Investing in Silver Mine Stocks

Investors prefer to own silver as a hedge against the damages done by government fiscal and monetary prices. Trading in gold or silver is the best way to boost investment due to the simple economics of supply and demand. Industrial use, jewelry, photography, coins & medallions consume ninety five percent of silver leaving just five percent for investment.

As economics say, decrease in supply and increase in demand dictate higher silver prices. Moreover, when countries like China announce a sudden depletion of reserves, it fires up a rise in prices on silver. Rather, than appreciating silver from a distance why not invest in it and take advantage of the economic model of price determination.

Futures contracts, coins and bullion, and mining stocks are some of the common methods of silver investment, but for past couple of years owning shares of silver mining companies has gained interest. Silver is slowing growing out of it big bully brother, gold's shadow with a price double since the last 10 years.

Although, investing in silver mines is not new to the investor kin, for the newbies there are three basic categories of mining stocks: Junior Exploration companies, Conglomerates and Silver specific mining companies.

Conglomerates: Many a times, silver is a by-product of gold and zinc mining. Companies leverage their existing resources to expand their production. Silver as a diversified product, share prices of conglomerates do not hold the same value as silver prices.

Junior Exploration companies: These companies gamble their capital on finding proven reserves, which the conglomerates ultimately buy since they have the infrastructure to reap and process the reserves. Purchase shares of many companies in this group and increase the chance to strike it rich.

Silver specific mining companies: These are companies that primarily produce silver and the prices are co-related to the prices on silver.

While investing in silver mining companies look out for factors like proven reserves, short-term production forecast, proven good management team, any legal issues, good cash flow & return on equity and assets and a strong balance sheet.

Investing in mining shares may not hold the same value as holding silver, but if you want to invest at the risk end of the spectrum yet reap rich rewards, this method offers a good boost for an investor. In addition, investors look at purchasing silver mining shares as a part of an overall portfolio diversification strategy to help reduce risk.

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Is It a Good Time to Buy Silver?

There could be no better time to invest in silver than now. Within the last five years, silver prices have increased dramatically. People who bought silver before prices went up have seen their initial investment increase by up to 100%. Everybody is talking about how investing in precious metals like silver is a really good idea.

One of the main reasons why silver prices have gone up so much is because of the Global Financial Crisis. Peoples' fears about governments collapsing and banks failing have left many flocking to more tangible means of protecting their assets. Many believe that because of immoral politicians and greedy corporations are leading us towards a global catastrophe. Maybe you feel the same way, and I don't blame you. This fear of uncertainty has led to a lot of people looking into buying silver, and silver prices have gone up by a lot. If something really bad happens, the money we use now will be completely useless, and the only things that will have any real value are assets that have been traded since the dawn of man such as silver and other precious metals.

Another reason why people have invested in silver so heavily is because it is used as a hedge against inflation. I'm sure you have all heard the news about the U.S. dollar losing a lot of its value. Inflation means that the value of a type of money, like the dollar, for example, goes down. This means that it now takes more dollars to buy something. Your money becomes more worthless when inflation occurs. Essentially, you're losing money simply by having it sit there. If you had a hedge against inflation, you won't lose money because of inflation, because while the dollar loses value, your silver will not lose value. If the dollar loses its value, it won't matter to you because your silver, gold and other precious metals will remain valuable. As a matter of fact, while your dollars go down in value, your silver goes up.

These are some of the pros of investing in silver. If you are interested in buying silver, you should act now. The prices of silver will only continue to increase as the economy gets worse and more people are worrying about their jobs and their finances. Buying silver involves locating a silver dealer. You can find one either on the internet or at a brick and mortar location in your local community. Silver is traded in many ways. Some buy silver coins, others prefer silver bullion and yet others like silver bars. Buying silver this way is a fun and interesting method of investing because you'll receive actual silver to keep in your home or in a more secure location such as a bank or in a safe deposit box.

If you do not want to handle physical silver, perhaps buying shares of silver would be better suited for you. Companies such as iShares silver trust fund keep large amounts of silver. You would buy a little bit of the company and you get the profit the company makes from the silver it holds. This is called Exchange Traded Funds. If you decided to do this, you would get something called an Exchange Traded Certificate which is basically your claim to a share of the profits from the company.

