Silver News

Silver News

Recent Developments & Silver News

Precious metal traders are watching the commodity markets more closer than ever.  As the stock market continues on a bull run,  investors are looking for the big ‘deal’ to prepare for in 2014.  Last year silver took a bad hit and as speculators collected their gains and rushed out.  The result has been an undervalued commodity waiting for any takers.

In mid 2010,  silver pulled another feat very much like what we’re experiencing now.  This metal slumped all the way down to $18 and just a year later,  despite economic uncertainty, the metal pulled away from the back and clocked $48.  It was a good pay day for those who had seen this opportunity.  The game is all about buying low and selling high, and the best time to buy is when the prices are at there lowest.  Silver is currently on a three-year low. For those looking to make a kill, the odds couldn’t be better.

More Silver News

This is the year for the precious metals and time will prove this to be true.  In the first month of this year, gold was the best performing item in the markets.  With breaking Silver News the tension with Russia brought about some uncertainty and ruined the start.  In April, the US issued some sanctions and we saw silver take a step back too.  These setbacks are the only factors that have kept silver owners from breaking into a dance already.

One of the biggest uses for silver is with industrial manufacturing.  With this being the biggest end-use of this metal,  this means that the demand for silver is assured. Demand brings with it an increase in price.  The smart phone market is one of the biggest consumers for silver and although each unit consumes just a small portion, it all comes to tonnes by the end of the year.  The fast growth of this market and that of making solar panels guarantee a recovery of prices soon enough.

Silver News Ratio

The other irrefutable factor that analysts can agree on is in regards to the gold/silver ratio. The average ratio of these two metals is closer to 15:1. Currently this is bloated by 50% to stand at 65:1. This anomaly is expected to correct and that means that at a minimum, silver will gain to the troy ounce to trade in at roughly $80.  Mind you, that is just an adjustment to normal levels.  Even if you don’t want to stick around for long,  this speculative play is bound to pay off.

Silver is also favored by its low prices.  Its cheap prices make a bargain compared to gold since one can get so much more with silver.  That is why on a flat playing ground, silver is bound to win the most bets.  According to most silver news articles, silver’s safe-haven lure and the low prices make for an irresistible offer in 2014.

Silver News

More silver news as it was announced recently that the age old tradition of the ‘Silver Price Fix‘ between Canada, UK, US & Germany is coming to an end.   This is interesting Silver News as this practice has been going on since 1897.  At the time of writing this, it is too early to say  what will happen to the price of silver, but if left unmanipulated Silver will find its true value in the commodity sector,  we say roll on 14th August  2014.

Mainstream media aren’t reporting Silver News as this would cause a run on silver, taking cash out of the FTSE, Dow Jones, S&P,  etc and the money out of the FIAT currency market potentially causing a mega global crash.



Tips for Investing In Silver

Tips When Investing In Silver

Investing in silver isn’t complicated. However, you need to learn a few things to avoid making common avoidable mistakes. The tips below apply mostly to bullion silver and a few for other silver ownerships. It’s important that you inject some caution into the buying, maintenance and selling of silver so that you may reap the full benefits of your investment.

Tips for Investing In Silver

Tips For Investing In Silver

If you buy bullion silver, be sure to keep it covered airtight to avoid the outside reacting with the elements and losing its luster. While the purity element will not change, everyone prefers shinny metal any day.

If you want to buy silver for investment, don’t rush to buy numismatic silver. The value of this silver is not pegged at its value but rather on its sentimental qualities. Simple changes such as historical facts or line of ownership could see its value tumble overnight. Besides that, you are not guaranteed that its price will rise as the price of silver in the market rises.

If you want to buy physical silver, opt for bullion instead.  Although bulky, it’ offers better price to weight ratio than the silver coins.

Tips About Investing In Silver

Also, look for silver that is marked .999 signifying a purity of 99.9%. This is the industry standard and anything less will fetch lower prices and you might have a hard time finding buyers anyway.

Before you make any purchase of silver, find out the spot price first. The companies will always add a small percentage of the spot price on top.

When looking to buy silver in coins or bullion, only buy from dealers that have strong reputations, if buying large amounts you may opt to have someone certify the standard qualities. Search the company online and look through silver reviews to see what previous buyers have to say about them. If you find complaints, avoid the deal.

