Why Invest in Silver Bullion?

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Posted by Chip | Posted in Investing | Posted on 22-07-2014

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silver resources12 Why Invest in Silver Bullion?
Alastair Harris asked:

It is often said that during troubling times people flock back to traditional values. In the financial world flocking back to traditional values means a return to the precious metals. In the highly volatile times we live in, traditionally strong currencies such as the U.S. dollar and the British Pound are quickly losing value. The pound has lost up to 30% of its value against other currencies like the yen in the last year. Likewise despite the USD at first being upheld at the crisis point by a rush into U.S. treasury bonds, this temporary upswing has now been reversed as fundamentals push down the USD against other currencies. As the United States attempts to print its way out of recession giving bankrupt banks vast amounts of tax payer money to attempt to stop a financial collapse even the average citizen fears what is about to come next. For history teaching us once those printing presses start rolling inflation and even hyper inflation is on the way. Unemployment and associated problems only increase the panic.

People want to move into something that will protect their underlying wealth, or even ensure they have
something, anything that they can trade. Therefore they move into resources that will not lose value. Gold has been the traditional hedge in such times, but it does not take long for the price to be prohibitive as it is a rare resource. Most Gold is held by the large investors leaving little for the small investor to get at a reasonable price. There is however another precious metal that it more easily available to the small investor – it is silver, and currently it is relative cheap to Gold with a 1:70 ratio. This ratio is has no sensible explanation given that the ratio they are found in the earth is about 1:13.5. Should silver return to its God given ratio – those holding silver are likely to become very rich.

Silver has many qualities and properties that make it a very useful industrial commodity. For example silver paste is used in 90% of solar cells – and with many predicting and even demanding the move to renewable energy, the demand for solar panels is predicted to skyrocket. Thus the demand for silver paste is correspondingly over to increase. But if one takes a detail look at just how many industrial processes silver is involved in – its demand just as a commodity has the potential to skyrocket. But many are seeing the real increase in the price of silver will be the demand for it as an investment.

Silver is molded into bullion bars and coins. As such it forms an easily transportable form of wealth. Each bar is marked with its purity and weight and normally a makers mark. If you want to see how easily these items are traded one can check on eBay and see that bullion is highly tradable and convertible into cash.

As cash continues to lose its value, silver underlying value will increase in proportion. (For example if you had left your money in the bank last year you would have seen a low interest return (3%-5%) on which you would be required to pay tax. In truth by sitting your money in the bank you are losing value when inflation is factored in. If you had put the money into silver you could have seen a 56% increase in value) But where investors see the real increase in the demand for silver will be the demand to have something other than paper with which to trade, buy and sell. Once this process again becomes accepted to the general public the value of silver will only increase further.

The only way I see silver not exploding in value would be if some massive silver mine was discovered – I am mean massive in the sense of billions of ounces. This happened when the “new world” was discover in the 1500′s, but I very much doubt with the world now explored there is another silver el Dorado not yet found. Currently silver mining production is about 600 million ounces most of which is currently used and “consumed” meaning any sizable move into silver as bullion will greatly increase its price. There simply isn’t as much silver around as there once was.

The fundamental law of supply and demand is very well known. It is a law that is beginning to be applied to silver with people realizing it is a finite resource, it is precious.

Why invest in Silver bullion? To make money on an increasingly limited and in demand resource. By having physical possession of Silver in bullion form you know you actually have it, in precise quantity and quality and not just a paper promise.

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3 Ways to Get Silver Coins Off Your Mind and in Your Home

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Posted by Chip | Posted in Investing | Posted on 09-07-2012

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silver resources11 3 Ways to Get Silver Coins Off Your Mind and in Your Home
Jeffrey Lewis asked:

It may have come to you that one of the best ways to invest in silver is through investing in coins. In the past 30 years, silver has proven to be a good investment choice according to the gold- silver ratio. Many people have deemed that coins are the most preferable and safest way to invest in silver over silver bars and other bullion. But sitting around at home thinking about investing in silver, isn’t going to help you bring those coins home.

Silver coins, especially half dollars, are excellent for silver investment. These coins normally consist of 90% silver and will generate about 719 ounces of silver when refined. Mint bags will generally produce more amounts of silver, totaling about 723 ounces of silver. Half dollar coins are preferred over the bags of quarters and dimes for two reasons: quarters and dimes have been in more circulation producing more wear and tear and less amounts of residual silver and half dollars have been historically more popular collector’s items.

