Investing in silver bullion

Silver might not be as popular as gold or known to be an investment asset, the process of buying silver and the reasons why many people do buy silver are similar to that of gold. Silver offers the same safety and protection as gold. The same benefits of investing in precious metals that apply to gold bullion also apply to physical silver. Silver might not be as rare as gold but it too is available in finite quantities and so has intrinsic value.

Uses of silver

Silver is used in the jewellery industry as well but a large chunk goes into manufacturing. Silver is a good heat and electricity conductor. It is widely used in high-level technological applications. In addition to all this, it is used in medicine, catalytic converters found in cards, photography, and a slew of other equipment. A generous amount of the silver supply goes into producing silver investment products. The demand for this precious metal comes from a variety of places which means that as long as industries expand, demand will continue to grow. There are analysts who believe that as long as the silver demand keeps growing at the rate that it has, silver would become one of the rarest metals this century.

Silver Bullion

The value of silver has been growing since 2000. One of the reasons silver is so appealing is because it is relatively cheaper compared to gold and it is very liquid. Thousands of people buy silver bullion in the form of coins and bars. This investment-grade silver is made up of silver that has been purified to a level of 99.99% pure silver. A lot of investors find it easy to liquidate silver investments especially if they buy silver bullion from a dealer that offers a buy-back policy.

The future of silver

Some precious metal experts believe that the “peak silver” point (the level where all the available silver will have been mined) is only less than a decade away. This is quickened also by the fact that silver that has been used in industrial processes gets spent, it does not get recycled.  

The ratio of silver to gold has been rising in the last century. For the longest time, the gold/silver ratio was 12:1. This meant that it took 12 ounces of silver to buy 1 ounce of gold. This has been the case since the 1900s, however, in the last century, the ratio has risen as high as 80:1. Generally speaking, a rising gold/silver ratio is an indication that the time is right to buy more silver and sell gold. This ratio is an important factor dictating how precious metals are moved in and out of investment portfolios.

What type of silver product is the best?

Silver bars are considered the most efficient investment product. They are easier to buy and sell because unlike silver bullion coins, bars are valued for the amount of pure silver contained and not their design or any other factors that play into the pricing of silver bullion coins. Silver bullion bars come in a variety of sizes and weights. Popular brands include of silver bars include Johnson Matthey and Engelhard. You may find bullion dealers that offer new and second hand silver bars. These second-hand bars will be authentic and preserved in sealed plastic packaging. Buying your silver from reputable bullion dealers will help ensure that you have quality bars that will be easier to liquidate when the time to cash in on your investment comes around.

 

Leave a Reply

Your email address will not be published.