Tuesday, January 11, 2011

Why Now is the Best Time to Invest in Silver Coins

Rather then investing purely in stocks and bonds or paper money you should consider diversifying your portfolio by investing in silver. Silver is one of the world's most important tangible commodities with unmatched investment opportunity for the future.

Why Silver?
The precious metal silver has intrinsic value and unlike gold has numerous industrial applications with more uses being developed every year. Silver has many unique properties that include its strength, ductility and malleability, its electrical and thermal conductivity and high sensitivity and reflectance of light. This has made it an indispensable metal in industry, medicine photography and jewellery.

There has never been a better time to invest in silver. Silver is currently undervalued in comparison to gold and world demand for silver now exceeds annual silver production and stockpiles are running low. Global demand for this precious metal has kept growing over the past three decades and will only increase further as the remaining reserves become more depleted.

How to Invest in Silver
There are two main ways of investing in silver. You can either buy the bullion bars or invest in silver coins. Silver coins are often preferred as they are readily recognized, they come in small denominations and would be readily acceptable in trade should paper money become worthless. If your budget is small then silver coins are ideal as they are a cheaper alternative to silver bullion bars. Also it is easier to counterfeit bullion bars which are sometimes filled with lead to give the appearance and weight of a solid bullion bar.

Another advantage of silver coins is that they are not just inherently valuable due to their precious metal content but they can also be valuable due to their rarity and historical background. The rare and older coins can fetch thousands of dollars and continue to rise in value as the high grade older silver coins become rarer and are valued more highly by coin collectors.

You can instead collect so called 'Junk silver' bags of silver. These silver coins have no real collector value but they do have value in their silver content. The coins that were struck in 1965 or earlier are comprised of 90% silver and can sell for under the spot price of silver excluding the mark up costs. These coins can make an ideal hedge and are easy to come by and dealers sell bags in many denominations and sizes. Pre-1965 silver coins were once used as money until the mid 1960s and could once again be used as money should our monetary system fail.   

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