Buy Silver Per Ounce
When people refer to the silver spot price, or the spot price of any metal for that matter, they are referring to the price at which the metal may be exchanged and delivered upon now. In other words, the spot price is the price at which silver is currently trading. Spot prices are often referred to in the silver and gold markets, as well as crude oil and other commodities. Price is in a constant state of discovery and is watched by banks, financial institutions, dealers and retail investors.
buy silver per ounce
Silver is available for investment in many different forms, including paper silver and silver bullion. Physical silver bullion is most commonly found in coin, round and bar form with several size options for each. Some investors enjoy owning government-minted coins while others prefer paying lower premiums for bullion bars and rounds. In any case, there are a vast amount of options available in terms of this investment vehicle.
Silver futures contracts are an agreement for a buyer to purchase a fixed amount of silver from a seller, at a fixed price, at a specific time in the future. A simple example would be a buyer agreeing to purchase 5,000 troy ounces of silver, at $20/troy ounce, two months from present. If during those two months, the price of silver decreases $2, the seller would profit $10,000, as they could source the silver on the open market for $90,000 and then sell it via the futures contract for $100,000. If during those two months, the price of silver increases $2, the buyer would profit $10,000, as they have now purchased $110,000 worth of silver for only $100,000 cash.
Futures contracts also allow bullion dealers, including JM Bullion, to hedge their physical silver positions by electronically buying or selling metal out in the future to offset their physical inventory positions. As spot prices move up and down, the offsetting gains and losses between physical and futures positions ensure that movements in spot do not affect our company.
Right here on our website, of course. JM Bullion offers a wide variety of quality physical silver bullion products for purchase 24 hours a day, 7 days a week at the lowest prices in the industry. Browse some of our selection at the links below:
Please note that JM Bullion is the only major retailer in the industry currently offering FREE SHIPPING on all orders to the United States. This allows our customers to keep their transaction fees on silver bullion purchases at an absolute minimum.
There are many reasons that investors (beginners and experts) immediately choose to buy silver more than any other precious metal. For beginners, when the Price of silver per ounce is so much lower than the Gold price, platinum, and palladium, they realize they can buy substantially more physical metal for their dollar. With its much lower price, buying silver bullion is much more appealing to small or novice investors.
Since this market is small and there is a high use of financial leverage on the trading exchanges, silver prices are volatile. But its role as both a monetary and investment metal and a vital industrial metal make it an exciting commodity. We believe the supply and demand picture is extraordinarily bullish.
Historical precedent coupled with current fundamentals point to the likelihood of an explosive super spike in the silver price and a high price plateau beyond that. In the last super spike in 1979, the white metal went from $6 per ounce, to over $49 just 12 months later. In other words, that's an incredible 700% upsurge over the course of a single year! Today, industrial demand will continually increase along with its investment benefits. These factors will cause the price of silver per ounce to reach new highs, or possibly another huge spike similar to 1980. Let's look at additional factors why we're bullish on the poor man's gold:
In 1980, available above ground stockpiles were estimated to be 4 billion ounces. Today, many estimate these stocks at less than 1 billion ounces. And annual consumption has exceeded supply in many years. As industry finds new ways to use silver, the market could experience a long-term supply deficit, and inventory depletion would then accelerate.
There may be 18 billion ounces of extractable silver left according to the according to the U.S. Geological Survey. If this is indeed the case, there won't be enough supply left due to the steady increase in demand. Just last year, the demand rose to a record 1,081 million ounces according to The Silver Institute's World Silver Survey 2014. While the demand rises, production has increased less rapidly. So not only are we running out, the supply is diminishing faster than ever.
Is silver a good investment? Wise investors are buying silver to preserve their wealth for the future. The white metal has become a viable part of a robust investment profile. Precious metals such as gold bullion are used to accumulate wealth and hedge against inflation.
Silver is unique because it is considered both a commodity and currency, depending on how it is used. Precious metals, such as gold and palladium, can be purchased to guard against inflation. While any investment is a risk, silver has been used for centuries for a variety of purposes. Industries rely on it, making it a solid investment choice.
