As we know, silver is the interesting product for several reasons – first, it is very undervalued in reference to gold. And secondly, its price is less than the total production cost which is reflected in the decrease in production and in higher prices. So, how to invest in silver? It is good to buy coins – I found an offer of popular 1 oz coins at a price even less than 14 pounds (ebay auctions are best to seek the chepeast offers). Fees for the purchase of silver are higher than when buying gold. And this is connected with VAT on silver. Here, thanks to the Schengen area silver is still available at a price + 15% despite 23% vat what I think it is a bargain.
The biggest threat to investors is silver and precisely silver ounce. Here, in contrast to the gold, silver prices can rise in a short time by 20% in order to return gains in the following week. Many inexperienced people can have problems with investments. Seeing as the price of silver rises, our capital may be tempted, so we will purchase by funds intended for other purposes. If the price will not collapse after the transaction and for a few weeks the price will be leveled at lower levels it is easy to panic and finally terminate our cooperation with the metal.
Silver is of course an opportunity, but it is not metal for everyone, because precious metals are primarily a way of security of savings from loss all the more so as it is a bank collapse or bankruptcy of the state. Profit that each time we develop can be an added bonus for hardy investors.
It should also be noted that investing in silver is really worthwhile, if only because it is the consumed material. A smaller value of silver than gold makes its recovery is not very profitable. Of course, mining of silver is highly dependent on the geology of the area, what is more, this metal is often a by-product of mining other coloured metals, such as gold and copper. In addition, the aforementioned taxed silver mining discourages new prospectors. There is little primary silver mines. Currently silver mining meets 70% of global demand.
Within the last 40 years, a change of the rate of gold 1% corresponds to a change of rate of silver by 1.75%, whether up or down, because investment silver is profitable when the exchange rate is high. Anyone, who plays in investing in silver and expects high returns on gold should expect even higher profits on silver … For example, in 2002-2006, the annual rate of return on investments in silver stated 36% and in gold it was stated 26%, while in 2006 it was 47% and exceeded the rate of investment in gold (23.2%) up to twice.
Once ounce of silver of 15 – 16 was equal to 1 ounce of gold. The ratio was then more or less at the same level. Since 1971, however, parity has radically changed and stabilized at a level from 1 to 80. Then, silver has become a term – “gold for the poor”. All this was by signing by Nixon law abolishing the need to protect the dollar by gold, which marked the beginning of the end of the system with Bretton Woods. The United States negotiated all silver reserves, which resulted in a drastic fall in prices.
How to invest in silver – this question at that time was asked the most. It all resulted that the loss of interest in this beautiful metal has fallen drastically. In recent years, investors remembered about how to invest in silver, so that we can see slow climb in prices of this metal. Currently the exchange rate of silver rose to the exchange rate of 1 to 60, many analysts states return to the „historic” proportion. There are optimists, who predict the price of 1 to 1, due to the irretrievable loss of a huge amount of silver by the industry itself.
How to invest in silver?
Most of us understand investment as a form of stocks, mutual funds, bank deposits or real estate. Everyone also knows how to do it, but how to invest in silver is no longer an obvious matter. But the possibilities are many.
JeweleryIt’s the easiest way, but the worst. Going to a jeweler, we buy something of the highest fineness and then we sell – simple? Sorry but no, because first jewelry is always more expensive than the price of silver, because you have to pay for metal, labour, taxes etc … This way you can even overpay several times. Another trouble is selling at a profit. For example, a jeweler in your neighborhood buy in very low prices. Of course, this does not mean that they do not earn, because when the rate will rise several times then we will come out on the plus side. And what is more, you do not need to sell jewelery as scrap metal, because you can try it for some time to sell quite profitably. However, jewelry is the least profitable form of investing in silver.
Funds investing in silver i.e. – investment silverMaybe there are not too many, but it is very easy to buy them. Well, a little worse case looks with investment in them. Such funds do not invest in silver, but in securities, for example, certificates, stocks and other. So when the price of silver goes up, the yield may go down. In addition, any such investment fund takes a commission for buying and selling units, usually 0-5%. In addition, there is the fee for management. It is usually approx. 1-4%. We pay it if the manager will give the valuation of units and it is lower about few percent. Another way to invest in silver is to buy shares of companies involved in the production of silver or jewelery. The first thing you need to do is open an account: Share & Fund Trading Account in order to start investing.
ETFETFs (Exchange-Traded Fund), investment fund, which seeks to give the rate of silver price. ETFs is divided into funds that invest in physical metals and imitate the rate of silver using financial instruments. The latter performance is no guarantee of achieving such gains as pure silver .. List of ETF for silver:
- SLV Silver Trust
- SIVR Physical Silver Shares
- AGQ Ultra Silver
- USLV VelocityShares 3x Long Silver ETN
- ZSL UltraShort Silver
- PHAG Metal Securities Ltd Physical Silver
Silver bars and coinsInvestment in silver can appear in the XXI century as the least practical, but despite appearances bars and coins is the easiest, cheapest and safest way to invest. Ordinary person will cope with buying silver as an investment, because it’s the easiest way. When buying silver we will bypass intermediaries, because it is the cheapest way, if you take into account their commissions. Of course, prices can change, because currencies are translated at the rate of silver and the dollar. Silver coins is best to buy directly in the Royal Mint. However, it is best to look for interesting coins on eBay auctions. Also, it is important to have the weight of the coin 1 oz (commonly called one ounce of silver) and the highest content of Ag .9999
The most popular silver bullion coins
Chinese Silver Panda Coin Koobaburra American Eagle Silver coin Austrian Silver Philharmonic Coin Canadian Silver Maple Leaf Coin
Physical silver purchaseThe purchase of investment silver can also be made through BullionVault platform that allows you to buy, sell and store the ore at attractive prices. BullionVault is now one of the largest sites in the world, which makes it possible to invest in silver. It has over 55 000 customers and assets of 1.6 billion euros. Remember that in BullionVault you do not buy securities, but only physical silver that is stored in vaults all over the world. It is an attractive form of investment for people who are looking for diversify their savings for a rainy day.
Thus, how to invest in silver? First, determine the best in what part you want to invest. Successively we can divide the money allocated for precious metals in different proportions – 40% silver in bars, coins and gold in the form Krugerrands. The remaining cash you can invest in silver coins.
Investment in silver you should treat as a protection of money during difficult times. There is still a high risk of hyperinflation, and some of the war. At this time the only valuable hard currency will be silver or gold jewelry.