As you can see, there are many ways to invest in silver, but the undeniable reality is that now is one of the best times in recent history to be a silver buyer. If you are new to investing in precious metals I encourage you to educate yourself, and read up as much as you can about the subject.

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The Canadian Silver Maple

One of the world's most popular silver bullion coins, the Silver Maple Leaf has been minted by the Royal Canadian Mint since 1988. It is one of the purest silver bullion coins on the market - 1 ounce (31.1g) of 99.99% Silver. Although the face value is 5 dollars, the coin is generally sold based on its silver value, although they do attract quite a premium over the spot price. Diameter is 37.97mm and thickness 3.18mm.

The Reverse always has a maple leaf depicted, the National Emblem of Canada and hence the coin's normal reference title in numismatic circles as a 'Maple'. The original design was by Dora de Pedery-Hunt (1913-2008), a gifted Hungarian born artist and sculptor who emigrated to Canada in 1948.

Above the maple is the word 'CANADA', to each side is '9999' confirming its purity and always below is the phrase 'Fine Silver 1oz Argent Pur'.

The Obverse is the head of Queen Elizabeth II. There has been three designs showing a young head, an old head and an older head.

The edge is reeded.

The coin has been continually minted since 1988. The millennium issue in 2000 was dual dated 1999-2000. As an indication to the Maple's increasing popularity, the mintage in 2000 was just over 400,000; in 2011 it was over 23 million.

Variations

A Proof was issued in 1989 and there has been some coloured versions plus holographic enhancements such as the commemorative issue for 2010 Winter Olympics which were held in Vancouver.

There has been many Maples with Privy marks, which are small marks or indentations (originally used in coins to determine Mint but these days more for marketing to coin collectors). Some Privy marks were only available outside Canada, such as those made for the Royal Dutch Mint in Holland.

Some years had more than one Privy mark coin issued, for example 2000 had a Fireworks, an Expo Hanover and a Year of the Dragon. There has been a theme of the Chinese Zodiac series and covered all 12 months.

2012 saw a F15 (Fabulous 15), a Titanic commemoration and a Dragon. In the same year, The Leaning Tower of Pisa Privy was issued in Europe only by CoinsInvestDirect.

In 2003 there was issued a 5 coin set for the 15th Anniversary of Silver Maple Leaf. It comprises of a 1oz down to 1/20th oz.

There has been 5- and 12-coin Privy Mark sets, Special Issues and the Canadian Wildlife series.

In 1998 there was a 10oz Maple issued.

In 2012 a 10 dollar, half-ounce (15.87) coin called a 'Maple Leaf Forever' was introduced by the Canadian Mint.

It is possible to buy Maples in tubes of 25. You can get Gold Maples.

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The Numerous Benefits Of Silver

Prior to 1900, when lots of deposits of silver were yet to be discovered in the United State of America, silver was of great value in many places and even functioned as the principal element of their medium of exchange. At this time, silver coins are not made in the US of A, but they continue to be produced in Canada and are easily obtained in different denominations there.

Its evolution from utilization as currency to the silver we have today has demonstrated that silver still possesses remarkable worth as a metal. Its highly desired by dealers who watch the precious metals market and has at the same time emerged as incredibly in demand as an element for lots of other applications.

Silver in Silverware and Jewellery

A couple of common uses for silver are found in the jewelry and silverware arenas. In the U.S., there are particular standards pertaining to the usage of silver in these markets, and a precise technique needs to be complied with to classify a piece as sterling, or standard silver, therefore the quality of the metal is controlled for use in production.

Although jewelry built from gold can be really popular, the adoption of silver in pieces of jewelry has gotten to be a very common practice in the fashion arena recently. The fusion of beauty and lower cost that silver offers makes it the sensible choice in metal for both ambitious designers and consumers who like to get the most from their investment.

