Common market logic tells us that silver is considered a shelter and a physical asset that traders can rely on during economic, financial and political crisis. Silver is typically viewed as a hedge against the downturn in equity market and an insurance policy to grow and guard wealth. There are several ways of buying silver, both in the physical form and in terms of market securities.
However, buying silver in its physical form, including silver coins, is the best way to save investors money in these types of market environments. It is not always necessary for mining stocks and ETFs to follow the price of silver; they can move back amid some unwanted news from inside the company, such as a workers' strike, poor business growth strategy or any accident. Therefore, having physical ownership could save investors from many potential risks.
Potential Advantages
Investing in physical silver in the shape of coins has numerous advantages. Investors can simply buy these silver coins from any reputable silver dealer. There are different silver coins available in the market, including Canadian Maple Leaf silver coin, Chinese Panda silver coin, and American Eagle silver coin.
Silver/USD
The most popular way of investing in silver coins is buying the 1 ounce silver American Eagle, thanks to its 99% purity. Due to its higher credibility and selling prices, the American Eagle silver coin appears as a safe bet for new investors.
Each silver coin holds a small premium compared to the spot price to pay off manufacturing and handling charges. Since the start of this year, Silver Eagle monthly sales increased by 6.47 million coins, compared to the same period last year.
Bank Recommendations
Several investment banks have argued that it is the best time to buy silver amidst recent rallies, as prices are likely to accelerate their upward trend in the second half of this year amid a volatile business environment, low crude prices and unpredictable interest rates and increased demand from manufacturing and industrial industries.
Crude oil prices are unlikely to bounce back and IMF has recently lowered its outlook for the global economic growth, which could prove to be key drivers for silver price in the remaining part of the second half of this year. All of these factors will likely remain in place for investors over the next several quarters.