Silver is the whitest and most conductive metal available, it is highly malleable and has been used in many different ways throughout history. Now, Silver is used in almost anything from industrial purposes to jewelries, this precious metal can even be used in medical purposes. Silver is both malleable and strong so the metal is sturdy and its high conductive quality makes it a major highly demanded in the commodities market.
Silver in the Market
Silver is a Unique commodity because it can be used for both industrial and investment purposes. The price of Gold is primarily driven by the investments futures and only a portion of it is driven by its industrial use for the commodity. The demand for silver comes from the industrialized world, in the United States, Europe and Japan has reached 39% of the worlds’ demand and has increased their demand for this metal. The Demand for this metal is expected to rise as their economies grow.
Silver can be found all over the world, but there are five countries that cover more than half of the worldwide production, these countries are: Mexico, China Chile and Australia, with Australia having the largest mine amongst all the countries.
Investing in Silver
Bars can be bought typically in bars and that varies in sizes and weight, though a great disadvantage when investing in Bullion is that these bars should be stored physically, and has no interest to the investor.
Buying coins is another way of investing in silver; this is a popular method of physically owning silver. Although they usually sell for a premium, much like silver bars coins do not yield interest.
Certificates are more convenient because, it allows investors to buy and sell silver without owning the product physically
Mutual Funds is a great way to diversify your mining assets, However, Mutual Funds require a bigger investment small silver purchases.
Exchange-Traded Funds (ETFs)
Like other precious metals, Silver ETFs are also possible to invest in, and it can help investors gain exposure to silver. These ETFs can directly hold silver or invest in derivatives that track the price of silver.
Silver Miner Stocks
Investing in Silver Miners requires the know-how of the equity markets, these companies offer leverage to silver prices and some even pay dividends as well.