Silver. Is it a Smart Investment?

The investment markets are always changing and what might be a great option for investing your money right now, might not be so great in a few years’ time. However, there are some investments that are considered a lot safer than others. That’s because they aren’t quite as volatile and even if they do decrease in value, they shouldn’t drop at an alarming rate, unlike some riskier investments. Precious metals, especially silver, are often viewed as one of these safe investments.

Is Silver A Smart Investment?

So, is silver considered a good investment? In a word: Yes! Firstly, as silver is an element, that means it can be used in a variety of different industries and production methods. As a result, it is often in high demand.

Secondly, the silver market is quite tiny, especially when you compare it to the gold one. And that’s a good thing! And that’s a good thing if you look at it like this: smaller markets are often relatively volatile. But as that is what is expected with small markets, you don’t have anything to worry about. Even if the value of your silver does dip slightly one day, you can guarantee that it will be up again the next!

The Best Way To Invest In Silver

When you decide that you are ready to invest a portion of your money into silver, there are a few ways you can go about this. You might want to invest in some silver exchange-traded funds. Even though these are called funds and act like funds, they are, in actual fact, shares. You would need to buy these shares from a stockbroker.

You can also buy shares in silver mining companies. However, it is worth noting that this is one of the riskiest ways to invest in silver. Even though the price of these shares can rise rapidly, they can also plummet just as quickly.

A much easier and safer form of silver investment is to buy silver bullions and coins. Even though the price of silver bullions doesn’t rise quite as quickly as stocks and funds, you will find that it is much safer as the price is less likely to fall. These bullions and coins are easily available to purchase from Bullion For Less. We even offer special investor packs to make it even easier to put your cash in this precious metal.  Once you do buy bullions from us, you have the added advantage of being able to store them securely in our stores.

Do you still have some burning questions about investing in silver? Don’t hesitate to get in touch with us, and we can give you all the information you need to know. Feel free to pop into your nearest store for a chat with one of our advisers!

How to buy and store gold and silver bullion locally

There’s no doubt about it, gold and silver are a great investment. These precious metals have attracted a considerable amount of interest for thousands of years.

In the past, gold (and silver) were so valuable because they were objects that could be moved around easily as people travelled from place to place. Gold or silver could be worn as jewellery, it did not corrode like other metals and was light to carry around.

Even today, gold and silver are still valuable commodities. In many countries around the world gold is a popular choice for investors because its value remains stable and often unaffected even in turbulent economic times.

Gold or silver investments are usually made in either bullion or coins. Once purchased, the majority of investors will keep their gold or silver as a medium to long term investment, with four to five years being the minimum investment period.

Gold is the preferred choice for many because it is deemed to be a ‘safe haven’. Alternative investment options such as bonds often perform badly in an environment where the interest rates rise because inflation decreases the value of the investment. Equities are another option, but these can also fall during turbulent economic times. More often than not, gold and silver offer increased protection in both of these scenarios. Even if the price of gold and silver does fall, investors simply keep their investment for a little longer until the price recovers.

How to Invest

Buying gold bullion offers a number of benefits, but buying and storing gold locally is even better. Purchasing gold from a local company is a very personal experience. By visiting a local company, you can walk in with cash or a card, inspect in detail the gold that you wish to purchase and walk out of the shop with your gold investment.

With online purchasing you are buying gold that you have never seen and you are exchanging money with an anonymous online company. 

Many investors also prefer the relaxed nature of shopping for gold in person and they find that it is much easier to browse and network with other gold investors.  A local gold bullion dealer will often take the time to speak with you about gold investments. This makes them a great resource not just for buying and selling, but also for gaining ‘inside knowledge’ to the world of gold investing.   

When deciding how and what to invest, you can place relatively small amounts of money into shares of gold or silver. This is where the knowledge of your local bullion dealer comes in useful. Bars of gold can also be purchased in a variety of weights to suit your specific requirements.

Gold and silver coins are also a suitable alternative and are the preferred choice for some investors. The coins can even be minted. Popular options for minted coins include Maple leaves, Sovereigns and Kruggerands.

Storage

Once you have decided what type of gold or silver to invest in, it is important to consider how your investment will be stored. Professional and secure storage is the preferred option and it is wise to think about how much this storage is going to cost. Keeping thousands of pounds in gold at home is not recommended and it won’t be covered by your insurance if it is lost or stolen. Some local bullion dealers offer storage facilities for their customers so it is always worth enquiring when you buy the gold whether this is an option that they also provide.

Buying gold locally is the preferred choice of many investors. Not only do you get to speak with someone who is knowledgeable about the gold that you are buying they can also provide valuable information and advice on your gold investment, helping you to maximise your return.

Bullion for Less allows you to buy from three locations, in Cardiff, Swansea and Llanelli.  They also have two state of the art safe deposit facilities where you can store you gold or investments with a complete peace of mind.  Contact them today to find out more

The Gold-to-Silver Ratio: Why is it important?

For investors in precious metals the gold-to-silver ratio is one of the most important indicators available and can help them decide whether it is the right time to buy or sell their gold or silver bullion. The ratio represents the amount of silver needed to buy an ounce of gold, and it can be calculated simply by dividing the price of gold by the price of silver. 

If you’re making bullion investments or trading in gold, silver and other precious metals, you can use the gold-to-silver ratio as a signal to prompt you to buy or sell. The consensus of investors and experts in this area is that a high ratio favours silver, whereas a low ratio tends to favour gold.  Experienced investors who closely follow the movement of the gold-to-silver ratio regularly use this rule of thumb, trading their silver for gold and vice versa when the ratio rises or drops. 

It is important to remember that the gold-to-silver ratio is not a precise guide to buying or selling bullion, but it is an important and useful measure. Those new to gold and silver trading may find the ratio difficult to follow initially, as it can fluctuate dramatically over any given time period, but with a little experience, investors can learn to read the signals hidden in the rising and falling of the gold-to-silver ratio and profit from the information.

At the beginning of the last century, the ratio was fairly steady and hovered at around 16, due to the fact that many nations were using currencies backed by gold or silver. But as the twentieth century drew on, the ratio began to rise and throughout the last hundred years, the ratio has averaged in the 47-50 range, though it has fluctuated significantly. 

Some experts have predicted that the gold-to-silver ratio will eventually return to its historical pre-1900 level of around 16:1, but this is far from certain, as it would require a significant rise in the price of silver. What is certain is that investors can profit from using the gold-to-silver ratio. Analysing the rise and fall of the ratio over time can reveal useful clues and underlying trends that can inform a successful buying or selling strategy.

For those trading in gold and silver bullion, secure and convenient storage for their physical investments is also an important consideration. Bullion for Less offer two state-of-the-art safe deposit locations in the South Wales region, enabling investors to purchase and store their physical bullion investments under one roof. With Bullion for Less, your gold and silver bullion investments have never been safer or more convenient.