wondering if silver makes a good investment.

The answer is a resounding “yes,” perhaps even more than gold. We will look at the pro’s and con’s of investing in silver, before going into details on how you can buy it.

Silver Price Action, 1995 to the Present

There is nothing intrinsically "special" about silver. It might be the cheapest and therefore the most practical metal for industrial use, but that does not make it any more “scary” than gold. Both commodities are cyclical, both have a spotty record on being a good investment, and both can be volatile. The price of gold has shown a sharp decline from its peak in 2011, as have many of the other commodities.

Mining companies are suffering, and are coming up with new products using precious metals. They are also trying to come up with ways to boost the price of these metals. While it is good to see, it seems as though this "solution" will be much like the solution that Japan tried in the 1980s. That is, to flood the market with metal. It did nothing for the price but send a lot of purveyors of gold jewelry out of business.

Silver Prices in 20 Years: How Much Will It Be Worth in 2036?

It's hard to say how much silver will be worth in 20 years. You should look to the past for the best insights on the future. One of the best resources to work from are coin auctions. Those who collect auctions can tell you with more accuracy than most exactly how much money rare coins are worth. Some of these auctions are so valuable that they won't allow men to enter.

Investing in Gold vs. Investing in Silver

Gold has been a valuable asset for centuries and is used in jewelry, industrial use, as collateral, and, of course, as a tangible asset, kind of like a savings account. It's been suggested by some that purchasing gold can be a way to hedge against inflation or economic instability, however, many gold investors have seen their investment lose value or even go down the drain.

Even so, there's a difference between investing in silver vs. gold. Silver could be considered a "hedge" against inflation and economic instability as well, since the price of silver tends to rise when uncertainty grows. This is in comparison against the value of the U.S. dollar. So, silver may be a more attractive alternative than gold for some investors.

Benefits of Investing in Silver and Other Precious Metals

Owning precious metals is something that is becoming more and more popular, and during a particularly difficult financial situation, there is no doubt that the owner can be much more secure and happier to know that they have invested some of their assets into something that will help to protect their finances. What is more, is that there are many reasons to own silver or other precious metals, and by doing so, a person is sure to be pleased with the results.

Silver is an investment and an asset that is recognized by major corporations and businesses around the globe. Holding silver is very helpful when businesses make decisions on various issues and features that are common. It is a good thing for a company to have silver in reserve when it enters into difficult negotiations, and it is important for the company to have silver on hand if something happens to disrupt the money system of the country. This is why many CEO’s and owners of businesses have been investing in silver and have made a large return on those investments. There is no doubt that this is a good way to put your money into something that is of even more benefit than simply being an investment.

Silver is very easy to invest in. Silver is available in coins, silver coins, in silver jewelry, and in other types of precious metals like platinum.

The Risks of Silver Investing

Silver is a very volatile investment. If you buy physical silver, it may be lost or stolen. So I don’t recommend you store all of your silver in your home. However, if you spend more than 10% of your overall investment in silver, you should definitely store the silver securely.

Public storage is more cost effective. Avoid paying high insurance, commission, and annual storage fees that are associated with storing your silver in your home.

Buying silver bullion is another great option. The main benefit is that you don’t have to actually go to the bank and liquidate your holdings when you make a purchase.

The main disadvantage to this is that you really never know the exact value of your silver. There’s always a risk that it can be valued lower at a future date.

Insurance is a very important part of your investment strategy. You don’t want your silver to be stolen, so a good policy can protect you from the possibility of a mishap.

Investing in Silver Can Be Challenging

It sounds like an easy investment: silver is valuable and has a good price history. Everyone from numismatic collectors to investors and coin dealers can tell a profit story about silver. But like most investments, buying silver is not as easy as it sounds. As with any major investment, there are many reasons to buy and not to buy silver. You need to evaluate its potential and risk.

Your Potential Return on Investment

The price of silver can go up or down quickly. Silver is a volatile investment, so you need to be patient with it and consider other financial and personal priorities before you buy. The price of silver can go up or down quickly. Silver is a volatile investment, so you need to be patient with it and consider other financial and personal priorities before you buy.

If you’re a potential investor, understand that you’re investing in an item that was once used for monetary value. It’s now mostly used in industrial applications. That makes it a risky investment. Silver has a history of volatile price swings, including steep falls. That’s why it’s always a good idea to diversify your portfolio with other commodities … or even in other asset classes.

The primary reasons to buy silver are:

  • Investment diversification
  • As a hedge against inflation