Investing a small amount today can turn into a huge wealth tomorrow. One of the most wise investments is precious metals like silver which has been traded for over 4,000 years. Silver coins and bullion remain as one of the world’s most popular precious metals to invest into because of volatility, access, and stability. Today you are going to learn how to invest into silver coins along with some history on the metal itself.
History Of Silver Investing
From 1979 to 1980, brothers Nelson and William Hunt had used leverage like margin debt and borrowed capital to become the largest private holders of silver globally. This yielded them a massively large stake in what was an appreciating commodity but came with tension from the public. The two were sons of the billionaire Haroldson Hunt Jr. and were accused of cornering the market to manipulate its prices.
Years before in 1973, the Hunt brothers had attempted exactly that and contributed to a spike in silver prices upwards to $49.95 per troy ounce. Silver futures had reached an intraday all time high at $50.35, also causing a reduction in the gold/silver ratio down to 1:17. Just before 1980, the brothers were estimated to be holding over 100 million troy ounces of silver along with several large silver future contracts. The Federal Reserve and New York Mercantile Exchange intervened and put an end to their holdings and potential for profiting shortly after.
Since this time, silver hasn’t seen any wild fluctuations like that of the Hunt brothers era. Investors like Warren Buffet have put in almost $600 million at once into the precious metal because of its potential. Even Bill Gates had taken a large silver position in the past which resulted in huge profits.
Investing in Silver Coins
Now lets get onto the fun stuff which is actually making money with these metals. The following are some the many benefits you will experience investing into silver or gold for that matter:
- There has been a continual rising demand for precious metals since their beginning. In 2015, central banks had purchased 600 tons of gold alone for example.
- Purchasing and selling silver is much more private than traditional forms of investing as your information is not shared or stored by entities.
- You can convert your silver into cash at any time you want which gives it quick and easy liquidity.
- It’s a simple way to diversify your investment portfolio as you should never put all of your eggs in one basket.
- It has been proven that there are still decades worth of silver reserves to be mined around the world which means it will never lose interest.
- You will be prepared against financial crises compared to those that rely purely on cash.
You can purchase silver coins or bullion for either short or long term strategies. If you believe silver is going to rise in price, you could purchase it and sell it in the near future for a profit. We recommend that you take a long term approach, build up your silver investments and liquidate when it’s even more profitable. Like they say, good things happen to those that wait.