If investing in silver  you decide to buy mining stock, understand that silver mines also extract copper, tin and other metals from the same mines. This means that the company’s value can also be affected by the supply and demand of the other metals too.

More Tips For Investing In Silver

Be careful about storing your hard earned investment at your local bank.  With the recent banking collapses, a certain amount of your cash may be protected, but this protection does not guarantee the contents of the safety boxes housed within the bank.

Spread your investing in silver portfolio by buying different brands of silver. However, do not buy a brand you haven’t researched about. You should know the company that makes the silver and whether they are solid enough. Preferably, start with one brand and once you’ve mastered it well, learn another and so on.

If you ever want to sell your silver, a dealer will buy from you below the spot price. Allocate yourself enough time beforehand so that you can dispose your holding when the prices are most favorable.

The Truth About Silver Prices

Why Is The Silver Price So Low?

Every savvy investor knows when the silver price is low, it’s time to buy and join the bull for the ride up.  This is how smart money is made.  Other kind of investors run out when the bear is almost done, and fail to notice that there are new entrants positioning themselves for the bull.  If you’re smart investor then you know that the time is right.

Silver Price In A Bull Market
Silver & Gold In A Bull Market

There are several reasons that make this the best time to buy.

Silver Price Is Low Right Now

For one, the silver price is low right now, and they won’t be forever. Gold has already made a 7% jump this year and even though silver prices haven’t moved yet. It’s common knowledge that the two precious metals move in tandem. In fact, when it comes to going up, silver outpaces gold each time. Furthermore, silver is reeling from a 3-year low, which signals that right now it’s only making a short pit stop and those who disembark from the train won’t make it back in time. When we look at silver’s performance since the year 2000, it’s been on a consistent journey upwards. In 2010-11 we saw the bounce back from silver to almost $50 all the way from $18.

Gold – Silver Price Ratio

The second signal that the silver price jump is about to strike, is the gold: silver ratio. Numbers don’t lie and we know that at a ratio of 66:1, this discrepancy is stretched to the limit. When the prices snap, the move will be quick and long. The average ratio is 15 with all factors considered;  by the end of the year silver might do even better than that.

Compared to gold, silver has more industrial uses. We all know that almost half of silver’s use is industrial. This means that even if investment uptake wasn’t high, the industrial consumption would still ensure the prices go up. Applications such as making of smart phones and solar panels require a constant supply. This is unlike gold whose industrial supply isn’t that high. With another huge chunk taken up by jewellery, silver is in much less supply than its counterpart. With bullion sales already starting to shake up since January, we are definitely in the eleventh hour. Remember that the silver market is much smaller than that of gold. Silver quantities are only a fraction of the gold in circulation. The relative impact on silver is therefore going to be much higher.

The price of silver at less than $20 makes it much more attractive for the middle class. Not many can afford to stock up on gold, so when it comes to choosing on which precious metal, guess which one will get most takers? And that is why I said earlier on that silver always outpaces gold.

The Silver Price Wake Up Call

On 14th August 2014,  the 117 year old silver price fixing  is coming to an end.  Its too early to say what will happen on the morning of the 14th August,  but with the leash finally off the price manipulation,  silver should at least in the mid-term start finding its true value.

With that said, it’s time to strap up and wait for the ride.


Different Ways You Can Invest In Silver

When you make the decision to invest in silver, you are not confined to one option. Depending on your needs, there are several options you can opt for. Furthermore, you can decide to balance your silver investment by taking on several approaches at once. Here are 5 ways you can go about it.

Invest In Silver Bullion or Coins

If you prefer handling the physical silver, being able to look at your investment and feel its weight under your hand, then silver bullion and coins is the way to go. With bullion and coins, you simply look for companies that sell and find out the spot price. The spot price is the price as of that day. Once you find a reliable company, you can continue to stock up on your reserves.  You can keep your silver bullion in a home safe or an independent safety vault, such as the Brinx Matt.  With physical silver,  you can sell at the prevailing prices any time you choose.

3 Not So Highly Recommended Ways To Invest In Silver

1)  ETFs

An ETF is an ‘Exchange Traded Fund‘ and these can be found on the stock market.  These EFT’s enable you to invest in silver trade without handling the silver in physical form. You get to buy silver of any amount while it lies in a depository somewhere safe. You can then continue to buy more or sell as you please.

