Silver has been used as a form of currency since ancient Egyptian times and even today is a highly sought after precious metal. While many investors focus on the price of gold today, in fact silver can be just as good if not better an investment when you consider the silver price per ounce. There is no denying that gold has a certain prestige among investors, however when compared to the silver price per ounce, for many investors silver comes out ahead, since it is much more affordable and less volatile to market conditions.
How is the silver price per ounce calculated?
Similar to the price of gold, the silver price per ounce changes daily, based on a number of market factors as well as overall supply and demand. Helping to fuel the increase in the silver price per ounce, is the fact that silver is used extensively in manufacturing various electronics and industrial applications. So while investors are certainly interested in the silver price per ounce, many manufactures closely monitor the price of silver, and purchase stockpiles of silver as a means to hedge against silver increasing in price. Though when it comes to silver there are a number of different purities, meaning how much pure silver the bar has versus additional minerals in the metal. Depending on the industrial application and requirements, generally manufactures can purchase less pure silver, which they get a slightly cheaper silver price per ounce; due to the fact the silver is less pure. Whereas for investors if you are going to purchase silver or gold bars from a mint, generally you are going to be purchasing 99 percent pure silver bars.
As market conditions change, the silver price per ounce will go up or down, to reflect those market conditions. Though, many investors see silver as a more promising investment choice, in the long run, since overall silver prices per ounce, have been more stable than gold prices recently, which have fluctuated greatly recently. Additionally, silver is increasingly becoming a stronger investment, with the high unemployment and economic uncertainty in the US. With inflation and the weakening dollar, silver is becoming worth more and is inversely related to the strength of the dollar bill. So even if the price of silver per ounce decreases, when you compare the value to the dollar if you had it sitting in the bank, you are going to generally be better off.
How To In Silver Once You Know The Silver Price Per Ounce?
There are a number of ways you can procure silver, you can order it directly from a mint based on the current silver price per ounce or in some cases you can also purchase silver bars directly from your bank. In general larger banks are going to be able to assist you with your silver purchases more readily. There is also the secondary market to purchase silver bars, a number of silver coin dealers will sell you silver bars based on the current silver price per ounce, and you can even purchase silver on a number of online auction sites, such as EBay. One thing to keep in mind when purchasing silver from online auction sites, is to purchase from an established supplier, while you may get a discounted rate from a lesser known seller on these auction sites, there can be scam artists that will either not send your silver bars or even potentially send you less pure bars that described.
Additionally, many investors turn to silver coins as a way to invest in silver. And you can purchase many coins that have several ounces of silver; however besides the silver price per ounce, the coins are also affected by the grade of the coin and rarity. Thus, you should generally purchase old silver coins that have been graded already and certified, unless you are familiar with the grading scale of coins. Since, even a slight imperfection or blemish can make a huge difference in the grade of the silver coin, and can affect its value even more that the current silver price per ounce.
And finally, you can purchase silver through ETFs or the spot market. Instead of having physical silver bars or coins, in this case you have silver certificates that you can trade. Investing in the spot market has some advantages, such as you do not have to physically store the silver and selling your silver certificates in some cases can be easier. Though you should be aware of all the fees your broker charges, as that can have an effect on your total net worth, once you go to trade your silver certificates. Like silver bars or coins, the spot market is tied closely to the current silver price per ounce and absent of any brokerage fees, it’s very easy to determine your overall investment.