Buying Silver Coins?

Thinking about purchasing silver coins? The 2 primary choices are bullion coins or collector coins. Both types of coins provde the prospects for capital advances, causing them to be appropriate for investing in silver but which is the better choice? Both coins generate their valuation differently and understanding how this occurs and the way the silver marketplace impacts this value will make all the distinction between the two.

Just What Are Numismatic Investment coins?

Numismatic coins are collector coins. Their value is assigned to them dependant on factors such as the lot size, age, overall condition and supply on the market. Whilst their metal content along with the current price of silver is going to be part of the final sale price, it is actually other attributed elements which establish the magnitude of the premiums being asked.

Collector Coins for Investing

Inevitably, the price of a collector coin has actually been assigned to it depending on opinion and personal judgement. This is not unlike physical currency, particularly bank notes. Both have had value allotted to them over their physical or inherent worth. Consequently, there is always the chance that the value could be removed and in the case of numismatic coins, their final selling price is based on the perceived value determined by the possible purchaser.

In the states, there are huge advertising campaigns running in all forms of advertising, including television. This informs us of one essential matter about collector coins. There is a very high premium above the cost to produce the silver coins. This premium is what enables vendors to shell out big dollars on advertising and marketing to generate product sales. 

The Price of Silver and the Influence on Numismatics

As the key aspect of the premium of collector coins is commonly dependant upon designated worth i.e. not the silver content, a rise in the silver price produces a lower percentage improvement in price tag of the coin.

For example, If a one ounce collector coin is priced at $100 and the current price of silver is $30/ounce, the silver content contributes only 30% of the final worth. If the price of silver would double to $60/oz i.e. a 100% improvement in value and the worth of the coin raises to $130, the coin has risen in value by 30%.

Are Numismatics Suitable for You?

If you're an keen collector of coins and you really are excited about the collectors' marketplace, investing in numismatics may very well be suitable for you. With the way by which value is assigned, you need to do thorough research so that the reasons put together by other people makes sense to you. It should be also a shared impression of others in the marketplace whom may very well be your would-be purchasers. 

As an investment preference in today’s silver sector, we percieve numismatics as providing considerably less prospects for growth. Because their price is assigned significantly less primarily by the silver value, an increase in the silver price as we predict this present year will not likely provide the comparable all round percentage increase for every coin that silver bullion coins may provide. Find out more about Silver Coins Australia and how they fit in to the equation.

Will You Get Silver This Year? Here's Why You Need To

Specialists everywhere are voicing their thoughts and opinions that silver currently is nowhere near the price it should be and that a remarkable increase is forthcoming. If they are correct, the silver price could skyrocket as there are a multitude of key factors that will drive the price improvement. You need to be securing your prosperity and avoiding the debasement of paper currencies to take benefit from this valuable opportunity. Here is a summary of the signals that the price is on the verge of an explosion. These are the reasons we recommend you buy silver bullion in 2011...

The Collapse of the US Dollar? - the phenomenal printing of cash occurring right now under the banner of Quantitative Easing and the impending inflation (even hyper inflation) that will result in a rush towards the the protection of precious metals

The Fragile Euro Currency - the large bail outs currently in motion to prevent countries like Greece, Ireland, Portugal and soon to be Spain from defaulting on their debts. Is this just an interim measure to an inevitable collapse of the Euro?   

The Deficiency of Silver for Trading - The majority of silver is employed in industrial applications, allowing only a very small quantity for investors to invest in. As demand increases, the values have to elevate as well.
   
Silver is Getting Consumed - In contrast to gold, silver is consumed in a great many industrial applications, for example the increasing increase in electronic devices. Nearly all of this is uneconomical to recoup, which means world-wide reserves of silver are shrinking   

The Impact of China - because of the standard of living ever-increasing, this raises the requirement for electronics and as a consequence silver utilization. China also provides a extraordinary market place of investors, a technique actively advocated by their government   

The Suppression of the Silver (and Gold) Price - It has been uncovered that the gold and silver price is being influenced, keeping it from achieving its free market price. As more people start seeing this manipulation, we will see more pressure to avoid it from occurring in the future.   

Silver is Ridiculously Undervalued - a search back in history at the gold silver ratio demonstrates that within the past 100 years this ratio is far too high and there are no explanations for this. Furthermore, the silver price has not kept pace with inflation and it must be much higher today

If you're serious about protecting and expanding your wealth, if you invest in silver, it could be probably the most remarkable possibilities this year. We encourage you to educate your self on the aspects above, monitor the silver price and make every effort to buy silver as soon as it is possible to. The boost in silver cost that we are expecting could make this the most critical selection of your life. 

Investor Confidence and the Silver Price

The global economic problems we are suffering from at present are having a substantial impact on trader confidence. Inadequate economic growth and desperate economic policy to counteract this are producing rising debt that is progressively more challenging to pay back. The end result of this will bring about currency debasement by means of inflation that will only worsen.  Simply by learning the factors that have an effect on investor confidence, we're able to see where the silver price is moving.

A few of the crucial world-wide economic fears impacting investor confidence are:

- The falling confidence and investment in the United States currency

- Huge US debt troubles that at this time equals the annual Gross domestic product of the country

- Slow US economic performance despite the massive money printing activities of the Federal Reserve in an attempt to energize the economy

- Euro currency crisis with debt default concerns and the possibility of a complete currency crash

The Effects on the Silver Spot Price

As trader confidence in the stock market decreases amid anxieties of a crash or sustained loss, investors must find an alternative investment vehicle to protect and preferably improve their wealth. Throughout history experts agree it is the precious metals which includes silver which have accomplished this function. These metals come with an built-in worth that can not be revoked like the value of a piece of paper can. The price of silver in particular has seen considerable growth in the past Year and this is a trend which it anticipated to continue with the unpredictability in the world-wide economy and the influence on conventional investment sources like the stock market.

