Investment in Silver

Investment in silver is as wise as investment in other precious metals like platinum, gold and palladium when it comes to commodity investment. This is because silver has already been used as store of value and currency for 400 years. Investment can be done through various ways, and 6 are laid down as below:

1. Purchasing silver coins. Buying the Canadian Silver Maple Leaf, for instance, is a good idea as these coins are made of pure ( Ag ). Choices are available from fine to junk silver where the former are older coin versions made of small amount of silver. The easiest instances are U.S. coins like the quarter, dime and fifty cent. All of them are made of ninety percent of silver with a face value of 8/10 troy ounce per $1.

2. Investment in silver bullion bars. This is a traditional way of investment whereby silver is purchased and sold by a number of Swiss banks. These banks keep the bars in safety boxes and for dealers they keep them in either allocated or pooled storage.

3. Creating a silver account. Many Swiss banks allow investors to create a silver account with them. Through this method, silver is traded like common foreign currencies. The ownership of the silver isn’t awarded to clients, though. In this case silver is claimed against the bank based on its amount. Storage is available for either allocated or pooled option.

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4. Getting ownership of a silver certificate. With it, buying and selling silver doesn’t involve any physical transfer of the metal. The Perth Mint silver certificate program, for instance, allows the trading of silver solely by way of certificates and this method is recognized by the national government.

5. Investment in silver through ETFs (exchange traded funds). ETFs allow investors to gain access to the current price of silver. There are quite a number of popular ETFs such as jShare Silver Trust, Central Fund of Canada and ETFS Silver Trust. Buying and selling via ETFs eliminates all the hassles that may occur due to the presence of silver in the physical forms.

6. Investment in silver via CFD (contract for difference). There are quite a number of financial institutions located in the United Kingdom that offer the convenience of CFD or contract for difference. Investment via this method involves two parties, i.e. the buyer and seller. Both parties are required to sign a contract whereby the seller will be paying the buyer an amount that derives from the difference between the present value of silver and its past value when it was purchased at the time of contract. If the difference represents a minus number, in this case of investment the buyer will be the one who will pay the seller.

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CFD creates the convenience of trading silver both in the short and long term. Market price speculation can be done much easier as well. However, in the U.S. silver does not own a forced tender status anymore. Investment in silver via this method has been discontinued since 1967.

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by Arto L