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I want to buy silver in physical form!!!!?
is it a wise decision?
if yes what should i buy?
ornament? or just some raw form
6 Answers
- 1 decade agoFavorite Answer
If you want to buy silver for investing purposes, then you'd be much better off buying silver futures, assuming you know how/learn how the futures market operates. That way, you will be able to invest in much larger quantities and not have to suffer from delivery and storage costs that the purchase of physical silver would impose.
Furthermore, the level of liquidity in the silver futures market will greatly limit your transactions costs. If you bought your mentioned ornament, 5 years down the road many people will give you many different prices for it; if you buy silver futures for 5 years, then there will be a single quote price that silver will exchange at, and you will not suffer costs of searching for a buyer and will not be exposed to the value risk of that ornament.
Think about it this way: if I wanted to buy a silver ring from a jeweler, I might pay say $500 for it. But if I wanted to sell it back to him immediately, he may only offer $400. In an instant I've lot $100 in what's called the bid-ask spread. However, if I invest that same $500 in the silver market, I would probably be able to sell it back for around $499.98; only a loss of 2 cents.
Lastly, the quality of the silver in the futures market is very specific and heavily standardized; you don't have to worry about the actual quality of the silver in said ornament.
However, if for some reason you just want to possess silver, then I suppose there are many different ways to order different qualities of silver online or through a silver broker/dealer.
The only disadvantage to the futures market is the limited quantity you can invest and the amount of collateral you must hold. Officially, the CME (the exchange that handles silver trading) requires that you hold at least $10800 in your account just to trade futures.
Essentially, buying silver on price speculation is very complicated, and it is a decision that you should take a lot of time to research. Ask your broker (if you have one) about your options for silver trading.
Source(s): Finance major; www.cmegroup.com - 8 years ago
Investing in anything should always be considered in light of other factors. You should always diversify. Buying silver, whether it is coins or bars should be bought in the physical form to ensure ownership of the real material. Northwest Territorial Mint does offer quite an array of silver and they do advocate buying silver in the physical form. To begin with you should take a look at silver purchase options like here: http://bullion.nwtmint.com/silver.php as there are many different types. Silver bars and rounds, large and small.
- Paul ELv 51 decade ago
Hi, yes buying gold and silver is a great longterm strategy as inflation and currency devaluation increases the value of Metals.
For investment one should buy Bullion, this is sold by Metal brokers. Bullion is the most pure form of metal and the price of metals are keyed off bullion.
Bullion must be rated 99.9999% Whereas items such as jewellery are watered down items, even a 24k item has under 50% Metal. minus any jewels included.
- Anonymous1 decade ago
Buying gold or silver is a bad decision in five years' view. The are more likely to decrease in two or three years.
- 1 decade ago
Great question; If for your investment, who will buy physical silver from you? You need to answer this question because you can buy but can not sell them unlike silver future.
- 8 years ago
Aside from silver there are many different types of hard assets that are good for diversification, such as brass, tin, copper, to name a few. Now you can even purchase these using Bitcoin and other crypto currencies, visit http://bitezze.com/ to examine all your options.