Should Silver be your Next Investment Opportunity?

Silver’s attraction to investors is abundantly clear when you consider the fact that it is synonymous with money. As economist Milton Friedman suggested, the ‘major monetary metal throughout history is silver, not gold’. This assertion appears to be supported by the fact that the words silver and money mean the same thing in many languages including Hebrew, French and Spanish.

This is likely to be because silver has actually been used as a medium of exchange for thousands of years.  Indeed, even in English, the term British pound once referred to a pound of nearly pure silver or sterling silver.  Further, when Isaac Newton was appointed the Master of the Royal Mint he actually monetised silver.

Whilst the price can undoubtedly be volatile, silver makes a great investment option because its characteristics and adaptability ensure its high demand.

This is because they enable it to be used in a huge array of fields including jewellery, medicine, clean energy technologies, telecommunications and manufacturing. Because it is often used in very small quantities that are then not extracted upon recycling (such as in the smartphone market), the demand also continues to increase faster than the supply. 

If the above has convinced you that silver should be your next investment option and have a decidedly risk-averse approach, however, you may decide to procure a physical store of wealth such as valuable coins.

What are your best silver options?

If you do decide to invest in silver coins, you will need to be selective and research the market thoroughly to make profitable decisions.

1oz Silver Maple Coins (99.99% Purity)

These are a great option for first time investors as they allow you to invest in them with a very small budget, from as little as £100.  This is because they have a very low margin and, as they are available in small units, they are flexible.

Furthermore, their small size makes them easy to store and the fact that they are widely recognised throughout the world makes them easy to sell.

1oz Silver Britannia Coin (95.8% Purity)

These coins are a great investment option for mid-range investors that would like to invest slightly more in silver. This is because whilst they still offer a good balance between cost and flexibility, are easy to store and sell they also benefit from being the only Capital Gains Tax free silver coins.

1oz Silver American Eagle Coin (99.99% Purity)

These coins are another great investment option because, although they are not available as cheaply as the other coins mentioned, they are easy to sell on because of their huge worldwide popularity.

On a similar note (and if you want to diversify your holdings), you could also consider investing in silver bars.

1kg Silver Bars (99.99% Purity)

These bars are also a great investment option for modest to more extensive investors alike.

They are popular because they strike a good balance between their value and flexibility. Their relatively fair price means that small investors can buy them in smaller numbers which will be easy to store whilst larger investors can buy them in larger quantities.

5kg Silver Bars (99.99% Purity)

These bars are a great step up from the 1kg silver bars as they offer a slightly larger investment opportunity but still at a reasonable price. These are also good for larger investments as they can be bought in multiples of five, tens and twenties.