Online Metal Trading Guide A guide about trading precious metals online plus tips & tricks

Why To Invest In Silver

Silver, like any other precious metals, can be used as an investment. Silver has been used as a form of money and store value for more than four thousand years. But when the age of the silver standard ended, silver has lost it’s capability to be the legal tender in the developed countries (I.e. United States).

Many investors think the price of silver is too unstable for making actual profits. But you can also use that in your advantage once you have studied the silver market and the silver price charts. It is exactly like trading it, when you think the prices are dropping you should buy and when the prices are going up you should sell.

We will be taking a brief look at what you need to understand, before launching yourself in doing business with silver. The price of silver is driven by the market’s demand. For example in the year of 2009 most of silver’s demand was for it’s usage in industrial applications, such as jewelry, bullion coins and exchange-traded products.  The demand is one of the important determining factors of silver’s value. When the demand is high the price also can go up and when the demand it’s low or non existent normally the price of silver is dropping. That’s why the best time for investing is when the demand is low.  When the demand will be increasing you can sell it making profit. Of course the price of silver is determined by other factors such as speculations and economic instability.  When investing in silver all the factors has to be taken in consideration.

Unlike other investments you can actually own the physical form of silver (If you choose so), depositing it where you think it will be safe.

The use of silver in medical and electrical appliances it been increasing on the last 10 years. The need of silver in jewelry has been increasing too since the gold has becoming just too expensive. Since the industrial demand for silver is getting bigger it is expected the price will go higher. On the other hand silver price is very volatile also due to the industrial demand. That is why investing in silver should be considered as a long term investment.

How to invest in silver

The first thing you should know is that there are many ways to invest in silver. Investing in physical silver can offer stability but it won’t bring huge profits. Investing in physical silver or any other precious metals is ideal in times of economic instability.

If you decide investing in silver you can buy:

Bullions/Bars

You can invest in silver bullion or bars, this being the traditional way of investing in silver. Major Banks in some countries like Switzerland sell or buy silver in over the counter deals. The weight of the bars can vary. They can be transacted as 1000 oz troy bars (at 31kg’s), 100 oz troy bars (3.11 kg), odd weight retail bars and 1kg bars (32.15 oz troy)

Coins

Investing in silver coins is yet another popular way of physically owning silver. There are collectible silver coins, which naturally are more valuable and there are silver coins which are valuable only because of their silver content. Investing in collectible silver coins is one of the nicest ways to invest in silver.

Certificates

Investing in silver certificates is allowing to an investor to have a certificate of ownership rather then having a store of physical silver. The Perth Mint Certificate Program (PMCP) is the only government-guaranteed silver-certificate program in the world.

Accounts

Most swiss banks offer silver accounts where the silver can be bought or sold just like any other foreign currency. Unlike owning the phisical silver the customer holds a claim against the bank for a certain quanit.

Shares in mining companies

You can also invest in shares of mining companies.Theese companies rarely mine silver alone, or rather silver is found alogside the other ores that the company mines.Therefore sahres are also an investment in base metals.

Buy silver online

Recently the internet has becoming the ideal place to buy, sell and trade precious metals such as silver. There are thousands of online companies investing in physical silver or selling it. Purchasing silver online is easy because it can be done from the comfort of your home. Sites like eBay and Amazon are only two of the many places where you can purchase silver.

When investing in silver keep in mind:

To study the market closely before deciding to invest in silver.This type of investment is different that investing in stocks and bonds because you are the only owner and you decide whenever to sell or buy.
You may also want to consult with a professional to help you with the selling and buying procces.

Also do some reasearch but chose your sources carefully. Much of the information is misleading.

Get familiar with the many ways you can invest in silver.

Stay on top of the market. There is a time when you must buy and the time to obviously sell at a profit. So like any other succesfull buisness, buy low and seek to sell as high as possible.