Commentary on new silver coin issues, silver dealers, mints and articles of interest

Is Silver Buying an Investment or Speculation?

Silver barsThere are plenty of great reasons to buy silver, many of which we discuss here. But can silver buying truly be considered an investment? Investors tend to differ on this question, but really it may just be a matter of semantics. Here’s how people on both sides of the issue usually break down their opinions.

 

 

The “Silver Is an Investment” Camp

Silver prices are much higher than they were a decade ago. If you look at historical values of silver throughout history, you’ll be glad that Grandpappy left you his silver stash from years gone by. While it’s impossible to tell how silver values are going to play in the future, something tells me that nobody who buys silver will be sorry to have it as the years and decades click by. Silver prices tend to surpass inflation levels, so wealth contained in silver tends to lose no value. Plus, it’s a material that’s easily traded. For those who are knowledgeable about the silver trade, there can be a lot of money made buying and selling silver.

The “Silver Is Not an Investment” Camp

Now there are plenty of people who don’t consider silver to be an investment. They would, instead, insist that it’s a speculation. There is good evidence to suggest that this may be the case, but it’s still a grey area. Investors like Warren Buffett insist that silver is a speculation because it cannot be improved. You just have to put your coins in a safe place and hope the price goes up before you want to sell.

What Do I Think?

I can see both sides to this story, and I think the reality is a little bit of both. Sure, silver can’t be improved, and people who buy it are reliant upon hope just as much as history when thinking about future value. But the same could be said for the buying of stocks. Unless an investor sits on the board as a major stakeholder of a company, he or she has nothing to do with the daily operations of this company, and simply has to hope that the value will rise. Of course, stocks are packaged such to minimize risk and maximize earning potential over time, but at no point does the element of “hope” leave investments. Risk is inherent to investment, so to the average investor, buying a bar or silver and buying a stock may not have much real difference.

If you want to learn more about the fine points of different investment forms, CMC Markets investment education is a great resource. Their focus on short-term investments in the day trading arena will help usher people in from easy-to-understand investments (like buying gold and the like) into slightly more complex day trading options (FX trading and currency exchange) and beyond. For the sake of diversification, a lot of investment forms are good to learn. For those who love buying silver, these kinds of investment will be a natural progression, one that will help you from relying on a single investment form for future security.

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An Infographic Highlighting The Rarity of Silver

The Visual Capitalist’s History of Silver Infographic

I love viewing well thought out infographics, so I was happy when I stumbled across the “Silver Series” range, designed by the creative folks over at the  Visual Capitalist.

rarity

Part one unearths the history of silver, and goes into some of its strong points, such as its antibacterial properties, ductility and resilience.

However one thing that struck me reading this infographic was this precious metal’s eye opening rarity.

Indeed, if the researchers at the Visual Capitalist have the correct data, all the silver ever mined would fit into a 52m cube, weighing 1.464,700 tonnes.

That’s a fact to consider over your tea and digestive biscuits.

If you want to learn more part 1 of this infographic series is listed here.

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A Video About Choosing Bars or Coins?

Tips From Dave Morgan

Here’s an excellent video from David Morgan of Silver-Investor.com were he discusses as he sees it, the advantages and disadvantages of purchasing coins and bars.

To summarise he advocates coins to begin with, then diversifying your portfolio with larger bars.

David has been investing since the age of 11, and has some great silver related content over at his official Website. I hope you enjoy watching.

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