Today there's a lot of interest in precious metals as a hedge against economic uncertainty. The answer to the question: 'How much is silver worth?' can help you decide if investing in coins or bars of this precious metal is right for you and those you must provide for.
It is essential that you understand how precious metals are valued and traded if you're thinking of them as an investment or as a hedge against economic collapse. Metals are tangible assets, which makes them a commodity. It also makes them a lot different than paper money, which is only as good as the government that stands behind it. In other words, paper money has the value that people set and accept. Commodities, on the other hand, have intrinsic value of their own.
Silver and gold can be bought in bars, called ingots. They also can be made into coins. Ingots have a value according to their weight. The same is true for coins, although they may have added value if they are in mint condition, are rare, or have historical significance.
For centuries, silver has been counted in 'troy ounces' and 'troy pounds'. This was a system of measurement used in France in the Middle Ages and ever since. The system differs from the one we are familiar with for weighing things like sugar or flour. There are twelve troy ounces in a troy pound, and each ounce is slightly heavier than the one used for foodstuffs. Ingots are fashioned in differing weights, from 100 troy ounces to 5,000.
Prices for precious metals are very volatile. They are affected by consumer confidence in the dollar (the world reserve currency), by politics, by supply and demand, and by the value of other world currencies. If the dollar is 'weak', precious metals will be 'strong'. People who buy these metals for investment hope to be able to buy cheaply and sell when prices are high, thereby reaping a profit.
Of course, there are other measures of worth than the commodity market. Some advisers say that, in times of emergency, people would have a hard time buying food or other necessities with ingots of gold, for instance. They say having a hoard of coins makes more sense, since they are a familiar form of exchange and merchants are more likely to accept them. If the main reason for having silver is for emergency use, 'junk-silver' might be the most valuable investment.
Junk-silver is the term for coins that have only intrinsic value by weight, with no extra worth because they are collectible, made of extremely pure metal, or rare. American dollars, half-dollars, quarters, and dimes made before 1965 are 90% pure. Based on troy weight alone, a dollar of this type is worth more than $10 today. Some survival experts advocate having a supply - about $1,500 - of junk-silver for every member of the family.
Investing in precious metal might be a good idea, depending on your objective. As an investment to be bought and sold, metals are more volatile and risky than stocks might be. However, economic conditions can make metals more attractive and less likely to drop in value. As an emergency asset, they might be even more valuable in hard times.
It is essential that you understand how precious metals are valued and traded if you're thinking of them as an investment or as a hedge against economic collapse. Metals are tangible assets, which makes them a commodity. It also makes them a lot different than paper money, which is only as good as the government that stands behind it. In other words, paper money has the value that people set and accept. Commodities, on the other hand, have intrinsic value of their own.
Silver and gold can be bought in bars, called ingots. They also can be made into coins. Ingots have a value according to their weight. The same is true for coins, although they may have added value if they are in mint condition, are rare, or have historical significance.
For centuries, silver has been counted in 'troy ounces' and 'troy pounds'. This was a system of measurement used in France in the Middle Ages and ever since. The system differs from the one we are familiar with for weighing things like sugar or flour. There are twelve troy ounces in a troy pound, and each ounce is slightly heavier than the one used for foodstuffs. Ingots are fashioned in differing weights, from 100 troy ounces to 5,000.
Prices for precious metals are very volatile. They are affected by consumer confidence in the dollar (the world reserve currency), by politics, by supply and demand, and by the value of other world currencies. If the dollar is 'weak', precious metals will be 'strong'. People who buy these metals for investment hope to be able to buy cheaply and sell when prices are high, thereby reaping a profit.
Of course, there are other measures of worth than the commodity market. Some advisers say that, in times of emergency, people would have a hard time buying food or other necessities with ingots of gold, for instance. They say having a hoard of coins makes more sense, since they are a familiar form of exchange and merchants are more likely to accept them. If the main reason for having silver is for emergency use, 'junk-silver' might be the most valuable investment.
Junk-silver is the term for coins that have only intrinsic value by weight, with no extra worth because they are collectible, made of extremely pure metal, or rare. American dollars, half-dollars, quarters, and dimes made before 1965 are 90% pure. Based on troy weight alone, a dollar of this type is worth more than $10 today. Some survival experts advocate having a supply - about $1,500 - of junk-silver for every member of the family.
Investing in precious metal might be a good idea, depending on your objective. As an investment to be bought and sold, metals are more volatile and risky than stocks might be. However, economic conditions can make metals more attractive and less likely to drop in value. As an emergency asset, they might be even more valuable in hard times.
About the Author:
Find out how much is silver worth and check out an incredible selection of ISN coins by visiting our web pages. To learn more about how much is silver worth, click the links on our homepage today.
Keine Kommentare:
Kommentar veröffentlichen