Of the three main precious metals, it is usually silver that is the most affordable and which makes for the obvious choice for an investor of very limited means. This, however, does not mean that it is an investment vehicle without a huge amount of potential. In fact, of all the precious metals it would seem that it is silver alone that is positioned for some serious increases in pricing and value.
Why is that? It helps to first look at the industrial side of this metal to understand the “how and why” of its potential for growth. For one thing, global mining statistics demonstrate that most (between 90% and 95%) of the world’s “aboveground” or previously mined silver has already been permanently consumed. Current mining activities are not anticipated to keep up with the demands for increasing silver supplies as well.
The demands for the metal are not coming from jewelry makers and mints alone, and include such enormous industries as medicine, optics, electronics, dentistry, clothing, and many more. These industries may not require the same levels of purity and fineness as mints or jewelry manufacturers, but this means very little where the effects of demands and prices are concerned.
This alone makes silver an extremely appealing investment option because it is almost a “sure thing” where profitability is concerned. There are some deciding factors for the investor to consider, however, and these include the format of the metal and the precise vehicle through which the silver is acquired.
For instance, someone who is interested in just accumulating a massive amount of the metal could establish a relationship with a certified dealer and begin purchasing bars of bullion. They might also find out about their options for the acquisition of coins as well.
Coins made from silver are a great way to enjoy ownership of the metal along with a tiny bit of added security too. This is because the coins always come with the “backing” of the federal government in the form of their face values.
For instance, if you purchase a silver coin with a one dollar face value you might feasibly view this denomination as a bit of insurance against total loss. Can a stock or other form of investment deliver such an assurance? No, and this is one of the major reasons that many investors enjoy purchasing coins.
Of course, there are also many coin collectors who like to combine their hobby with their investment activities too, and will often seek out high-quality silver coins to complete their collection and stabilize a portfolio as well.