Investing in silver: pros and cons, prospects. Silver rate

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Investing in silver is one of the most reliable tools for saving and increasing capital in 2019. Of course, buying precious metals involves certain risks, but if you follow a well-written business plan and constantly study information about quotes, you can earn some pretty good money. In our article, we will talk about the pros and cons of such investments and their prospects in the near future.

Silver rate for today

Thought about how profitable it is to invest in precious metals in 2019? Then you should analyze the recent silver price in detail. Today it is almost 16 dollars per troy ounce - a very good indicator for investment. The graphs of silver price growth look quite optimistic, but not everything is as rosy as it seems at first glance.

Most experts predicted growth in 2018prices for most precious metals, but forecasts fell short of expectations. By the end of the year, the value of gold and silver had fallen so low that investors had lost 20 to 50 percent of their investment. After that, many businessmen became very wary of the growth of the precious metal, believing that it was artificially overvalued.

However, do not forget that in about 10 years, most of the found mines with precious metal will be bled by large states in which industry is highly developed. After that, many people should appreciate silver at its true worth. Of course, as a short-term investment, the precious metal is unlikely to live up to your expectations, but in 5 years you will surely feel how profitable investing in silver can be.

Prospects for long-term investments

Thinking about whether to invest in silver? Then, to begin with, we recommend that you familiarize yourself with the information about the state of mines with precious metal today. The exact number of deposits is unknown, but there are about sixteen times more of them than gold. However, it is far from a fact that the white metal will be less in demand than gold in the coming years. According to experts, some processing companies simply refuse to supply from large mines, because the quality of the goods leaves much to be desired. Because of this, prices for existing metal reserves are rising, in which investors and large financial corporations are so fond of investing.

Also, a novice investor should be aware that the downward trend in the physical volume of the precious metal will continue for several years. Silver is not returned for recycling in the form of scrap, but it is still several times more than gold. In addition, people are not as willing to purchase silver jewelry as they are gold, although the difference in price is simply huge. White precious metal tends to blacken over time, so for a good gift, it is better to give preference to an alternative. What can we say that only 20 percent of the mined silver has no impurities! The remaining 80 percent of nuggets contain a certain amount of nickel or zinc.

Why are silver prices moving so much?

Dynamics of silver prices for the year can change several times. At the beginning of winter, the price of the precious metal, as a rule, rises by several percent, but already in the middle of spring, prices may fall below the previous level, and rise again by the beginning of summer. At such races, many novice investors went bankrupt at one time. So if you are planning to invest in precious metals, then you will need to stock up on a lot of patience.

Also, we should not forget that our country is currently in a crisis. On the one hand, such a trend leads to an ever-floating silver rate, which is why the price of the precious metal can be predicted by tomorrow.becomes incredibly difficult. On the other hand, the fall of the ruble led to an increase in the price of the dollar and other foreign currencies. Well, since in most cases silver is valued in dollars, this has led to an increase in its value on the international market.

It turns out that if it were not for the crisis and US sanctions, it would be several times easier to make money on the resale of silver? Yes, but the profit would be minimal, since the price of the precious metal would be kept within the same mark all the time. Well, jumping charts allow you to earn a fortune on such investments or lose most of your savings. It is somewhat reminiscent of the purchase of shares on which no dividends are paid, but the rapid growth or fall of securities is promised.

What is silver quotes

If you want to determine the prospects for investing in silver, then you should thoroughly study all the theoretical information on this issue. For example, every novice investor should know what silver quotes are and what rules they are set by. Such knowledge will help predict the rate of the precious metal in the near future, however, even with such information, the investor risks quite a lot when buying the precious metal.

So, the quote is the price for one ounce of silver, which is set daily by the London Fixing. Of course, in order to set a course for the precious metal, you need to coordinate your actions with a dozen different traders and companies that buy it. Besides,a similar nuance often depends on the amount of precious metal mined. Based on detailed research, the London quote equals most of the world's national banks.

As for the Russian Federation, the rate of precious metals in the country is set by the Central Bank. Of course, in such matters, he largely focuses on the London quote, but do not forget that in a crisis, the price of silver can artificially increase so that investors invest their money in buying white metal. Quite often, this leads to people losing their savings, but the most patient buyers benefit enormously from this.

Forecast for the near future

Thought about when silver will rise in price? Most experts over the past few years have given very optimistic forecasts about the increase in the cost of the precious metal due to the reduction in world reserves, but the dynamics remain very stable. Of course, prices can vary from $15 to $20 per ounce, but no sharp jumps beyond this limit have been observed so far. Perhaps such predictions are destined to come true in ten years, or silver prices will start to rise tomorrow. That is, the dynamics of rising or falling prices in a crisis, even for specialists, remains completely unpredictable.

