Precious metals may definitely be on most people’s radar when it comes to stocking away value in their portfolio for long-term security. However, not everyone can afford to drop spare cash on a couple of ounces of gold or palladium. Instead, they frequently find themselves priced out. However, that doesn’t have to be the case. Silver offers a very viable alternative at a much more affordable price point, whether someone wants to buy regularly in increments or occasionally. Silver has long been the everyman’s precious metal, allowing a person over time to build up enough value and wealth to then upgrade the silver into larger amounts of bullion or trade it for an equivalent in gold. Silver is also a great precious metal to teach children and young people with, costing a very easy amount to get started, and it also makes a great gift that can last for years forward versus a movie or a toy, or a video game.
There are lots of different options for buying silver to build up value. The first and most obvious method involves purchasing bullion. Silver bullion can be purchased bars as well as coins, both of which are produced with high quality Sterling silver at a 99.999% quality level. However, bullion is not the only method. One can also add silver holdings with general household goods. Sterling silver tableware has been a traditional method of buying silver with table dining sets and similar. Additionally, one can also buy silver value in the form of company mining stocks and exchange-traded fund stocks. These two choices are not silver per se but their value goes up and down with the spot price of Sterling silver on the spot market. That said, the best and most recognizable form of silver to own remains bullion in bars and coin form. These can be sold to anyone interested without having to deal with a broker or a bank or an intermediary. They are also hard to fake. It’s possible, but the work needs a lot of expertise to pass a fraud.
Considering the Amount to Buy
There isn’t a set standard on how much silver one should buy in a given transaction. In reality, much of it really depends on what someone is willing to spend. The amount of bullion silver will be measured by the size of the units. The smallest is typical 1/10th of a Troy ounce and the largest in coin tends to be 1 full Troy ounce. Bars can be bought in larger amounts.
One traditional method of buying precious metals tends to be an incremental acquisition. This is where someone makes a point of just buying a certain amount every pay period or month. Many financial experts will oftentimes recommend something between 5 and 10 percent of your periodic money in precious metals and savings. The exact percentage of your net worth that should be invested in silver will ultimately hinge on the percentage of your savings in other assets. If you have a particularly high percentage of your net worth tied up in the stock market, you are overexposed to its unpredictable whims. Holding upwards of 10 percent of savings in silver is sensible for investors who have put the majority of their money in other asset classes. In fact, some financial analysts recommend putting as much as 20 percent of personal net worth in silver and other precious metals as a hedge or diversified holding. For example, if the brunt of your portfolio consists of paper assets, 10 or 15 percent in precious metals could be a nice protective factor when the stock market drops.
Aside From Value, Why Should One Buy Silver?
First, silver is recognized internationally without the need for knowing a language or needing permits to sell or trade it for goods or services. Because it is a recognized precious metal, silver can be exchange just about anywhere there is an economy. Its value isn’t dictated by a government or a set of cultural rules. It might be restricted by law in terms of having it or selling it, but that doesn’t make the value of silver go away. It just means someone needs to relocate where such laws don’t exist or apply.
Silver also contains numerous unique characteristics, such as electric and thermal conductivity, malleability, and resistance to corrosion, which makes it an ideal material for many key industrial, energy, telecommunications, and medical technologies. The industrial demand for silver supports a stable worldwide silver demand. This industrial commodity nature means that silver will remain in demand in markets and business. And that continues to help sustain its value, even when other economic factors might take a downturn.
Silver can be a great way to start a numismatic collection of coins. There are some extremely beautiful and rare items to pursue in silver coins, both created in modern times as well as historical dates going as far back as ancient times. And because silver was and is more plentiful, it’s literally easier to find a Roman silver coin than in any other precious metal form, for example. Literally, you’re holding a piece of history when one of these coins is placed in your palm. And, if the past is not attractive, the modern issues from the Australian Perth Mint will definitely catch your eye. Australian silver coins and bullion from the Perth Mint are the straightforward choices for new or experienced buyers because they are reasonably priced, can be exchanged for cash easily, and are negotiable internationally. With the fact that the Perth Mint is a sovereign issue by the Australian government, there is little problem recognizing its value in different countries by weight, quality, and date of issue.
Keep in mind, for value expansion, silver is also one of the most volatile and likely precious metals that one can significantly increase the value if fast appreciation is wanted. Silver doesn’t behave like gold or palladium, moving steadily up or down over years. Instead, it fluctuates wildly. And this makes silver particularly useful for fast gains. However, keep in mind that what goes up fast can go down fast with silver as well. Fortunately, this cycle repeats itself frequently, so if one has a bad day, he or she simply needs to wait a bit longer and then recapture value later. The same can’t easily be said for other precious metals. While they appreciate, it doesn’t happen to the scale of what silver can produce. Here’s how it works. A gold coin increases by 10 percent in value. It goes from $1,600 to $1760. That seems like a lot. But when silver moves from $20 to $30, that’s an increase of 50 percent. The same value put in both, silver will return far more.
Buying Silver in New Zealand
Buy silver from MyGold and you will rest easy knowing your information, silver, and money are handled with the utmost care. Your information is kept completely confidential throughout the silver buying process. Discretion is fully assured. If you elect to have your silver sent to your door, it will be tracked and insured from the moment it departs our Auckland office to the moment it is delivered to your residence. It does not get any more secure than that.
MyGold takes great pride in being a family-owned and fully independent precious metals seller, and our silver is of the highest quality. Reach out to us, and you will interact with a team of true professionals without constrictive corporate policies, inflated prices, or other shortcomings characteristic of those big box precious metals dealers. MyGold is trusted by everyday Kiwis as well as institutional investors. We provide a wide range of rates suitable for budgets of all sizes, and each of our silver products has a metal purity guarantee, so you can buy without reservation.