Unlike the paper currency of today, precious metal investments retain real intrinsic value. This is why so many investors opt to buy silver bars when the economy has taken a turn for the worse. Gold and silver have traditionally been used as hedge investments. Many investors are taking advantage of the lower price of silver when compared to gold. Often considered the “poor man’s gold,” silver makes a much more affordable investment that does not compromise on profit potential.
Silver is called a “precious” metal because it is a finite natural resource. Since silver is in such high demand among global investors and for countless industrial applications, the supplies of this precious metal are increasingly strained. It is now believed that over 95 percent of all the silver mined has been used in industry. This has led many investment analysts and investors to have high hopes for the future silver price. Currently, silver per ounce is worth more than $35 with expectations for its value to rise above $50 in 2012.
Just this past Friday, the silver price increased by 0.72% to $1,541, which is the highest it has been since June 22nd. The upward trajectory for this precious metal is still well on its way. As Silver News Today stated, the “silver price in 2011 is set to reach a territory never encountered before. Will it explode this year? Only time will tell, but the chances are that patience will be rewarded.”
For those interested in taking advantage of the upward trend in silver prices, silver bullion bars are often a reliable investment vehicle. Those who choose to buy silver bars over such investments as silver certificates and derivatives will gain direct control of their investment.
Investors have the option to buy silver bars in varying sizes and purities. The standard industry unit is the 1,000 ounce silver bar. While the weight of each bar can vary up to 10%, each bar will be hallmarked for its specific weight and purity. Investors who prefer a lighter and smaller physical investment may prefer the 100-ounce silver bars. These are easy to transport and store.
Whenever making a precious metals investment, it is important to make use of an experienced dealer. Buying and selling from a pawn shop, for instance, can cost investors a significant amount of profit. Reputable dealers will guarantee each precious metals investment for its weight, purity, and content, and will provide recourse if the purchaser has any problems with the transaction.