For year precious metals have been held as alternatives to stocks, bonds and other traditional investments. When the economy is not doing well, central banks resort to printing more money this devalues fiat currencies and raise inflation which is why people hedge their bets with precious metals like silver and gold.
When a precious metals investor decides to “get physical,” he or she often begins with a silver purchase, even before getting to gold. The low price of entry (relative to other precious metals) makes a physical investment in silver possible even with a very small amount of capital. And with a first investment in physical silver, a popular choice is, of course, the silver bullion coin.
When an investor decides to buy physical bullion, he might consider silver before gold. This is because of the low price of silver which makes it a low entry level investment. You can buy silver for a very small amount of money. Silver is often popular as a first investment in precious metal.
A lot of investor love silver because it retains its value in difficult time it also serves to protect their wealth from inflation. This way investors can be sure that they have a currency that cannot be inflated or deflated by continuous money printing or falling interest rates. There are a number of ways to invest in silver:
Bullion Coins or bullion bars
Investors buy physical silver like coins or silver bullion coins because of the emotional satisfaction they get from having something that is more tangible because you have physical possession of the metal. When the price of silver rises you can sell silver bullion and make a good profit. When buying silver you have to be aware of the spot-price so that you know that you are buying it at a fair price the same is true for when you sell silver you need to know what the current spot price of silver at that point. You might not get the exact price for your used silver bullion especially when you are selling to a dealer because other costs are factored into what you’ll get offered.
You might think that the only difference between silver bullion coins and silver bullion bars is their appearance and weight. That is not the only difference. These two forms of silver bullion products differ also in their purpose. Silver bullion coins have a legal tender value making them currency in their respective country of origin. Bars on the other hand aren’t classified as such and are therefore only valued for the silver content. It’s easier to sell silver coins during crisis than it is to sell silver bullion bars.
Some investors may have bought numismatic silver coins. These are different from silver bullion coins. They have no legal tender hence no guarantee that they may be used as currency one day. Numismatic coins are valued for their rarity and their uniqueness. Of course the amount of silver is important but unlike bullion coins, numismatic silver coins aren’t made with the finest silver. However, they are known to trade over the silver spot price. Whatever type of silver product you may have, make sure you trust the dealer to offer a fair price.