Investment in silver bullion

Besides gold, there are some precious metal like platinum and silver. Silver is the secondary product in gold mine. Certainly, the quality of silver is less than gold. People use silver as jewel too for example ring, necklace, accessories, toy, etc.

Silver is not beautiful as gold. Silver could become black if you forget to clean it. That is way silver is cheaper than gold.

Silver has been used as currency in ancient Arabic. They used Gold and Silver as the currency. They called silver as Dirham that value is less than Dinar (gold). Ancient China also used silver coin as their currency. The shape of China silver coin was unusual with recent coin.

Beside as currency and jewel, Silver is also useful for electronic component like microcircuits, batteries and superconductor.

Undoubtedly, Silver has been using as investment too since the value is relative stable. Warren Buffet-the investment guru- has bought 130 million troy ounces (4,000 metrics tons) of silver at $4.41 per troy ounce. The silver is equivalent with 572 million dollar in 1972.

>

Silver is resist with crisis

When your money value is priceless, silver may be a good alternative to saving your assets. In the inflation, the profit could rise up to 94%; therefore, your asset will double in short time. Compare with bond, stock, index, commodity today that could not give any return to you. The recession makes the investment so bad.

Silver price is also volatile but it is stable than other investment like stock, bond, mutual fund, index and other commodity.

You can shift some investment into silver too. Certainly, you do not have to put your money at silver because it is dangerous.

Some financial company is also interesting with this metal. They build ETF and mutual fund. This investment is fits for tiny investor. Unfortunately, ETF and mutual fund do not similar with pure silver. We must pay some transaction fee and broker fee. Investing in mutual fund and ETF is also different because you do not hold the gold directly.

The shape of investment

Silver is shaped into various shape like bar, coin, accessories, necklace, etc. You can invest at certain type of silver. Those types are:

Silver coin

Some country print various coin like Pure Canada Silver maple leaf (Canada) that contain 99.99% pure silver.  Some country also prints silver mixture as their coins. For Example United Kingdom use 80% contained silver coin as their coin like Silver Sterling or Shilling.

Silver Bar

Silver Bar is the most liquid bar. You can sell the bar anytime. The demand of gold bar is larger than other silver. Silver bar could be produce into other product like accessories, jewel, electronic, etc.

You can save the gold bar at your house. Alternatively, you can save it safe deposit box. You will get the key and security. Silver bullion is traded base on the weight. We can buy silver bullion at one troy ounce weight, One kilogram weight, 1000 ozt troy and 100 ozt troy. 

ETF (Exchange Trade Fund) or mutual fund

Some financial company presents Exchange trade Fund base on Silver or precious metal. Unfortunately, this is different with silver price. Last year, the precious metal ETF has decreased, meanwhile the silver is rose up. Example of Silver ETF is iShare Silver Trust, Central Fund of Canada, ETFS Silver, Poweshares DB Silver.

Jewel

Some people make jewel from silver besides gold. You can sell the jewel too. Unfortunately, this investment is not liquid and less profitable.

Round

Round is Silver bullion as coin. It nominal value is one troy ounce. You can order the stamp of the round.

Certificate

Some company offer certificate in nominal $1, $5, and $10. I think this investment is fit with tiny investors. This investment is simple because you can sell the certificate without bring the silver. Some silver certifies is guaranteed by government i.e. Perth Mint Certificate Program (PMCP). You do not have worry about your money. Certainly, you do not have to pay deposit box service.

Silver Account

Some bank in Swiss also offers silver account. The customer does not hold any silver but they have a claim of silver quantity at certain amount.

Silver company’s stock

As I mentioned above, silver is secondary product of the gold mine company. There is no silver mine company in this world. Therefore, you have no option to invest at gold company.

Investing at the gold company is different with silver investment because you do not hold the metal. The stock price also moves volatile than the metal.