Investing in silver is one of the most reliable tools for preserving and increasing capital in 2019. Of course, the purchase of precious metals involves certain risks, but if you follow a well-composed business plan and constantly study information about quotes, you can earn some pretty good money. In our article we will talk about the pros and cons of such investments and their prospects in the near future.
Silver rate for today
Have you thought about how profitable it is to invest in precious metals in 2019? Then you should analyze in detail the rate of silver in recent times. Today it is almost $ 16 per troy ounce - a very good indicator for investment. The silver price growth charts look rather optimistic, but not everything is as rosy as it seems at first glance.
Most experts foreshadowed in 2018 an increase in the value of most precious metals, but forecasts did not live up to expectations. By the end of the year, the cost of gold and silver fell so low that investors lost 20 to 50 percent of their investment. After that, many businessmen began to be very wary of the growth in the rate of the precious metal, believing that it was overpriced artificially.
However, do not forget that after about 10 years, most of the mines found with precious metals will be bled by large states in which industry is highly developed. After that, many people should appreciate silver. Of course, as a short-term investment, precious metal is unlikely to live up to your expectations, but after 5 years you will probably feel how profitable it can be to invest in silver.
Long-term investment prospects
Thinking about whether to invest in silver? Then, for starters, we recommend that you familiarize yourself with the information on the state of precious metal mines today. The exact number of deposits is unknown, but there are approximately sixteen times more than gold. However, this is far from a fact that in the coming years, white metal will be less in demand than gold. According to experts, some processing companies simply refuse to supply from large mines, since the quality of the product leaves much to be desired. Because of this, prices for available metal stocks are rising, which investors and large financial corporations love to invest in.
Also, a novice investor should be aware that the downward trend in the physical volume of the precious metal will continue for several years. Silver is not returned for processing in the form of scrap, but it is still several times more than gold. In addition, people are not as willing to purchase silver jewelry as gold jewelry, although the price difference is simply huge. White precious metal tends to blacken over time, so for a good gift it is better to give preference to an alternative. What can we say that only 20 percent of mined silver does not have impurities! The remaining 80 percent of nuggets contain a certain amount of nickel or zinc.
Why are silver prices changing so much?
The dynamics of silver prices for the year may change several times. At the beginning of winter, the price of a precious metal, as a rule, rises by several percent, however, in the middle of spring, prices may fall below the previous level, and by the beginning of summer they may rise again. At such races, many beginning investors went bankrupt at the time. So if you plan to invest in precious metals, then you will need to have a lot of patience.
Also, one should not forget that our country is currently in a crisis. On the one hand, such a trend leads to an ever-floating exchange rate of silver, which makes it incredibly difficult to predict the value of the precious metal by tomorrow. On the other hand, the fall of the ruble led to an increase in the price of the dollar and other foreign currencies. Well, since in most cases silver is valued precisely in dollars, this has led to an increase in its value in the international market.
It turns out that if not for the crisis and American sanctions, would it be easier to make money on reselling silver? Yes, but the profit would be minimal, since the price of the precious metal would always be kept within the same mark. Well, downloading charts allow you to earn a fortune on such investments or lose most of your savings. It is somewhat reminiscent of the purchase of shares for which dividends are not paid, but the rapid growth or fall of securities is promised.
What are silver quotes
If you want to determine the prospects for investing in silver, then you should thoroughly study all the theoretical information on this issue. For example, every novice investor should know what silver quotes are and by what rules they are set. Such knowledge will help to predict the course of the precious metal for the near future, however, even with such information, the investor is quite at risk by buying the precious metal.
So, the quote is the price for one ounce of silver, which is set daily by the London fixing. Of course, in order to set the course for the precious metal, it is necessary to coordinate their actions with a dozen different merchants and companies that buy it. In addition, such a nuance often depends on the amount of precious metal mined. The London quotation obtained in the course of detailed studies equals the majority of national banks in the world.
As for the Russian Federation, the Central Bank sets the rate of precious metals in the country. Of course, in such matters he is largely guided by the London quotation, but do not forget that during the crisis, the price of silver can increase artificially, so that investors invest their money in buying white metal. Quite often, this leads to the fact that people lose their savings, but the most patient buyers benefit from this enormously.
Forecast for the near future
Thinking about when silver will rise in price? Most experts over the past few years have given very optimistic forecasts about the increase in the value of the precious metal due to a reduction in global reserves, but the dynamics remain very stable. Of course, prices can vary from 15 to 20 dollars per ounce, but so far no sharp jumps have been observed. Perhaps such forecasts are destined to come true in ten years, or silver prices will begin to rise tomorrow. That is, the dynamics of rising or falling prices in a crisis, even for specialists, remains completely unpredictable.
