Silver Bullion Investments
Silver is an industrial metal, and is used for many purposes today in many different industries. As such, silver is most affected by the amount of manufacturing underway at any given time. Silver prices will move up and down in "Sympathy" with Gold, Platinum and Oil, Sometimes referred to as Gold's Ugly little sister...
Silver is not only used in modern industry, but is also bought and accumulated for investment purposes. In fact, it has been used for this purpose since ancient times.
Silver has also been used in currencies for a very long time,and was used as money as far back as 700 B.C. We find silver coins from ancient Greece, Rome, Britain, as currency, and even longer in Asian countries.
Unlike paper currency that is issued by governments, silver is backed up by the physical metal and it can be bought and sold anywhere in the world.
In other words, it is a hard and tangible asset. This is what makes silver and other precious metals valuable.
Silver has a limited supply, which is why there is a demand and is the reason for its value today. During recent years, silver has been trading at outrageous multiples against Gold and Platinum.
Silver is found in the ground abut ten time more frequently than is gold, but has been trading at as much as 60 to 70 multipless of gold.
Spot prices are extremely important in the buying and selling of precious metals. The spot price of silver refers to the price per troy ounce traded on various Commodity Exchanges; it is updated every second during market hours.
Precious Metals are always traded in the troy ounce that has been the standard measurement for precious metals since the 1800s in the US and much longer in other parts of the world. Silver prices, like the prices of other precious metals such as gold, are subject to volatile price swings. The prices of our silver products are determined by the current spot price of silver, in addition to our premiums for each product. The current silver spot price is determined by many factors, including but not limited to the state of the economy, futures market, OTC (Over the Counter) market, world events and strength of other currencies. At NC Coppers, our up to the minute spot prices are provided by Kitco.com, a leading provider of market information of commodities.
Bars come in various shapes and sizes and are made by different mints all over the world. Silver bars are a simple and easy way to accumulate varying amounts of silver in its purest form.
Common silver bar sizes are one ounce, 10 ounce and one hundred ounce bars.
Silver bars may be purchased and stored at home (not recommended), in safe deposit boxes or in other secure storage facilities, such as third party vaults. Silver bars are typically made from 99.9 percent pure silver, while some producers, like the Royal Canadian Mint for example, use .9999 percent fineness. Silver bars are always stamped with markings to note the purity, manufacturer and weight of the bar. Because of the small premiums over the silver spot price they typically carry, silver bars are one of the or most affordable ways to invest in bullion.
Coins are another very popular way to invest in silver. Silver coins, like bars, can offer investors a simple and convenient way to invest in the precious metal. There are many different types of silver coins available today produced by various governments throughout the world. Some of the most common bullion coins are the American Silver Eagle, Canadian Silver Maple Leaf, Chinese Silver Panda, British Silver Britannia, the Australian Kookaburras, and Silver bullion coins come in various sizes with the 1oz variation being the most popular. In addition, one can buy tubes or monster boxes of multiple coins for convenience at at reasonable cost over spot price.
Like silver bars, silver coins are often 99.9 percent pure. Some coins, such as the Canadian Silver Maple Leaf, for example, can be as high as .9999 percent pure ( a selling point of the RCM). Silver bullion coins do also carry a face value and, therefore, must be produced by government mints. For example, the American Silver Eagle has a face value of $1 USD. The American Silver Eagle seems to be one of the most popular and most trusted coins in the world, and has a great resale market when it comes to sell your material.
A silver round is exactly what it sounds like. It is a round piece of pure silver produced by a private mint. Silver rounds come in various sizes, but like silver bullion coins the most common size is 1oz. Silver rounds carry the smallest premium over the spot silver price, making them a very good choice for someone wanting to accumulate silver. You will need to buy the most recognised as these will be the easiest to sell when the time comes.
How to Buy Silver Bullion
Buying silver bullion at low silver prices is not the daunting task that many seem to think it is — in fact, buying silver bullion has never been easier. There are, however, some basic guidelines that one will want to follow when looking to buy silver.
Am I in a financial position to invest in precious metals and collectables?
As with any investment, precious metals and collectables investments can lose value and investors can experience losses. Make sure you are comfortable with the risks associated with buying precious metals and collectables before investing. (Get professional investment advise from a licensed professional advisor)
What are my investment objectives and goals?
Why are you buying silver? What is your risk tolerance and what is your investment time horizon. Is this a hedge against inflationary risks or perhaps currency depreciation? Are you a "Prepper" seeking to arm yourself against a potential armageddon? Are you interested in simple metal play or are you looking for more collectable types of silver? Know what types of silver you are interested in and why before buying. This will also help make the shopping process easier. Again NC Coppers strongly recommends you seek professional assistance.
Where will I store my silver?
Have a storage plan for your silver. Obviously, small amounts of silver may be stored at home in safes (NC Coppers Never recommend this option, as when, not if, people hear about your collection and or investment, they will rob you!) or other secure places. Safety deposit boxes are our recommendation. For larger amounts of silver, one may want to consider third party secure vault storage (this may be an expensive option, check how its is stored, how you get it back etc). Know the pros and cons of each method and have a plan for your silver before and after buying it.
Should I buy from a local dealer or online?
Buying from a local dealer and buying online can be two very different things. Brick and mortar coin dealers will often have significantly higher dealer premiums associated with their products. Online dealers, often have much lower overhead and move more inventory thus allowing them to offer bullion products for lower prices. the down side is you lose the personal touch that allows you to feel more confident in your purchase and also allows you to get with a professional dealer that can help through the learning phases of coin collecting and precious metal investing.To see what others are saying about buying precious metals and collectibles from us, you can read some customer reviews of NC Coppers on Google, Facebook and the BBB.