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52-Second Video Explains Silver Price Changes
You may also see that we offer a FREE Silver Investment Kit on the right-hand side of this page. If you’re serious about investing in silver, you must claim the kit. It contains all the best info and tips you’ll ever need about silver investing!
How Much Is Silver Worth?
Silver is a highly valued precious metal and after it has been extracted from the earth, it is used for many different purposes. Investors consequently buy silver but it is also used to make silverware, to mint coins and to make exquisite jewelry. If the metal is considered to be pure silver, then it must contain more than 99.5% silver, if the metal contains 92.5% pure silver and 7.5 per cent of another metal, then it will be known as sterling silver. Pure silver is a very soft metal whereas Sterling silver is easier to work with.
If you want to buy silver per ounce, then you need to understand that this precious metal is sold per troy ounce. One troy ounce is marginally heavier than the avoirdupois ounce and silver traders buy this metal by the ounce. The price of silver is determined by those who trade in the global commodity markets and the price per ounce much depends on supply and demand. In particular, the price of world currencies has a direct effect on the price of silver. The dollar is known as the reserve currency for the world, in layman’s terms this means that the dollar is used as a standard form of currency by many nations. If businessmen and traders lose faith in the dollar then they may invest in silver. In reality, this means that they are investing in the precious metal as a hedge against inflation. If you are thinking of buying silver as an investment, then, you will need to look at the current silver prices. It is interesting to note that the prices of silver coin collections can go sky high if the price of the metal starts to rise.
Silver Price History
The world has always considered silver to be a precious metal and there was a higher demand for silver as the European population grew. Way back in 1477 the silver prices hit a record high because the demand outweighed the supply. In subsequent years silver was mined in large quantities, it became more readily available and the price of silver started to fall. During the 1980s, silver was worth over $20 per troy ounce and this in fact was then a record breaking price. In the year 2004 silver prices began to climb steadily because many investors were worried about inflation. The price of silver per ounce in 2004 was around the $26 mark but by 2010 the precious metal was selling at just over $27 an ounce.
How High Will Silver Go?
In the year 2000, silver prices were under pressure and on average you could expect to pay around $4.95 silver per ounce. In 2001 one troy ounce of silver would have cost you around $4.37 but in 2002 the world was facing an economic slowdown and silver prices started to bounce back. The price of a troy ounce of silver rose in 2003 and the prices have been climbing ever since. In 2010, investors were clamoring to buy gold but one year later the same investors already wanted to buy silver. Investors are realizing that silver is very versatile and the “Poor Man’s Gold” is a hard asset that will keep its value. In addition to that, it is a safe haven asset. Industry uses large amounts of this precious metal so in reality it will be instrumental in an economic recovery.
Watch this video to have a clearer idea of predictions on future silver prices.
If You Are Serious About Buying Silver…
We have already established that silver is widely used for industrial uses but traditionally, it is also known as a metal to mint coins. This precious metal is malleable and ductile that is marginally harder than gold. When polished, it has a wonderful white sheen and many of the ancient coins were made from pure silver. If you want to invest in precious metals and you are thinking of buying silver then you need to know where to go to buy this precious metal safely. If you are seriously considering buying this metal, then you should ask yourself a few questions before you begin:
- Am I going to buy silver to preserve my wealth or am I buying it as an investment?
- Am I going to buy my silver from a bullion dealer, a producer or a mint?
- How do I know what to pay for silver per ounce?
- Will I pay more if the silver is sold as jewelry?
- Am I going to purchase my silver in grams, kilograms or ounces?
- Shall I buy rounds, bullion, coins or ingots?
- Do I use the live prices or the spot prices from the metal exchanges as a guide?
Those who have never bought silver or any other precious metal before should seek advice beforehand. Silver may well be a tangible asset but inexperienced dealers could find that their path is paved with hazards.
Where Do I Store My Silver?
If you are going to store your precious metals at home then you need to think carefully. Those who store their silver at home will need to have a strong wall safe that is extremely well concealed. Do remember that silver melts, so if your home happens to go on fire then you could lose your investment.
Many prefer to store their precious metals in a safety deposit box and the vast majority of major banks rent out safety deposit boxes. This is a great way of securing your investment and the amount paid per annum for the box will much depend on the size of the safety deposit box chosen. If you are considering storing your silver in this way then do take these matters into consideration:
- Store your precious metals at a nearby bank.
- Choose a bank that offers 24-hour access to your safety deposit box.
- Ensure that you store your precious metal with a bank that is financially sound.
- Make sure that your silver will be stored in the right conditions. Silver that is exposed to the air will tarnish.
Please click this link for some more information about the price of silver.