Why Buy Silver
Silver Ore Vs refined .999 silver
So why buy silver and not gold?
Simple really, Silver is not only cheaper at this current time and actually antibacterial, it is also stronger and used in everything from jewelry and computers to control rods in nuclear reactor chambers and medicinal Dressings.
So this is really for me an all round winner. Silver has been used by companies excessively and this in turn brings the value up every day. Now if you are going to buy Silver you need to know these 5 truths that will shock you.
Top 5 Tips
Weight Ounce and Troy Ounce
Why should you worry when someone is selling an ounce of silver?
Well an ounce of silver or anything really is a standard 28 grams and is a very nice weight in itself. but silver or any precious metal is counted value wise in Troy ounces.
What is a troy ounce?
A troy ounce is a measurement used in the weighing of metals and coins like siiver and gold. The variances of the 2 ounces are of some what slight at first but when you go into higher weights become a significant difference.
Troy ounce comparison chart
Difference in Grams
Do you own Pure, Sterling Plated or German silver?
Soft silver that has a silver content of .999 or 999/1000. It is soft in a way that i t can not be made into jewelry due to not having the strength required. This type of silver has Been mostly cast into bullion bars or coins and sold as investment items. This is where the true value lies.
Sterling silver is made up of 92.5% silver and other metals such as copper. it is known as Sterling silver or .925 silver. Sterling silver can be usually found being made into earrings and table top items such as teapots and salt and pepper mills. The silver content can be simplified to as 925/1000 silver and can not be any less in order to be classed as sterling.
Silver plated metals such as "Britannia metal" which is an alloy of tin, antimony and copper developed as a base metal for plating with silver. is commonly used in plating because of bond it has with the silver. Plated silver is used in common household items such as cutlery, Candlesticks and trinket boxes.
The usual formulation is 60% copper, 20% nickel and 20% zinc. Nickel silver is named for its silvery appearance, but it contains no elemental silver unless plated. The name "German silver" refers to its development by 19th-century German metalworkers in imitation of the Chinese alloy known as paktong. also referred to as Nickel Silver, This alloy has been used to counterfeit Silver Coins and trick unsuspecting buyers into Actually buying no silver what-so-ever.
Have you heard the term before?
Does size matter?
The old age question of does size matter?
Well in silver to cash readiness yes! The bigger the bar of silver the lower premiums but less "liquid" the silver is. The smaller bars that are made are not cost effective but they can be sold quicker and so are more liquid in terms of the silver selling quicker.
Now if you do not want to take delivery of silver you can actually keep it in a bank vault. You will pay fees and a premium for it but it does have that extra security and has daily checks to make sure the silver in the vault is the exact of what is in the holders account. You can also buy units of silver, which are backed by silver but no one knows how much silver units are backed by the silver in reserve.
The way i buy silver is in small bars just because the designs on them and the way they can stack. Also you can buy a Briefcase to carry them in specially made with the inserts provided. In terms of gold to silver prices, gold is almost 74 times the price of silver!
Hallmarks are important
Hallmarks like the one in the image on the left, is all what a collector or investor needs to see in order for your silver to be validated as actual silver. The silver bars and coins gets presented for assay. The purpose was to establish when a piece was presented for assay or testing of the silver content. and then hallmarked accordingly
Check your jewelry and bullion!!
Check the Prices of silver
Check the prices of silver and gold often when buying silver as they fluctuate throughout the day in line with the stock markets. and never pay over what the price says by more than $5 as this will give you enough of a gap to grow into a nice investment. I try to pay only about 10% of the price and nothing more because otherwise it will take a while to get some profit back.
Watch out for the fakes
February 20 2015:
Gold and Silver Fall Over 2% and 6% on the Week.
Buy your Silver now before the great spike.