Tips on how to Defend and Increase Your Wealth

It is the savvy investors, large portfolio managers and even governing bodies who will be the first to move to precious metals and this is something which is clearly going on already, confirmed by the silver price continuing to go up. This activity will continue to provide a constant price increase.  In the event of a serious international financial calamity that many see as imminent, the demand for silver will rise rapidly, sending up the price of silver in an exceedingly short amount of time.

Once this becomes published in the media, the general population gets to be more aware about the potency of silver to guard their wealth and there will be a rush to the metals. For your panic investors who finally appreciate what is about to take place to the wealth they possess, they are going to become aware of silver as an investment way too late and the price will have already climbed too high.

Trader Confidence And Stock Market Trends

The buying price of silver is continually adjusting and ultimately it demonstrates the buying and selling motivations in the metal. Since the production of silver, mostly because of mining outputs is comparatively consistent, changes in demand will directly impact on the silver price in a short time. If the market demand increases, the supply cannot be accelerated at the same speed, so the price needs to grow to allow the marketplace to balance. By understanding exactly where the marketplace demand stems from, we can get a better perception of how this tends to affect the silver price.

Where the Marketplace demand for Silver Emanates From

Marketplace demand for actual silver arises from 5 main areas; industrial uses, photography, jewellery, silverware and silver bullion for financial investment. Of those sources, the majority are relatively stable demands which can be predicted based upon past consumption. Market demand for silver for investment on the other hand is much harder to forecast and subjects the silver price to significantly increased fluctuations in short periods of time.

The marketplace demand for silver for investment appears in two primary forms; physical silver bullion that makes up the less significant quantity of orders and silver in the form of stocks and shares and shares or ‘electronic silver’ that is exchanged in significantly larger quantities. The electronic silver bought and sold day by day is actually in huge volumes received from direct investment in stocks like Exchange Traded Funds (ETF’s) or in speculative trading where investors aim to anticipate where the cost of silver will be in the future.

The Stock exchange as an Indication

By understanding the confidence traders possess in the stock market, it is possible to estimate the demand trend for silver as an investment, that will in turn change its price. Ultimately it's going to be the entire performance of the stock exchange which will indicate trader confidence levels. If the market is performing well, investors will continue to buy stocks as this is where their return or gain will come from. In the event the total market declines, this means that confidence levels are down and investors are selling off their stocks to guard their wealth from losses.

Whenever investors sell off to avoid sustained losses, they must be able to transfer their money to another investment vehicle, as retaining it in paper money places it at a significant likelihood of losing value through inflation. Throughout history it has been gold and silver that have been the most well-liked choice for guarding wealth against economic uncertainty and that is relevant today more than ever. Gold and silver offer an inherent value that protects them against currency debasement and today the potential of capital growth due to increased market demand is exceptional.

So when you want to anticipate the general trends in the buying price of silver, monitor what is taking place on the stock exchange. If stock prices are down and the outlook for improvement is not good, traders will sell off some of their poor performing stocks and shares from their portfolio and silver is a likely investment option. Greater purchases in silver means a rise in value and this means a nice gain to you if you have made an investment in silver already.

Silver Price Charts - Current and Historical

Please find below the live silver price charts for your convenience. All prices are currently in US dollars, with live Australian spot price charts to be available shortly.

Check out our blog too, as we have the latest silver news and market insights, in simple, straight forward terms that get to the point.

Buying Silver in 2011? Here's 7 Reasons You Should

There is a growing body of evidence, ominous economic indicators and precious metals expert opinion that supports the notion that Silver is massively under valued. If correct, we could be about to see a silver and gold boom of unprecedented levels. Are you positioned to take advantage of this boom and secure the financial well being for you and your family? Here is a snippet of the indicators that the price is on the verge of an explosion:

The US Dollar - the phenomenal printing of money going on right now under the banner of Quantitative Easing, imminent inflation (even hyperinflation) and a rush to the security of precious metals...
The Plight of the Euro - the massive bailouts currently in motion to prevent countries like Greece, Ireland, Portugal and soon to be Spain. Is this just an interim measure to an inevitable collapse of the Euro?
The Scarcity of Silver for Investment - Only a fraction of the amount of silver is available as bullion for investment. If there is a rush to Silver, the demand on such a small supply will cause prices to skyrocket...
Silver is Being Consumed - Unlike gold, silver is consumed in many industrial applications, including the ever increasing boom in electronics. Most of this is uneconomical to recover, meaning global reserves of silver are shrinking...
The China Factor - with the standard of living on the rise, this increases the demand for electronics and therefore silver consumption. China also represents a phenomenal market of investors, a strategy actively promoted by their government...
The Manipulation of the Silver (and Gold) Price - there is a growing body of evidence supporting the notion that the silver price is being suppressed to maintain confidence in the US dollar, however the resources on hand to enable this to continue are running out...
Silver is Grossly Undervalued - a look back in history at the gold silver ratio shows that in the last 100 years this ratio is way too high and... find out if Investing in Silver is the right strategy for you to protect your wealth in 2011 and beyond