Why buying silver or silver bars?
Silver has such a wide variety of uses and properties which make it a superb investment opportunity. Compounds such as Silver halides are often used in photography and silver nitrate is used regularly in medicine. It is also used in dentistry, mirrors, optics and electrical goods however it is mainly used for making coins and jewellery. In the current economic climate experts are advising investors to look to precious metals such as gold and silver. Although gold is seen as the best investment, it is generally considered prudent to have some silver in your investment portfolio with many expecting silver to outperform gold in 2010.
Buying silver bars
Silver bars and coins
Some experts do concede that silver is being used less and less in
photography but do believe that its new uses in solar panels, medicine
and silver-zinc batteries will only increase demand for silver.
Consequently, it would seem that buying silver would be certainly be a sensible investment. There are a number of ways to invest in silver such as buying silver bars or coins or investing in a silver mining company. Buying silver bars and coins
is probably the most secure way to invest, although it is unlikely that
you will see a short-term return on your investment. American Silver Eagles, British Silver Britannias and Canadian Silver Maple Leaves are some of the more popular coins. When buying silver bullion coins
it is important to look at the premium over the intrinsic value of the
coin as it will be difficult to recoup back a high premium when you
eventually come to sell silver. This also applies when buying gold bullion or coins like the Krugerrand.
Silver mining company
The other possibility when buying silver is to buy stocks in a silver mining company. The companies profits will invariably increase as the price of silver rises, however it is worth noting that other variables such us an unstable political situation where the company is mining can harm profits and share prices. Postal Gold does not buy any silver.