The Basics of Investing in Silver

When investing in Silver, start with the basics. The first decision you have to make is: Why are you interested in buying Silver? Are you interested in creating a hedge against inflation by investing in Silver? Or do you have more of a collector’s interest in the historical and artistic value of numismatic pieces?  

Once you know which type of Silver investment you want to make, evaluate the price of Silver. Silver has stood the test of time as a reliable store of wealth and value, and the white metal is likely to continue to be sought after for its budget-friendly investor appeal and its potential to provide a meaningful hedge against economic downturns.

Silver coins, bars and rounds are produced from both public and private mints around the world. Buying Silver bars is one of the most cost-effective, safest and easiest ways to own physical Silver. Silver bars are the bullion of choice for many investors because they cost less over Silver spot price than Silver coins. Silver coins are sold at a premium above Silver spot prices because of their unique designs and limited availability. Coins are usually sold in brilliant uncirculated condition, having not been used as actual currency. Though not as collectible as some Silver coins, Silver rounds are minted to an equally high standard with beautifully detailed designs and clean striking.

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 uses of Silver will only increase.

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.

APMEX recommends discussing the pros and cons of investing with a financial advisor or professional.

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