What to know about investing in silver? Discover why investing in silver pays off and how it can help your diversity your portfolio.
We Know: All About Investing in Silver
Why invest in silver?
Unlike stocks and bonds, or any paper investments, silver has intrinsic, permanent, and immutable value. The price of silver remains steady because of its scarcity as a precious metal, and its properties. It is the least expensive of the precious metals. Paper currency, on the other hand, can be devalued depending on the amount in circulation at any given time.
How is silver valued?
Silver is valued more as a commodity than as an investment, unlike gold, which is valued more as an investment. Silver valued as a commodity in industry, photography, jewelry and silverware. As a general rule, silver is more volatile than gold.
Which countries mine or produce silver today?
Silver is produced in 16 countries today. The countries and percentages of production are included below:
- Mexico - 16%
- Peru - 15%
- Australia - 10%
- China - 7%
- Poland - 7%
- Chile - 7%
- United States - 7%
- Canada - 7%
When is a good time to invest in silver?
The best time to invest in silver is when you want to speculate against the dollar during times of inflation. During times of inflation, stock values decrease, and silver values increase. Once you've made the investment in silver, you'll want to hold onto it and then convert it to gold or cash before the value decreases, since silver is not a good long-term investment.
Silver pays no dividends and has no noticeable price increases. The value of silver deflates during economic depressions.
How can I invest in silver?
You can include silver as a part of your general investment strategy or for IRA accounts. Investments are made using any one of the following methods:
- Silver bullion
- Mining stocks
- Silver mutual funds
- Silver certificates
- Silver accumulation plans
- Silver futures contracts
- Silver options
Before you make any investments, you should have a good understanding of the silver equities market, or consult your investment advisor or financial planner for more specifics.
Should I invest in silver?
The low margins associated with silver make it a great investment for wealthy investors looking to diversify their portfolios. Because silver is the least expensive and most readily available of the precious metals, the values tend to fluctuate depending on market conditions. For this reason, silver is not a good investment for the risk averse investor.