Quantcast
Other Stories
Investing in silver is turning out to be a hot proposition for people around the world these days. Silver demand is soaring globally, especially in the emerging markets like China and India, as people are shifting their ..
03 Feb 2011
NEW YORK (Commodity Online): Investing in silver is turning out to be a hot proposition for people around the world these days. Silver demand is soaring globally, especially in the emerging markets like China and India, as people are shifting their investing loyalties from gold to the white metal.

Which are the best ways to invest in silver? Can silver assure you the best of investment returns?

Here are six popular methods to invest in silver:

Buying silver coins:

This is a popular way of taking hold of silver - physically. Perhaps the best example of a silver coin is the Canadian Silver Maple Leaf, which consists of 99.99% pure silver. Silver coins may either be "fine silver" or "junk silver". Junk silver coins are older coins with a lower percentage of silver. Examples of these are the dime, quarter, and fifty-cent U.S. coins minted in 1964 or earlier. These coins contain 90% silver and are around 8/10 troy ounce per 1 USD of face value. http://silver-dollar-values.com

Buying silver bullion bars:

This is the most traditional way of investing in silver. Silver bullion bars can be bought or sold over the counter in most banks in Switzerland. They may be stored in safe deposit boxes in banks or placed in non-fungible (allocated) or pooled (unallocated) storage with a silver dealer.

Opening a silver account:

An investor may open a silver account with one of the major banks in Switzerland. Here, silver can be bought or sold over the counter just like any foreign currency. However, the bank client does not own the actual silver metal. Instead, he/she has a claim against the bank for a specified quantity of the metal. A silver account is backed through either allocated or unallocated storage facilities.

Owning a silver certificate:

In lieu of storing actual silver bullion, an investor may opt for ownership of a silver certificate. A silver certificate allows an investor to buy and sell the security without the inconveniences associated with the physical silver's transfer. The Perth Mint Certificate Programme, which is fully guaranteed by the Government of Western Australia, is the only silver certificate program in the world that is guaranteed by a national government.

Trading in Exchange-Traded Funds (ETFs):

An investor can have an easy way of gaining exposure to the price of silver through an ETF. Some of the well-known ETFs include iShares Silver Trust (with ticker symbol NYSE: SLV), Central Fund of Canada (with ticker symbols TSX: CEF.NV.A, NYSE: CEF), and ETFS Silver Trust (with ticker symbol NYSE: SIVR). Trading in ETFs means doing away with the inconveniences associated with the handling of physical silver bars or silver coins.

Entering in a Contract For Difference (CFD):

Some of the noted financial services firms, especially those in the United Kingdom, provide Contract for Difference (CFD). In this silver investment vehicle, two parties (a "buyer" and a "seller") enter into a contract, in which the seller agrees to pay the buyer the difference between the current value of silver and its value at contract time. In case the difference is negative, the seller receives payment instead from the buyer. A CFD, therefore, allows an investor to take advantage of long or short positions, enabling them to speculate on these silver price markets.

It must be mentioned here though that silver has lost its forced tender status in the United States since the abandonment of the silver standard, when, on August 15, 1967, then U.S. President Lyndon B. Johnson announced that the U.S. would discontinue redeeming currency for silver (or any other precious metal).

Silver dollar values continue their price climb along with corresponding silver prices and the increasing demands for silver dollars by traders. Gold coins and silver coins provide an excellent way to protect your money and also allow you to invest in something very real and solid; gold coins and silver coins can hold their values through eroding monetary and political conditions. Now is one of the best times in history to invest in silver dollar values with silver dollars.

With inputs from PRLog
YOUR RESPONSE
Click on the image to reload it
Click to reload image
COMMENTS (0)

@2013 COMMODITYONLINE ALL RIGHTS RESERVED