Silver coins come with different premiums depending on the selling rate of silver or the people’s demand for silver investment. These premiums can be as little as US$1.20 per ounce and increase dramatically. These premiums are often what make silver coins more desirable as an investment option than other silver investment options. So if you are looking to invest, here are the top three ways to get silver coins off your mind and in your home!

Investigate the silver market. Is it a good time to invest? Is there a high demand for silver? It is better to purchase silver at a lower price so that you can sell it when it the demand for silver investment increases. If it is the right time to invest in the silver market then start researching your coins now.

The second way to get those coins into your home, is to figure out which are the best coins to invest in. Half dollar coins are more popular and hold more silver as they are not as commonly used as dimes and quarters. The most profitable investor’s coins are the Walking Liberty silver half dollar, the Ben Franklin Silver half dollar and the 1964 dated Kennedy Half Dollar. Choose one of these three half dollars to invest in.

Now that you know which silver to invest in, you will need to research your investment options. There are various resources that you have in order to invest in silver. The best way is to find a reputable coin collector who can verify the authenticity of your coins. If you have a negative feeling about the deal or the person does not have the qualifications as a coins dealer, it is better to find a new reputable dealer.

When it comes to investing in coins, anyone can do it. I recommend that you do your research before being locked into any sales contract. Silver investment can be very profitable but if your resources are unreliable, this may cause many problems for you. To avoid such problems, follow these three easy ways to get coins off your mind and into your home today!

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Book Review: Rich Dad’s Guide to Gold and Silver (Maloney)

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Posted by Chip | Posted in Book Reviews | Posted on 08-07-2012

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silver resources3 Book Review: Rich Dads Guide to Gold and Silver (Maloney)
Graham Goodkey asked:

Gold Stocks and Silver Stocks present a huge opportunity for savvy investors that know how to source the right information.

In this article I review Rich Dad’s Advisors: Guide to Investing In Gold and Silver by Michael Maloney. The author of this book is a convicted and impassioned advocate of Gold Bullion and Silver Bullion. This book is in the series of books published under Robert Kiyosaki’s Rich Dad brand.

I really appreciated how simple and accessible this book was, true to the Rich Dad style of writing. Not quite as easy to read as Rich Dad Poor Dad but very accessible with straightforward explanations. This is particularly helpful when the author dives into certain historical events dating as far back as the Romans, and as complex as such international agreements as the Bretton Woods agreement. Despite the fact that these topics can easily become overwhelming and intimidating, Maloney does a great job of making the topic accessible to readers.

Maloney asserts that the only way to invest in Gold and Silver is to purchase bullion that is held privately in your place of residence or else in a 3rd-party, non-financial institution locale. I sincerely appreciate his rationale for this as only the physical possession of gold and silver bullion will be safe in the case of a mass financial meltdown. If an investor has their gold or silver held in a safety deposit box at the bank, it won’t be available to them in the case of financial apocalypse as the institution / bank would likely be closed down altogether; and if things really degrade to mass lootings and riots the bullion could be lost altogether if held at a bank.

There’s no debating the safety of assets during this kind of cataclysmic financial situation. This begs the question, though, what about absolutely every other point in time? Even if this kind of meltdown were to happen (however likely or unlikely) what would be the most advantageous situation in the months leading up to it, and the years following it? There are some extraordinary Gold and Silver Stock picks to be had, and it would seem prudent to look at the big picture, and the full menu of options before sticking all investable funds into a gold bar, then shoving this gold bar under one’s mattress at home.

Overall, I sincerely appreciate Mike Maloney’s book Rich Dad’s Advisors: Guide to Investing In Gold and Silver as an introductory piece to the topics of Gold and Silver, Precious Metals, Gold Stocks, Silver Stocks, and the history and issues that surround them. I highly recommend this book to anyone looking for an introduction to the topic of Gold and Silver, and their associated Stocks.

I also recommend that this book serve as a springboard to further education instead of treating it as the definitive be-all guide to investment. There are many amazing resources out there that allow you to more closely and specifically consider your options when it to Gold, Silver, Gold Stocks, Silver Stocks, and precious metals in general.

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