Common Silver Myths

Reverse Noah's Ark silver bullion coin

Credit: PhotoGraefin / CC-BY-SA 4.0

When it comes to silver investing, 5 main myths are in popular culture today. 

The first myth is that silver prices are sensitive economically (that silver prices are adversely affected by rising interest rates.) Untrue, there are regular fluctuations in interest rates that have no bearing, at all, on the prices of silver.

Second is the myth that numismatic coins (a coin worth more than its base metal content) can’t be confiscated. While fun to think about, the government does, in fact, confiscate (when appropriate) numismatic coins. Numismatic coins are no more or less protected than any other investment.

Thirdly, there is the myth that silver is more plentiful than gold when there are a paltry 1.4 billion ounces to gold 3 billion ounces. Simple maths should tell you that silver is definitely not more prevalent.

Fourth, in our list, is that demand will lower with the higher costs of silver. Simply not true. Silver is used in such small amounts in the industries such as electronics and solar panels that demand is not dissuaded. There is also the demand for silver from the jewellery and photograph industries. This creates an ongoing, steady demand for silver.

Lastly, our myth number five: Silver recycle. This isn’t true. While the jewellery industry does have a large lump of the silver currently mined, it is worth more like the jewellery or silverware than the base metal itself.

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