How to Invest in Silver – Buy Silver Bars & Coins
How to Invest in Silver: In a volatile market, investors tend to look to precious metals for their investments. With rising oil and a weak dollar and ever-rising inflation, the metals market is starting to look good for all kinds of investors.
Silver bullion or coin is likely to be of interest to the big investor looking to buy the number of large quantities of physical metal and also the small investor with a smaller budget. It is important to price Silver per ounce take a look at our Real-time prices here
How to Invest in Silver
It is difficult to predict where the silver prices will be six months from now but it does seem that it is hovering around $25.20 per ounce at the moment, (as of Autumn 2023), and it has had a year-on-year improvement.
Silver mining is secondary to other mining because:
A) The bulk of silver mines are in obscure and volatile parts of the world.
B) In the U.S. especially, Silver bullion resources are severely depleted because the US is not mining enough.
C) Countries (like the U.S.) keep a bar of gold and other precious metal reserve but do not keep silver bullion. Surprisingly though, there is an increase in the industrial use of silver and sell Silver Bars
KEY TAKEAWAYS
- Investors can still buy physical coins or bullion, though it may be more difficult to store and protect against loss compared to other ways.
- Investors can elect to assort within the silver industry by owning shares of a precious metals ETF.
- Investors can own silver futures dealings for the right to acquire silver at a future date for a specific price.
- Investors can also choose to buy stocks in silver mining companies to have occupancy in future silver mining operations.
- Silver is often used as a valise diversifier and hedge against economic downturns and inflation.
The Price of Silver
Take a look at our Real time prices here.
Silver How To Buy-Bars & Coins So, what should the average investor do?
So, the real question here is, How to Invest in Silver? In my opinion, investing in some silver is a great idea. If you do decide to “invest in Silver it’s worth remembering that silver bullion dealers’ coins, such as the U.S. Eagle or the Canadian Maple Leaf, will always get you a few dollars above the spot prices.
Silver rounds and Silver Bars for sale usually sell for around the spot prices. Spot prices of silver and gold can be found here.
Why did I believe that the price of silver is still low?
1.) Manipulation.
The silver price is determined by the volume of purchases. At the moment London is trading at about 130 million oz per day. The physical silver market is about 850 million oz per year (figures from 2008).1 oz Silver price
Thus in 6 trading days, the amount of silver traded is equivalent to 1 year of the supply from World mining. Most of the silver trading done is not for physical silver buyers but for paper trading and even gambling. So at the moment, the existing stocks can still fulfill the physical silver demand.
But I believe, that once these stocks dry up, the silver price will go up. Knowing this, I believe it is sensible to add some silver to your portfolio for investment purposes or as a future insurance policy.
Please do your homework first before you buy. Best Precious Metals Investment Companies.
Buy Silver Bullion Bars & Coins
OK, so assuming the Best Silver investment, what next?
What type of physical silver should you buy?
- In my opinion, those who are new to silver investment should start with common bullion coins first. This is the most liquid form of silver available.
- It is much easier to sell a Silver Maple leaf compared to a 100 oz silver bar or silver ingot.n 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 look the exactly same except for the printed year of the coin. A good collection would be all the years. Not an easy task as some years are harder to find than others, but fun though!
- It would be good to get some premium bullion coins 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 drive more sales from the customer, even increasing 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.
- Common silver rounds such as A-mark, NWT, Pan AM Round, and Buffalo Round. I don’t buy common rounds unless from a reputable dealer as they are very easy to fake.
- Silver BAR, PAN-AM, NWT bar, Perth Mint, Johnson Mathey Bar. Silver bars come in 1oz, 2oz, 5oz, 10oz, 20oz, kilobar, 100oz, and 1000 oz. Make sure the silver bar has a vendor hallmark with it such as Perth Mint, Johnson Mathey, PAN-AM, EngelHard, etc.
- If the silver bar does not have a popular hallmark then people may doubt the silver content of the silver bar. The only way to verify the silver content is to melt it down.
- Kilobar and 100 oz bar I would hold the bar for about 4- 8 years and then sell it. Some of the bars especially the big ones do not have the exact weight. For a 1000oz bar, it may weigh anywhere between 930 oz and 1080 oz.
- Some 10 oz bars may weigh slightly more than 10 oz. The buyer will pay the exact price for the exact weight so be careful.
- At the moment, it is still too early to know which silver investment will give the best yield. My opinion is that you should diversify into each of these 5 products to reduce your risk.
Here it shows off The Types of Silver Gradient
How long should you hold silver?
In early 2023 that the demand for both gold and Silver Coins was record-breaking. This led 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.
Silver How To Buy-Bars & Coins
Top 10 Precious Metals Companies In the World
- Glencore PLC (GLNCY)
- Jiangxi Copper Co. Ltd. (600362)
- BHP Group Ltd. (BHP)
- Rio Tinto PLC (RIO)
- Aluminum Corporation of China Ltd. (ACHHY)
- Vale SA (VALE)
- Zijin Mining Group Co. Ltd. (ZIJMF)
- Anglo-American PLC (AAUKF)
- Hindalco Industries Ltd. (HNDNF)
- CMOC Group Ltd. (CMCLF)
