Silver is a wise investment for a variety of reasons; as legal tender, silver is quite literally money. In addition to being legal tender, silver has countless industrial and medical uses. Silver is a hedge against inflation and is one of the only assets with:
In short, silver is an ideal way to build a well diversified retirement portfolio with a time tested commodity.
Spot price is the current price at which a commodity, like gold or silver, can be bought or sold. It is considered the explicit value of a particular precious metal at that point in time in the marketplace. For silver, the spot price reflects the current price for one ounce of pure silver. Thus, a silver spot price of 17.54 means that silver is currently valued at $17.54 per ounce.What is tricky about spot price is that it is the base price of the metal; you cannot actually buy physical silver or silver ETFs at spot price. With trading fees, you will always be buying somewhere above spot price. How much you pay above spot price can vary based on the dealer and type of bullion you purchase.
There are a multitude of factors that can affect the spot price of a commodity like silver, such as:
With the variety of potential influences on the spot price of silver, determining the optimum time to buy can be challenging.
Matters affecting the strength of the dollar have a significant impact on silver spot price; thus, maintaining awareness of economic conditions can help predict where spot price is heading.
Spot price is important to consider when purchasing silver because the price you pay for any bullion product is determined by the current spot price plus a premium determined by each individual dealer. By evaluating the sale price of a bar or round, you can determine which dealers charge the lowest premiums. Provident Metals takes pride in offering low premiums and high buy-back prices on spot price.
Because silver has so many industrial, electronic, and medicinal uses, the spot price is relevant to those investing in products and stocks outside of COMEX, as well. When spot price rises for silver, investors and consumers often see a correlating rise in those industries utilizing large quantities of silver.
Spot price is available in a multitude of currencies, depending on location. On the Provident Metals website, spot price is quoted in U.S. dollars (USD).
Spot price is in constant fluctuation, potentially changing from one moment to the next. Changes in spot price can occur for a variety of reasons; political, economic, social, and environmental factors are among those that can cause flux.
A weak dollar can change the spot price by increasing the value of silver, as an age-old, trusted commodity. Changes in supply and demand will affect the spot price of silver, as well as events like political elections. A multitude of factors have the potential to affect spot price at any given moment; this is why spot price is always changing.
While you shop, spot price is fluctuating. Once you arrive at the “Place my Order” section of the checkout process, you will be given two minutes to confirm your order, while spot price is locked down. If during those two minutes you do not confirm your order, the spot price may change, which will result in a change to your purchase price.
No; once your purchase is made, you will receive an order confirmation email with the total received at check out. Your purchase price will never change.
Spot price is determined by COMEX; Provident Metals has no influence or control over spot price.
The COMEX, or Commodities Exchange, is the marketplace for selling precious metals.
Ask price is the minimum amount a seller requires to sell bullion. If you are a seller, the price most relevant to you is the ask price, as it is the amount you require to sell. It will be based off the current spot price plus your premium.
Bid price is the amount a buyer offers to purchase bullion. If you are a buyer, the bid price is most important to you, as it is the number you will pay. The bid price is affected by the current spot price plus the premium added by a dealer.
Because credit and debit cards incur a fee for processing, cash payment methods receive a discount, as they are not charged a fee.
1 troy ounce of .999 fine silver
1 troy ounce = 31.1034768 grams 1 ounce = 28.3495231 grams
While the exact origin of the troy ounce is not certain, the widely held belief is the French marketplace named Troyes developed a standardized measurement of weight for its national and international merchants. The troy ounce is roughly 10% heavier than the most commonly used ounce (the avoirdupois ounce).
Precious metals are measured in troy ounces, while base metals (such as copper), are measured in avoirdupois ounces. To convert your avoirdupois ounces to troy ounces, simply multiply by 0.91.
The gold-to-silver ratio is the amount of silver it takes to purchase one ounce of gold. For experienced investors, the gold-to-silver ratio is one of many indicators used to determine the right (and wrong) time to buy or sell their precious metals.
Simply take the price of gold, divide it by the price of silver. Here is an example using recent market prices:$1218.45 (gold price) ÷ $16.05 (silver price) = approximately 76 (Gold-to-Silver Ratio)
Most economists will agree a lower gold to silver ratio is ahead, but the market can be tough to predict. High ratios typically indicate a bullish gold market and bearish or stagnant silver market. Investors tend to buy silver and sell gold during high ratios, while they sell silver and buy gold during low ratios.
Because so many factors can affect spot price, the best method to determine when to purchase silver involves monitoring the market for a time to establish an idea of the current fluctuation; while market observation can help determine prices, you should always evaluate the risk you are willing to assume with any commodity investment. As a lower cost precious metal, silver can be a good investment with low risk for those looking to expand their portfolio.
There are a variety of ways to invest in physical silver; bars, coins, and rounds are among the most popular, and each has its advantages.
A private mint is an independently owned and run mint, crafting rounds for consumer purchase, outside of actual currency. A sovereign mint is a government owned and run mint, creating coins with a specific face value, with the ability to be used as currency.
Privately minted bullion typically offers collectible coins and bars, to suit the fancy of a wide array of consumer interests; collections like the Zombucks series don’t hold a face value for currency, but the art of the round makes it an attractive investment piece for bullion collectors. Premium is lower for privately minted bullion because they are not guaranteed by a sovereign mint as currency.
Sovereign minted bullion holds an intrinsic value based on the amount of silver used to create the coin, but the bullion also holds a face value which does not fluctuate. Should spot price of silver fall below the face value of your coin, you need not worry about losing your investment. Sovereign minted bullion is broadly recognized and accepted, as well.
The face value will not affect the silver content or spot price value of a coin; however, if used as currency, the face value will offer insight to the coin’s value.
When purchasing silver rounds, you will have the option to purchase numismatic or bullion rounds; knowing the difference between the two can potentially grant you significant savings. Bullion rounds hold value based on the amount of silver with which they are crafted; numismatic coins, however, rely less on receiving value from the actual silver with which they are made because they may be worth a great deal more due to rarity, collectibility, historical significance, etc.
Bullion rounds are often the primary investment pieces for those looking to build a precious metals portfolio. Numismatic rounds are often purchased by collectors and coin enthusiasts for reasons other than their silver content.
There are many theories explaining why silver is less expensive than gold. Whether from price manipulation scandals or the public’s perception of gold, silver has never been more valuable than its sister metal. Whatever the true reason for this price anomaly, investors forecast a decrease in the gold-to-silver ratio in the years to come, as a product of an increase in the value of silver.
Yes! Ask any one of our thousands of satisfied customers about their experience buying bullion online with Provident Metals.
Investors looking to diversify their portfolio may choose to buy silver as a hard asset and hedge against inflation. Collectors interested in specific themes or coins may purchase coins and rounds. Those looking for a unique and timeless gift idea may buy silver. In short, silver is a great purchase for anyone!