Silver is a precious metal that is in great demand for many reasons, and some of these reasons have nothing to do with its appeal as a collector’s item. It is also needed as a component for the construction of computers, tablets, and smartphones, and it is has uses in medicine, jewelry, and optics.
With so many uses and so many appeals, the demand for silver has been consistent for a very long time, and in uncertain times especially, it retains its value like few other commodities. A great perennial investment idea, silver is a fine way for an investor to get started on the path to having a solid and diverse portfolio. Here are some of the investment options available to the beginner looking for opportunities with silver.
Silver coins are one of the most appealing options for investment, partly for their value and partly for their beauty and craftmanship. A good example would be American Silver Eagles, which are not only more than 99 percent pure silver, but also feature two beautifully etched surfaces. In addition, it is the only coin in the world to have its weight and purity guaranteed by the U.S. government, and is struck in limited quantities, which adds to its value.
Silver bullion is typically sold in the form of bars of various weights, the most common of which are 10 ounce bars, 1 kilogram bars, 100 troy ounce bars, and 1,000 ounce bars. Investing in silver bullion is one of the most popular ways to begin investing. Of all the long-term investment possibilities, it is cheapest, easiest, and the most liquid, regardless of the state of the economy. Since the known supply of silver in mines is limited, and the demand is expected to increase tremendously, silver bullion is probably one of the best investment opportunities available.
Silver certificates are certificates of ownership that the possessor holds without having the physical silver, and were only printed by the U.S. Government between 1878 and 1964 as one component of its negotiable currency bills. Certificates allow investors to buy and sell silver without actually possessing the metal physically, or having to store them as an investor would have to store silver bullion for instance. This makes them very convenient as an investment option, and very easy to buy, sell, or trade.
Silver Miner Stocks
This kind of investing requires a knowledge of equity markets, but leverage to pricing of silver is an advantage, and some of the companies involved pay dividends as well. There can be a big return on silver mining stocks because silver is purchased by the equity companies for a low price at high volume. However, the silver produced is still tied to the actual market value.
Silver Futures and Options Contracts
Silver futures are one of the commodities traded on the New York Mercantile Exchange in this country, and investors and companies use the commodities contracts to hedge, invest, or speculate on the future price of silver. At present, silver futures are very popular, since the future demand for silver is expected to skyrocket, and known reserves of silver around the world will simply not be able to keep up with that demand.