We have all bought precious metals for ornaments for a long time,because silver is rare and beautiful. We have used silver to make jewelry and other valuable items. Silver is very useful in combating certain diseases,and is resistant to other chemicals and oxidizing agents. Silver is highly conductive,and also affordable to buy. Silver is a material commonly used to manufacture medical,electronic and technology products.
Especially during bad economic times you will often see companies promoting silver as an investment with a return.
- is like purchasing an insurance policy. While proponents of gold and stacking consider it an income-generating asset,others call them “dead” assets. In our view,precious metals are like a “dead” asset that stores up wealth but does not produce it. If you own silver,gold,platinum,or any other precious metal,you are not really creating wealth; you are simply storing it as a currency hedge. Although silver prices have increased to the point that they are now worth $80 an ounce,this does not mean that silver owners will be ten times more wealth than before. Silver’s value in real dollars is dependent upon the value of various other precious metals. When silver prices double while other assets such as cars,houses,food,stocks,etc.,also go up in value,you will still have plenty to buy things.
The reasons for - depends heavily on your intention and your tolerance for risk. Gold is a better option for people who are planning to retire and for people who want to hedge their money. Many investors are willing to invest in silver because of its higher upside potential. Being that silver is a relatively safe investment for those who are concerned that the system might collapse or that there may be a catastrophic event,silver is a useful investment for people to be able to trade or barter for smaller amounts of silver. As mentioned earlier,purchases of silver are tax-free in many states.
In both good and bad economies,people have also added silver to their portfolios for diversification. When the economy is shaky,investors use silver bullion bars for wealth preservation. Silver can be purchased for a much lower price than a gold bullion bar,and it is easier to invest in small amounts to build wealth over time.
The Origins of Silver
Silver is number 47 in the periodic table of elements,and its symbol is “Ag” for the Latin word for silver,“Argentum”. The English ”Silver” is derlived from the Anglo-Scandinavian word for silver,“siolfur”. Silver mining has been traced back to regions around Asia Minor circla 3000 BCE. Documents that date back to ca. 3,000 BC indicate that silver was used in China during the early 1900s to make silver bars. Early records suggest that the first people to produce silver from a silver mine were the Chaldeans. Silver coinage dates from about 550 BC,but silver coinage dates back much earlier,in the period when coins became available.
Silver is the second-most valuable precious metal,after gold; a gold rush in 1821 led to the discovery that silver was found in the Americas. Spanish investors forced native peoples to mine silver for a large profit. The result was that Bolivia,Peru,and Mexico produced 85 percent of all silver produced and traded worldwide between 1500 and 1800.
Over 880 million tons of silver are mined every year.
Most silver is extracted by stripping lead from old silver mines in order to extract silver. Galena,a sulfide mineral of lead that may contain silver,has been used in ancient civilizations as a reliable way to store money. Often,silver that is found in the mineralized gold that occurs in the mine is worth more than lead. Silver mining is difficult and often dangerous because lead is incredibly toxic. Some slaves in South America,who mined 70,000 to 150,000 tons of silver between 1500 and 1800,died of lead poisoning within two or three years.
Because pure silver is often enriched with precious metals such as gold,lead,or copper,miners often turn to a different mine to produce other valuable mineral ore. The process by which silver is melted down by a furnace extracting silver from the ores.
Where Should You Buy Silver Bullion?
Silver bullioned coins are available in many different shapes and sizes,so there is something for everyone.
Silver Bullion: Silver that is 99.9% pure or better.
Government mint coins,including the American Silver and Gold Eagles,and the Canadian Silver Maple Leaf.
Silver rounds are coin shaped silver bullion that are produced by private mints; they are not legal tender as they are not produced by a government mint.
Minted silver bars command a higher premium above spot than cast silver bars,reflecting the more intricate and demanding production process. Some stackers or investors choose their silver products based on how liquid and sellable they are; in other words,they need something they can quickly convert to cash in the event of hyperinflation or a market crash. It would be very hard to exchange large bars of silver in the event of a stock market crash or other economic disaster; it would be much more costly to trade them.
What does Silver sell for on the open market?
You pay for silver based on the spot price,as it trades for on global commodity exchanges,plus a premium. Silver bullion costs about $700 to $1,350 per ounce depending on its spot price and its bullion premium. Premiums for silver bullion are dependent on different tax rates and costs associated with the minting,packaging,and marketing of the product. Silver spot prices fluctuate depending upon many factors,including the price of silver or gold,and the value of silver bullion coins.
Because silver is a scarce commodity,people need to continually replenish it in order to obtain the resources that they need.
It is difficult to predict silver’s future value based on current global monetary and interest rate markets and other factors,but silver is increasingly valuable due to its intrinsic value and its inherent ability to conduct a safe,stable investment strategy,and its accessibility at -.
Gold,silver,gold coins,and other precious metals are all available at a premium in order to increase the value of the product.
Silver has been in demand for consumer electronics due to its conductivity. Plus,it is a common material in surgical instruments.