Investing in Silver
Why Invest in Silver? Why Now?
One little known fact about investing in silver is that up until now, demand has outstripped supply for fifteen straight years. Annual silver supply deficits have run as high as 200 million ounces in the highest years for industrial demand. There is nothing more bullish for a commodity than such a deficit condition. Due to all of the industrial demand, there is actually less silver available for investment than gold. This one fact alone should alert any intelligent investor into thinking that some silver coins or bars should be held as part of one's precious metals allocation and for portfolio diversification.
We should also look at silver's relationship to gold. Around the world gold is viewed as hard money not subject to the manipulation and devaluation of paper currencies. When people have tangible evidence that something has gone badly wrong with the economy, they begin to hedge against it. One of the best ways to hedge against the economy and inflation is buy owning hard assets such as precious metals, like silver coins. Even though the current economic recession has led to a decrease in industrial demand for silver, silver prices have followed the upward trend of gold as the wealthy and the sophisticated investors have horded the metal. Even more important is to understand how silver bars and silver coins perform in bull markets for precious metals. It currently takes over 60 ounces of silver to purchase 1 ounce of gold. Historically this ratio has been closer to 40 ounces of silver to purchase 1 ounce of gold. If silver returned to its normal ratio relative to gold, it would trade at close to $50 per ounce without a change in gold price. Notice the ratio closed to as little at 14 to 1 in 1979.
Silver Easy to trade
Silver coins are very easy to buy and sell, and in most cases, will incur very low transaction fees. Investors should work with a reliable silver dealer or silver brokerage company to get the best market price and investment vehicle for their overall objectives.
Silver Tax Advantages*
Like gold, physical silver can be owned within a qualified retirement plan such as an Silver IRA, meaning that the funds used to purchase the silver can be tax-deferred. Like certain gold coins, certain silver coins may possess tax advantages when planning estates or generational wealth.
Best Investment Options
You may be asking yourself how to invest in silver. At Republic Monetary Exchange, our team of experts can explain the benefits of investing in silver and why this may be the best investment option for you. Our team can educate you on the best way to invest your money in silver, no matter what your budget or experience level. RME is happy to go over how and where to invest your money in silver coins and bars.
What is a good investment in silver?
Buying silver as an investment leaves you with a lot of different choices. For example, there are many different silver coin options – numismatic, which includes Investment Grade, Low Grade, Rare Collector, and Dated Foreign coins, and then Bullion, which includes bullion coins and silver bars. Our experts can go over which products are the right choice for you, but make sure you ask a few simple questions first.
Important questions to consider
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- Which coins are subject to price fluctuation with the stock market?
- Which coins can be confiscated by the U.S. Government and which coins cannot?
- Which coins are more stable and have proven to hold their value over time?
- Do I want to hold on to the coins for many years or trade them frequently?
- Do I want the option of putting the coins in an IRA?
- What are the important differences between the coins and the bars?