Tag Archives: silver maples

An Introduction to Buying Silver 101

This article is a follow-up to our last blog which discussed the merits of owning physical gold. Both novices and long-time investors stand to benefit from a review of the basics of owning physical silver. The following list contains some, but not all, of the reasons to buy tangible silver. Some items on the list hold true for any precious metal, others are unique to silver.

  1. The most obvious reason to own silver is its comparative affordability. As I write this it?s possible to own physical silver for less than $20.00 per troy ounce. As a point of reference, gold is currently 80 times more expensive than silver. We frequently mention to our customers that it?s far more likely for silver to double in value to $37.00 than it would be for gold to double in value to $3000.00 per ounce. Simply put, if your primary motivation for buying precious metals is profit, silver offers you the best opportunity for appreciation.
  2. Silver is more of a commodity than gold. It has numerous practical uses in the fields of technology and medicine amongst others. Whereas virtually all of the gold mined throughout history is above ground and accessible, most of the silver ever mined is gone, much of it inaccessible in landfills, too expensive to recycle. Estimates of the above ground quantities of gold and silver vary wildly but all agree the accessible silver on this planet is far less than the current silver to gold 80:1 price ratio suggests. Based on supply considerations only, gold is either obscenely over valued or silver is grossly undervalued. We tend to believe the latter is true.
  3. If gold, platinum and palladium continue to trend higher many investors will choose to buy silver simply because the other metals are no longer in the average buyer?s budget. This point was touched on in our first pro silver argument. However, in this scenario silver would likely rise due to higher demand. In a precious metals bull market silver could become or already is ?the only affordable game in town? for many precious metal buyers.
  4. Readily available smaller units of silver would be far more useful in an unlikely but possible currency devaluation or financial collapse as well as during, God forbid, a natural disaster or war. Along the same lines, silver?s liquidity during a short-term financial crisis, whether it be unexpected bills or a medical emergency, makes it far more practical than its more expensive counterparts, gold, palladium and platinum.

Jack Hunt Gold and Silver, 2017 1oz US Silver Eagles Coin

There are numerous other reasons to own tangible silver, but many of these reasons apply to all precious metals, not just silver. I?ll review a few of them:

  1. Purchasing and owning tangible silver can be legally anonymous, especially if purchased through Jack Hunt Gold & Silver.
  2. Unlike bank deposits, equities, Treasuries and other paper investments, physical silver cannot default, go broke or file for bankruptcy.
  3. Physical silver is real?it is tangible. Currency, equities, Treasuries, etc., are just paper and promises from the issuer.

In conclusion it should be said that asset diversification is more important than ever in our turbulent and confusing times. We believe that a balanced portfolio should contain some traditional assets such as real estate, equities, bank accounts and cash. However, we strongly believe that a moderate percentage of one?s liquid assets be in precious metals. The non-commissioned professionals at Jack Hunt Gold & Silver would be happy to assist you in any form of precious metal related transactions. 


Silver In The Long Term…Is It Time To Buy?

 

5e1609a1-fa23-48c0-9f86-bb028583fbbfThe most frequent question asked of us here at JHCB by the public goes something like this? ?What?s a better buy, silver or gold?? Our simplistic answer is a polite ?We don?t really know?, or a similar non-committal response usually followed up with our question for you? ?Why are you buying precious metals?? We?ve found over the years that our precious metals customers can be separated into two categories. The first group are those looking to make a long term profit buying low and hopefully selling high several years down the road. Our second category of buyers want tangible metals to act as an ?insurance policy? against weakening paper based assets.

This article will focus on why many believe silver is the most attractive precious metal to our clients from the first group I mentioned, those whose focus is solely on profit.

There are several reasons why many believe silver has more profit potential than gold:

1. Silver has dropped in value by nearly 300% since its recent high in 2011, gold has dropped ?only? 35% in the same time frame.

2. The US and most global stock markets appear to be entering into a bear market. In this scenario some paper wealth always moves into tangible wealth with silver being far more affordable to the masses.

3. Numerous charts show silver to be in a technical position similar to 2008. Silver at $9.00 per ounce in 2008 became $40.00 silver in less than three years.

JHGS.US-silver-eagle-20124. Recent history shows that physical silver isn?t always readily available during noteworthy price dips. Physical silver shortages show up in higher premiums above the ?paper? COMEX prices. It is important for the buying public to note: There is no shortage of paper contracts for silver. They can be created in an instant with digital currencies backed by nothing except a compliant central bank. Physical silver cannot be so easily created and consequently can experience shortages. Buy the tangible metal!

5. Most western governments including our own are hopelessly insolvent. Since it would take a rational approach by politicians, and a lifestyle change for those ?entitled? to resolve our debt, it?s safe to assume our financial system won?t be corrected anytime soon. Debt based fiat currencies simply do not stand the test of time.

To those who want to own precious metals, regardless if the motivation is profit or peace of mind, silver offers an affordable option in the realm of liquid precious metals.

 

2016 Canadian Silver Maple Leafs Available Now