According to Wealth Daily, silver is one of the most important investments you can own. The supply and demand realities of silver continue to be ignored by the market, meaning silver is undervalued. However, a low spot price is investors gain, and the supply and demand gap is widening. Some investors expect silver to test $50 per ounce in 2013.
One popular question is; why invest in silver at all? According to bankrate.com you should consider that the stock market is prone to ups and downs, and the economic outlook is uncertain to say the least. The fiscal cliff problem in the US is nearing its deadline, and much of Europe is in recession. Yet, silver is a proven hedge against an unstable economy and high inflation and provides a much needed buffer to risky paper only investments.
An often overlooked but good way to get the most silver for your dollar is to buy bags of pre-1965 coins. These coins have no collectible value, however they do contain between 40 and 90 percent silver content. Prior to 1965 the US mint used silver to produce its currency. Today most coins are struck with copper and nickel. The great advantage to investing in junk silver coins is they are legal tender and can be spent at face value if an emergency arises, and can easily be sold for their silver content in relation to current monex silver prices. It is interesting that these coins are called junk coins, because they do in fact contain real silver.
The more traditional method of investing in silver is to purchase bullion bars or coins. Bankrate.com suggests staying away from collectible coins. While many collectible coins do have substantial worth to coin collectors their value is constantly changing. Silver bullion which is tied to the silver spot price is a better investing solution. In addition, while you can buy privately minted silver rounds real silver bullion coins, like the American Silver Eagle offer the full backing of the US government.
Silver-coin-investor.com says that many nations and international businesses actually use the dollar as an investment. Yet, many are losing faith in the dollar and many central banks are hoarding gold, at the same time they are flooding the world economy with fiat money. This has the net effect of debasing the dollar and causes inflation. While gold is often used as a hedge against high inflation, silver offers similar safe haven qualities without the huge cash outlay. The best way to invest in silver is to take ownership of only physical silver, not stocks or ETFs.
Buyingsilver.org says buying silver is easy and affordable. While gold sells for $1700 per ounce silver only trades at $32 per ounce. Once you decide that you are going to buy tangible silver, you need to find a reliable and honest dealer to purchase from. First, do not fall prey to pressure sales tactics, and do not let anyone tell you investing have no risk. All investing has a certain amount risk, including physical silver. One precious metal broker, monex.com has been in the precious metal business for over 40 years. Longevity means a lot in this industry, and they will help you reach your investing targets.