Over time, the Greek crisis has led to an initially proposed €3 trillion bailout, which will stress the financially stable countries like France and Germany. In response to the projected stressors on these stable European countries, the stock market overall has taken a dramatic hit. And silver is not immune.
The price of silver has been increasing from a low of $27.01 in early January 2012 to hover between $33 and $34 per ounce in February. When news of the Greek crisis hit, silver gently declined to just under $33 per ounce and refused to climb.
The most recent news about Greece, though, appears promising. Eurozone finance ministers have given Greece nine days beginning February 21 to meet a list of conditions. When conditions such as privatizing state-owned companies and penalizing tax collectors with poor performance are met, Greece will receive the €130 billion bailout.
The final agreement of a €130 billion bailout is great news for neighboring countries, and it seems that silver’s stock price is celebrating. Silver finally broke the $33 stalemate to trend upward to $35.592. Additionally, future projections predict a continued rise over the course of the year.
As with any investment, however, it is wise to study multiple predictions and projections before purchasing, to diversify, and to truly understand the commodity you are purchasing.
]]>The show may be entertaining, but not many people would give life and limb to make such a risky investment. I know I wouldn’t. Fortunately, there is a way to take advantage of gold rush fever without suffering terrible consequences: invest in precious metals. Unsure what this entails? Let’s take a look.
The first thing we should look at is why anyone would want to invest in precious metals. Basically, it boils down to safety; precious metal investments have historically been safer than other investments, like stocks, but offer somewhat high returns. Also, precious metal investments have become easier, with a few options to choose from.
One of the investment options is purchasing gold bars or coins. These physical forms of precious metals are called bullion, and they do take a little extra time and money to care for and protect. For that reason, many investors choose to purchase precious metals on the stock market. Here, the safety is
pretty high and the returns are similar (minus investment fees, of course).
The next question that comes to mind once you decide to invest in precious metals is whether to invest in silver or gold. To answer this, we must turn to the market. In 2010, the value of silver rose 80% as compared to gold’s rise of 29%. However, 2011 was not the best year for silver, with the precious metal slumping overall 10.7%. Gold performed better, rounding out 2011 with a 9.3% increase.
However, even with the market showing a loss for silver in 2011, investment experts predict the precious metal may make a rebound in 2012 as governments print more silver-backed money, which will increase the value of silver. The same is not predicted for gold.
Precious metals are a rather simple investment. You may purchase the bullion through governments, coin shops or online vendors, but it is advised that you know your source well before purchase. For that reason, many people choose to purchase government-issued coins and bars. On the other hand, if you’d rather keep your precious metals in paper form, investing in the stock market can help you reach your goals. Exchange-traded funds (ETFs) are a great place to invest in silver in the market, so see your investment broker or online investment firm for details.
That’s the basics of precious metals investments. Precious metals are relatively secure, investment options are available and silver is predicted to make a comeback. Now aren’t you glad you don’t have to travel to Alaska to mine for gold?
]]>Hecla, the company that operated the mine, saw its shares drop by around 25 percent of their value. Said company President and Chief Executive Officer Phil Baker:
The Lucky Friday mine is a world-class mine that we see producing silver for decades to come. Hecla and the Lucky Friday mine have faced challenges in the past and we will once again overcome them.
The company also confirms that the closure of the mine will lead to at least 185 layoffs.
]]>Before we go too far into weights and measurements, let’s first review what silver bullion is. As you probably know, silver bullion is the physical form of the precious metal as formed into bars, coins or other forms. These forms allow investors to store the bullion easily and better determine the worth of the actual silver.
When the silver is formed into the shapes, the purity can vary. The United States’ Mint, for example, offers coins that are purified to 99.9% silver. Junk silver dealers, on the other hand, have been known to leave many additives in their silver bars or coins, often selling bullion that contains only 90% silver (which is virtually worthless on the market).
Now that we know a little about silver bullion, let’s dive right in to the weight. Silver is measured by the Troy ounce (also known as 1ozT). One Troy ounce is equal to 31.1034768 grams, but the actual weight of your silver bullion can vary immensely. Silver bars, for example, are often produced in 2.5-, 5-, and 10-oz bars, but bars have been known to weigh in at hundreds of pounds (there is some truth to Hollywood depictions!).
When you buy your silver bullion, it is important to pay attention to both the weight of the bullion and the purity. The more pure and hefty the bullion, the more the silver is worth. That being said, buying from reputable dealers can often help you make your best purchase; junk dealers can easily sell you worthless silver.
Overall, buying silver bullion can be a pleasurable investment experience. If you know the basics of silver bullion, the weight of your potential purchase and the purity of the silver, you could purchase silver that will grow with you over time. Buying from reputable dealers, like governments, can help you make your best investment possible.
The precious metal may rebound because of emerging markets. China in particular is a driving force in the metal’s potential price increase. China is growing rapidly, and the growth means that they will consume much more silver in the coming months. The rebound in silver sales is also due to the price. Silver is priced much better than gold, making it much more appealing to the average investor.
While both gold and silver have performed well this year, silver has experienced the widest swings in value even as it reported an excellent overall return. Silver has shined with 104% gains and tarnished with 28% losses (in September 2011), but overall, it has returned 34% in the last year.
The last three months of 2011, silver is projected to rebound from just under $32 to a potential of $42 per ounce, balancing out with an average of $38.
Even so, the projections could be faulty. The total world economic growth may not support the mine production numbers. The mines are expected to continue to produce at an accelerated rate while world economic growth is not expected to keep up at the same rate. Additionally, if the world economy backslides into recession again, the silver surge could slump.
