Why You Should Buy Silver
For the past 5,000 years, silver has been recognized as one of the most valuable negotiable currencies among the great civilizations of the world, and that still holds true today. Ounce for ounce, silver is the least expensive of all the precious metals, and is considered to be an asset which provides financial protection against weak currencies, as well as inflation or deflation.
It is a commodity which is recognized around the world and traded extensively, and for private individuals, it offers a diversification strategy which is strongly recommended by financial advisors. Silver is also a commodity which can be collected and passed onto future generations, and has retained consistently high demand throughout the ages.
Not only is it prized as a collectible in its own right, but it is also heavily used in industries such as the manufacture of automobiles, cellphones, and computers. Because the demand from investors and industrial concerns remains high, many analysts believe the value of silver could increase in the coming years.
Why Purchase Silver in Addition to Gold?
If you already have a strong position with regard to your gold collection, you might wonder why it would be prudent to also own some silver. Silver has a unique position among precious metals in that it has appeal both as a collectible and as an industrial commodity. This gives it a unique appeal, because if one demand source should dip a little, there is another in place which will maintain demand for silver.
Virtually all electronics require some amount of silver in their manufacture, because it possesses exceptional qualities of conductivity and is a good electrical pathway. Silver is often used on circuit boards, telephones, television sets, solar panels, batteries, medical instruments, CDs, microwave ovens, hearing aids, and DVDs.
As a financial product, it's available in coins, bars, bullion, and rounds, with coins being by far the most popular amongst financial gurus. They're easy to store, can be easily transported, and if need be, silver coins can be quickly converted into cash. Silver coins made by government mints are also considered to be negotiable currency and are legal tender internationally. It's also probably the most affordable precious metal, which is still capable of providing a safe haven for people who choose to make purchases.
Historical Price of Silver
In recent history, the highest spot price for silver reached $35.12 in 2011, and like all precious metals, its pricing has fluctuated considerably over the last century. In the year 2000 for instance, the spot price of silver was at a relatively low $4.95 an ounce, but by 2008 the price had surged to $14.99 per ounce. Silver has declined from its 2011 apex above the $35 threshold, but has remained steady in the neighborhood of $15-$20 since then.
The spot price of silver fluctuates in accordance with supply and demand, as is true of all precious metals. The reason for the huge spike in silver prices between 2009 and 2011 was arguably that the world had just gone through a severe financial crisis, and many people wished to purchase silver as a hedge against losing everything.
Coincidentally, right around 2011 there was a huge surge in the industrial demand for silver, which helped to boost the spot price to unprecedented highs. Once the world economy stabilized and the surge in industrial demand for silver abated, the spot price for silver declined, and has remained at its present position for quite some time.
Ways to Buy Silver
There are several ways to purchase silver, and the one you choose will depend on personal preference, as well as what your goals and objectives are.
One major decision you have to make when purchasing silver is whether to purchase physical silver or paper silver. Physical silver is of course the actual object which you can hold in your hands, e.g. a bar of silver, or some actual coins. Paper silver refers to a situation where you have documentation which recognizes your ownership of silver, but you don't actually have possession of it.
Paper purchases of silver can be made through exchange traded funds (ETF's) or through mining stocks. If you prefer to have personal control over the silver you purchase, you will be better off making a physical purchase of the precious metal, rather than a paper purchase.
Silver can be purchased in various forms, including bullion, bars, coins, and rounds, which are simply round pieces of pure silver that mimic coins, but which are not legal tender.
How to Buy Silver Coins
It doesn't take a great deal of knowledge or background to purchase silver coins, but if you're going to be serious about it, you would be well advised to educate yourself. This will help avoid the possibility of getting ripped off or taken advantage of by less than scrupulous sellers, and will help to assure that you get value for each of your purchases. Buying silver coins is a great way to retain real value in your financial assets, especially during times where dollars can fluctuate dramatically.
Probably one of the most important aspects of purchasing silver coins is finding a seller whom you can trust. Ask questions that you have about silver and about silver coins, so that you can become as educated as possible about the process, and you can have a good understanding of what you’re involved with.
Get started today by requesting your free silver guide or call Rosland Capital and talk to one of our representatives about buying silver.