Investing in Silver

by goldbullion on 03/03/2012 - 12:28 pm |

Tags: Metals Investing, Silver

Investing in Silver

Buying silver bullion is an excellent way to invest in a precious metal that has retained a high value for thousands of years.  Silver is refined, shaped into coins and bars, and stamped by many different mints around the world, both public and private, and many of the bullion products these mints offer are very affordable for the average consumer.   Silver must be refined before it can be traded in its purest form.  Silver ore is first mined from the ground, and then separated out into pure silver and various other metals that compose part of the raw ore, most often by being placed in a nitric acid solution.  The silver is then heated to 1,200 degrees Celsius.  Afterwards, the pure silver is melted into coins and bars that are stamped with marks indicating both the mint of their production and the purity of the product itself.  Silver bullion will always bear the inscriptions ".999" or "99.9" and "fine silver", denoting that the silver content of the item is at least 99.9 percent.  If the silver item in question does not bear these marks, it is not guaranteed to be pure silver bullion.   Silver bullion products are available for sale both at physical precious metal dealing stores and online.  The United States Mint issues "Silver Eagles", legal tender coins made of fine silver, every year.  More common, however, are the various private mints that refine and produce silver bullion.  APMEX, Monarch Precious Metals, Sunshine Precious Metals, and Silvertowne are mints trusted around the world, and they all offer silver bullion in both bar and coin form.   Gold, at its high price range, is sometimes out of the reach of the average investor.  Silver bullion, however, provides an excellent alternative for those who would like to secure their wealth against the ravages of time.

Buying Gold

by goldbullion on 03/03/2012 - 11:53 am |

Tags: Gold, Metals Investing

Buying Gold

Gold has become a hugely fashionable and widely-touted investment in recent years, with the rise in the price of gold from $600 per ounce in 2008 to over $1,700 per ounce today. Eager investors have flocked to various gold investments, in a headlong rush to avoid missing the boat in the event that gold continues its upward price march. For many, there is not even a question of whether gold will continue to rise, but only a question of how high. For some people, and in light of current financial and economic uncertainty worldwide, owning gold has become nearly obligatory, and anyone who might decline is deemed self-destructively short sighted.   Even dismissing the question whether to buy gold, the necessary question remains of how to buy it. Gold is available in a number of different forms, including both physical forms and derivative forms. As for the physical forms, one might buy gold bars or might buy gold coins. In some countries, including Canada and Switzerland, gold bars are sold at banks. In all countries, bars are also sold by dealers. Bars are sold in various sizes, from as small as 10 grams to as large as 400 ounces. The advantage of bars is that they generally carry a lower premium in price than coins. (The premium is an addition to price to reflect costs of manufacturing, storage, and distribution.) The disadvantage is that quality is less assured with bars, and standards of comparison and measurement less reliable. Gold bars also present storage and security issues, as many people are not able or willing to store gold bars at home. Secure storage can be expensive, and its cost will reduce any return earned on bars as an investment.   A more popular means of owning physical gold is in coins. Coins are of two broad types, collectible coins and bullion coins. Bullion coins are priced according to weight, with a small premium applied. Collectible coins are priced according to quality, rarity, and demand. In any event, the gold coin market is vast, with coins available widely from many dealers, and even online from dealers and auction websites, including eBay. Gold coins are often known by name, including the single most widely circulated gold coin the Krugerrand. The American Gold Eagle and American Buffalo are two highly popular coins minted in the United States.

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