Investing in Silver Bullion

Answer 1

When people think of the word “Bullion” they typically think of substantial gold bricks, such as those seen in movies and on television. However, the word applies not merely to gold, but any precious metal which has been purified, melted and poured into bricks, and given an established standard of weight and value as indicated by a stamp placed on the finished brick. Therefore, in addition to gold bullion, there is also platinum bullion and silver bullion, the latter being an attractive form of investment for those who can’t afford expensive gold bullion.

Silver bullion is available in the same sort of standardized weights and values as gold. Because silver is a “lesser” metal when compared with gold, largely due to the fact that it corrodes over time, it is less expensive to own and invest in. In fact, many nations originally opened up their currency by securing it with silver instead of gold, since silver is less expensive and more widely available. This means that many people who choose to invest in silver bullion can do so simply by purchasing a number of bricks and placing them in storage. When placed in the proper container, they can remain untarnished for decades or even centuries at a time.

It is also possible to invest in silver bullion without ever owning it. “Futures,” or promises to buy or sell silver at a future date, permit average investors to invest in silver in much the same way they would oil, gold or stocks. Many investment funds offer silver as a “hedge,” because silver only rises in value over the long term. While the value of silver fluctuates daily, over extremely long periods it only gains value, thanks to the fact that it has a value that exists outside its use as a currency.

Persons looking to invest in silver futures should do so carefully, since values may be inflated, and not reached again for a long time. Silver, like gold, is known as a “panic refuge” since it is not unusual for panicked investors to buy it up and raise the price during a crisis. Therefore, it is best to buy silver bullion, or silver bullion futures, when the market is soaring and precious metals are less expensive.