EFT companies are popping up everywhere and track the price index of anything such as the FTSE, Dow Jones or commodities market, such as oil, gold and silver.  The EFT company issuing the shares may well go broke, seeing you lose some or all of your money.  Some precious metals EFT’s take your money, invest in absolutely nothing and disappear off the face of the earth.

 2) Mining companies

For a more ambitious and daring investor, you can try your hand at buying shares in mining companies. While there is risk in this kind of an endeavor, the rewards too can be huge. This will involve you looking at various mining companies and deciding which ones to invest in. Here you will not own any specific amounts of silver but the share of the company instead.

Invest In Silver

Mining companies shares are very volatile and without doing your research, understanding the mining process, the stability of the government, the history of the mining company, getting inside knowledge of this sector could cause this type of investment to fall flat on its face.

3) Mutual funds

With mutual funds you still get to invest in mining companies but not directly. You buy into a mutual fund where your return on investment is spelled out at a fix rate. While the rate may be lower, you have less risk and you get a portfolio manager to handle the choosing of which companies to invest in.

If you are new to world of investing in silver the above three options aren’t highly recommended.   These are a liquid assets, should the stock market take a nose dive, EFT company disappear,  trouble in the mining region these share options will see investors lose hundreds if not thousands of dollars.

Invest In Silver & Gold IRA

Most people have a 401K retirement benefit. Did you know however, that you can rollover your retirement benefit to an IRA and invest in silver instead? Well, it’s possible and it doesn’t cost you much. Here, instead of just saving currency that is decreasing in value every year, you save in silver instead, which doing the opposite and increasing in value. This way, you can be guaranteed of better days once you retire. Your silver will have ballooned in value and you can get it in physical form if you choose to. Before then, the government stores it in a depository.

Here we have several ways to invest in silver, my personel preference is to buy it, in its physical form either silver coins or silver bullion bars.  With the uncertainity of the stock markets,  placing the silver in a safety vault gives reassurance should the markets crash this physical assest is still physical and hasn’t deteriorated due to the stock market.


Investing In Silver

Importance of Investing In Silver

The importance of investing in silver is paramount to ones portfolio as silver is the second most sought after precious metal.  Apart from being used for industrial purposes and making of jewellery, it’s also used as an investment commodity. One can invest in this precious metal in its physical form as silver bullion and coins. One can also invest in the stock market through ETFs, mutual funds and direct investment in mining companies.

In the olden days, not so long ago, gold and silver were the only forms of currency. These metals were used for the purchase of goods or services. Up until then, the economy was stable, currency never fluctuated like today. The value of currency is in its stability. If it’s dependable then people will be willing to keep it for tomorrow’s use. However, ever since paper currency was introduced, its value has continued to depreciate driven by soaring debt and economic volatility.
Investing In Silver

Importance of Investing In Silver

This instability in paper currency has necessitated investing in silver as a more stable commodity. The faith that people have in precious metals such as silver can be seen when the stock market crashes or when there are stock market crises such as the one in Ukraine. When such events occur, people rush to stock up on their silver bullion. This is because, if things were to go south, paper currency would not suffice. On the other hand, silver would.

The other appeal that silver has is that it’s not restricted by borders. When you carry the US currency to Europe, you find that the conversion against the dollar leaves you with less money. Internationally, there is that discrepancy brought about by different economies. However, with silver, the value is set at international levels. So whether you’re in India, China, Britain or the U.S, the value of your silver bullion remains the same.

Have You Considered Investing In Silver?

More than anything, people want to invest in something that will not only retain its value, but will appreciate over time. Apart from the 1980’s,  investing in silver has shown a remarkable rise alongside gold, appreciating in value year after year. As of 2012, silver had accumulated an appreciation of 500% in the last decade. That huge return, even in the wake of rising debt and political wobbling is another reason why people should invest in silver.

Right, now, as silver is poised to rise yet again after its slide last year, the savvy investor could make huge returns. The gold-silver ratio is currently abnormal, as that correction occurs, silver market prices will undoubtedly go up.

Investing In Silver…

Last but not least, despite the prevailing conditions, financial advisors have always advocated for a 10-15% allocation of one’s portfolio to precious metals. To make sure you have an all-rounded investment vehicle, stock your fill of this allocation. This way, if the stocks tip, you have your silver bullion to rely up on.