Silver bullion investing news

What are the differences between a gold and silver investment? Over time, gold and silver prices tend to move in concert in terms of ever-depreciating fiat currencies. Silver prices are more volatile in movement than gold prices and have higher highs and lower lows with short-term silver-to-gold ratios going over and under Many investors prefer to invest in silver because of this higher price volatility which presents greater short term opportunities to profit, albeit with higher risk.

Also, investors choose silver because of its relative low price per ounce compared to other precious metals, permitting a more divisible investment asset. What silver products does Monex offer to investors? Monex offers silver in investment quality forms as silver coins and in highly refined bulk form as silver bullion bars. Coins are government-issued with a face value in its currency, though its intrinsic metal value is generally much higher.

Bullion coins fluctuate in price based on their metal value and are not scarce collector coins with numismatic value. Purchase prices on coins are generally higher than bullion bars due to minting costs and the advantages of being in coin form. However, the investment outcome is much the same as with bars because selling prices of coins are generally higher than for bars. Should I invest in silver bars or silver coins? Large 1, ounce silver bars , the common commercial delivery form of silver investing, are the most cost efficient way to hold silver.

However, because they weigh about seventy pounds, they are typically chosen for depository storage rather than keeping at one's home. For the most convenient and divisible form of silver, coins are preferred, especially for small lot investments. When selling bullion bars that you have had in your possession back to a dealer, an assay is required to verify its weight and fineness.

However, when your bullion bars are stored, there are no assay fees required or delivery charges. What is the process when purchasing silver from Monex? Once you have decided on the quantity of silver bars or silver coins to purchase, your Monex account representative will assist you in executing your order over the phone, and your purchase and price will be confirmed on a recorded line after your acknowledgment.

A written confirmation will be sent to you with the details of your order. Payment must be initiated on the day of purchase, which means you must mail or wire funds on the day of your purchase. Upon payment verification, you have the power to decide if you want your physical metal shipped directly to your home, made available for pick-up at secure depository facilities located throughout the U.

What is the minimum amount of silver I can buy from Monex? For silver bullion bars , the minimum purchase is one ounce. For pure one-ounce legal tender silver bullion coins , such as the Silver American Eagle , Silver Canadian Maple Leaf or Silver Austrian Vienna Philharmonic , the minimum purchase is one unit, containing coins. For the. How do I know the products I get from Monex are authentic? Monex guarantees the authenticity and fineness of all of its bullion bars and coins.

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Note that investment demand and coin demand are counted separately. Here's where things get interesting. The Silver Institute tracks global silver supply and demand and you can find this data going back to on their website. GFMS compiles the data. And as you have seen, mine production and scrap sales dominate the supply side, while 'fabrication' which includes the uses discussed above dominates the demand side of the equation. But these two sources do not equal out.

GFMS have therefore created a category, 'implied' investment, to balance out global supply and demand. The creation of silver ETFs in is considered the primary reason behind the increase in Silver Investment demand. But even a cursory glance at the numbers compiled by GFMS leads you to think that these numbers may be understated, perhaps significantly.

So we can safely say these ETFs have created new silver demand of nearly m ounces since But if we look at the implied investment figures from inclusive investment demand totals only That leaves a m plus ounce discrepancy and we haven't even factored in sources of Silver Investment demand outside of the three big ETFs. Now you might not think that this discrepancy is a big deal until you consider another piece of information. Do you remember how Bear Stearns collapsed in and the Federal Reserve helped finance its takeover by J.

It turns out that Bear Stearns held a massive short position in silver futures at the time. Being 'short' a commodity or stock means you are betting on a fall in price. When prices rise, you lose. When they fall, you win. Perhaps Bear was covering its shorts in an effort to stem losses? Short covering can produce very strong price increases. But J. Morgan soon took over Bear Stearns and assumed Bear's short silver position. This did not become apparent until months later when newly released data showed that J.

Morgan held the largest silver short position in the market. Morgan being one were short a massive m ounces of silver. This constituted an unprecedented concentrated short position. It will come as no surprise then to see that the Silver Price collapsed as soon as J.

Morgan took over the short position. Is it possible that some investment banks are making up the difference between actual Silver Investment demand and available supply by taking short positions on the futures market? We think it is, especially if the silver ETFs don't actually have all the physical metal they say they do and are instead gaining exposure via the futures market. The physical and futures precious metals markets gold and silver are a byzantine world and one we don't pretend to understand in full.

But examining simple supply and demand data, it is hard to ignore that the recent increase in physical demand for silver, if sustained, could be very bullish for the price over the next few years. Along with the big jump in demand for silver coins, the increase in investment demand suggests that silver is in the formative stages of being re-monetized. A global population suspicious of what governments will do to the value of their money in coming years is the driving force behind this remonetization.

As we pointed out last week, silver's role as money declined in the 19th century not because people decided voluntarily against using it, but because government's around the world virtually took it out of circulation. However it is a tad optimistic to think the ratio will get back to its historical norm of There is one other bullish aspect to the silver story — its price.

If silver really was just an industrial metal and not in the process of re-monetization, would it be trading close to its all time highs? No other industrial metal is. Silver's recent price-high occurred in early as Bear Stearns was crumbling. From there it fell heavily. Something else was driving the price down. There are no guarantees in investing. There are only probabilities. Weighing all the evidence though, we think it is probable that silver prices will move to the upside in the months ahead.

Our advice for how to go about acquiring physical silver is the same as for gold. We are not keen on ETFs and instead recommend you check out BullionVault or Goldmoney as relatively simple and cost effective options to get access to physical silver. Both companies provide secure, audited vaulting services. In other words, you know that your money is there.

As a result, silver bullion is more practical and versatile, making this type of silver investment more appealing. Silver offers higher returns than gold — Silver tends to move in tandem with gold : when the price of gold rises, so too does the price of silver. In fact, silver has outperformed the gold price in bull markets.

When individuals invest in physical silver, whether that be through buying a silver bar, pure silver, a coin or other items, there is a reassurance that its value has and will continue to persist. What are the cons of investing in silver bullion? Lack of liquidity — There is a chance that if you hold physical silver, it may not be immediately liquid.

In order to make common purchases such as groceries, you are not able to use silver bullion bars or a silver bullion coin, so you will need to convert that to currency first, and the ability to sell silver in a hurry can be an issue. If you can't access a bullion dealer and are in a jam, pawn shops and jewelers are an option, but won't necessarily pay well. Danger of theft — Unlike most other investments, such as stocks, holding silver bullion can leave investors vulnerable to theft.

Securing your assets from looting by using a safety deposit box in a bank or a safe box in your home will incur additional costs. Additionally, the more physical assets, including silver jewelry, that reside within your home, the more at risk you are for burglary. Weak return on investment — Although silver bullion may be a good safe haven asset, it may not perform as well as other investments, such as real estate or even other metals.

Mining stocks, especially silver stocks that pay dividends , may also be a better option than silver bullion for some investors. High silver demand leads to higher premiums — When investors try to buy any bullion product, such as an American silver ounce coin known as a silver eagle, they quickly find out that the physical silver price is generally higher than the silver spot price due to premiums used by sellers.

This is an updated version of an article originally published by the Investing News Network in