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Buy Silver As A Silver Investment

The History Of Silver

Ancient civilizations were fascinated with silver which they used as a form of exchange due to its beauty and intrinsic value.  Examples of early coinage include the Greek drachma and Roman denarius that contained 1/8 and 1/7 ounce of silver respectively.  The British pound sterling is a descendant of a silver Anglo-Saxon coin, 240 of them weighing one pound. Large payments were made in “pounds of sterling” that signified a specified amount of the coins as a function of weight rather than denomination.

In addition to its use in monetary systems, early cultures formed it into jewelry, decorative ornaments, and eating utensils.  It was also used in the medical predecessors to antibiotics.  Silver has historically been the subject of mystery and superstition.  The Incas believed that silver’s unique gleam represented the tears of the moon.  The Chinese often gave silver lockets to their children believing they would ward off evil spirits.

Why A Silver Investment

For those that are considering investments in precious metals, silver is attractive since the silver price is far less than other metals like gold and platinum.  The countries producing the largest quantities of silver are Australia, Mexico, United States, Chile, and Peru.  Silver is mined directly, as a byproduct of other mining operations, and is extracted from recycled materials containing the metal.  Demand for silver remains high as less developed countries have become more industrialized, and their citizens acquire the ability to afford items made from silver.  Silver is widely used in watches, dinnerware, jewelry, and other ornamental items.

Silver is also used as an indispensable component in many industrial applications.  It can endure extreme fluctuations in temperature and exhibits properties such as strength, conductivity, ductility, malleability, reflectivity, and sensitivity to light.  It is being used in such things as water purification, imaging, mirrors, and superconducting electronics.

Bullion As A Silver Investment

Silver bullion is a stamped weight of the precious metal that has been fashioned into bars or other forms for resale.  You can buy silver online from private mints such as Pan American Silver, Johnson Matthey, Engelhard, Wall Street Mint, and Sunshine Minting.  Since silver is far less expensive than platinum or gold, an equivalent investment in silver will require far more secure storage space.  For small investors this is not a problem, but if you are thinking about a large investment in silver, you should keep this in mind.

Silver bars are usually .999 pure and come in a wide variety of sizes, from 1/2 troy ounce to 1000 troy ounces.  A typical 1 troy ounce bar is 50mm long, 29mm wide, and 2.1mm thick, while the 100 troy ounce bar is 150mm long, 76mm wide, and 26.9mm thick.  The wide range of sizes allows most investors to buy silver in order to diversify their portfolios.

Types Of Silver Coins

Silver was used in most U.S. coins up until 1965, when the 90% silver content was reduced or eliminated due to its escalating value.  Coins minted prior to that date are attractive to collectors for both their premium market value as well as the value of the metal itself.  Some well-known examples of these early coins are the Buffalo nickels, Mercury dimes, Standing Liberty quarters, and Morgan silver dollars.  All of these coins are available to invest silver in small or large quantities.  Keep in mind that the market value for such coins is a function of rarity more than the actual silver content, so expect to pay more than the bullion silver price.

You can also buy silver coins that are freshly minted by governments such as the American Eagle, Canadian Maple Leaf, and the Austrian Vienna Philharmonic.  The one dollar face value Silver Eagle contains 1 troy ounce of .999 pure silver.  It is guaranteed by the U. S. government so it requires no assaying (chemical testing) to verify its silver content.  They are easily convertible into cash and are allowed in many IRAs.  The coin’s design is based on the legendary Walking Liberty half dollar created by Adolph Weinman.  The coins are packaged in tubes of 20 by the U. S. Mint and are sold as a silver investment.

The Maple Leaf, produced by the Royal Canadian Mint, has a silver content of .9999 which is the highest purity of any government minted coin.  Normally packaged in tubes of 20, they can also be purchased in quantities of 500 in a sealed Royal Canadian Mint box.  The box measures 10 inches long, 8 inches wide, and 5 inches high.  The coin features a sculpted image of Queen Elizabeth on the obverse side, and the national symbol of Canada on the reverse side.  Their high quality strike and purity make them an attractive way to invest silver.

The Philharmonic has a face value of 1.5 euros and is produced in .999 fine silver by the Austrian Mint in Vienna.  First introduced in 2008, they are packaged in tubes of 20 but can also be bought in quantity.  Inspired by the world famous Vienna Philharmonic Orchestra, the design features an array of musical instruments and the grand organ in the Vienna concert hall.  The mint was originally established after Duke Leopold V of Austria captured Richard the Lionhearted of England during the Crusades.  Silver was struck from the ransom received in exchange for his release.

You can buy silver online for all of these coins, and the silver price will be a function of the current “spot price” plus a premium for each coin.  Market prices are reported daily in most major media outlets.  Discounts are normally offered for large quantity purchases

Other Silver Investments

You can invest silver without actually buying bullion by investing in certain index funds, stocks, or mutual funds that own mining stocks.  Besides offering professional management, they eliminate the need for safe storage of the actual metal.  While bullion relies totally on capital appreciation to make you money, some stocks offer dividends in addition to the potential for price appreciation.  Mutual funds offer a convenient way for less experienced people without large financial resources to invest silver.  Be aware that stock and mutual fund share prices do not necessarily directly reflect the changing bullion silver price.  More experienced investors can also purchase options on silver futures as a way of hedging their silver investment.