Additionally, there is a long standing practice where silver is utilized to manufacture eating utensils and many different silver articles, known as silverware. Traditionally, items identified as silverware were made by craftsmen called silversmiths, and they consisted of all things from tableware and attractive dishes to flower holders and napkin rings.

Nowadays, the expert silversmith has dwindled as a vocation, and silverware is becoming more rare, thus making such items a lot more valued in their rareness.

Silver in Modern Technology and Medications

It is intriguing to note that silver's position in the tech business was once just about completely concentrated in the speciality of photographs, where it was typically used to aid in the method of color picture development. Even so, with the evolution of digital technology and the currently low demand for film, this specific use for silver has dwindled drastically.

The usage of silver has now spread to dozens of other areas throughout the tech sector, and we can now see its use in the making of materials like circuitboards, audio connector cables and even keyboards for computers. The usage of silver in the field of technology has more than replaced its decreased use in photography and has contributed greatly to its present market price.

Remarkably, silver contains qualities that also make it specifically suitable for usage in the health field. It is frequently employed in a variety of forms to eliminate some kinds of viruses and bacteria, which it can do without hurting people, as some other metals do.

The aforementioned antibiotic quality of silver has resulted in its utilization in bandages and healing ointments, especially those in connection with burns. Additionally, catheters produced from silver alloy have been found to be efficient in limiting bacteria, therefore helping to prevent urinary tract infections in sick people.

Some other utilizations of silver can be found in the manufacturing of mirrors, the production of polyester fibers, as a soldering element, and as a reactive agent in nuclear reactors. It looks like we are just now realizing how useful silver truly is, and there are sure to be even more exciting discoveries for the use of silver hereafter.

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Now Is the Time to Invest in Gold and Silver: 7 Tips to Increase Your Wealth

With the most recent breakout in the gold and silver price, we seem to have a confirmation that the correction of more than a year is over. The gold price corrected from over 1,900 US dollar (beginning of September 2011) to 1,515 dollar earlier in 2012. Silver declined from almost 50 US dollar (beginning of May 2011) to around 26 dollar. After a long correction, it seems to be time for a move higher. Who knows, maybe we'll soon see all-time highs. It seems to be the time to step into gold and silver. This article provides tips for individuals and investors who want to profit from the next ride up, but also protect against the economic turmoil in the world.

Tip 1. People globally are accumulating gold & silver to protect against the debt crisis.

An increasing number of individuals and investors globally are buying gold & silver in the first place to protect their wealth and savings. Even Central banks are accumulating gold on a large scale. What can we learn from this trend? People are protecting their purchasing power against the negative effects of the ongoing global debt crisis. Gold and silver are a safe store of value. With one ounce of gold you will be able to buy the same goods in let's say 3 years. The paper money you are owning will lose its value over the same period of time.

We are witnessing a severe crisis, caused by excessive amounts of government debts and massive money printing mainly in the Western countries and Japan. The most logic outcome of those practices is inflation, which results in a declining value of paper money.

Tip 2. You too should own gold & silver, it's very simple.

It became very simple over the past years to own precious metals. There are actually more ways than ever to buy gold & silver. Here are some tips:

Ideally you buy gold and silver in the form of 100g bars, 250g bars or 500g bars. Don't buy large bars, as you will potentially encounter difficulties selling them. Make sure you own the metal; so an unallocated solution from your bank is not an advised solution. A simple but safe solution is to store the metals in a personal safe, but not at home. Consider buying some gold and silver coins like the South African Kruegerrand, the Australian Kangaroo, the Swiss Vreneli, the Canadian Maple Leaf or the American Eagle. Don't buy exotic coins as you will have difficulties to find buyers when you want to sell. There are Exchange Traded Funds (ETF's) you can buy on the stock exchanges. Make sure you only buy the ETF's that are backed with physical gold and silver, like Sprott Physical Trust or Central Fund of Canada. You can easily buy and store precious metals via online programs. The huge advantage is that the metal is stored in a safe vault, which is usually included in the service. We like BullionVault.com and GoldMoney.com. For US and Canadian citizens, there is an accessible silver savings program SilverSaver.com. If you prefer Swiss authenticity 100% outside the banking system, then you should consider GlobalGold.ch.

