Investing in silver requires specific knowledge and your role in the market. When invested correctly, you can enhance your wealth and preserve it.
Price increase
Silver set its all-time high of $ 50 per ounce in 1980 and its current value is still less than half that amount today. In 2003, the average spot price of silver was $ 4.88 per ounce and has gone from peak to peak gold ira companies reviews, reaching an average of $ 18.04 in 2010. Most importantly, it has continued to rise along with gold and It only maintains a 1: 60 price ratio of gold to silver. This means that there is plenty of room for the price to grow as precious metals become more popular investment vehicles.
Long-term investment
World silver mine production has steadily increased along with price per ounce since 2000 but there remains a finite supply of extractable silver. As an investment product, it pales in comparison to the amount of silver that is used as an industrial application. Of the 729 million ounces of silver used for manufacturing during 2009, 353 million ounces of silver were consumed in industrial applications. Over time, industrial demand for silver will only reduce the availability of silver, increasing the value for years to come. This logically results in a higher value for any silver investment you decide to hold for the long term.
Numismatic silver
Numismatic silver is the act of collecting silver coins. Besides collecting junk coins, starting an informal numismatic silver collection is considered the easiest way to get involved in such an investment. Investing in numismatic silver not only allows you to invest in the value of silver, but it also works as a hobby collection for many. Often times, this method of investing in silver is best for those who already have access to some kind of modest numismatic collection of relatives or ancestors. The value of numismatic silver is much more complex than the standard silver bullion designated for investment. Numismatic silver coins are often worth much higher than the spot market price because the grade and rarity of the coins must be taken into account.
Assessing your finances
Taking the time to make an objective assessment of your available finances before investing in silver is crucial to your success. The amount of funds available will determine how much you can invest in silver. A variety of assets and funds from IRA reinvestment programs, as well as standard bank savings can be used to make related investments. The prospect of increasing your wealth early on by financing a large silver investment before the spot price rises again can be tempting. However, each investment should be managed sparingly and preserving a reserve of emergency funds will help protect against unfavorable fluctuations in the spot price of silver.
Silver ETF
Silver exchange-traded funds allow you to invest in silver without having to deal with the physical aspects of holding coins or bullion. Exchange-traded funds can be traded like stocks, but act like securities that track the price of silver bullion-based commodities that are held directly or through derivatives such as silver futures contracts. Silver ETFs allow you to get in and out of investments quickly. Buy or sell decisions based on tracking market prices by the ETF 39 can be made without having to pay the mining company fees that are part of the physical investment in silver.