An Overview of Silver Investing

Precious metals, including silver, reached their peak prices in 2011. While those heights had been unprecedented and excited many investors, the prices have been declining since then. However, there are now indications that these prices have hit a bottom and will soon rise again. What, then, is the diagnosis for silver investing?

Silver Equity Investments

Exchanged traded funds, or ETFs, are one way that many choose to invest in silver. In most cases, these are slightly more risky than physical silver, but some funds are directly backed by physical silver, with each share indicating a certain amount. Investors can even trade in the shares for the physical silver if they so choose. In August 2013, trading within silver ETFs saw a marked increase, much more than gold in the same period. Many investors believe that this indicates renewed interest in silver investing and that the previous low will therefore be the bottom of silver prices for some time.

Purchases of Silver Coins

Silver Eagle coins are being purchased in much greater numbers than they were in 2012. In September, sales already rivaled the total numbers that the previous year managed. However, why this improvement of silver investing in 2013 rather than the usually more prestigious gold? One reason for this is that Silver Eagle coins are much less expensive than Gold Eagles. For investors just getting back on their feet after previous crashes, a smaller starting investment is much more attractive and easier to get into than the pricy gold market.

A Variety of Uses

Silver may also be rising in price because of an increase in its industrial uses. Almost half of the silver that exists is tied up in industrial processes, including various electronics and even solar panels. The ever-growing ubiquity of electronics and the steadily increasing popularity of solar power have both increased demand for silver and encourage prices to rise again. This can trigger even bigger changes, since an improvement from this sector may have increased silver investing and led to a snowball effect, with investing leading to more investing as the market appeared to steadily increase and reassured more investors that silver was once again a safe bet.

Changes in Long-Term Trends

Even larger firms are starting to change their stance on silver now that it seems to be increasing in popularity again. One concern for many investors was that the federal government would change its policies concerning silver, but so far that has not occurred, and that has made larger firms relax a little and act more in favor of the metal.

This, in turn, has led to an increase of silver investing in 2013 on both an individual and corporate scale, and silver does seem to be trending upward. While it still offers only long-term returns at present, there is a good chance that by the end of the year it will be back up to levels profitable for short-term investors, which should enlarge the market even more.

The Final Picture

While there are still a few months left in the year and no one can predict with complete accuracy what will occur, the market for silver investing in 2013 is looking strong. Diversification is a good policy for any investor, and silver is easily accessible with its relatively low entry price while still having the stabilizing effect of a precious metal. Those looking to get into a new investment with promise for both short and long-term returns that will make an excellent addition to an existing portfolio should know that silver is the way to go this year.

An Overview of Silver Investing
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