Archive for March, 2011

US investors continue to buy silver

(Financial Times) — Americans feather nests with silver Eagles

At Stack’s, a coin dealer in midtown Manhattan, the shop floor is filled with glass cases displaying coins and banknotes ranging from recently-minted pieces to 18th-century antiques. These days, however, customers mainly have eyes for one product: the silver American Eagle.

“Silver’s hot. People want it. People don’t want to have money in the bank,” says Eric Streiner, the shop’s manager. Buyers include everyone from “business executives to lunatics”, he adds.

The same story is being repeated across the US. Silver has become the favoured investment of disaffected Americans. The recent wave of disenchantment with the economic stewardship of the country’s institutions – from the government and the Federal Reserve to big Wall Street banks – has sent demand skyrocketing.

Precious metal prices

Today’s prices:

Gold $1,418.94/oz Silver $37.38/oz Platinum: $1,741.00/oz

Silver as an Investment

Silver is a precious metal which may be used as an investment as well as for jewellery and in industry.  A traditional way of investing in silver is through buying silver bullion bars and in Switzerland these can be bought over the counter in major banks.

There are various sizes of silver bullions bars:

  • 1000 oz troy bars (31 kg)
  • 100 oz troy  bars (3.11 kg)
  • 32.15 oz troy bars (1 kg)
  • small bars such as 10 oz and 1 oz

Silver coins can also be bought as another way of physically investing in silver.  The Canadian Silver Maple Leaf is 99.99% pure silver.

Silver is traded on the Spot Market – this is a public financial market in which commodities are trades for immediate delivery.

Another way of owning silver is through the purchase of silver certificates which can be held by investors instead of storing the actual silver bullion.  This allows investors to buy silver without having to store the actual physical silver. The Perth Mint Certificate Program (PMCP) is the only government-guaranteed silver-certificate program in the world.

Please always seek independent financial advice before investing and always remember the price of silver, like any commodity, can go down as well as up!