]]>The first characteristic of tarnish on a silver bar is the color. Tarnish is a slight green, pink or yellow tinge that makes the silver appear “smoky” or old. It is not a deep red with flaking pieces; this is rust, and if your silver is rusting, it is not pure silver. Beyond the color, testing the silver with a magnet will let you know if the bar is pure silver or a mixture; the magnet should not stick.
When silver is exposed to air for a long period of time, it will begin to tarnish. This is especially true in high humidity areas, like kitchens and bathrooms. For this reason, pure silver silverware often tarnishes when left in the kitchen (or the bathroom, for that matter, if you are so inclined).
If your silver bars have tarnished and you are especially worried about the appearance, you may clean your silver just like you would with silverware. Silver polish works well, and a low-cost technique of using aluminum foil, boiling water, and baking soda to remove the tarnish is available. Simply place aluminum foil on the bottom and sides of a baking dish, shiny side up. Then add a cup of boiling water and a tablespoon of baking soda to the pan. Place your silver in the bottom and stir the water. In about a minute, you can flip the bar over to clean the opposite side.
Once the bar is clean, you can slow down or prevent future tarnish by placing the bar in a plastic bag. However, tarnish may be desirable, depending on your buyer. Tarnishing can also be called toning, and the beautiful patina on the bar helps to show its age. The right buyer may pay you more for this.
So if you have a tarnished silver bullion, you need not worry. This is not a sign that your silver will fetch you less on the market. The silver will be worth the same on the day’s market as an untarnished piece. In fact, it may be worth more to the right buyer. Even so, if you wish to clean your silver and prevent tarnish, there are some low-cost ways to do so.
]]>Chinese Vice Premier Li Keqiang began to support the yaun in August 2011. Previously, this year, the yaun bond sales have tripled, and yaun deposits have increased by 93%. The increase in the currency seems to be linked to a push in renminbi sales in Hong Kong.
Bullion trading has also increased, jumping more than HK $100 billion in one year. Gold has become a haven against the stock market, which has experienced many declines.
Together, the increased strength of the yaun with the hunger for gold leaves many Hong Kong investors clamoring for the new yaun bullion. Hong Kong’s Chinese Gold & Silver Exchange Society president Haywood Cheung believes that the demand for the new bullion product is so large because of the gold bull market, the currency’s appreciation, and hedge gold investments.
Should both the yaun and the gold continue their increases in value, the yaun bullion may be worthy of investment.
]]>Before we go too far into the actual investment in silver bullion, we must define what bullion is. Basically, silver bullion is some form of the pure precious metal kept as an investment. The forms vary from bricks of silver to silver coins, and the entire lot of the purchased bullion can be kept in a safe, safety deposit box, or even buried in one’s backyard (not suggested!).
Precious metals have historically kept their value or risen in value since their introduction, but the perks to silver ownership do not end there. Governments around the world produce their own silver bullion coins, which enables them to guarantee the coins’ weight and purity. Some governments, like the United States, will even recognize the coins as part of investment strategies. For example, the United States’ government will allow American Eagle Silver Bullion Coins within IRA investment packages.
Investing in silver bullion can occur one of two ways. You could invest in the actual, physical bar of silver, or you could invest in an Exchange-Traded Fund (ETF). With the physical bullion, you purchase a coin or bar from the US Mint or from trusted dealers, like coin shops. However, if you purchase an ETF, you buy shares of the holding company’s silver.
That statement may not make much sense, so let’s look at it a little further. In an ETF, a holding company purchases the physical bars of silver and keeps them in a safe place. Then the company offers shares of the total silver allotment to investors like you. When you purchase a share, you receive a certificate for the purchase rather than the physical bar of silver.
Silver bullion investment can seem tricky when you first begin. However, a few tools can help you make the best coin investment choices around. First, before you invest, you should know the current rate for pure silver. Second, you should research the amount of pure silver in the coin you wish to purchase. Doing these two things can help you invest in silver at optimal values.
Overall, silver bullion can be a great investment strategy. Buying and holding precious metals has historically returned better values over time. Hopefully this trend continues as more and more people invest in precious metals in the coming years.
]]>However, the stock market doesn’t have to be as scary as many people believe it to be. When invested partially or fully (dependent upon age) in low risk, stable stocks, bonds and ETFs, we can all feel a little more in control of our retirement futures. Let’s take a look at one of these types of investments, Silver Bullion ETFs.
Let’s dive into this financial term by first defining the ETF, or Exchange-Traded Fund. The ETF is an investment type that allows you to purchase shares of an asset without actually taking possession of the physical asset. This can come in handy in a number of investments; oil, for example, is worth a lot of money, but you wouldn’t want to store barrels of it in your house. If you were to purchase an ETF in oil, you could reap all the benefits of oil investment without the hassle of storage.
The same is true for silver bullion investments. Silver can be worth a lot, but storing the precious metal can bite into your profits. For example, renting a huge safety deposit box, purchasing a large safe, or allocating a room in your house to store all of the silver bars and coins can become quite expensive and cumbersome.
Thankfully, Silver Bullion ETFs allow you to buy silver in bulk without the storage hassle or the risk of robbery. When you purchase a Silver Bullion ETF, the physical silver is kept in a safe central location. Your investment is fully backed by the silver bullion, and you don’t have to lift a finger moving the bricks.
Of course, storing that silver in a vault costs money, so the holding company will periodically sell some of the silver to pay for the costs. This means that your investment will decrease slightly in value over time. Additionally, the Silver Bullion ETF is subject to commission fees, just like all other ETFs. When you buy or sell the securities, you will most likely be charged commission.
Even given the fees and commissions, Silver Bullion ETFs can be great investments. As with any investment, fully researching the product before purchase can bring you excellent returns over time. Silver has historically risen in value, so check out Silver Bullion ETFs today.
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