Unlike gold, silver has always been remarkably stable in its price and availability. For more than four thousand years, silver has been used as jewelry, legal tender and in cutlery. It is prized for its hard nature and silvery luster and relatively cheap price. In the US, silver was the legal tender till 1964 but it slowly became too expensive for usage in coins. It is remarkably cheap, highly in demand and quite affordably as an investment option for consumers. If you are planning on buying silver as an investment, here are a few different ways and means on how to invest in silver quickly and easily.
Silver Bars
One of the most traditional ways of investing in silver is buying silver bars which are tagged to be a hundred percent or ninety-nine percent pure. In countries like Switzerland and Liechtenstein, bullion bars of silver are available for sale and can be purchased over the counter at major banks. There are different sizes of bars that are sold through banks. For example, 100 oz. troy bars are labeled as COMEX and LBMA good delivery bars. Smaller bars are also sold through banks like 100oz troy bars that are branded as Engelhard and Johnson Matthey. These brands cost a little more but the price varies according to market conditions. Odd weight retail bars are also sold according to customer requirements and weight and cost has to be calculated according to current rates. Other varieties include one kg bars, 10 oz. bars and 1oz troy bars.
How to Invest In Silver Coins and rounds
silver coins
For most customers who cannot afford bars, silver coins and rounds are a much more affordable alternative. Local mints produce special commemorative coins that are sold on the open market at current rates. These are one of the easiest ways of investing in silver directly. For example the Canadian Mint produces the Canadian Silver Maple Leaf that is 99.99% pure followed by the American Silver Eagle which is equally pure and open for public purchase. However, when purchasing coins make sure that you are buying pure silver as commemorative coins are also made in junk silver with is a small amount of silver combined with an alloy of other materials. Moreover, all US coins minted before 1964 will contain large amounts of silver as silver was legal tender at that point of time. Consumers can also order Sterling Silver coins which are 92.5% silver and have a higher luster as compared to 99.99% pure silver.
How To Invest in Silver Exchange traded products
Silver exchange traded products refer to a legal method for investors to invest in silver without the problem of buying silver bullion and storing it. Every stock exchange will have silver index which is open for trading. However, take the time to read up on the silver trading process so that you can understand how the process takes place. World famous trading funds that deal with silver include the iShares Silver Trust at the New York Stock Exchange, the ETFS Physical Silver and the ETFS Silver Trust, and the Sprott Physical Silver Trust. Read up on the physical trust offering before proceeding with any investments.
Silver Certificates
Almost anyone can invest in silver with the use of silver certificates. These are a simpler version of investing in silver without actually having to store the silver bars. However, these are not issued in every country. In Australia, the Perth Mint Certificate Program offers the certificate for purchase however; this option of investment has been discontinued in the US.
How to invest in Silver Accounts
Buying silver through silver accounts is possible through Swiss banks. This process is the same as buying and selling foreign currency. The process of trading does not require buying the actual metal but it acts like claim in the bank for a certain quantity of metal. There are also several online trading agencies like Bullion Vault that allows consumers to traded silver as an alternative to gold. However, the consumer is not the owner of the gold that he buys through accounts. The consumer may also not be allowed to redeem the silver that he has purchased through the certificates.
Derivatives, CFDs and spread betting
Although this is a feasible option for investing, it is not an ideal option for everyone. Derivatives, CFDs and spread betting are currently traded on various exchanges all over the world and they do require a little knowledge about the field. Make sure that you read up as much as possible about these fields before proceeding.
How to Invest In Silver Mining companies
When you invest in silver mining companies, you are investing in the company not the silver produced by the company. This is a very feasible option as silver is usually found with a range of other metals located close by. Furthermore, silver companies usually do mine many more than just silver and you will not lose on your investment. This investment is usually through shares and the share price will depend on the functioning of the company rather than the actual price of the silver metals.
How to Invest In Silver Mutual funds
Rather than investing in a specific silver company, it would be preferable to invest in silver mutual funds that spread the investing in many companies. This protects your investment and ensures that you are safer.
Why should you invest in silver?
Although there are several options for investing in silver, why do you need to do so? Not many people do realize that silver is quite easily available and prices remain steady as compared to gold. Moreover people with as little as $50 can invest in silver and store it in banks. The metal is very useful in a range of sections too. Silver is used in jewelry but it is mostly used in the technology and communication field and it is quite in demand. As a result, investing in any form of silver will mean that you do get substantial returns on your investment. With regards to Gold vs Silver, gold might seem to be a better investment for people but silver prices do remain stable and it tracks alongside gold.
