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Friday, January 20, 2006

When Should You Buy Silver

As the value of precious metals such as silver fluctuate on a regular basis, it is a valid question to ask when should you buy silver.

The price of silver is currently on a rising trend from less than a dollar per ounce in the 1950s to over 12 dollars per ounce today. There was a sharp rise in the 1980s which then dropped down over the later few years and the price, until recently, has remained fairly stable.

When you should buy silver depends somewhat on the reasons for purchase. If you are purchasing silver coins simply for the beauty and as a collector with no though as to resale at some later date, then anytime is the time to buy silver.

But if you are buying as an investment for the future other considerations should be taken into account.

Today above ground stockpiles of silver have dwindled to almost nothing and warehouse inventories are down to around 100 million ounces, of which two thirds are already spoken for.

Silver is absolutely essential for industry, being used in many things from keyboards to phones, refrigerators and thousands of other manufactured goods. Also silver production is mostly a by product of other mining such as lead, gold and zinc for example. There is little actual silver being mined and the silver consumption has been outstripping supply for over 14 consecutive years.

In the silver market both coins and bars are extremely liquid. In a melt down situation where silver might be at a premium, coins would be easier to barter with. Silver is very popular yet the price is still low enough to make it a future viable investment and now would most likely be a good time to purchase silver particularly in the form of silver 1 troy ounce coins.

Silver, as well as being ideal for collectors, also have considerable industrial use. This should ensure the value remains stable in the long term.

Basically the best time therefore to buy silver is anytime. Especially if you buy on a regular consistent basis as any fluctuations in the value will tend to even out.

So when should you buy silver? Now is a good time!



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