As with anything in the market, investing in silver bullion has both pros and cons, and what’s appealing to one investor may not be a good choice for another. About 85-90% of gold production finds its way into jewelry and bullion, and only 10-15% finds its way into industrial and technological use. This makes it inherently more like a currency than a commodity- its use does not really decline during recessions, and instead tends to increase in price during those times as fear and uncertainty are on the rise.
The U.S. mint is a government controlled coin production facility. It also produced what is widely considered America’s most beautiful silver coin, the Walking Liberty Half-Dollar. The Mint removed all silver from dimes and quarters. The silver content in half-dollars was reduced to 40%. The mint continued to turn out silver coins until 1971. In the place of the silver was what is called a “Fiat Money System”. Fiat money is money with no real value of it`s own. But is enforced as legal tender by the government. The problem comes when money is mass produces without it`s real value increasing. The result is the “Fiat Money” becomes less valuable and coins with precious metals become more valuable.
However, there are a lot of questions investors have when getting started. Questions like, Which country has the best silver?â€ highlight just how much there is to learn before you put a dime into it. The silver market has been very volatile in recent years, so it’s important you know that going in and adjust your strategy to compensate for it.
Remember: for an investor, the idea is to buy gold and silver close to the spot price, not the prettiest bars and coins. It’s fine to own some coins for numismatic (beauty and historical) value. However, your best investment value will come from buying physical metals at a low price. It’s the eventual price appreciation (assuming that happens) that would make your investment worthwhile.
Another approach is to invest in companies that either mine gold or are exploring for new gold deposits. Some companies are both miners and explorers.Â If you’re going to invest in mining companies, it’s a good idea to diversify your investment across several companies. Investing in a miner is riskier than investing in gold itself.