There are different ways in which you can invest your money. One of the best ways you can gain exceptional returns on your money is by investing in silver dollars. The price of silver recently hit a 30-year high because of various market forces. Because of its constant demand, the future for silver looks promising.
Why Invest in Silver Dollars
The major enticement to invest in silver is because of its constant demand and market stability in unstable economies. The demand for silver is estimated to be at 900 million ounces but the average global production today is only at 480 million ounces. The demand for silver is nearly double what is being produced. Therefore, when you consider that the supply of this precious metal is depleting, the law of supply and demand would have us predict that the price of silver is set to skyrocket.
Many banks and lending institutions have leased their silver bullion during the past 20 years to generate revenue. Leased silver dollars are meant to be repaid as bullion or in hard currency. Banks often prefer to hold their reserves in the form of bullion and may demand payments from their borrowers in the form of actual bullion. The demand for silver is already nearly double the amount that is able to be supplied. It is very likely that silver dollar collectors and other investors holding large amounts of silver will be forced to sell their reserves at very substantial prices.
Major silver investors often choose to invest by buying silver dollars. This is because of the amount of influence that silver dollar owners hold in determining the price of the precious metal. In 1973 the Hunt brothers caused a major spike in international silver prices by purchasing millions of ounces of silver dollars and silver futures. The New York Mercantile Exchange, NYMEX, and the Federal Reserve actually had to intervene. Even the investment savvy Warren Buffet is rumored to own millions of ounces of silver, which he purchased in 1997. With the history of growth and demand for silver, and the history of other very wealthy investors, it would be a wise decision to save some of your portfolio to invest in silver dollars. You never know when the value of silver may spike.
Paper vs. Actual Silver Dollars
Investors are always advised to invest in silver by purchasing actual silver bullion instead of paper silver. Paper silver takes the form of pooled accounts, bank silver certificates and leveraged accounts. You can only trust such documents if the certificate issuer is a legitimate and credit worthy financial institution. Aside from this, the instability of the stock market may threaten such institutions and the notes and certificates may be lost in bankruptcy of those institutions. Real silver on the other hand is the hard evidence of your investment. It is generally traded in the form of silver dollars or silver bullion bars each with assigned serial numbers.
- Photo Credit Stockbyte/Stockbyte/Getty Images
How to Invest for Dollar Devaluation
If you don't properly adjust your investments during periods of dollar devaluation, your portfolio's return could be badly damaged by the effects...
How to Buy Silver Coins Cheaply
Up until 1964, most U.S. coins had 90% silver content. This included the dime, quarter dollar, half dollar and dollar coins. Five-cent...
How to Invest in Silver and Make Money
While we know that gold is a good investing, investing in silver is also known as one of the best and smartest...
How to Invest in Morgan Dollars
Mint dates of Morgan silver dollars are 1878 to 1904, and these silver coins appeared again for a short time in 1921....
Are Silver Rounds a Good Investment?
Buying precious metals like silver can be a lucrative investment. You can purchase silver coins, which are actual legal tender, silver rounds,...