Silver Bullion Investments: What's the Gotch?
Finding the silver bullion investments that are perfect for you can be tough. To save you time and effort, we're breaking down some of the most important factors to ponder when considering bullion investment options.
What is the silver market?
If you're interested in hedging your bets against inflation and want to add some tangible value to your portfolio, then silver may be right for you. What is silver, you ask? Silver is a metal widely used throughout the world for monetary purposes, jewelry and other decorative items. It is also one of the most elemental metals on the periodic table, meaning it has the potential for high industrial use.
There are three main markets for silver: Spot Silver (the price of silver per ounce on the open market), Forward Silver Prices (front-month prices) and Licensed Bullion Dealer (LBDS) Silver Prices (the midpoint between Spot Silver and Forward Silver Prices). The Spot Silver market is essentially where buyers and sellers come together to buy and sell silver at current market prices. The Forward Silver Prices market reflects future delivery obligations from holders of silver futures contracts. Finally, LBDS Silver Prices reflect premiums paid by ETFs that track these prices rather than having physical metal holdings.
The Benefits of Investing in Silver
Silver is one of the oldest metals, with a long and varied history. Today, it is still considered a valuable resource due to its many uses, including as a form of currency and investment. Here are five reasons to invest in silver:
1. Silver is extremely durable. Even at high temperatures, silver will not tarnish or corrode. This makes it a great choice for coins and jewelry that may be exposed to regular wear and tear.
2. Silver is versatile. It can be used in coins, jewelry, electronics and other technologies. This makes it an ideal choice for investors who want to diversify their portfolios.
3. Silver is financially stable. Over the past century, silver has maintained a value equivalent to at least its metal content. This means that your investment will grow regardless of the economy or stock market conditions.
4. Silver is environmentally friendly. Unlike other metals, silver does not contribute to greenhouse gas emissions when mined or processed. Consequently, it is a good choice for those concerned about environmental pollution and climate change.
5. Silver has historic value. Much like gold, silver has been used as a form of currency and an investment throughout history.
How to Invest in Silver Bullion Investments
One of the most common ways to invest in silver bullion is through silver mining companies. These companies are responsible for extracting and refining silver from ore and then selling your gold and silver on the open market. There are a number of reputable mining companies out there, so it's important to do your research before investing. The good news is that many of these firms offer a variety of investment options, including stock options, mutual funds, and individual silver coins.
Another way to invest in silver is through bullion coins. These coins are made of pure silver and typically have a higher gold or platinum value than their paper counterparts. Some examples include American Eagles, Canadian Maple Leafs, and Swiss 20 francs. It's important to do your homework before buying any coins because not all coins are worth the same amount. Furthermore, some mints produce more valuable coins than others. So it's important to find a reputable dealer if you want to invest in silver bullion Sydney.