7 Reasons to Invest in Silver Coins
For decades, silver coins have been in demand for their durability, aesthetic appeal and intrinsic value. Silver coin collecting has been a hobby among the elite and working class, not just for recreational purposes, but also as a source of investment. With its ever-appreciating value, Silver coins maximize your ROI on subsequent sales. Here are 5 reasons why you should invest in such coins:
True Measure for Money
At the end of the day, would you like to invest your labor in gold-backed flat paper money that continually depreciates or in an alternate tangible asset that offers high intrinsic and extrinsic value? Silver coins, are a genuine store for value that offer substantial gains in future. If you’re looking for a way to avoid destructive bank policies and the ever-reducing purchasing power of money, then investing in silver coins provides the best protection.
Common Man’s Gold
Compared to gold, silver is easy to acquire. With its rising market value and minimal price fluctuations, silver coins continue to shift investment focus away from stocks, bonds and real estate properties. Its long-life and affordability makes it “common man’s gold” as it can be easily purchased from the open market.
Throughout history, the most crippling economies have resorted to money printing as a means to counter hyper-inflation and political instability. This has destroyed countries even further since money printing leads to supply-push inflation. Even under such circumstances, owners of and investors in silver coins remain unscratched. Silver coins allow investors to protect their wealth and reap the benefits from an appreciation in silver value.
India and China are two of the leading world markets where the demand for gold and silver ornaments and coins remains an all time high. With the emerging market and increasing investment demand, physical silver bullion and coin is expected to increase in value even further. Similarly, the demand for appliances laced with silver is also expected to increase over the next decade.
While it appears that access to silver is abundant in the paper markets today, the truth is far from it. Physical markets for silver are limited in number and constrained in terms of transactions. The current value for physical silver dollar stands at 30/1600 (roughly 1.5%-2.0% of gold). Much of this precious metal is consumed in other practical applications.
More Practical Applications
A rise in the demand of silver is expected in future since the precious metal has a number of industrial applications as well. From electronic wiring to medical appliances, silver is used in several inventions. This means that your silver coin and its content will always be in demand, allowing you to trade coins at any quoted price in the future.
Gold: Silver Ratio
The last interesting fact is the gold: silver ratio. Over the course of time, this ratio has changed drastically. Currently, the ratio is roughly 12:1. This offers tremendous upside appreciation potential for silver investors. Combine that with the current affordability, and you have a winning risk portfolio strategy.
This reduction in silver inventories has led to a scarcity in supply, which in turn, continues to raise the open market value of silver exponentially. If you have silver coins at home, you’re probably sitting on a gold mine right now! Contact the leading coin collecting supplies, CSS Supply Central, today and learn more.