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Investing in Silver for Big Profits

August 15, 2010 by  
Filed under Silver Investment Basics

Silver has always been a valuable business in the world, and recently with the credit crisis and struggling consumer economy, the number of businesses and commercials advertising that they buy your gold, silver, and other valuable metals have grown like wildfire, and for good reason. Silver is a particularly great investment, because in the last few years the demand has steadily outpaced the supply of available silver material. The market price of silver was $4.60 in 2000, $8.83 in 2005, and now as of August of 2008 the price of silver has hovered around $13 per troy ounce! In less than 10 years the price of silver has doubled itself, and with high demand showing no signs of fading away it is sure to be a great solid investment for the future.

There are plenty of ways to invest in silver that vary in security and commitment level. There are certificates of ownership that can be purchased by silver investors which allow you to invest in silver without actual physical transfer of the metal. However, right now, the Perth Mint Certificate Program is the only government-guaranteed program for such ownership certificates in the world, which limit your options if you’d like a guarantee on the safety and security of your investment.

Another popular option is Exchange Traded Funds (ETF). These funds are traded on the stock market and are essientially buying shares in the silver market itself, able to be bought and sold as shares in one of the three main companies that invest heavily in the silver market.

By far the safest way to invest in silver is in actual physical ownership of the metal. Silver comes in many forms of varying size and shape, making it easy to select the one that is most convenient for you. You can buy actual silver ingots or bars, sometimes called bulion, which are the best for buying in large amounts. They come in standard sizes from 10 oz all the way up to a 1000 oz bar, allowing for any level of investment. Other investors might prefer to buy rounds, which are .999 percent pure silver minted into a rounded coin-like shape, but has no value of legal tender. Many governments, including the United States, also mint silver coins that can be purchased and used for their face value in any monetary transaction, so have the added value of being a short-term investment you can spend with a minimum of fuss.

Whether you’re just wanting to make some solid investments that you know will last through the market, or you want to make a gift with some value, silver is a great way to get started in precious metals.

If you’re interested in learning more about collecting silver coins to build a profitable portfolio head over to the Coin Collector Guide – everything for the investor and collector.

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