Silver is often mentioned in the same breath as gold when it comes to discussions about fairly safe investments. And while silver can be a smart long-term investment, there are some risks that go along with any type of investment, including ones that involve precious metals. Here’s what you need to know about some of the risks associated with silver investments, including silver bars. San Diego collectors should take this information into account when they’re deciding whether to invest in silver.
Misplacing Physical Silver
With physical silver investments that include silver bars, coins, or ingots, one of the biggest potential risks is losing or misplacing the physical silver you have on hand. Reduce this risk by:
• Storing your silver in one location so you don’t misplace or lose it
• Considering remote storage (e.g., a safe deposit box at your local bank)
• Placing your silver in a safe
• Letting a trusted third-party source house your silver
Market Fluctuations & Conditions
It’s often assumed precious metals are immune to outside market issues, but this is a misconception. It’s true precious metals like silver and gold tend to have fairly consistent values. However, there are market-related factors that can affect the value of silver at any given moment.
Some of the factors that tend to influence the market value of silver include:
• Global demand (e.g., how much various industries are relying on silver for production)
• Economic conditions nationally and globally
• General activity and interest among silver/precious metals buyers and sellers
Quality & Quantity
The type of silver you actually invest in can also have an impact on its value. There’s less risk associated with silver of higher purity. This is also true with silver of better quality, meaning its authenticity and value is clearly documented and verifiable. These are factors you can control to some extent by purchasing your silver from reputable sources.
Silver Stock Risks
Another way to invest in silver is to purchase stocks offered by a silver mining company or similar business. The main risk here is that the value of the stock at any given moment is largely dependent on what’s going on with the company that issued the stock. If you buy stock from a generally reliable company, there’s usually less risk involved.
Investing Wisely in Silver
Even with some of the risks mentioned here, silver can still be a good investment if you go about it wisely. One way to do this is to work with an investment professional to get a better feel for how precious metals can fit into your portfolio.
If you’re planning to invest in silver, reduce your risk and increase your confidence and peace of mind by:
• Finding out how the current silver market is doing
• Considering investments in countries where there’s a higher demand for silver
• Purchasing your silver from a trusted source such as a reputable precious metals firm
• Starting on the small side so you can get used to managing investments of this nature
Whether they’re looking for expert advice on silver investments or they want to buy gold, San Diego collectors should work with trustworthy precious metal dealers who offer high-quality service and have years of experience. Call on the industry-leading professionals at First National Bullion when you’re ready to invest in precious metals, including gold, silver, platinum, and palladium. Give us a call today at 858-666-6570.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.