Common Silver Myths

Credit: Creative Commons/PhotoGraefin

Credit: Creative Commons/PhotoGraefin

When it comes to silver investing there are 5 main myths that 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 that is 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 in fact there are a paltry 1.4 billion ounces to gold 3 billion ounces. Simple math 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 jewelry and photograph industries. This creates an ongoing, steady demand for silver.

Lastly our myth number five: There are mass amounts of silver that will be recycled. This just isn’t true. While the jewelry industry does have a large lump of the silver currently mined, it is worth more as the jewelry or silverware than the base metal itself.

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