As a vital industrial and monetary metal, it has value around the world, regardless of economic conditions. It can be sold at current market prices as needed. As an investor in silver, buy it in basic forms such as bullion, bars, coins, and rounds to get the most silver for your dollar. Investors typically purchase it by weight, such the troy ounce, pound, gram or kilo. It is priced by its weight in .999 fine silver. If an item contains lower purity levels, it may fetch slightly lower prices per troy ounce of the .999 silver it contains.
One of the most common Canadian coins are the Canadian Maple Leaf Silver Coin. Each year, the Government of Canada issues the Canadian Maple Leaf coin. It is also legal tender, with a face value in Canada of about 5 Canadian dollars. The market value is determined based on the current spot price. The standard coin weighs 1 troy ounce and contains 99.99% silver. The obverse side of the Maple Leaf features Elizabeth II. The reverse has the Canadian maple leaf.
There are two major types of silver bullion coins from Australia. The Kookaburra has been produced at the Perth Mint since 1990 and is minted of .999 fine silver. While the obverse always features Queen Elizabeth II, the reverse features a different kookaburra bird each year. As a result, these coins may have a slightly higher collectible value than some other bullion coins. They are available in four sizes, ranging from one troy ounce to 1 kilogram, with face values from $1 to $30.
Junk silver (aka pre-1965 coins) is an informal term to describe a circulated 90% silver dime, quarter, or half dollar that has the bullion value of the silver it contains. This type of circulated coin has no collectible or numismatic value. Beginners and people who are looking to invest on a budget are often attracted to junk silver.
Silver bars are a type of bullion. Many investors decide to add them to their portfolios. The poured silver is shaped into actual bars that are usually sold in troy ounces. Sometimes they are sold in gram or fractional ounce sizes, too. These bars can be purchased in various ways, including online and at local shops. Do you still need more information on buying fractional silver? Contact us over the phone and one of our representatives will be happy to go over an questions you may have and help you better understand before you make a purchase.
Bar sizes are typically one-ounce, 5 oz., 10 oz, and 100 oz. There are also large 1000 ounce bars. Smaller bars actually cost more per ounce because the fabrication costs are higher per ounce of metal. It is more cost effective for mints to produce larger bars, and as a result, they cost less per ounce. However, larger bars may be somewhat difficult to handle or store.
Silver rounds are coin-shaped but are minted privately. They are commonly referred to as rounds rather than coins because the word coin refers to circulating, legal-tender currency issued by the government. Rounds bear a variety of designs. They can also be engraved to use as gifts or for military commemoration. They do not have a face value and cannot be used as legal tender. Usually, they weigh 1 troy ounce and contain 99.9% silver. Buying silver rounds tend to be a very cost-effective way to accumulate ounces when compared to coins.
Buffalo Rounds are also 1 troy ounce and contain .999 pure silver. They typically feature the design from the American Buffalo Nickel. These attractive rounds represent a important slice of American history. They also have an image of the Native Americans. Private mints across the country produce Buffalo rounds each year.
There is a wide variety of generic rounds minted by private mints across the world. For example, they are made to celebrate holidays or as commemorative coins for service providers such as the armed forces. As rounds, they are not legal tender. Generic rounds general have a weight of 1 troy ounce of 99.9% silver.
Medallion is another word for a round. Medallions can be used to add silver to an investment portfolio or as collectibles. Some can be custom engraved to celebrate a certain occasions, such as birthdays, graduations, holidays, and more.
Market watchers usually keep track of the price of gold along with the S&P 500, the Dow, and the price of crude oil. An increasing number of market watchers are keeping an eye on silver, especially since the surge in prices since 2003. Both silver and gold appear volatile when priced in the volatile U.S. dollar, but they are important financial insurance and potentially profitable. The initial cost and ultimate sale price of gold is many multiples higher than silver. However, silver is accessible to everyone from beginners on a budget to seasoned investors. Both are key investments that can help hedge against inflation and financial turmoil. Traders often analyze the gold/silver price ratio. Compared to gold, silver prices tend to be more volatile. 041b061a72