Tip 3. Be sure to own physical gold & silver, avoid paper holdings.

Avoid as much as possible buying paper gold or silver, like the ETF's GLD and SLV. They became very popular because of their ease of use, but there are some risks associated with the ETF's. As a general rule of thumb, remember to own your gold and silver outside the banking system. We're afraid that ETF's could be knocked down when a systemic financial crisis should occur. If you want an example of what can go wrong with paper gold, then have a look at the recent drama that occurred with MF Global: investors simply lost all their money.

Tip 4. We are in stage 2 of the 3 in the gold bull market, still far away from the top.

Every market goes from undervalued to fairly valued and finally overvalued. These are long term trends which are called "wealth cycles". The key to be successful in your personal or professional investment life, is to get rid of overvalued assets in order to accumulate undervalued assets.

If you look at the current gold and silver prices, you might think that the metals are overvalued. You could be wrong. Expressed in nominal terms, the prices look high indeed. But if you monitor following indicators, you'll get another picture:

When taking inflation into account, the gold and silver price are much lower than their peak of 1980. When looking at the personal ownership of gold and silver, you'll see a ratio of roughly 1:10.000 people in the Western world who own the metal. When comparing the current gold and silver investments with the ones at the top of the previous bull market in 1980, you'll see a ridiculous low amount of invested assets in precious metals today. We did not see any parabolic move of the gold or silver price. If you look back to 1980,you'll see what parabolic means.

We are currently in the second stage of the bull market. When we enter the third and final stage, a hype will occur and everybody will rush to own gold and silver. Clearly "smart money" is already profiting from the current undervaluation of gold and silver; as usual, they are ahead of the herd. Are you too?

Tip 5. Be prepared to see serious price moves, mainly in silver... it's normal.

In general, all commodity markets tend to move sharply. Gold and especially silver follow the same principle. It's quite common to see the silver price move 3% or more on a particular day. As the long term bull market in gold & silver continues, the volatility intensifies as well. So we can expect an even more intense price action. Be prepared and do not panic, it's a characteristic of the bull market.

The "heart fainted" investor will preferably need to focus on gold. If you are not afraid of volatility and you have an iron stomach, then you could go for silver. You'll have potentially higher profits. But be sure to time your purchase.

Tip 6. Timing your purchase is crucial, never chase prices higher.

One of the key decisions is to determine when to do your purchase. It's a decisions you should base on the long term charts. The "golden" rule is to buy the dips (they always come) and avoid buying at the peaks.

When you have a look at the gold chart of the past 10 years, you'll see that the price is moving perfectly in a range of higher highs and higher lows. Don't chase prices higher; just wait to buy the dips. Don't be afraid of waiting a bit if prices are near an intermediate peak. You should welcome decreasing prices for the buying opportunity you get.

Tip 7. The previous century was for gold, this one is for silver.

During the past decade both gold and silver performed very well in nominal terms. When looking at the gold/silver ratio, most precious metals experts agree that the silver price will increase sharper than gold. One of the reasons is that the historical gold/silver ratio is approximately 16/1. The ratio tends to move to that average on a longer term basis. Currently it's almost 60. Do you see the opportunity?

Another way to estimate the potential of a silver investment, is to look at the supply side. Silver is expected to encounter severe shortages because of the combination of its increasing industrial usage and increasing investment demand. You would be surprised to learn how much industries are using silver as a raw material in manufacturing products. Silver is all around you: your laptop, mobile phone, jewels, light switch, your car, mirrors, solar panels, batteries, electrical products like TV or washing machine, etc.

Want more info about each of the 7 tips mentioned in this article? You'll find a dedicated article per tip with much more details, starting on this page http://goldsilverworlds.com/tip-1-gold-and-silver-is-for-everyone-individuals-and-investors-globally-are-accumulating/

Guidelines For Investments In Silver   Buying World Coins With Confidence - (Do You Desire More Information on the Coins You Love?)   Do You Own Mint Packaged or Graded Coins? China Is Producing Knock-Offs of These Too