Silver Finances & Investment
Silverprices.com provides simply putted information for everyone interested in entering the Oil Investment world.
Silver investment is an interesting addition to any investor's portfolio
Silver has been used for investment purposes since traditional times. Many financial planners suggest diversifying your funds in silver assets as protection against the raging inflation, deflation or currency devaluation. Silver is more scarcely found than gold and the short supply and increase in demand has significantly raised silver prices.
Investing in silver is easy even for the average investor. Here we have simplified the various options by which you can invest in silver.
Ways of investing in silver:
Investing in silver ETFs (Exchange Trading Funds)
Silver ETFs is the right solution for investors who want to get acquainted with the physical silver market, but are unwilling to deal with the hassles of owning silver, such as storage costs and insurance.
Investors can buy or sell ETFs at any time. Top leading ETFs are listed below:
- iShares Silver Trust Fund
- ProShares Ultra Silver
- ETFS Physical Silver Shares
- ProShares UltraShort Silver
- PowerShares DB Silver Fund
Silver bullion bars and silver bullion coins
Investing in silver bullion bars and silver coins is a convenient option as they are readily convertible into cash and are internationally negotiable. They are also easy to store.
Silver medallions vary in price and are easy to store and transport. These may be difficult to convert to cash, unless they are from a reputed and certified refiner.
Silver mining stocks and silver mutual funds
Investing in both, mining stocks and mutual funds is possible only with large amounts of investments. A deeper understanding of the equity market is necessary to invest here.
Silver accumulation plans
In silver accumulation plans, the investor is able to accumulate silver at an average cost.
Investing in silver futures
Investing in silver futures is a sort of a bet on how the silver price will rise in the coming future. Two parties enter into a futures contract where one will sell the silver of a specific quantity and quality at a fixed price agreed today. However, this contract will take place sometime in the future. The buyer hopes for an increase in the silver price while the seller hopes for a decrease in silver price.
Investing in silver futures involves a high amount of risk. To reduce this risk another option 'silver options' is available. Here you buy the right to buy or sell a futures contract, but are under no obligation to do so. This right is bought by paying a premium value.
- COMEX division of the NYMEX
- Cantor Index
- CMC Markets
- City Index
- IG Index
Spot silver is the immediate quoted price by the institutional seller to the buyer for delivering silver within two business days. Spot price is also referred to as cash price. For investors who wish to buy silver, it is important to note that the spot price of silver may be indicative of the final price of silver for a particular silver investment. Worth mentioning is that, the spot price is indicative in this regard, but is not the only factor affecting the final price of silver. Exchanges such as the New York Mercantile Exchange (NYMEX), Tokyo Commodity Exchange, Australian Securities Exchange and the London Bullion Market Association operate on trading silver. The London Bullion Market Association is particularly important as it plays a key role in setting the international silver prices. This is known as London silver fixing in the trading world. Vast amounts of silver are traded at the spot price by institutional investors. Small time buyers are obliged to buy silver over the spot price and sellers are obliged to sell at a discount below the spot price.