Silver is a precious meal that has been traded for centuries. People valued it as money and they still do today. Silver is used in many industries. One could even argue that without a metal like silver with its unique properties we would have struggled longer to come up with the technology we currently have. For silver bullion dealers, business is pretty good right now as more people look to precious metals as a safe haven in an economic crisis.

Investors often ask what the ratio of gold to silver they should be investing in to diversify their portfolios. There is no clear consensus, some say 25:75 or 10:80. In the long run it boils down to how much you have to spend. Silver, compared to gold is cheaper. It can be a great way for a novice to start their precious metal investment with metal. This does not mean that silver is weaker than gold, the fact is, the price rally of silver stocks has been higher than that equities and even outpace gold. In the end, it will depend on the precious metal you are attracted to. 

Silver as a safe-haven investment that is useful to own in times of crisis. The price o gold is affected by inflation, economic crisis and pretty much every risk that would make ancestor move from the equity market to a more tangible asset. But most of all, the price of silver is driven by supply an demand. The industries that use silver like the solar energy sector and the automotive industry are growing. 

However, the supply has been disrupted by the global pandemic and the slowing down of mining operations.  This has led analysts to predict that the price of silver might go above $130.00 an ounce. Because of this and other factors that have been weighing on the precious metals market, people have been buying silver. There is bound to be some dipping of the price in a bull market, but general bull markets push the price of commodities like silver and gold up.

If you are wondering about the silver product you should be buying for investment purpose you have silver bullion coins or silver bullion coins to choose from.

Silver bullion coins

Silver bullion coins are made from the highest purity silver. You can buy small quantities of these from a silver bullion dealer or you can buy them in bulk. You can also buy small coins and stack your coins to build a collection.  Silver bullion coins are more expensive than collectible or commemorative silver coins They are available at higher premiums.  You can expect to pay more than $2 over the spot price. The premium is high if you are buying small quantities but they get smaller when  you buy silver coins in bulk. You can buy and sell your silver coins at any precious metal dealer or coin shop. The prices may vary from one dealer to the next so you need to visit a couple of dealers before you settle on one.

Silver Bars

Silver bullion bars are less expensive than their coin counterparts because they don’t have so much detail etched on them. They are cheaper to make than coins and this translates to the premiums that are charged for them.  

You can stack silver bullion bars. They are easier to collect and store. 

Silver bars are easier to move around with because they are harder to lose than silver bullion coins. 

The premiums are low which means the price could be closer to the spot price than that of silver coins. The bigger the bars the smaller the premiums. 

The downside of owning silver bars may take a long time to sell. Silver might be in high demand but if you had to choose between silver bars and silver coins. Silver might be in high demand but investors usually gravitate towards silver coins, mostly because of their beauty and allure and how easy they are to carry around.

Leave a Reply

Your email address will not be published. Required fields are marked *