The most common silver investing method is through purchasing silver bullion bars. These bars are made in sizes between 1-1000 ounces and some countries even allow investors to purchase bullion bars from high street banks completely over the counter. After purchasing, investors will either store the bars inside their private home safe or with a dealer.
Silver coins are a relatively new investing method that began in the 20th century when the value of silver exceeded the coin’s face value. When it comes to silver coins, there are two different types–fine and “junk.” Both types do possess a silver value that is dependent upon pure silver’s weight. Most American junk coins are either sterling silver or contain 90% pure silver while most Canadian junk coins have 80% and the majority of British junk have 92.5%.
There is also the option of silver rounds that are made from.999 fine silver. These rounds are considered to be a hybrid coin/bar; however, they are not legal tender. Despite this fact, they are quite the popular choice for collectors as there is the option of striking them with custom-made designs.
Many major funds hold a great deal of silver reserves, which allow investors to purchase silver without having to actually hold or store it. Instead of purchasing actual silver, these investors will buy units in the holding company in order to purchase silver at a price that is equal to the actual assets’ value. Among the major funds, ETFS Silver Trust and iShares Silver Trust are the two most common and can be bought into through a stock broker.
Silver accounts are something offered by many Swiss-based banks. They can be used to buy and sell silver instantaneously, much like foreign currency. Of course, the investor will not own actual silver but instead will possess a claim against their bank for the actual amount of silver metal.
Spread betting is a service offered by several firms in the UK and other European countries. They give investors a chance to place bets on the future price of silver. A few of the major spread betting companies include CMC Markets, IG Index, and Cantor Index.
Another silver purchasing idea is to make an investment into a silver mining company. With mining company investments, your success will be greatly dictated by the company’s profit margins. And their profits rely on overhead costs as well as numerous other factors. And when silver values begin to rise, the company’s shares will too. Be advised that most sliver mining companies do not only deal with silver; in most cases, silver is mined alongside of copper and zinc. This means any profits you earn from this type of investment will greatly depend on other base metals besides silver.
When choosing the appropriate investment method for your financial portfolio, you need to take a look at factors such as your available budget as well as the level of your investing savvy.