If we discard the fact that the Central Bank can raise silver prices artificially, then calculating the value of the precious metal by tomorrow is very realistic. It is only necessary to take into account the industrial demand for the goods and the volumes of extracted raw materials for the year. In this regard, the Russian Federation is more or less stable. Therefore, it is possible to conclude with a high degree of probability that investing in the purchase of silver, the investor at least does not risk losing his money due to inflation. Of course, such a forecast is relevant only in the long term, so novice investors should be patient.
Is silver prices likely to rise quickly in 2019?
How much will a bank of silver in 2019 cost? The exact answer to this question will not be able to give you a single expert. However, if you pay attention to the charts of changes in quotes at the end of 2018, then you will understand that a slight increase is possible in principle. Over the past three months, the price of one ounce of the precious metal has risen by about two dollars. This is a very good indicator, but you must take into account the fact that the situation can change at any time.
Also, do not forget that the economy of most countries in recent years has been greatly inhibited. Precious metals will no longer be replenished in such large volumes, so the demand for jewelry will only grow. It may take a couple of years to wait for a sharp rise in the price of silver. However, some experts are very confident that a similar trend can occur in 2019. However, as you know, even professional analysts can make mistakes from time to time.
Buying Bank Bars
To date, anyone who has a sufficient amount of money can purchase a bullion of silver from Sberbank. This precious metal of 925 tests is sold in large (up to one kilogram) and small (from one gram) specimens. Of course, you can invest in the purchase of several small bars, however, it is best to invest a large amount of money in a large piece of precious metal. The larger the bar, the cheaper it is to buy one gram of silver for the investor.
However, each entrepreneur should be aware of the fact that the purchase of precious metals is a rather lengthy and time-consuming procedure. For example, it will take at least one week for the expert to establish the authenticity of the ingot (for a fee) and write the corresponding conclusion. In addition, if you decide to store precious metal in a bank safe, it will also take a lot of time and money to open a cell. However, this is still much more reliable than hiding it at home under the mattress.
Investment coins
Perhaps, almost every person who has a certain amount of money in stock has at least once thought about investing in silver. Is it profitable to actually invest in precious metals? Yes, when it comes to acquiring special investment coins. Prices are steadily increasing, regardless of the current silver rate. However, do not confuse investment coins with collectibles, since they have a rather large difference.
The collection product is intended for further sale to individuals, and its price largely depends on the owner’s ability to negotiate. Sometimes it happens that the owner of a collection coin simply does not find a buyer and gives it to a pawnshop in order to return at least some money. The investment option is specially created in order to simplify the procedure for investing money in precious metals. In such coins there are no various inclusions under precious stones or inserts from other metals and alloys.
Thus, investing in investment coins is a much more promising activity than buying silver bullion. Their cost does not depend on the quotation, so the investor practically does not risk losing his funds, as is the case with the collector's option. However, the profit will be tangible only if it comes to the acquisition of a large batch of coins for long-term investment.
Opening a metal account
In search of an answer to the question of where is the cheapest silver, many investors sooner or later stumble upon the possibility of opening a special metal account, thanks to which the investor no longer needs to purchase bullions or investment coins. You buy a few grams formally, after which it is stored in your silver account. If the bank where the purchase was made unexpectedly goes bankrupt, then the amount of silver that he bought can be given to the investor in bullions.
A significant drawback of this method of investing is that the prices on the exchange are quite different from the cost of physical metal. The Bank has the right to change the exchange rate of the metal within a certain framework that does not contradict the legislation of the Russian Federation. Therefore, if you decide to open a depersonalized metal account, choose the most suitable offer for yourself, which is not much different from the cost of metal in the silver market. The forecast for the growth of quotes will also largely depend on the policy of the bank itself.
As for the advantages of this method of investing, they are quite significant. Firstly, you don’t have to pay money to an expert for evaluating the bullion. Secondly, the investor will not have to wait for the paperwork, and the registration procedure on the exchange is a few minutes. Of course, the value of silver in this case is lower, since all transactions are formal, but this allows thousands of investors from all over the world to make money on this. Maybe you should try it too?
Finally
We hope our article helped you figure out how profitable silver investments can be. Of course, the success of investing in a precious metal is largely determined by the knowledge of the owner himself, but do not forget that prices can be artificially raised so that the country's economy does not simply collapse. If you still have any questions about investments, we recommend that you watch a short video that details the prospects for investing in silver in 2019, and provides a forecast for fluctuations in the price of precious metals.
As you can see, even in a full-blown crisis, many people find a way to earn huge amounts of money. If you are interested in investing in silver, then you should consider that market prices can change literally every day, and it can be incredibly difficult to predict them. However, do not be scared in vain. Precious metals are the protective assets of any country, so their value is unlikely to ever drop too low. In most cases, the depreciation is carried out artificially, so that investors begin to sell metal in a panic. If you know how to be patient, then investing in white metal will bring you a good return.