Palos Verdes Coin Exchange continues addressing the use of silver as a commodity for investments. Should you be investing in silver? When is the best time to buy silver? (A quick aside, we buy silver all the time at our silver shop in Palos Verdes.) Our experience is that when people think about bullion, their minds go straight to gold. Here we continue our explanation of why you should also look at silver. (Here is a link to the first article on the subject of investing in silver for beginners.)
The short answer to the question, “should beginning investors buy silver,” is:
Possibly. So long as they take time to understand the market, and if this is a good time for them.
One advantage of silver as an investment tool is its relative affordability. Gold is not cheap at close to $2,000 today. Beginning buyers or gold buyers with small budgets have to make do with gram bars or scrap jewelry. Silver, though, is more accessible to investors with a wide range of budgets. As of February 2023, the price of silver is around $22-25 per ounce. If you can come up with $25, you could be investing in silver. This means silver is also an affordable option for investors looking to diversify. You could sell one ounce of gold (if you have more than enough) and buy a 100 oz silver bar.
By the way, our shop is always stocked with plenty of silver. We have both bars and rounds like American Silver Eagles, and many other options, too. We deal with many people who are actively investing in silver, so we try to keep an excellent stock.
Who in the World Buys Silver?
The markets that buy the bulk of the world’s silver include electronics, automotive, and of course jewelry. These industries require large amounts of silver for many applications. Manufacturers use silver for solar panels, batteries, catalytic converters, medical equipment, and more. Demand for silver in these industries has been steadily increasing over the past few years. This has helped to support the price of silver in the market. That’s good news when investing in silver. These industries will not disappear tomorrow.
And we haven’t even gone into jewelry yet!
A wide range of industries and applications use raw silver in the 2020s. One of the largest consumers of silver is the electronics industry. Modern electronics go through tons of silver for components like semiconductors and solar panels. Electronics manufacturing uses more than 50% of the world’s silver supply. Seeing as electronics are part of many people’s lives, investing in silver is probably safer because of the electronics industry.
Cars need silver, too. Silver is used extensively in the automotive industry, especially for production of catalytic converters. Anybody who stores there car outside in LA knows about that. There’s a constant threat for theft, and silver is a small part of the reason. Auto manufacturers also use silver to make mirrors, bearings, and switches.
The medical industry uses silver extensively for its antimicrobial properties. Silver is effective at killing a wide range of bacteria and viruses. That makes it a great option for use in medical equipment such as wound dressings, catheters, and surgical instruments. Silver has been and always will use silver. From this perspective, investing in silver seems like it’s always a great idea.
And as I’m sure you know, silver is big in jewelry. Sterling silver (0.925 purity silver) is a great option for beautiful yet affordable jewelry. Jewelers have used silver forever, for its beauty, durability, and rarity. Silver jewelry is a popular choice among buyers. It’s an affordable and versatile choice that works in a variety of settings. And, as such, it’s an easy way to go about investing in silver even if you can’t get to a silver shop like ours.
More Reasons for Beginning Investors to Consider Silver
And, of course, silver is also in demand as a form of currency and as a store of value. Many investors like you buy physical silver coins and bars as a way to protect their wealth. Until 1964, the United States used 90% silver (coin silver) in the minting of coins for currency. The US Mint still uses silver for eagles (bullion) and collector issues. But we buy and sell bags of 90% silver quite regularly.
One of the key advantages of silver as an investment tool is its long-term stability. While silver prices may fluctuate in the short term, historical data shows that silver has been a reliable investment over the long haul. Investors who are looking for a steady return on their investment have often picked the right time to turn to silver.
Another advantage of silver is its availability. It’s a more accessible investment option for a wider range of investors. Investing in silver for beginners is often widely seen as a great choice. There is strong and regular demand for silver all over the world.
Come In If You’re a Beginning Investor and Talk to Us about Silver
For investing in silver, there are several ways you can go. One option is to buy physical silver in the form of coins or bars. We always have silver coins and bars available in our PV shop. Our investors get to physically hold onto their investment and take possession of it.
Call us today to talk about what silver we have on hand. We usually have exactly what you want, but if for some reason we don’t, we certainly can get it. And when we get in investment grade silver our best customers want, we call them to tell them so they get first dibs. We try to make investing in silver easy for everyone – beginners, experienced – everyone!
Silver is a great choice for investors who are looking to diversify their portfolios and protect their wealth. With its affordability and availability, silver is a versatile investment tool. It’s a great choice for the beginning investor as it can be used in many ways to meet your needs and goals. Whether you are a seasoned investor or just a beginning silver investor, silver is definitely worth considering as a part of your investment strategy.
