Investing in silver may seem like a great idea due to the lower prices of precious metals, but these low costs are actually making it difficult for people who want to invest. Since silver is in such high demand, companies are having trouble finding the resources to get new bars made and delivered.
U.S. Mint Sells Out
In August 2015, the U.S. Mint actually sold out of American Eagle silver coins. While they have since resumed production, it is down 20% from an already insufficient level. Shipments are taking much longer than before and rates are skyrocketing since the coin is in such high demand. The Royal Canadian Mint that makes Maple Leaf silver coins is having the same problems, struggling to produce as much as investors are looking for.
Some silver dealers are honest about increased delivery delays and the premiums people will be facing. This at least lets people know what to expect when it comes to their investments. Other dealers, however, are not being so honest, letting people place orders and giving them the run around when it comes to when their shipments will come in. With such high demand and low supply, dealers can’t actually be sure if their orders will be met, or when. Finding a reputable dealer who provides honest answers is key in the investment process.
Not all types of silver are suffering so greatly. Silver coins are the more popular option, but these are in too high demand. Choosing a different silver option provides a better chance to invest. Silver bars, for example, have not risen much in price. Premiums only increased for them by a few cents. Considering other silver options may help investors find a better deal.
The bar may also be better to invest in because it is cheaper for companies to make. With less money spent on production, less money is spent on purchasing the silver and adding it to an investment portfolio. Bars come in varying sizes, from 1 small ounce, up to 1000 ounces. The typical 1, 5, 10, and 100 ounce bars are the easiest to invest in and resell for a decent value later on. They are also easier to ship and manage, while the largest 1000 ounce bars cost a lot in shipping fees.
Not all silver is ideal to purchase, whether it comes in coin form or not. Silver without proper markings will not resell as easily. When investing, bars and other silver forms should be marked properly, indicating the true weight and the name of the manufacturer. It makes it more valuable to resell later down the road.
Keeping a diversified portfolio is important for any investor, ensuring they have a wide selection of investments to fall back on. Silver may be struggling at the moment, but it is still likely a worthwhile investment to add. With multiple silver options available, there are several valid choices to consider, such as the bar, instead of focusing on coins only.