Why Buy Silver?
You may have heard silver referred to as "Poor Man's Gold", but this is not quite accurate as reported by history. Silver has been the secondary currency metal for many cultures and economies throughout time. In fact, most day to day transactions were conducted with coins that were struck from metals other than gold. Silver coins would commonly purchase food, clothing, labor and craftmanship, energy, and many other items that we seem to trade for today with a click or a swipe. Silver was the workhorse of many hard currency economies, including that of the United States up until about 1964 when paper and then ultimately digital money became prevalent.
Bullion is the cheapest way to buy silver and probably the most popular. Bullion is silver that has no rarity value (collector value) assigned to it. Products that are categorized in this way are American Silver Eagles, Canadian Silver Maple Leafs, Austrian Silver Philharmonics as well as various minted silver rounds and bars. Their value is derived from the silver content which is equal to the spot price plus a premium for being mined, minted and marketed/distributed. This type of silver will track the spot price correspondingly, and is therefore easy to determine its value 24/7.
Silver Bullion Coins
American Silver Eagles are coins minted by the United States Mint every year in limited quantities. The American Silver Eagle is the official silver bullion coin for the United States. It is extremely popular and recognized all over the world making it highly liquid, easy to buy, sell and trade. They are easy to purchase and store either in your home or safety deposit box.
90% Silver U.S. Coins (pre-1965): These silver coins consist of dimes, quarters, half-dollars and dollar coins that were minted in the United States prior to 1965. They are made up of 90% silver and are great coins to purchase if you are looking to just get your feet wet.
Historic Silver Coins
Historic silver are coins that have a special value to collectors, usually old coins that are rare like Morgans and Peace Dollars. These silver coins will carry a higher premium based upon rarity. The rarer the coin the more valuable it will be. Sometimes the silver value is the least important factor in determining the value of an old silver coin.
Morgan silver dollars are the most popular and commonly traded historic silver coin. Common date coins are valued at close to the spot price while rarer date can be worth thousands of dollars.
Purchasing these types of silver coins will cost more, but they can be very lucrative as well. Some very rare coins have performed very well over the years. For example the 1893 S Morgan in near perfect condition is worth somewhere around $500,000 and at one point it was only worth $1. This coin has been very lucrative for its owner.
Either type of silver can be a great investment over the long-term, especially as congress continues to print money to cover deficit spending. Which type you should buy will be up to what your goals and objectives are.
Silver Bullion Bars:
Bullion bars will offer you the same benefits as silver coins at a slightly lower price and lower premium. They are not as convenient and easy to store as coins. Bars come in a variety of sizes ranging from the 1oz, 5oz, 10oz, and 100oz.
A Commodity Or A Currency?
Like gold, silver is now often purchased as a commodity rather than a currency, though silver and gold are readily accepted around the globe and are quickly convertible into any currency. Silver is again gaining popularity for being held as a physical asset that can be traded directly for goods, security or services, as banking and monetary systems around the world become more exploited and fragile. Like gold, silver is tangible physical wealth that does not rely on a corporation, bank or government to to back it's worth. These are strong financial attributes that are rather unique to only currency metals; no stock, bond or annuity can offer this type of stability and historical longevity as a store of value.
Diversification Within Your Precious Metals Portfolio
ITM Trading suggests you include silver in your portfolio for many reasons such as diversification, exposure to the quick moves of the market, barter-ability, or the current disparity in the gold to silver ratio. If you are not familiar with the historical "Gold to silver ratio" call an ITM Trading Precious Metals Consultant at 1.888.OWN.GOLD for a quick but thorough explanation of this opportunity! Many of the reasons to hold silver today are the same as they were thousands of years ago, however the markets and regulations are not. ITM Trading will gladly assemble a silver portfolio specifically designed to help compliment and achieve your financial objectives, whether they be growth, stability, or generational wealth preservation, ITM Trading can put the right coin and bars in your hands quickly.