If we discard the fact that the Central Bank can artificially raise prices for silver, then it is very realistic to calculate the cost of the precious metal by tomorrow. It is only necessary to take into account the industrialdemand for goods and volumes of extracted raw materials for the year. In this regard, everything is more or less stable in the Russian Federation. Therefore, it is possible with a high degree of probability to conclude that by investing in the purchase of silver, the investor at least does not risk losing his funds due to inflation. Of course, such a forecast is only relevant in the long term, so novice investors should be patient.

Is silver likely to rise quickly in 2019?

How much will a bank silver bar cost in 2019? No expert can give you an exact answer to this question. However, if you pay attention to the charts of changes in quotes at the end of 2018, you will understand that a small increase is in principle possible. Over the past three months, the price of one ounce of the precious metal has risen by about two dollars. This is a very good indicator, but it is necessary to take into account the fact that the situation can change at any time.

Also, do not forget that the economies of most countries have slowed down significantly in recent years. Stocks of precious metals will no longer be replenished in such large volumes, so the demand for jewelry will only grow. It may take just a couple of years to wait for a sharp rise in the price of silver. However, some experts are quite confident that a similar trend could occur in 2019 as well. However, as you know, even professional analysts can make mistakes from time to time.

Buying bank bars

To dateanyone who has a sufficient amount of money can purchase a silver ingot from Sberbank. This precious metal 925 is sold in large (up to one kilogram) and small (from one gram) specimens. Of course, you can invest in buying a few small bars, but investing a large amount of money would be best in a large piece of precious metal. The larger the bar, the cheaper the purchase of one gram of silver for an investor.

However, every entrepreneur should be aware of the fact that the purchase of precious metals is a rather lengthy and laborious procedure. For example, it will take at least one week for the expert to establish the authenticity of the ingot (for a fee) and write an appropriate conclusion. In addition, if you decide to store the precious metal in a bank safe, it will also take a lot of time and money to open the safe. However, it is still much more reliable than hiding it under the mattress at home.

Investment coins

Perhaps almost every person who has a certain amount of money in reserve at least once thought about investing in silver. Is it really profitable to invest in precious metals? Yes, when it comes to acquiring special investment coins. Their prices are steadily rising, regardless of the silver price at the moment. However, do not confuse investment coins with collectible coins, as they have a rather large difference.

Collectible goods are intended for further sale to individuals, and its price largely depends on the ability of the owner to negotiate. Sometimes it happens that the owner of a collectible coin simply does not find a buyer and takes it to a pawnshop in order to return at least some money. The investment option is specially created in order to simplify the procedure for investing in precious metals. In such coins there are no various inclusions for precious stones or inserts from other metals and alloys.

Thus, investing in investment coins is much more promising than buying silver bars. Their value does not depend on the quotation, so the depositor practically does not risk losing his funds, as is the case with the collection option. However, the profit will be tangible only if we are talking about acquiring a large batch of coins for long-term investment.

Opening a metal account

In search of an answer to the question of where the cheapest silver is, many investors sooner or later stumble upon the possibility of opening a special metal account, thanks to which the investor does not need to purchase bullion or bullion coins. You buy a few grams formally, after which it is stored in your silver account. If the bank where the purchase was made unexpectedly goes bankrupt, then the investor can be given in ingots the amount of silver that he bought.

A significant disadvantage of this method of investing is that the prices on the exchangequite different from the value of the physical metal. The Bank has the right to change the exchange rate of the metal within certain limits, which do not contradict the legislation of the Russian Federation. Therefore, if you decide to open an unallocated metal account, choose the most suitable offer for you, which is not much different from the cost of metal on the silver market. The growth forecast for the quote will also largely depend on the policy of the bank itself.

As for the advantages of this way of investing, they are quite significant. Firstly, you do not have to pay money to an expert for the fact that he will evaluate the bars. Secondly, the investor does not have to wait for paperwork, and the registration procedure on the stock exchange takes several minutes. Of course, the value of silver in this case is lower, since all transactions are formal, but this allows thousands of investors from all over the world to make money on it. Maybe you should try it too?

In closing

We hope this article has helped you figure out how profitable investing in silver can be. Of course, the success of investing in a precious metal is largely determined by the knowledge of the owner himself, but do not forget that prices can rise artificially so that the country's economy simply does not collapse. If you still have any questions about investments, we recommend that you watch a short video that details the prospects for investing in silver in 2019, provides a forecast forprecious metal price fluctuations.

As you can see, even in the midst of a full-blown crisis, many people find a way to make huge amounts of money. If you are interested in investing in silver, then you should keep in mind that market prices can change literally every day, and it can be incredibly difficult to predict them. However, you should not be afraid in vain. Precious metals are the defensive assets of any country, so their value is unlikely to ever drop too low. In most cases, the fall in the rate is carried out artificially, so that investors start selling the metal in a panic. If you know how to be patient, then investing in white metal will bring you a good income.