Have you ever considered investing into major commodities?
Though is one of the most expensive precious metals, silver seems to be the best choice for investment at present. If you list its benefits, you will see that it is cheaper and it has a larger field of practical use. Keep in mind, that the price of silver depends on the demand-supply relation in the market. In a state of economic uncertainty this precious metal can be a safe investment for your money. Think about the qualities of the white metal and you will find different types of mass application – medical, technological, chemical, coins, apparel etc. Due to the numerous flexible usages, silver would remain a constant safe haven for your investment.
Today nothing is certain, but overall silver has always been an underrated commodity. Researches point out that the price of the precious metal raised 572% over the last ten years. That beats even the 428% jump of gold, which considered as the second valuable commodity. This is an evidence in numbers.
A recent market forecast suggests that the upcoming 2013 will bring profit to every type of silver investor. Some estimate that by spring 2013, the price of the precious metal will hit $60 per ounce.
Here is a list of certain factors to back up such projections.
Silver has always been and most likely will continue to be a key industrial component. Back in the beginning of the last century, the market experienced a high demand for silver as photography was introduced to the public. Today, the demand continues to grow as its many uses are being applied in different directions of the industry such as the development of solar power collector. The high quality of electrical conductivity and the medical value of the white metal persistently increase investors’ interest in it.
Other thing to take into account is the statistic silver-gold ratio. The gold-silver ratio by former data rallies around 16. This means that the price of gold has been 16 times higher than the silver. This ratio is nearly 54. Measuring the ratio in long-term historical view, the white metal price must reach $100 per ounce next year.
Another factor to consider is the political risk when it comes to supply. Peru is one the biggest producers of silver. If the country enforce higher taxes next year, that will immediately affect the price on the international market.
Now if you are already convinced why to invest in silver, here are few ways to do it.
If you are a rookie on the market, buying silver bullion is the most secure strategy. Silver proof sets are sets of silver quarters or coin sets with numismatic value.
There are two types of silver bullion. The first one, the coin is usually is best for beginner investors with limited assets . Bars are more suitable for the large-scale investors, because a bar is measured as 1k ounces.
If you have some experience on the market and you want to play a big time game, you can invest in silver futures, silver mining stock or silver exchange trade funds. Silver futures are investment which should be done by someone who has previous knowledge of futures. Silver mining stock is a stock which buys into silver mining companies. Silver ETF are also similar to common stock. They have low investment costs, flexible buying and selling options, and are tax efficient. In addition, you can buy the precious metal in either long or short period.
If you find it reasonable now to put your money into silver, just consider your experience and knowledge. Find what suits you most and invest when you feel the time is right.
Resources for gold investors:
- Top Rated Books for Silver Traders Review
- Top Rated Books for Gold Traders Review
- Social Media for Stock Market Traders
