Precious metals are commonly treated as a safe haven and are seen as protectors of the real value of capital. They play this role especially during periods of increased inflationary pressure, various crises, turbulence on the financial markets – in short, during uncertain economic times. However, the advantages of investing in precious metals do not end here – given that they are usually a long-term investment, they are perfect as a defensive component of an investment portfolio also in periods of relative peace and quiet – they are often treated as a form of the so-called safety cushion.
Investment silver – what exactly does this term mean?
Next to gold, one of the most frequent choices of those investing in precious metals is investment silver, which is gaining ground with each passing year in the eyes of retail investors. Compared to gold, silver has a much broader spectrum of industrial applications, which, under relatively normal conditions, makes it possible to draw an equation between rising demand, which leads to higher silver prices, and prosperity. In the light of the development of modern technologies with a huge demand for this metal (e.g. electrical and power engineering) combined with the infrastructural plans of many economies, it may be assumed that the fundamentals will continue to favour demand for silver.
The commonality between gold and investment silver is undoubtedly “no expiration date”. What do we mean by this term? Only that both an ounce of the former and the latter represented real value 1000 years ago, 100 years ago and 10 years ago and… still represents it today. Of course, we are referring to investment silver in its physical form, because nowadays the market offers the possibility of buying this metal also in its “paper” form. However, given that there are many forms of assets that we cannot “touch”, which in the case of investment silver requires us to trust that our silver is “out there somewhere”, we expose ourselves to unnecessary risk. For this reason, investment silver as a defensive component of a portfolio will work best in its physical form.
Types of silver investments
Now that we’ve covered the issue of choosing a form of silver investment, it’s time to get down to the nitty-gritty – that is, answering the question of what silver investment products to choose. Let’s start with the fact that making investment decisions is closely related to the budget you have at your disposal. Especially in the case of young people, who generally do not have a large amount of capital, this limitation often results in withdrawal even before the first step is taken. It turns out, however, that there are assets in which you can invest even small amounts, not exceeding several hundred zlotys. And here the investment in silver comes to the fore, which is a perfect solution for everyone, as it will prove itself both as the first investment and a form of supplementing the portfolio of an experienced investor.
Silver investment bars or silver bullion coins?
We already know that anyone can invest in silver, so let’s take a closer look at what silver investment products are worth investing in. At the very beginning it should be emphasized that not every silver product will do well in the investment area. Why? We will use here an example of a silver necklace purchased from a very popular jeweler. This form of investing in silver is not the best solution because you will overpay – doubly. First of all it is worth keeping in mind that silver jewelry – as well as other products not made strictly for investment – will rarely be made of the highest purity bullion. Secondly, when buying our necklace we pay not only for the silver contained in it but also for the manufacturer’s margin included in the price, which in case of repurchase will be of little interest to anyone.
This is why it is best to direct your attention towards products designed directly for investing capital. This category of investment products includes silver bullion coins and silver bars. Due to marginal differences in price per gram of pure silver, the answer to the question, which of the above mentioned products is better to choose, really lies in the investor’s individual preferences. It is worth keeping in mind, however, that in the “game” for the title of leader in simplicity of verification of authenticity silver bullion coins win. There is, however, a very simple way to avoid making an investment mistake when buying both silver coins and bars – choose a reputable dealer, such as Tavex.
The second issue – besides choosing a silver bar or a silver coin – worth discussing is the particular silver product you are considering investing in. First of all you should choose those products which are characterized by the highest liquidity. A sure guarantee of trouble-free resale is purchasing a silver bar or a silver coin produced by one of the world recognized mints. To this group undoubtedly belong Perth Mint, Royal Mint, Royal Canadian Mint, Austrian Mint, South African Mint, U.S. Mint, and products such as Australian Silver Kangaroo, Silver Britannia, Silver Canadian Maple Leaf, Silver Vienna Philharmonic, Silver Krugerrand, Silver American Eagle. All of the products listed are available for sale at Tavex. When it comes to silver bars, the choices include PAMP Fortune Silver Bar , PAMP Heart Silver Bar , PAMP Valcambi Silver Bar , PAMP Cross Silver Bar.
It is worth remembering that whether you decide to choose a silver bar or a silver coin, it is ultimately the bullion content that matters most. One thing is certain – in both cases it will be just as good a choice!
Investment decisions should be made considering different factors, including the latest market data. Please make an appointment for a free consultation – over the Internet, by phone or in person at our office.
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