According to the latest figures, the investment market is experiencing record highs, but improving your investment portfolio is no easy task. Unfortunately it is not as simple as handing your money over to an expert and expecting to see the money flow in. Today you have to carry out research, evaluate your options and be prepared to take a risk if you want to see a good return. According to experts, the best place to start is with silver and many believe it is the backbone of a strong investment portfolio.
Understanding the different types of silver investments
Before you can go about investing in silver, you need to have a good understanding of the different types of silver available. There are four types of silver coins which include bullion coins, numismatic coins (collector coins), semi-numismatic coins and junk silver coins. Silver bullion coins have a purity of .999 or higher and are considered pure silver. If you are looking to invest in the precious metal, then it is likely that you will be most interested in silver bullion coins.
If on the other hand you class yourself as a coin collector, then it is likely that you will be most interested in numismatic silver coins. Whilst the price of bullion coins is based on the silver spot price market, numismatic coins’ pricing is affected by their conditioning and rarity. Semi-numismatic coins are sometimes considered collectors’ items, though their value is usually based on their silver content.
Finally we have junk silver coins which are dated pre-1964. These are old coins which contain between thirty five to ninety per cent silver. Unlike bullion coins they are not made of fine silver and have little investment value. They are often collected by coin collectors for sentimental purposes.
Investing in silver bullion coins
If you are looking to make a return on investment from silver coins, perhaps as part of your retirement income, then silver bullion coins are your best bet. The most popular silver bullion coin is the American Silver Eagle, followed closely by the Canadian Silver Maple Leaf coin. Most investors buy bullion coins in bulk.
When it comes to buying silver bullion coins you have two options. You can either purchase them online from a coin dealer or you can visit your local coin shop and make your purchase in person. Either way it is essential that you carry out research on the coin dealer and ensure they offer a competitive buy-back price. Always shop around to make sure you get the best deal, for more information click here.
Why is now a good time to invest?
Unlike other investments, silver is limited. We cannot make more silver, we only have access to what is readily available on earth. This price of silver is driven by an increase in demand and a decrease in supply. If you are just starting to develop your investment portfolio, silver is a great place to start as it is still fairly inexpensive to buy, especially when you compare it to gold. Many experts are predicting that silver will outperform gold in 2014, making now the perfect time to invest.
Things to keep in mind
Whilst investing in silver can help to strengthen your investment portfolio, it is still best to air on the side of caution. A strong investment portfolio is made up of diverse investments which may include property, stocks and cash savings, as well as bullion coins. If you are thinking about starting an investment plan in 2014, it is highly recommended that you seek advice from a financial planning specialist, who will be able to offer you personalised recommendations based on your income and lifestyle.