23 Oct Everything You Need To Know About Investing In Silver
It is well known fact that only investments can make any kind of business more prosperous and profitable. Naturally, they have to be well planned and timely executed. If investing in silver is something that you plan to do in the near future, either to secure your business funds or to increase your private wealth, there are several important notions you should be aware of in order to make a profit. Here is what you need to know.
When to Invest?
Silver is highly volatile and its price has been ever changing. Obviously, silver investment timing is a rather complicated question and in order for it to be answered there is a multitude of factors that need to be studied. The major influences on the price of silver are fluctuating industrial demand, geopolitical turmoil, crude oil and gold price and sales of major world banks, to name just a few. In order to have a remotely positive investment timing one needs to be familiar with at least these listed factors, which obviously involves risks. On the other hand, which investment does not?
What to Invest in?
Basically, there are two major choices, investing in physical metal or investing in exchange traded products. Which option to go for practically depends on buyers’ preferences. Some surely prefer having a physically present value and feel as if their investment is more solid that way. Some, on the other hand, prefer the convenience of not having to store anything and thing about safe keeping or transport of their valuables. Here are typical examples of both types of silver investments.
Physical Metal, Bars, Coins and Rounds
This is obviously a traditional way of investment, dating back thousands of years. The convenient shape of silver bars makes them easy to store. They are numerous places where you can acquire silver bars. Also, they come in various sizes, 1, 10, 100 and 1000oz bars being most widely spread. One kilogram bars are also convenient and sought after. When coins are in question, their purity ranges from 99,99% in case of Canadian Silver Maple Leaf, 99,93% pure American Silver Eagle to junk-silver coins that range from 35% to 90% pure ones. Silver rounds may vary in purity but are usually .999 pure and above.
Exchange Traded Products
As it was said above, these products are the way to go for all those who do not wish to go through transportation and storage issues of any kind. The largest silver ETF(exchange-traded funds) market is the iShares Silver Trust with more than 350 million troy ounces of silver available, which amounts to one third of annual silver production in the world. Lastly, exchange traded products are traded on all major stock exchanges in the world.
Should I Invest?
Once again, investing in silver requires suitable timing in order to gain profit. As it is the case with any other goods whose price varies based on the law of supply and demand an investment should be made when the price is low and the goods sold when the price is high. As long as this principle is followed, along with all above mentioned factors that influence the price of silver, the investment is recommended.
Hopefully, this will make the dilemma of investing into silver or not a lot easier. Whatever it is, the most important thing is that it was based on facts and after a well conducted research into the matter, not on intuition or impulse.