Investing in Silver
The Basics of Investing in Silver
When investing in Silver, start with the basics about the live price of Silver. The first decision you have to make is: Why are you interested in buying Silver? If you want to invest in Silver bar prices or Silver coin prices, are you doing it simply for business and to make the most of your money? Or do you have a love of history and art and want to pay the price on Silver to invest in coins that have numismatic or collector value? Someone interested in collector coins will pay a higher premium Silver coin price because of the artistic and historical value of coins from around the world.
Once you know which type of Silver investment you want to make, check out the price of Silver per ounce and determine whether you want to buy Silver bars, Silver rounds or Silver coins. Coins can include contemporary coins minted recently, never intended to be in circulation as currency. Some popular Silver coins include Silver American Eagles, Canadian Silver Maple Leafs and Austrian Silver Philharmonics. You can also choose vintage coins that were in circulation but have little to no numismatic Silver value. These Silver coins are commonly referred to as junk Silver. The today Silver price for junk Silver, which includes U.S. Silver coins minted before 1965, includes a low premium compared to other vintage coins with artistic or historic value. Some of these junk Silver coins have as much as 90% Silver content.
Others prefer to buy coins with high numismatic value because they collect coins for fun – and sometimes for investments. These vintage coins have a premium Silver troy ounce price because they were originally minted as currency. These coins often feature designs that inspired the newer coins that have no face value. For example, the current Silver American Eagles, first released in 1986, have a design of Lady Liberty inspired by the Walking Liberty Half Dollar design of the early 1900s. This original artwork was created by architectural sculptor Adolph A. Weinman, who also created art for the Mercury Dime as well as various medals for the U.S. Armed Forces.
APMEX offers many coins with numismatic Silver value, from early dimes from 1796 to 1837 to early half dollars from 1794 to 1836 and even the lightest-ever U.S. minted coin, the 3 Cent Silver coin, created because postage rates went from 5 cents to 3 cents. People love holding these numismatic coins in their hands. It's like holding history and it is this perceived value that drives up the Silver price per ounce when buying these beautiful old coins. Many collectors agree the price is worth it!
Is The Price of Silver Per Ounce a Good Investment?
To know whether the price of Silver per ounce is a good investment, you will need to understand the underlying dynamics of the Silver market. Silver prices per ounce today are affected by the same factors as the historical price of Silver. Supply, demand, politics, economics, production costs and sentiment all affect the history of Silver prices. Study these factors and you can determine whether a Silver investment is right for you.
Supply and demand are the bedrock of capitalism and have a great deal to do with the price for Silver. Demand is dictated by both uses and sentiment. Silver has many industrial uses, from solar panels to light switches. Silver is also in high demand for investments and jewelry. These uses create more demand, which, in turn, creates a higher price for Silver. As emerging markets demand more industrial products, the use of Silver will only increase. Demand is also influenced by perception or sentiment. The more people see Silver as a good investment, the more in demand it will be and the higher the price per ounce of Silver for favorite investments like American Silver Eagles or Canadian Silver Maple Leafs.
Silver, like Gold, is also seen as a good investment when the rest of the economy is lagging. Typically, Silver and Gold prices go up as the dollar and other investments falter. When reviewing Silver prices history, investors also notice that when inflation strikes, Silver often trends higher. In fact, some of the highest Silver prices per oz were during high-inflation times. Many like investing in Silver because they see the Precious Metal as a safe haven, holding its value.
While the above conditions create demand, supply is also a critical factor in determining the price of an ounce of Silver. Silver is typically thought of as less rare than Gold, although that has varied and is based on how easy Silver is to mine and process, including the stability of governments where Silver is mined. The 10 biggest Silver mines include ones in Mexico, Poland, Bolivia, Turkey, Peru, and Australia, according to mining-technology.com. In addition, stockpiling by governments or private companies can also affect the supply. When deciding whether to invest in the price of Silver today per ounce, it's important to use these basics to do your own research to determine how Silver, including American Silver Eagles or Silver bars, might fit into your investment plans.
See how Gold, an ancient storehouse of wealth, plays a vital role in modern investment portfolios. Watch Video
Written to acquaint you with Precious Metals investing and all the ways APMEX helps you succeed. Read more