Investing in Silver? Decide What’s the right Silver Investment
Silver is a versatile precious metal offering myriad uses and investment opportunities. As an element, it is much more abundant in nature than gold and therefore is significantly more affordable per ounce than gold.
As is the case with gold, there are many ways to invest in silver. We shall refer the reader to this report on investing in gold for exploring the various options of investing in precious metals without the obligation of receiving physical bullion so we can focus here on what investing in silver means to you, and provide a brief overview of what forms of silver bullion are available and how to acquire it.
An invaluable tool for evaluating any purchase of physical bullion is GoldPrice.com. GoldPrice.com uses a patent-pending technology providing the prospective investor with the ability to compare gold and silver prices across major bullion dealers. GoldPrice.com automatically calculates any surcharges, shipping costs or credit card commissions and includes them in the price you see on your screen while browsing, providing you with a final “out the door” package price. Many dealers offer discounts for bulk purchases, and GoldPrice.com allows you to search for bullion prices for anything ranging from a single silver bar to hundreds of silver coins.
Silver is often derided as the “poor man’s gold.” Nothing could be further from the truth. Silver simply fills a different role than gold in our daily lives and investment portfolios. As a relatively abundant precious metal, silver is much more affordable and is used in many more industrial applications than gold. Unfortunately, this can cause volatility in the spot price of silver. During a day of panic at the New York Stock Exchange, it is not unusual to see the silver price move opposite that of gold. This volatility is due to silver’s greater role in industry and makes it more vulnerable to general economic data than gold. That said, silver remains a far superior investment for wealth protection than any stock or bond, given its very nature as an element of the Earth which must be mined, refined and minted prior to issue, and has been an accepted currency for thousands of years. Stocks and bonds, on the other hand, are nothing more than pieces of paper claiming ownership of something you don’t truly own or control.
Traditional investments involve silver coins and silver bars. Where silver can be a superior investment to gold is in the fact that silver, being a metal less precious than gold, can be invaluable in crisis situations where both metals are rising in value but silver, due to its lower value per weight, would be more widely accepted than gold for its ability to serve as a medium of exchange for smaller transactions. Stories abound of a couple gold coins buying a whole city block during hyperinflation in Wiemar Germany, but those same gold coins might not be as useful when it comes to exchange for daily necessities such as food or water.
Investing in silver will provide the investor with an important diversification of his/her portfolio, and is best combined with a collection of gold investments in addition to any stocks or bonds deemed worthy of the risk involved. Gold and silver go hand-in-hand as a hedge against monetary inflation, war and economic uncertainty. One thing is certain: silver is not a poor man’s metal. Both poor and rich alike have the opportunity to invest in silver to protect themselves from these uncertain and unpredictable economic times.